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Coeur’s Exploration Program at Kensington Gold Mine Returning Favorable Results

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today reported that its exploration drilling program at the newly opened Kensington Gold Mine in Alaska has been returning favorable results through the first eight months of this year, with the exploration of new targets continuing.

The Horrible vein system, which is located about 1,500 feet to the west of the main Kensington mine, remains open at depth and on-strike and is easily accessed from existing underground infrastructure. This year's program is the first exploration activity at Horrible since 1992 and is situated at the north end of a +14,000-foot long, northeast-trending structural and vein belt that contains Kimberly, discovered last year, Jualin and several other gold-bearing quartz veins located west of the operating mine.

Favorable results were obtained from many drill holes (see tables included in this release for recent drill results from 25 of the 35 core holes), including:

  • 6.5 feet of 2.39 gold ounces per short ton from core hole H10-016;
  • 3.9 feet at 0.907 ounces per short ton of gold from core hole H10-029; and
  • 3.5 feet of 1.069 ounces per short ton of gold from core hole H10-031
Many of the drill holes cut multiple quartz veins which are typical of the style of mineralization seen at the nearby Kensington ore body. The Company will be conducting additional exploration drilling to test the greater extension of the dip and strike, both of which remain open for expansion, and commence in-fill drilling on higher-grade zones defined by wide-spaced exploration drilling to-date.

The Kensington gold mine, which began production in late June, 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. Cash costs are expected to average approximately $490 per ounce over the mine life.

About Coeur

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.

Cautionary Statement

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.

Donald J. Birak, Coeur's Senior Vice President of Exploration, is the qualified person responsible for the preparation of the scientific and technical information concerning Coeur's mineral projects in this presentation. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur's properties as filed on SEDAR at www.sedar.com.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "measured," "indicated," and "inferred" "resources," that are recognized by Canadian and Australian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.

KENSINGTON MINE, ALASKA

Horrible Vein System Q3 2010 Drilling Results to September 6, 2010

Hole I.D. Mineralized Interval (feet) Assays (ounces/ton)
From To Length True
Au H10-006
454.0
469.0
15.0
14.9
0.067
489.0
494.0
5.0
5.0
0.056 H10-007
398.0
403.0
5.0
4.8
0.066

420.0
433.0
13.0
12.5
0.106 Includes
428.0
433.0
5.0
4.8
0.158 H10-008
369.0
373.0
4.0
4.0
0.292

529.0
543.4
14.4
14.2
0.162 Includes
541.0
543.4
2.4
2.4
0.434 H10-009
482.2
524.0
41.8
41.8
0.061 Includes
496.0
503.0
7.0
7.0
0.147 Includes
507.1
510.0
2.9
2.9
0.107 H10-015
450.0
463.0
13.0
12.8
0.220 Includes
454.1
460.0
5.9
5.8
0.354 H10-016
486.5
493.0
6.5
6.5
2.390 H10-018
14.0
17.0
3.0
2.2
0.098

138.0
142.0
4.0
3.0
0.070
187.3
192.5
5.2
3.9
0.095 H10-019
84.9
87.0
2.1
2.0
0.083

194.2
197.0
2.8
2.6
0.094
224.8
231.3
6.5
6.1
0.065 H10-020
207.7
211.0
3.3
3.3
0.092
220.2
221.1
0.9
0.9
0.148 H10-022
112.0
116.0
4.0
3.6
0.065

139.5
145.0
5.5
4.9
0.266
196.0
199.0
3.0
2.7
0.128 H10-023
152.0
176.0
24.0
23.9
0.086 Includes
163.4
170.0
6.6
6.6
0.119 H10-024
223.0
247.0
24.0
23.4
0.237 Includes
232.3
242.0
9.7
9.5
0.514 H10-025
66.2
71.2
5.0
3.4
0.055 H10-026
160.0
164.0
4.0
3.8
0.145 H10-027
48.0
53.0
5.0
5.0
0.090

229.5
249.5
20.0
19.8
0.067
277.0
282.0
5.0
5.0
0.064 H10-029
55.3
72.5
17.2
16.8
0.050
289.0
293.0
4.0
3.9
0.907 H10-030
80.5
84.4
3.9
3.9
0.050

275.0
279.5
4.5
4.5
0.087

323.0
355.0
32.0
32.0
0.061 Includes
334.0
338.0
4.0
4.0
0.120

374.0
382.0
8.0
8.0
0.099 Includes
374.0
378.7
4.7
4.7
0.135 H10-031
326.7
337.8
11.1
10.1
0.493 Includes
326.7
330.5
3.8
3.5
1.069 Includes
333.0
337.8
4.8
4.3
0.272 H10-032
184.0
187.0
3.0
3.0
0.137

360.0
364.0
4.0
4.0
0.098

389.5
395.4
5.9
5.9
0.648 Includes
389.5
392.0
2.5
2.5
1.168 Please refer to the company's second quarter earnings release on www.coeur.com for prior 2010 drill results.

Kensington Notes:

  • Drill intercepts from 955 whole-core, HQ-sized core samples analyzed at Inspectorate America Labs in Sparks, Nevada, USA.
  • Drill intercepts calculated at 0.05 ounces per short ton (oz/t) Au cutoff. "Includes" calculated at 0.100 oz/ton cutoff.
  • Maximum of 5 feet of internal dilution (less than cutoff) permitted in compositing.
  • All values uncapped.
  • Internal QAQC checks performed at Inspectorate America Corp. (Assayers), Sparks, Nevada, USA, consisting of 55 duplicates and 57 standards, 54 of which assayed within acceptable ranges and 38 blanks, 37 of which assayed below the detection limits for gold. Samples that fell outside of acceptable limits (4) have not been included in the summary data and are being re-examined with further fire assay analyses.

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