Martha (Argentina)
The Martha underground silver and gold mine, and associated milling operation, owned and operated by Coeur
Argentina S.R.L., a wholly-owned subsidiary of the Company, is located in the Santa Cruz Province of southern
Argentina. Access to the property is provided by all-weather gravel roads leading 30 miles northeast of the town of
Gobernador Gregores.
2Q 2011 results -Additional Silver and Gold Production
• The doubling of mill throughput from 240 tpd to 480 tpd is expected to be completed in third quarter.
• Development of the Betty vein, located approximately 500 meters north of the mill, commenced during the second quarter.
• Higher production is anticipated during the second half of 2011 due to the mining of higher grade ore in the Betty and associated Betty Sur veins and from the reprocessing of existing tailings.
The mineral rights for the Martha property are fully-owned by Coeur Argentina S.R.L. Mineral rights owned by
Coeur Argentina S.R.L. in the Santa Cruz Province (excluding options on Joaquin and Satélite) total 184 square
miles (47,660 hectares) of exploration concessions (claims), 256.3 square miles (66,380 hectares) of discovery
concessions, and 3.4 square miles (874 hectares) of exploitation concessions. Martha is centered on the exploitation
concessions, which fully cover the area of the mine infrastructure and the ore reserves reported herein. Concessions
do not have an expiration date; subject only to required annual fees. Surface rights covering the Martha deposit are
controlled by the 137.8 square mile (35,705-hectare) Cerro Primero de Abril Estancia which is owned by Coeur
Argentina S.R.L. Included on the estancia is a 60-person camp, mine and exploration offices, and assay laboratory.
The Company acquired the property in 2002 through the purchase of a subsidiary of Yamana Resources Inc. for
$2.5 million. The prior owner conducted minor underground mining on the near-surface portion of the Martha vein
from late 2000 to mid 2001. The Company is obligated to pay a 2.0% net smelter royalty on silver and gold
production to Royal Gold Corporation granted by Yamana Resources. In addition, the Company is subject to a 3.0%
net proceeds royalty payable to the Province of Santa Cruz. The Company incurred royalty expense totaling
$1.5 million, $1.8 million and $1.9 million for the years ended 2010, 2009 and 2008, respectively.
Prior to 2008, ore from the Martha mine was trucked approximately 600 miles by road for processing at the
Company’s previously owned Cerro Bayo mill located approximately 270 miles away. In 2007, the Company
commenced the construction of a 240 tonne per day flotation mill. The mill was completed and commenced
operating in December 2007 and produces a flotation concentrate. In 2008, concentrate began to be shipped to a
third-party smelter located in Mexico. The property and equipment are maintained in good working condition
through a regular preventive maintenance program with periodic improvements as required. Power is provided by
Company-owned diesel generators.
At Martha, silver and gold mineralization is hosted in epithermal quartz veins and veinlets within generally
sub-horizontal volcanic rocks of the Jurassic-aged Chon Aike Formation. The veins and veinlets occur as sub-parallel
clusters largely trending west-northwest and dipping steeply to the southwest. The main ore minerals of silver and
gold are silver sulfosalt minerals, argentite, electrum (a naturally-occurring gold and silver alloy) and native silver.
During 2010, the Company spent $0.5 million to test extensions of the R4, Catalina, Betty Oeste and Betty Sur
ore-bearing structures with drilling of 2,217 meters (7,274 feet) of new core drilling. The 2011 budget for exploration
at Martha is $0.3 million.
| Stage | Production |
| Location | Southern Argentina |
| Type | Underground |
| Metals Produced | Silver |
| Product | Silver concentrate |
Historical Financial Data
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| Net Revenues | $20,606,000 | $34,,733,000 | $38,077,000 | $31,445,000 | $44,820,000 |
| Production Costs | $9,016,000 | $12,538,000 | $17,231,000 | $17,599,000 | $17,896,000 |
| Gross Profit | $11,590,000 | $22,195,000 | $20,846,000 | $13,846,000 | $26,924,000 |
| Gross Margin | 56.2% | 63.90% | 54.75% | 44.03% | 60.07% |
| EBITDA | $7,924,000 | $19,274,000 | $16,390,000 | $8,403,000 | $23,805,000 |
| Capital Expenditures | $2,108,000 | $2,481,000 | $16,444,000 | $4,503,000 | $1,575,000 |
| Cash Costs/Oz of Ag | $4.60 | $4.88 | $6.27 | $7.57 | $6.68 |
