Last checked at 19 Oct 2010 07:00
______________________________________________________________________
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
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 Ayelén 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 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.
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