Coeur Completes Sale of Silver Valley; Comments on Status of Bolivia Project
June 01 2006 - 5:46PM
PR Newswire (US)
COEUR D'ALENE, Idaho, June 1 /PRNewswire-FirstCall/ -- Coeur
d'Alene Mines Corporation (NYSE:CDE) announced today that it has
completed the sale of 100% of the shares of Coeur Silver Valley
(CSV) to U.S. Silver Corporation for $15 million in cash. Coeur
anticipates that the transaction will result in a one-time pre-tax
gain of approximately $10-$12 million in the second quarter of
2006. Giving effect to the sale of CSV, Coeur currently estimates
that it will now report consolidated silver production in 2006 of
approximately 15.6 million ounces at a cash cost of approximately
$3.57 per ounce, as compared to 2005 consolidated silver production
of 13.7 million ounces at a cash cost of $4.26 per ounce. "The
transaction reflects our broader strategy of seeking to increase
production levels while lowering our consolidated cash operating
cost per ounce of silver produced," said Dennis E. Wheeler,
Chairman, President, and Chief Executive Officer. "Consistent with
this strategy, we continue to be very active in seeking additional
silver acquisitions to maintain our growth path." On a separate
matter, the company said it has remained in regular contact with
government officials in Bolivia over the past several weeks. The
company has been informed by the country's Minister of Mines that
Bolivia has no intention of seeking to nationalize Coeur's San
Bartolome project. The company continues to expect that any
potential government proposals to revise tax and royalty structures
in the mining industry would be reasonable. The company currently
plans to complete the project and begin producing silver toward the
end of 2007. San Bartolome is expected to produce 6 to 8 million
ounces of silver per year. Coeur d'Alene Mines Corporation is the
world's largest publicly traded primary silver producer and has a
strong presence in gold. The Company has mining interests in
Alaska, Argentina, Australia, Bolivia, Chile, and Nevada.
Cautionary Statement Company press releases may contain numerous
forward-looking statements within the meaning of securities
legislation in the United States and Canada relating to the
Company's silver and gold mining business. Such statements are
subject to numerous assumptions and uncertainties, many of which
are outside the Company's control. Operating, exploration and
financial data, and other statements in this document are based on
information the Company believes reasonable, but involve
significant uncertainties as to future gold and silver prices,
costs, ore grades, estimation of gold and silver reserves, mining
and processing conditions, currency exchange rates, and the
completion and/or updating of mining feasibility studies, changes
that could result from the Company's future acquisition 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 the Company's filings from time to time with the SEC and
the Ontario Securities Commission, including, without limitation,
the Company's reports on Form 10-K and Form 10-Q. Actual results
and timetables could vary significantly from the estimates
presented. Readers are cautioned not to put undue reliance on
forward-looking statements. The Company disclaims any intent or
obligation to update publicly such forward-looking statements,
whether as a result of new information, future events or otherwise.
Contact: Scott Lamb 208-665-0777 DATASOURCE: Coeur d'Alene Mines
Corporation CONTACT: Scott Lamb of Coeur d'Alene Mines Corporation,
+1-208-665-0777 Web site: http://www.coeur.com/
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