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Coeur shuts Chile mine for electrical upgrade:

By: Liezel Hill
Published: 8 Apr 08 - 16:19

Precious-metals-miner Coeur d'Alene Mines will close its Cerro Bayo silver/gold mine, in southern Chile, for about six weeks, in order to upgrade the operation's electrical infrastructure, the firm said on Tuesday.

The company began implementing a recovery plan earlier this year at Cerro Bayo, which battled in 2007 with high costs and declining production.

Measures to improve the operation include increasing the underground mine development to boost operational flexibility, targeting costs, reducing the work force, training employees in new, more efficient mining methods and an organisational restructuring.

The mine was already showing improvements, with costs falling, output rising and grades improving in the first quarter compared with last year's performance, Coeur said.

The company had forecast 2008 production at Cerro Bayo of about 2,5-million ounces of silver and 40 000 oz of gold, but has now cut these targets by about 180 000 oz of silver and some 4 000 oz of gold as a result of the temporary halt to mining operations.

However, costs for 2008 were still expected to decline by about 62%, to $3,14/oz of silver.

As of December 31, 2007, Cerro Bayo contained an estimated 7,2-million ounces of proven and probable silver mineral reserves and 112 000 ounces of proven and probable gold reserves.

Coeur d'Alene Mines operates two underground mines, in Chile and Argentina, as well as the Rochester surface mine, and is building new mines in Bolivia and Mexico.
http://www.miningweekly.co.za/article.php?a_id=130832