Last checked at 7 Oct 2010 07:00
7 October 2010
New high grade discovery at San Jose property in southern Argentina
·; Discovery of 5 kilometres of high grade gold/silver veins comprising 9 new veins and extension of 2 existing veins
·; Expected to materially increase resource life of mine at San Jose operation
·; Highly prospective district with significant geological potential: ongoing intensive drilling campaign
·; Discovery represents continued delivery of strategy focused on growth through exploration
Hochschild Mining plc ("Hochschild" or "the Company") is pleased to announce the discovery of nine new high-grade gold/silver veins as well as significant extensions to two existing veins which together total more than five kilometres in strike length at its San Jose operation. The discoveries represent significant exploration progress at San Jose, where strike length previously totaled approximately 17 kilometres. The new veins are located in the area surrounding the Company's San Jose operation, between the Kospi and Frea veins, and can be accessed from existing mine workings (see Exhibit 1).
The findings are the result of an intensive drilling programme undertaken by the Company's exploration team in the first nine months of 2010, totaling 47,431 metres in 233 diamond core holes, nearly double the drilling undertaken in 2009. Following the discoveries, the Company is in the process of reviewing resource estimates for San Jose and expects to announce updated figures before the end of the month.
To date, a significant portion of the property continues to be open at depth and laterally. 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. Exploration drilling is continuing to expand resources in the known veins, including Ayelén and Odin, and exploration is also continuing in other areas of the property, such as the Saavedra and Aguas Vivas targets.
Ignacio Bustamante, CEO of Hochschild Mining said:
"We are delighted to report the discovery of nine new high grade veins at our San Jose operation in southern Argentina, as well as the extension of two existing veins. The results, which are expected to materially increase mine life, demonstrate the significant geological potential of the district and the strength of our highly experienced team of geologists. We are committed to value creation through organic growth and will continue to focus on exploration to maximise the full potential of this highly prospective asset."
Selected assay results for three of the most promising new veins are shown below with complete assay results for both the new veins and vein extensions provided in Exhibit 2. The widths shown below are true widths (normal to the dip of the vein).
·; Micaela Vein - 1,380 metre strike length, cut by 36 diamond drill holes.
Hole SJD-708 - 2.45 m at 8.33 g/t Au and 1,484 g/t Ag
Hole SJD-786 - 1.09 m at 33.50 g/t Au and 2752 g/t Ag
Hole SJD-807 - 0.53 m at 31.02 g/t Au and 629 g/t Ag
·; Sofía Vein - 600 metre strike length, cut by 20 diamond drill holes.
Hole SJD-477 - 1.52 m at 7.71 g/t Au and 885 g/t Ag
Hole SJD-486 - 10.13 m at 14.96 g/t Au and 1096 g/t Ag
Hole SJD-491 - 5.45 m at 13.54 g/t Au and 206 g/t Ag
Hole SJD-726 - 1.72 m at 10.94 g/t Au and 1255 g/t Ag
·; Antonella Vein - 870 metre strike length, cut by 15 diamond drill holes.
Hole SJD-524 - 5.30 m at 13.43 g/t Au and 199 g/t Ag
The following table provides a summary of the new veins and extensions; the number of drill holes used to define the veins and the strike length of each.
| Vein | Number of holes | Strike length |
| (metres) | ||
| Micaela | 36 | 1,380 |
| Sofía | 20 | 600 |
| Antonella | 15 | 870 |
| Dos Lauras | 12 | 400 |
| Ayelén Extension | 12 | 580 |
| Marta | 15 | 510 |
| Ramal Frea 450 Extension | 17 | 430 |
| Shala | 4 | 134 |
| Pacha | 8 | 180 |
| Mara | 5 | 150 |
| Hera | 9 | 235 |
The success of the current drilling is in large part a result of extensive surface geophysical surveys conducted during 2009 and 2010 that led to the development of the targets drilled this year. The geophysics totaled 247 line-kilometres and consisted of 181 line-kilometres of induced polarity ("IP")/resistivity, 55 line-kilometres of magnetics and 11 line-kilometres of pole-dipole IP. The discovery of the Micaela-Sofía vein system, which trends approximately east-west, is particularly important because its orientation is different from the typical northwest trend of all the other veins at San José.
_________________________________________________________________________
Enquiries:
Hochschild Mining plc
Isabel Lütgendorf +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 José 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.
Forward looking statements:
This announcement may contain forward looking statements. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining plc may, for various reasons, be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, the Board of Hochschild Mining plc does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement.
