Coeur Announces Final Approval for Construction of the San Bartolome Silver Mine
December 15 2004 - 8:30AM
PR Newswire (US)
Coeur Announces Final Approval for Construction of the San
Bartolome Silver Mine - Expected 2006 Startup to Increase Silver
Production Over 40% - COEUR D'ALENE, Idaho, Dec. 15
/PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation
(NYSE:CDE), the world's largest primary silver producer, announced
today the Company's Board of Directors has approved the final
go-ahead decision to proceed with construction of its San Bartolome
silver project in Bolivia. San Bartolome is expected to increase
company-wide silver production over 40% from current levels
beginning in 2006 and will further solidify the Company's position
as the world's largest primary silver producer. "The construction
of San Bartolome further solidifies Coeur's position as the world's
leading primary silver producer," said Dennis E. Wheeler, Chairman
and Chief Executive Officer. "We expect to produce approximately
eight million ounces of silver annually during the first five years
of production at an extremely competitive cash operating cost of
$3.50 per ounce, which will generate significant cash flow for the
Company. The mine has an initial estimated mine life of 15 years.
In addition, it's important to note that this is the largest new
primary silver mine built in the Americas in decades, the first
modern silver project in Bolivia and a major boon to the country's
local and national economies." Construction of the open pit milling
operation and processing facility is currently expected to cost
approximately $135 million. Total reserves of 123 million ounces of
silver are contained in surface gravel deposits, or pallacos, which
lend themselves to simple, low-tech surface-mining techniques.
These reserves, which measure 35.3 million tons at average grades
of 3.48 ounces of silver per ton, are contained in three major
areas. Additional mineral resources also hold potential for future
expansion. San Bartolome is located near established industrial
infrastructure in the historically silver-rich region of Potosi
where more than two billion ounces of silver have been mined. The
building of the new mine represents the first modern, large-scale
primary silver mine built in Bolivia, generating an expected 500
local jobs during construction, and approximately 370 full-time
jobs during operations. The project will also establish a
foundation, called Fundespo, to assist in the development of new
local industries, such as silversmithing and tourism. Coeur d'Alene
Mines Corporation is the world's largest primary silver producer,
as well as a significant, low-cost producer of gold. The Company
has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and
Bolivia. Cautionary Statement This document contains numerous
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 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, 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,
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 these
forward-looking statements, whether as a result of new information,
future events or otherwise. Contact: Tony Ebersole, Director of
Investor Relations of Coeur d'Alene Mines Corporation,
800-523-1535. DATASOURCE: Coeur d'Alene Mines Corporation CONTACT:
Tony Ebersole, Director of Investor Relations of Coeur d'Alene
Mines Corporation, 800-523-1535 Web site: http://www.coeur.com/
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