PALMAREJO
Mexico - Palmarejo
Exploration in Mexico during 2009 focused mainly in and around the Palmarejo mine. Coeur controls a large block of mining concessions totaling 12,100 Hectares, which encompasses the Palmarejo mine, the Guadalupe Project, as well as other prospects within a highly prospective ground at the center of the Sierra Madre epithermal belt.
Effective year-end 2009, Coeur announced new mineral reserves and resources for the Palmaejo District, totaling 90.5 million ounces of silver and 1.1 million ounces of gold which represents an increase of 45% and 42 % in gold and silver reserves, respectively, compared to year-end 2008. Two ore deposits comprise the mineral reserves; Palmarejo and Guadalupe. The Palmarejo deposit is a surface and underground mine in the north-central part of the large Palmarejo District. Guadalupe is located approximately 6 kilometers southeast of the current Palmarejo mine and processing facilities. In 2009, the Company drilled over 136,000 feet (41,400 meters) of core at Palmarejo and plans to continue drilling at both areas in and anticipates commencement of underground development of Guadalupe’s reserves in 2010.
In the second half of 2009, the Company’s exploration team discovered two near targets near to Guadalupe – called La Antena and La Higuera – both of which we explorae further in 2010. The full budget for Mexico exploration in 2010 is $9.2 million, over 90% of which will be devoted to the Palmarejo District.
The Company spent $7.6 million on exploration in Mexico in 2009of which $7.4 million was committed to the Palmarejo District, to discover new silver and gold mineralization and define new ore reserves. This program consisted of drilling 136,024 feet (41,460 meters) of core drilling at Palmarejo. The exploration budget for 2010 is $8.4 million allocated to the Palmarejo district.
Mexico – Other Properties
In addition to the Palmarejo property, the company also controls concessions at the Yecora prospect in Sonora and at El Realito and La Guitarra in Chihuahua south of Palmarejo. In 2009, the company conducted exploration at Yecora consisting of 5,174 feet (1,571 meters) of core drilling on several vein targets. The budget for 2010 exploration on these and other targets in Mexico is $0.8 million.