Please click on the link below to view the Plan Map of the San Jose mine veins:
http://www.rns-pdf.londonstockexchange.com/rns/0054U_-2010-10-7.pdf
Exhibit 2 - Complete drilling results to date for the new veins
| Drill Hole | From (m) | To (m) | Intercept (m) | True Width(m)* | Au (g/t) | Ag (g/t) | Vein |
| SJD-486 | 329.68 | 330.55 | 0.87 | 0.67 | 2.73 | 8 | Micaela |
| SJD-491 | 347.55 | 349.60 | 2.05 | 1.83 | 1.92 | 194 | Micaela |
| SJD-513 | 173.88 | 181.10 | 7.22 | 3.70 | 15.38 | 874 | Micaela |
| SJD-708 | 187.35 | 190.25 | 2.90 | 2.45 | 8.33 | 1484 | Micaela |
| SJD-709 | 159.42 | 160.85 | 1.43 | 1.21 | 7.27 | 640 | Micaela |
| SJD-710 | 144.37 | 145.35 | 0.98 | 0.87 | 3.28 | 161 | Micaela |
| SJD-726 | 191.00 | 191.95 | 0.95 | 0.81 | 0.81 | 15 | Micaela |
| SJD-727 | 232.80 | 234.00 | 1.20 | 0.99 | 0.75 | 26 | Micaela |
| SJD-728 | 65.10 | 66.80 | 1.70 | 0.99 | 1.00 | 106 | Micaela |
| SJD-732 | 154.37 | 154.80 | 0.43 | 0.22 | 26.07 | 1316 | Micaela |
| SJD-754 | 222.64 | 223.52 | 0.88 | 0.64 | 4.36 | 560 | Micaela |
| SJD-756 | 347.35 | 348.20 | 0.85 | 0.68 | 2.01 | 96 | Micaela |
| SJD-757 | 163.90 | 167.60 | 3.70 | 3.40 | 8.90 | 659 | Micaela |
| SJD-758 | 111.10 | 119.00 | 7.90 | 4.20 | 4.64 | 414 | Micaela |
| SJD-759 | 106.20 | 110.40 | 4.20 | 3.63 | 2.68 | 180 | Micaela |
| SJD-761 | 84.90 | 85.44 | 0.54 | 0.44 | 2.87 | 45 | Micaela |
| SJD-762 | 218.70 | 221.65 | 2.95 | 2.12 | 7.28 | 466 | Micaela |
| SJD-763 | 200.70 | 201.70 | 1.00 | 0.84 | 0.97 | 132 | Micaela |
| SJD-768 | 302.82 | 304.26 | 1.44 | 1.10 | 0.66 | 40 | Micaela |
| SJD-770 | 297.20 | 298.30 | 1.10 | 0.93 | 3.80 | 46 | Micaela |
| SJD-773 | 294.20 | 295.80 | 1.60 | 1.28 | 0.20 | 4 | Micaela |
| SJD-775 | 225.62 | 226.30 | 0.68 | 0.60 | 1.40 | 89 | Micaela |
| SJD-778 | 240.58 | 241.55 | 0.97 | 0.76 | 3.69 | 105 | Micaela |
| SJD-779 | 330.75 | 332.00 | 1.25 | 1.00 | 0.16 | 24 | Micaela |
| SJD-782 | 134.80 | 136.40 | 1.60 | 1.21 | 36.57 | 637 | Micaela |
| SJD-786 | 134.90 | 136.40 | 1.50 | 1.09 | 33.50 | 2752 | Micaela |
| SJD-787 | 259.70 | 261.40 | 1.70 | 1.25 | 21.64 | 824 | Micaela |
| SJD-792 | 119.80 | 120.15 | 0.35 | 0.24 | 0.01 | 71 | Micaela |
| SJD-793 | 57.95 | 58.95 | 1.00 | 0.53 | 0.83 | 19 | Micaela |
| SJD-797 | 120.45 | 121.50 | 1.05 | 0.76 | 8.33 | 214 | Micaela |
| SJD-798 | 147.50 | 148.17 | 0.67 | 0.46 | 4.61 | 172 | Micaela |
| SJD-800 | 239.38 | 240.17 | 0.79 | 0.58 | 6.56 | 204 | Micaela |
| SJD-802 | 227.00 | 227.80 | 0.80 | 0.61 | 1.22 | 70 | Micaela |
| SJD-805 | 205.73 | 206.75 | 1.02 | 0.78 | 0.04 | 1 | Micaela |
