Coeur d’Alene Mines Corporation (NYSE:CDE)
(TSX:CDM) (ASX:CXC) today announced an approximately 40%
increase in silver and gold reserves at its Palmarejo silver and
gold mine in Chihuahua, Mexico, to a total of 88.6 million ounces
of silver and 1.1 million ounces of gold, based on its ongoing
drilling at the nearby Guadalupe deposit.
The 25.8 million ounces of new silver reserves and 315,000
ounces of new gold reserves represent the initial underground ore
reserves at Guadalupe, located approximately 6 kilometers southeast
of the current Palmarejo mine and processing facilities. The
Company plans to continue drilling at Guadalupe and anticipates
commencement of underground development of Guadalupe’s reserves in
2010. Ore from Guadalupe would then be expected to begin
contributing to Palmarejo’s silver and gold production in 2011. At
the Palmarejo project there were 63.6 million ounces of silver
reserves and 756,000 ounces of gold reserves reported at the
beginning of this year.
“We are very pleased with the reserve development at the
Guadalupe deposit, which demonstrates our commitment to growing the
overall mineral reserves in the expanding Palmarejo District,” said
Don Birak, Coeur’s Senior Vice President of Exploration. “The
Guadalupe vein system is now over 2.1 kilometers long and remains
open along strike to the north and at depth. We are currently
drilling on the Guadalupe structure between the Las Animas and
Guadalupe Sur zones or clavos, where there is excellent potential
to expand resources and reserves. This area, along with other
targets near Guadalupe, will continue to be the focus of our
aggressive drilling program into 2010.”
The entire Palmarejo District is held in 46.9 square miles, with
multiple trends and targets. Guadalupe and Chapotillo – one of five
zones within the immediate Palmarejo mine – have been the main
areas of focus for drilling in 2009, with over 18,000 meters of
core drilling through September of this year.
Current Proven and Probable
Reserves
Classification Tonnes Average Grade
(g/t) Contained Ounces Au
Ag Au Ag Palmarejo Proven
6,122,500 2.05 174.3 404,400
34,318,000 Probable 4,806,000 2.27 184.0
350,000 28,432,000
Subtotal
10,928,500 2.15 178.6
754,400 62,750,000 Guadalupe Proven
657,000 1.91 183.3 40,400 3,872,300
Probable 4,314,200 1.98 158.3 274,800
21,961,400
Subtotal 4,971,200
1.97 161.6 315,200
25,833,700 Proven + Probable 15,899,700
2.09 173.3 1,069,600
88,583,700
Palmarejo effective January 1, 2009 at $750 Au and $13.25 Ag.
Guadalupe effective November 4, 2009 at $800 Au ounce and $14
Ag
Guadalupe: AuEq (equivalent) = Au g/t + (Ag g/t/57).AuEq Cutoff
for reserves = (mining $ per tonne + processing $ per tonne +
transportation $ per tonne + G&A $ per tonne)/(((gold $ per
ounce-refining cost per ounce)/31.103)*% recovery Au* % payable
Au).
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 is finalizing the construction at its Kensington gold
project 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.
Photos of projects and other information can be accessed through
company website at www.coeur.com.
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 first 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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