Coeur Enters into Agreement with China National Gold for Processing of Kensington Gold ConcentratesJune 22, 2010 20:05 UTC
COEUR D’ALENE, Idaho--(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.
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 22, 2010