| SJD-806 | 208.20 | 209.00 | 0.80 | 0.65 | 0.43 | 18 | Micaela |
| SJD-807 | 87.98 | 88.58 | 0.60 | 0.53 | 31.02 | 629 | Micaela |
| SJD-473 | 253.62 | 254.92 | 1.30 | 1.00 | 1.52 | 218 | Sofía |
| SJD-477 | 128.90 | 130.83 | 1.93 | 1.52 | 7.71 | 885 | Sofía |
| SJD-479 | 253.99 | 255.30 | 1.31 | 1.09 | 0.08 | 1 | Sofía |
| SJD-484 | 425.88 | 427.37 | 1.49 | 0.98 | 0.09 | 1 | Sofía |
| SJD-486 | 246.72 | 262.36 | 15.64 | 10.13 | 14.96 | 1097 | Sofía |
| SJD-491 | 272.15 | 281.10 | 8.95 | 5.45 | 13.54 | 206 | Sofía |
| SJD-708 | 116.30 | 117.75 | 1.45 | 1.13 | 6.59 | 869 | Sofía |
| SJD-709 | 70.10 | 72.05 | 1.95 | 1.51 | 4.61 | 218 | Sofía |
| SJD-716 | 188.20 | 190.50 | 2.30 | 1.93 | 4.57 | 237 | Sofía |
| SJD-724 | 240.96 | 244.20 | 3.24 | 2.64 | 8.22 | 298 | Sofía |
| SJD-726 | 145.60 | 147.55 | 1.95 | 1.72 | 10.94 | 1255 | Sofía |
| SJD-727 | 191.55 | 192.15 | 0.60 | 0.51 | 4.71 | 510 | Sofía |
| SJD-768 | 161.53 | 162.80 | 1.27 | 0.81 | 2.00 | 364 | Sofía |
| SJD-770 | 134.87 | 137.44 | 2.57 | 1.60 | 1.40 | 136 | Sofía |
| SJD-778 | 176.30 | 176.87 | 0.57 | 0.40 | 0.01 | 4 | Sofía |
| SJD-779 | 253.96 | 255.90 | 1.94 | 1.61 | 13.68 | 70 | Sofía |
| SJD-781 | 150.87 | 151.80 | 0.93 | 0.67 | 1.46 | 111 | Sofía |
| SJD-793 | 228.80 | 229.65 | 0.85 | 0.34 | 0.01 | 5 | Sofía |
| SJD-803 | 118.30 | 119.20 | 0.90 | 0.64 | 0.01 | 31 | Sofía |
| SJD-814 | 257.00 | 257.75 | 0.75 | 0.53 | 1.24 | 10 | Sofía |
| HVD-42 | 109.01 | 109.85 | 0.84 | 0.71 | 1.93 | 77 | Antonella |
| SJD-524 | 172.35 | 178.90 | 6.55 | 5.30 | 13.43 | 199 | Antonella |
| SJD-729 | 102.30 | 103.00 | 0.70 | 0.60 | 4.50 | 243 | Antonella |
| SJD-738 | 87.60 | 88.70 | 1.10 | 0.99 | 0.01 | 1 | Antonella |
| SJD-739 | 214.07 | 215.00 | 0.93 | 0.78 | 0.01 | 5 | Antonella |
| SJD-742 | 113.58 | 115.00 | 1.42 | 1.40 | 0.09 | 6 | Antonella |
| SJD-752 | 193.30 | 194.75 | 1.45 | 1.22 | 0.01 | 1 | Antonella |
| SJD-753 | 222.45 | 223.40 | 0.95 | 0.82 | 0.01 | 1 | Antonella |
| SJD-755 | 228.43 | 229.55 | 1.12 | 0.95 | 0.01 | 1 | Antonella |
| SJD-805 | 114.77 | 115.58 | 0.81 | 0.71 | 4.16 | 548 | Antonella |
| SJM-112 | 126.95 | 127.25 | 0.30 | 0.26 | 7.74 | 1101 | Antonella |
| SJM-117 | 180.20 | 181.00 | 0.80 | 0.76 | 0.47 | 65 | Antonella |
| SJM-118 | 85.53 | 87.80 | 2.27 | 2.12 | 1.25 | 204 | Antonella |
| SJD-340 | 95.53 | 96.44 | 0.91 | 0.72 | 0.29 | 149 | Dos Lauras |
| SJD-386 | 128.20 | 128.75 | 0.55 | 0.42 | 1.86 | 119 | Dos Lauras |
| SJD-472 | 52.95 | 54.65 | 1.70 | 1.30 | 1.78 | 191 | Dos Lauras |
| SJD-473 | 222.55 | 225.73 | 3.18 | 2.53 | 1.73 | 170 | Dos Lauras |
