Coeur Enters into Agreement with China National Gold for Processing of Kensington Gold Concentrates
June 22 2010 - 4:05PM
Business Wire
Coeur d’Alene Mines Corporation (NYSE:CDE) ( TSX:CDM) (ASX:CXC)
today announced that Coeur Alaska, Inc., a wholly-owned subsidiary,
has entered into a contract with China National Gold Group
Corporation, China’s largest gold producer, for the purchase and
processing of gold concentrates produced at Coeur’s new Kensington
gold mine. This agreement is the first of its kind between a
state-owned corporation of the People's Republic of China and a
U.S. precious metals mine.
“We are delighted to enter into this major relationship with
China National Gold,” said Dennis E. Wheeler, Chairman, President
and Chief Executive Officer of Coeur. “This represents a
groundbreaking level of business relations between the two
companies as this new, major gold mine begins the initial stage of
its long production life.”
The Kensington mine, which is scheduled to begin production
shortly, is expected to produce 50,000 ounces of gold this year and
average approximately 125,000 ounces of annual gold production over
an initial 12.5 year life based on current reserves of 1.5 million
ounces. The contract with China National Gold relates to
approximately half of the concentrates to be produced at
Kensington.
About China National Gold Group Corporation
China National Gold, a state-owned enterprise headquartered in
Beijing, operates approximately sixty gold mines throughout China,
representing over 20% of China’s total gold production. In addition
to its mining operations, China National Gold also owns and
operates a number of smelters and refineries throughout China.
China National Gold is the only Chinese gold company that is a
member of the World Gold Council.
About Coeur
Coeur d'Alene Mines Corporation is one of the world's leading
silver companies and also a significant gold producer. Coeur is
also a recognized leader in environmental stewardship and worker
safety, with nine national and international awards earned over the
past year. The Company’s three new long-life mines include the San
Bartolomé silver mine in Bolivia which began operations in 2008,
the Palmarejo silver/gold mine in Mexico, which began operations in
2009, and the Kensington gold mine in Alaska. The Company also owns
underground mines in Argentina and one surface mine in Nevada, and
owns a non-operating interest in a low-cost mine in Australia. The
Company conducts exploration activities in Alaska, Argentina, Chile
and Mexico. Coeur common shares are traded on the New York Stock
Exchange under the symbol CDE, and 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.
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