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Expansion Opportunity (on hold)
Over the last several months, the Company's personnel have been reviewing historic records on the Caladay property, which adjoins the producing Galena Mine to the east. The Caladay shaft lies approximately 7,300 feet southeast of the Galena mine's, No.3 Shaft. The two mines are interconnected on the 4900 foot level of the Galena mine
In the early 1980's, a joint venture between Day Mines, Callahan Mining, and ASARCO spent approximately $32.5 million (about $80.0 million in 2006 dollars) on the Caladay property to construct surface facilities, a 5,100 foot deep shaft, and associated underground workings to explore the property.
The historical underground exploration program undertaken in the late 1980's included 94 drill holes and identified a zone of silver-lead mineralization. There is a significant historical resource in this zone based on the 94 drill holes which is not currently 43-101 compliant. This historical drill program was designed to extend the "Silver Belt" of the Coeur d'Alene District further east by delineating the down plunge extensions from the Galena mine. Exploration though was curtailed in 1989 due to the softening of the silver and metals markets. As a result, exploration on the property remains incomplete. The Company has begun a new geologic evaluation of the historic data and has identified a large zone of apparent mineralization. This zone may extend into the Galena mine, as evidenced by historic drilling within the Galena mine. As the new geologic model develops, exploration and development activities could commence later in 2008.
In light of current metal prices, apparent widths and continuity of discovered mineralization, and the proximity of the Caladay property to the Galena and Coeur mines, the Company is encouraged about the future potential of the property. In addition, the Caladay facilities benefit the Galena mine operations through improved ventilation, possible additional ore and waste hoisting capacity, and as a potential secondary escape way.
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