| SJD-477 | 109.62 | 110.92 | 1.30 | 1.09 | 5.97 | 1146 | Dos Lauras |
| SJD-708 | 99.15 | 100.90 | 1.75 | 1.40 | 3.04 | 406 | Dos Lauras |
| SJD-716 | 160.35 | 163.90 | 3.55 | 3.03 | 3.81 | 135 | Dos Lauras |
| SJD-724 | 221.75 | 222.90 | 1.15 | 0.93 | 0.30 | 24 | Dos Lauras |
| SJD-726 | 120.48 | 121.45 | 0.97 | 0.82 | 1.49 | 326 | Dos Lauras |
| SJD-727 | 169.85 | 171.05 | 1.20 | 1.01 | 2.12 | 196 | Dos Lauras |
| SJD-778 | 94.35 | 97.95 | 3.60 | 2.58 | 4.38 | 619 | Dos Lauras |
| SJD-754 | 288.66 | 290.09 | 1.43 | 1.08 | 8.16 | 616 | Hera |
| SJD-758 | 161.95 | 162.80 | 0.85 | 0.58 | 1.48 | 130 | Hera |
| SJD-759 | 125.65 | 126.00 | 0.35 | 0.32 | 1.01 | 215 | Hera |
| SJD-761 | 88.20 | 89.50 | 1.30 | 1.00 | 1.13 | 49 | Hera |
| SJD-763 | 215.27 | 217.63 | 2.36 | 2.05 | 4.27 | 317 | Hera |
| SJD-770 | 303.62 | 304.92 | 1.30 | 1.15 | 1.01 | 28 | Hera |
| SJD-773 | 303.20 | 303.95 | 0.75 | 0.61 | 0.01 | 3 | Hera |
| SJD-774 | 98.95 | 99.75 | 0.80 | 0.58 | 0.01 | 5 | Hera |
| SJD-477 | 174.11 | 175.83 | 1.72 | 1.43 | 3.04 | 283 | Mara |
| SJD-708 | 143.12 | 144.25 | 1.13 | 0.94 | 0.04 | 6 | Mara |
| SJD-716 | 198.00 | 199.50 | 1.50 | 1.25 | 3.55 | 553 | Mara |
| SJD-726 | 163.85 | 164.82 | 0.97 | 0.85 | 6.48 | 330 | Mara |
| SJD-727 | 209.40 | 210.05 | 0.65 | 0.54 | 2.67 | 50 | Mara |
| SJD-486 | 332.76 | 333.70 | 0.94 | 0.78 | 0.08 | 6 | Marta |
| SJD-491 | 375.55 | 376.69 | 1.14 | 0.96 | 0.17 | 4 | Marta |
| SJD-757 | 168.20 | 171.40 | 3.20 | 2.89 | 4.21 | 136 | Marta |
| SJD-759 | 192.40 | 193.30 | 0.90 | 0.78 | 0.01 | 2 | Marta |
| SJD-761 | 226.10 | 227.00 | 0.90 | 0.82 | 0.01 | 1 | Marta |
| SJD-762 | 250.74 | 252.10 | 1.36 | 1.17 | 0.02 | 2 | Marta |
| SJD-764 | 80.60 | 82.50 | 1.90 | 1.69 | 2.19 | 216 | Marta |
| SJD-771 | 137.80 | 138.70 | 0.90 | 0.76 | 0.01 | 1 | Marta |
| SJD-773 | 396.45 | 397.45 | 1.00 | 0.90 | 0.39 | 4 | Marta |
| SJD-774 | 192.85 | 195.40 | 2.55 | 2.06 | 4.94 | 439 | Marta |
| SJD-775 | 232.35 | 233.80 | 1.45 | 1.24 | 3.71 | 10 | Marta |
| SJD-777 | 287.30 | 288.25 | 0.95 | 0.83 | 1.52 | 65 | Marta |
| SJD-782 | 268.55 | 269.95 | 1.40 | 1.19 | 0.01 | 2 | Marta |
| SJD-786 | 138.50 | 138.80 | 0.30 | 0.21 | 0.63 | 29 | Marta |
| SJD-787 | 275.30 | 276.00 | 0.70 | 0.45 | 6.32 | 108 | Marta |
| SJD-473 | 245.22 | 246.74 | 1.52 | 1.13 | 0.57 | 7 | Pacha |
| SJD-708 | 103.85 | 105.35 | 1.50 | 1.16 | 0.03 | 7 | Pacha |
| SJD-716 | 177.20 | 178.35 | 1.15 | 0.96 | 0.81 | 39 | Pacha |
| SJD-724 | 229.38 | 230.20 | 0.82 | 0.65 | 5.69 | 241 | Pacha |
