Top of the silver pile

The Coeur d’Alene Mines acquisitions of Bolnisi Gold and Palmarejo Silver and Gold Corp have been agreed by all parties. “We are extremely pleased with the outcome and the addition to Coeur of the Palmarejo silver and gold project, which is expected to increase company-wide silver production to nearly 30 Moz by 2009, and at very low costs,” said Dennis E. Wheeler, Coeur’s Chairman, President and CEO. “The addition of the Palmarejo project to the company’s existing asset mix will transform Coeur into a high-growth, low-cost, long-life, and sustainable world-leading silver company with exciting exploration potential. We would like to thank our shareholders for their support and we look forward to delivering the benefits of this transaction.”   Coeur says the $1.1 billion merger with Bolnisi Gold and Palmarejo Silver and Gold creates the “world’s leading silver company.”

The Palmarejo project in northern Mexico is expected to begin production in early 2009 at an annualized rate of approximately 10.4 Moz of silver and 115,000 oz of gold per year with cash costs, net of gold byproduct, of an estimated $0.41/oz of silver and an initial mine life of nine years. Exploration continues on the large land package, with current Measured and Indicated mineral resources of 88.7 million silver ounces and 1.0 Moz Measured and Indicated gold along with additional Inferred mineral resources of 61.4 Moz silver and 0.7 Moz gold.