Exploration

TANZANIA

During the first quarter of 2004, the Company acquired ten prospecting licenses for properties located in the Lake Victoria Gold Belt of Tanzania, Africa, and in 2005, 2006 and 2007 added the Saragurwa, Bismark and Pangea properties, respectively. Based on results from its annual exploration programs, four of the original ten concessions were not renewed. Except for Saragurwa, Bismark and Pangea, all properties are held 100% by a Tanzanian subsidiary of the Company. Saragurwa and Bismark are owned by separate private Tanzanian interests and Pangea is controlled by a Tanzanian subsidiary of Barrick Gold Company. Coeur Tanzania Ltd. has an option to acquire all three properties in return for staged work and payment commitments.
 
In 2007, exploration work consisted of mapping, trenching, sampling and acquisition and interpretation of detailed ground geophysical data and core and reverse circulation drilling. In total 9,500 meters (31,170 feet) of drilling was completed in 2007. The majority of the drilling was completed at Kiziba Hill and Saragurwa which lie on the same belt of Archean-aged rocks, commonly termed “greenstone”, which host the Geita gold mine to the east. Greenstones, a mixture of volcanic, sedimentary and intrusive rocks, are a major host to gold mineralization around the globe. Gold anomalies defined in trenches on the Bunda 1 property, to the northeast of the city of Mwanza, in 2006 were further explored this year.
 
During 2007, the Company spent $2.1 million on exploration activities in Tanzania and expects to spend approximately $2.4 million in 2008.

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