| SJD-726 | 125.48 | 128.30 | 2.82 | 2.38 | 3.78 | 228 | Pacha |
| SJD-727 | 174.60 | 175.60 | 1.00 | 0.81 | 3.74 | 85 | Pacha |
| SJD-779 | 244.60 | 245.90 | 1.30 | 1.06 | 0.03 | 3 | Pacha |
| SJD-184 | 174.40 | 175.40 | 1.00 | 1.00 | 0.21 | 21 | Ramal Frea 450 |
| SJD-335 | 118.94 | 120.30 | 1.36 | 1.30 | 1.30 | 78 | Ramal Frea 450 |
| SJD-336 | 182.23 | 183.68 | 1.45 | 1.43 | 2.44 | 70 | Ramal Frea 450 |
| SJD-338 | 139.95 | 140.54 | 0.59 | 0.55 | 0.02 | 3 | Ramal Frea 450 |
| SJD-340 | 143.65 | 145.00 | 1.35 | 1.30 | 2.50 | 399 | Ramal Frea 450 |
| SJD-470 | 74.65 | 75.45 | 0.80 | 0.75 | 0.90 | 144 | Ramal Frea 450 |
| SJD-477 | 186.83 | 187.63 | 0.80 | 0.75 | 7.65 | 524 | Ramal Frea 450 |
| SJD-513 | 100.05 | 103.58 | 3.53 | 1.20 | 1.00 | 57 | Ramal Frea 450 |
| SJD-705 | 59.45 | 59.95 | 0.50 | 0.50 | 0.24 | 14 | Ramal Frea 450 |
| SJD-706 | 79.90 | 81.35 | 1.45 | 1.45 | 6.25 | 1003 | Ramal Frea 450 |
| SJD-708 | 175.80 | 178.20 | 2.40 | 2.00 | 0.74 | 73 | Ramal Frea 450 |
| SJD-709 | 148.57 | 149.57 | 1.00 | 0.88 | 2.46 | 441 | Ramal Frea 450 |
| SJD-710 | 134.80 | 135.90 | 1.10 | 0.90 | 0.18 | 18 | Ramal Frea 450 |
| SJD-716 | 215.85 | 216.90 | 1.05 | 0.86 | 1.51 | 191 | Ramal Frea 450 |
| SJD-726 | 172.20 | 173.15 | 0.95 | 0.83 | 1.78 | 170 | Ramal Frea 450 |
| SJD-727 | 226.25 | 227.20 | 0.95 | 0.80 | 0.01 | 3 | Ramal Frea 450 |
| SJD-779 | 310.20 | 311.20 | 1.00 | 0.75 | 0.05 | 3 | Ramal Frea 450 |
| SJD-477 | 97.65 | 98.60 | 0.95 | 0.62 | 0.84 | 111 | Shala |
| SJD-716 | 131.80 | 132.10 | 0.30 | 0.20 | 0.56 | 75 | Shala |
| SJD-726 | 88.50 | 95.55 | 7.05 | 4.33 | 2.74 | 342 | Shala |
| SJD-727 | 159.30 | 160.40 | 1.10 | 0.67 | 9.60 | 538 | Shala |
| SJD-750 | 297.40 | 298.80 | 1.40 | 1.14 | 18.85 | 238 | Ayelén Extension |
| SJD-783 | 174.42 | 175.40 | 0.98 | 0.80 | 0.05 | 8 | Ayelén Extension |
| SJD-784 | 265.60 | 266.75 | 1.15 | 0.93 | 0.13 | 1 | Ayelén Extension |
| SJD-785 | 151.20 | 152.00 | 0.80 | 0.63 | 0.01 | 707 | Ayelén Extension |
| SJD-789 | 302.55 | 304.20 | 1.65 | 1.30 | 20.89 | 945 | Ayelén Extension |
| SJD-794 | 254.00 | 255.20 | 1.20 | 0.94 | 2.01 | 248 | Ayelén Extension |
| SJD-799 | 356.50 | 360.00 | 3.50 | 3.20 | 2.98 | 269 | Ayelén Extension |
| SJD-804 | 302.59 | 303.00 | 0.41 | 0.40 | 0.01 | 9 | Ayelén Extension |
| SJD-809 | 271.28 | 272.75 | 1.47 | 1.23 | 0.25 | 21 | Ayelén Extension |
| SJD-810 | 292.45 | 292.75 | 0.30 | 0.25 | 0.08 | 3 | Ayelén Extension |
| SJD-812 | 250.15 | 251.20 | 1.05 | 0.72 | 0.01 | 1 | Ayelén Extension |
| SJD-816 | 336.41 | 337.34 | 0.93 | 0.74 | 3.70 | 432 | Ayelén Extension |