Successful exploration at Lucky Friday during 2007 indicates potential production for decades to come. Approximately 130 million ounces of silver reserve and resource have been identified at Lucky Friday, which is an increase of about 10% since the end of 2006. Within the mine, drilling was completed in the 5900 East target, an area below and east of the currently identified silver resource. Three other drills are working on infill and definition drilling of the 5900 East target. In the coming year, we anticipate both an increase in overall resources at Lucky Friday, and in places, an upgrade in the confidence of the resource quality.
Two drilling programs are occurring from surface to test the 2,500-foot “Gap” area between the old Gold Hunter mine and the Lucky Friday Expansion Area, where mining is currently taking place. A shallow, seven-hole drilling program totaling 6,117 feet was completed. Although some assays are pending, partial assays have confirmed that the mineralized structures continue to the west of the old workings.
A second deep surface drilling program is following up the first underground exploration hole that hit a series of mineralized veins grading up to seven ounces of silver per ton. Currently, two surface drill rigs are on site, drilling ‘mother’ holes from which directionally drilled ‘daughter’ holes can be angled in the future.