Coeur Begins Pre-Commissioning of San Bartolome Silver Mine in Potosi, Bolivia -
Expected to Become World’s Largest Pure Silver Mine - February 12, 2008 - 8:57 AM EST
Coeur d’Alene Mines Corporation - (NYSE:CDE) (TSX:CDM) (ASX:CXC) announced today that it has begun pre-commissioning activities at its - San Bartolomé silver mine - which is expected to produce over ten million ounces of silver during its first twelve months of full-scale operations.
All major plant equipment at San Bartolomé is now in place. The Company expects the processing facilities to be connected to the national electrical grid during the second half of February, at which point full commissioning of the crushers and mills will commence. Processing of ore is expected to begin during the second half of March. Production and plant utilization will then steadily increase with full plant capacity anticipated to be reached in August. “In reaching the finish line at, the San Bartolomé silver mine - we are very pleased to report the success in completing this world-class project while maintaining the highest standards of safety, quality of construction, and adherence to cost and scheduling,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer.
“Over 1,600 workers, almost all of them Bolivians, have done an excellent job in constructing what will be the world’s largest pure silver mine, surpassing over 3.7 million man hours without a lost time accident, a truly remarkable achievement given the size and scope of this state-of-the-art facility.
Coeur is proud of the strong community, government and economic relationships we have developed with the people and organizations of Potosi and Bolivia, and the Company is excited about placing the mine into production and generating value for all stakeholders.”
Overview of Key Mine Metrics:
* Expected silver production during remainder of 2008 of over six million ounces
* Operating cash costs once plant reaches full-scale operations in August through the end of the year are expected to be $4.10 per ounce of silver (excluding royalties and production taxes of $2.03 per ounce)
* Over ten million ounces of silver production during the first twelve months of full-scale operations
* 153.0 million ounces of silver mineral reserves and 34.2 million ounces of additional indicated mineral resource
* Estimated mine life of 14 years
Year-end 2007 Mineral Reserves and Mineral Resources Category Tonnes Ag Grade (g/t) Contained Ag Ounces
Probable Mineral Reserves 37,900,000 125 153,000,000 Indicated Mineral Resources 14,550,000 73 34,190,000 Inferred Mineral Resources 225,000 61 444,000
Note: Using a silver price of $11/ounce.
Mineral Resources are in addition to Mineral Reserves and estimated with a cut-off grade of 50 Ag g/t.
Mineral Reserve cut-off grades variable from 63 g/t to 71 g/t based on deposit and ore type.
Additional photographs of the operation can be accessed through Coeur’s website at
Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and also a significant gold producer.
Coeur, which has no silver or gold production hedged, is presently constructing two of the world’s largest silver mines – San Bartolomé in Bolivia and Palmarejo in Mexico; operates two underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns non-operating interests in two low-cost mines in Australia. The Company also owns a major gold project in Alaska and conducts exploration activities in Argentina, Bolivia, Chile, Mexico and Tanzania. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC.
Cautionary Statement
This press release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Coeur. Operating, exploration and financial data, and other statements in this press release are based on information that Coeur believes is reasonable, but involve significant uncertainties affecting the business of Coeur, including, but not limited to, future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, construction schedules, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from future acquisitions of new mining properties or businesses, the risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather or geologically related conditions), regulatory and permitting matters, risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries, as well as other uncertainties and risk factors set out in filings made from time to time with the SEC and the Ontario Securities Commission, including, without limitation, Coeur’s reports on Form 10-K and Form 10-Q and Palmarejo’s Annual Information Form. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.
Donald J. Birak, Coeur’s Senior Vice President of Exploration, is the qualified person responsible for the preparation of the scientific and technical information concerning Coeur’s mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.
Coeur d’Alene Mines Corporation Director, Investor Relations North America Tony Ebersole, 208-665-0777
Source: Business Wire (February 12, 2008 - 8:57 AM EST)