Exploration and definition drilling has caused the Lucky Friday estimated proven and probable reserves to increase 26% to approximately 22 million ounces of silver compared to 2007 year-end reserves. The combined estimated reserves and resources increased by 30 million ounces of silver compared to a year earlier, to a total of 161 million ounces of silver now identified at Lucky Friday. Silver, lead and zinc grades in the reserves and resources were all higher.
Exploration drilling at the Lucky Friday mine focused on the east and central part of the resource down to the 7100 Level. This drilling suggests that the two main 30 and 40 veins are in places coalescing into a thicker, high-grade vein below the 6300 Level. These drill intersections are some of the most impressive in the history of drilling at Lucky Friday and represent an even better orebody than currently being mined.
Drilling in the “Gap” area, a 2,500-foot previously unexplored area located directly above current mining at Lucky Friday, intersected multiple veins up to 7.4 feet wide with grades up to 21 ounces per ton of silver, plus base metals. This drilling shows strongly developed mineralized structures exist throughout much of the Gap area and appear to coincide with the resource trend below the 4050 Level. This demonstrates potential for resource extensions in up to five veins above the current resource.