Coeur Begins Production at New Kensington Gold Mine in AlaskaJune 24, 2010 20:05 UTC
Long-Life Pure Gold Mine to Have Major Positive Impact on Southeast Alaska Economy
COEUR D’ALENE, Idaho--(BUSINESS WIRE)-- Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) is pleased to announce today that production has commenced ahead of schedule at its Kensington Gold Mine in Alaska. The Company anticipates that Kensington will produce 50,000 ounces of gold during the remainder of 2010 and will average approximately 125,000 ounces of gold annually over the mine’s initial 12.5 year life. Once in full production, cash costs are expected to average approximately $490 per ounce over the mine life.
“Kensington represents Coeur’s third new precious metals mine to commence production in the past three years and will provide continued, meaningful growth to the Company’s production and cash flow,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. “In addition, the startup of production at Kensington represents the culmination of a community-wide effort by the Juneau community, which has supported the project from the beginning and who will participate in the economic benefits Kensington will provide.”
Leon Hardy, Coeur’s Senior Vice President of Operations, commented, “We are extremely pleased with the timely completion and early startup at Kensington and look forward to ramping up production during the remainder of the year and delivering consistent results over the coming years.”
Coeur Alaska will employ close to 200 workers during operations. The Company works closely with Berners Bay Consortium, made up of Klukwan, Inc., Kake Tribal and Goldbelt Native Corporations on job training and supporting local and Native hire at Kensington.
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.
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.
Posted: June 24, 2010