Resource life up at San Jose (6058U)
October 19 2010 - 2:01AM
UK Regulatory
TIDMHOC
RNS Number : 6058U
Hochschild Mining PLC
19 October 2010
______________________________________________________________________
19 October 2010
Resource life at San Jose operation increased by approximately
50%
-- Discovery at San Jose significantly increases resource life
of mine to approximately 12.5 years1
-- Total resources increased by 63 million silver equivalent
ounces
o 28% increase from existing veins
o 72% increase from new veins and extensions
-- Highly prospective district with significant geological
potential: ongoing intensive drilling campaign
-- Discovery represents continued delivery of strategy focused
on growth through exploration
Following the discovery of nine new high-grade gold/silver veins
and two extensions, announced last week, Hochschild Mining plc
("Hochschild" or "the Company") is pleased to report that resource
life of mine
2
at its San Jose operation has increased from approximately 8.4
years as at December 2009 to approximately 12.5 years
3
as at September 2010. This is a result of an intensive 47,431
metre drilling programme undertaken by the Company in the first
nine months of the year which has increased total resources by 63
million silver equivalent ounces (the Company reported total
resources of 110 million silver equivalent ounces as at 31 December
2009).
Ignacio Bustamante, CEO of Hochschild Mining said:
"Following last week's discovery, we are delighted to report
this significant increase in resources at the San Jose operation
which demonstrates our strategy in action. At the outset of the
year, we committed to increasing the resource life of mine at our
key operations and I am pleased to say that we are now seeing the
results. Today's announcement reflects both the skill and
experience of our exploration team and the enormous geological
potential of the district, highlighted by the recent $3.6 billion
bid for Andean's nearby Cerro Negro property. We are committed to
value creation through organic growth and will continue to focus on
exploration to maximise the full potential of our operations and
projects."
Going forward, the discovery of the new system, which does not
outcrop, will be used as an exploration guide to open up new
opportunities at the property. To date, a significant portion of
the San Jose property continues to be open at depth and laterally.
Exploration drilling is continuing to expand resources in the known
veins, including Ayelen and Odin, and exploration is also
continuing in other areas of the property, such as the Saavedra and
Aguas Vivas targets.
Total
resources4 Ag Au Ag Eq Ag Eq LOM5
t g/t g/t g/t moz yr
-------------------------- ------------ ---- ---- ------ ------ -----
Resources at 31 December
2009 4,436,892 406 6.1 771 110.0 8.4
Existing Veins 704,319 438 5.4 762 17.3 1.3
New Veins and Extensions 1,841,410 379 6.5 772 45.7 3.5
Total additions 2,545,729 396 6.2 769 63.0 4.8
-------------------------- ------------ ---- ---- ------ ------ -----
Enquiries:
Hochschild Mining plc
Isabel Lutgendorf +44 (0)20 7907 2934
Head of Investor Relations
Finsbury
Faeth Birch +44 (0)20 7251 3801
Public Relations
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company
listed on the London Stock Exchange (HOCM.L / HOC LN) with a
primary focus on the exploration, mining, processing and sale of
silver and gold. Hochschild has over forty years' experience in the
mining of precious metal epithermal vein deposits and currently
operates four underground epithermal vein mines, three located in
southern Peru, one in southern Argentina and one open pit mine in
northern Mexico. Hochschild also has numerous long-term prospects
throughout the Americas.
About Minera Santa Cruz:
Minera Santa Cruz is a joint venture owned 51% by Hochschild
Mining Argentina, a wholly owned subsidiary of Hochschild Mining
plc, and 49% by Minera Andes S.A.. The joint venture owns and
operates the San Jose property.
About Minera Andes:
Minera Andes is an exploration company exploring for gold,
silver and copper in Argentina with three significant assets: A 49%
interest in Minera Santa Cruz SA, owner of the San Jose Mine in
close proximity to Andean Resources' Cerro Negro project; 100%
ownership of the Los Azules copper deposit with an inferred mineral
resource of 10.3 billion pounds and an indicated resource of 2.2
billion pounds of copper; and, 100% ownership of a portfolio of
exploration properties bordering Andean's Cerro Negro project in
Santa Cruz Province. The Corporation had $8 million USD in cash as
at June 30th 2010 with no bank debt. Rob McEwen, Chairman and CEO,
owns 33% of the company.
1Unaudited
2 Resource life of mine is calculated by dividing the number of
resource tonnes by the amount of ore forecast to be processed
during the following 12 month period
3Unaudited figure
4Hochschild holds a 51% interest in San Jose and is the mine
operator
5Production from the first nine months of 2010 has not been
subtracted
This information is provided by RNS
The company news service from the London Stock Exchange
END
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