Silver output soars for Coeur

Vancouver — Production from both the newly commissioned Cerro Bayo mine in Chile and the recently acquired Martha mine in Argentina has Coeur d’Alene Mines (CDE-N) set to increase silver output by 50% in 2002.

“Through the efforts of the Coeur operations group, we have commenced production at Cerro Bayo one month ahead of schedule and well within the budget,” says Chief Executive Officer Dennis Wheeler. “The Cerro Bayo mine is the first of a new generation of high-grade, low-cost mining properties for Coeur that will generate strong cash flow.”

Cerro Bayo hosts a series of parallel-to-sub-parallel vein systems. So far, the combined Cerro Bayo zone has been outlined over a 2.5-km strike length and a width of 1 km. At last count, the property held reserves of 530,000 tonnes averaging 6.2 grams gold and 333 grams silver per tonne, with an additional resource of 530,000 tonnes grading 2.7 grams gold and 171 grams silver.

Coeur expects Cerro Bayo’s annual production to climb to 80,000 gold-equivalent ounces by 2003.

Also adding to this year’s production is the acquisition of the Martha deposit in the southern Patagonia region of Argentina. Situated on the Bacon property, the underground mine was picked up from Yamana Resources (JYRI-T) in exchange for US$2.5 million in cash. Coeur also agreed to subscribe for 10 million Yamana shares totalling US$600,000.

Martha is 430 km east of the Cerro Bayo mine and is part of the regionally extensive Veta Martha fissure vein system. Resources are pegged at 4,993 tonnes averaging 14,700 grams silver-equivalent per tonne, or 2.1 million contained ounces. About 600,000 oz. are contained in pillars and may not be immediately minable.

Sixteen holes drilled last September confirmed existing resources in one zone and added new resources in another. At Zone 1 West, drilling confirmed a resource of 440 tonnes averaging 27,600 grams silver-equivalent. Farther to the west, outside the resource area, drilling returned half a grading 25,500 grams silver per tonne and half a metre of 13,300 grams silver. Seven additional holes have extended Zone 3 East by 20 metres to the east and to a depth of 30 metres.

With added feed from Martha, Cerro Bayo’s 2002 production is now slated to climb by 50% to 123,000 gold-equivalent ounces, and cash costs are expected to drop to less than US$150 per oz. gold-equivalent.