Coeur Announces Plans to Increase Silver and Gold Production at Its Historic Rochester Mine in Nevada
October 05 2009 - 9:00AM
Business Wire
Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC)
announced today that it is pursuing an expansion of mining
operations at its Rochester silver and gold mine in Nevada. This
planned expansion is expected to add an average of 2.9 million
ounces of incremental annual silver production and 30,000 ounces of
further gold production through 2017.
The Bureau of Land Management supports a third-party prepared
Environmental Assessment for the proposed expansion, the completion
of which could lead to initiation of production in 2011. The
Company has completed an internal scoping study showing the
expansion to have a $34 million net present value based on a $16.00
per ounce silver price, a $950 per ounce gold price, and a 10%
discount rate. A new leach pad would be constructed during 2010
with an estimated cost of approximately $28 million, leading to
annual average estimated net cash flows of approximately $20
million. This cash flow and production is incremental to the ounces
and cash flow currently being generated by ongoing residual
leaching activities, which the Company expects will continue
through 2014.
As of December 31, 2008, Rochester contained measured and
indicated resources of 61.8 million ounces of silver and 531,000
ounces of gold. Since beginning operations in 1986, the mine has
produced over 125 million ounces of silver and 1.4 million ounces
of gold and has contributed over $23 million in annual payroll and
nearly $13 million in annual state and local tax revenues. The
planned expansion would add approximately 200 jobs to this historic
silver and gold mine. In addition, the mine recently received two
top awards by both the Nevada Mining Association and the Mine
Safety and Health Administration for safe operations.
About Coeur
Coeur d’Alene Mines Corporation is one of the world’s leading
silver companies and also a significant gold producer. Coeur will
have its first full year of production this year at the world’s
largest pure silver mine - San Bartolomé in Bolivia – and began
production in March at another world-leading silver mine –
Palmarejo in Mexico. The Company also operates underground mines in
southern Chile and Argentina and one surface mine in Nevada; and
owns a non-operating interest in a low-cost mine in Australia. The
Company also owns a major gold project - Kensington in Alaska - and
conducts exploration activities in Argentina, Chile and Mexico.
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, Canada,
and Australia, 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 presentation 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, the Canadian securities regulators, and the Australian
Securities Exchange, including, without limitation, Coeur’s reports
on Form 10-K and Form 10-Q. 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 fourth 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 press 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.
Cautionary Note to U.S. Investors – The United States Securities
and Exchange Commission permits U.S. mining companies, in their
filings with the SEC, to disclose only those mineral deposits that
a company can economically and legally extract or produce. We use
certain terms in this press release, such as “measured,”
“indicated,” and “inferred” “resources,” that are recognized by
Canadian and Australian regulations, but that SEC guidelines
generally prohibit U.S. registered companies from including in
their filings with the SEC. U.S. investors are urged to consider
closely the disclosure in our Form 10-K which may be obtained from
us, or from the SEC’s website at http://www.sec.gov/edgar.shtml
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