Coeur Adds Aurubis AG as Second Purchaser of Kensington Gold ConcentratesCOEUR 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 Aurubis AG for the treatment and refining of gold concentrates produced at Coeur's new Kensington gold mine.
"Combined with the recently announced agreement with China National Gold Group Corporation, the sale of Kensington's gold concentrates are now secured by contracts with two first-class smelting and refining companies. We look forward to working with Aurubis and are delighted to enter into this important commercial relationship"
"Combined with the recently announced agreement with China National Gold Group Corporation, the sale of Kensington's gold concentrates are now secured by contracts with two first-class smelting and refining companies. We look forward to working with Aurubis and are delighted to enter into this important commercial relationship," said Mitchell J. Krebs, Chief Financial Officer of Coeur.
The Kensington mine, which began production late last month, is expected to produce approximately 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. Once in full production, cash costs are expected to average approximately $490 per ounce over the mine life.
Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a growing gold producer. Coeur is also a recognized leader in environmental stewardship and worker safety, with 13 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, which began production in June of this year. 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 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. Further information is available at www.coeur.com
The Aurubis Group is the largest copper producer in Europe and the world leader in copper recycling. Aurubis produces some 1.1 million tonnes of copper cathodes each year and from them a variety of copper products. The company has sites in seven European countries with about 4,800 employees.
Thanks to its wide range of services, the company ranks among the global leaders in its industry. Aurubis' core business is the production of marketable copper cathodes from copper concentrates, copper scrap and recycling raw materials. These are processed within the Group into continuous cast wire rod, shapes, rolled products as well as special wire and profiles made of copper and copper alloys. Precious metals and a number of other products, such as sulphuric acid and iron silicate, round off its product portfolio.
Customers of the Aurubis Group include companies in the copper semis industry, the electrical engineering, electronics and chemical industries as well as suppliers of the construction and car industries.
Aurubis' shares are part of the Prime Standard Segment of the Deutsche Börse and are listed in the MDAX, in the European Stoxx 600 and the Global Challenges Index (GCX).
Further information is available at www.aurubis.com
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 third parties in respect of Coeur, its financial or operating results or its securities.
Posted: September 7, 2010
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