coeur's exploration program at kensington gold

Coeur's Exploration Program at Kensington Gold Mine Returning Favorable Results

9-Sep-10 09:25 am Press Release Source: Coeur dAlene Mines Corporation On Thursday September 9, 2010, 9:00 am
COEUR DALENE, Idaho--(BUSINESS WIRE)--Coeur dAlene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today reported that its exploration drilling program at the newly opened Kensington Gold Mine in Alaska has been returning favorable results through the first eight months of this year, with the exploration of new targets continuing.

The Horrible vein system, which is located about 1,500 feet to the west of the main Kensington mine, remains open at depth and on-strike and is easily accessed from existing underground infrastructure. This years program is the first exploration activity at Horrible since 1992 and is situated at the north end of a +14,000-foot long, northeast-trending structural and vein belt that contains Kimberly, discovered last year, Jualin and several other gold-bearing quartz veins located west of the operating mine.

Favorable results were obtained from many drill holes (see tables included in this release for recent drill results from 25 of the 35 core holes), including:


6.5 feet of 2.39 gold ounces per short ton from core hole H10-016;
3.9 feet at 0.907 ounces per short ton of gold from core hole H10-029; and
3.5 feet of 1.069 ounces per short ton of gold from core hole H10-031

Many of the drill holes cut multiple quartz veins which are typical of the style of mineralization seen at the nearby Kensington ore body. The Company will be conducting additional exploration drilling to test the greater extension of the dip and strike, both of which remain open for expansion, and commence in-fill drilling on higher-grade zones defined by wide-spaced exploration drilling to-date.

The Kensington gold mine, which began production in late June, is expected to produce approximately 50,000 ounces of gold this year and average approximately 125,000 ounces of annual gold production over an initial 12.5 year life based on current reserves of 1.5 million ounces. Cash costs are expected to average approximately $490 per ounce over the mine life.