Development projects looking good for Coeur d’Alene

Idaho-based silver major Coeur d’Alene Mines (CDE-N) is reporting better-then-expected results from ongoing feasibility studies at its San Bartolome silver project in southern Bolivia and its Kensington gold project in southern Alaska.

Both studies, due for completion in the second quarter of 2004, are said to have “significantly improved” their expected project economics, so that the two wholly owned properties are now likely to be contributing to the company’s gold and silver output in 2006 — assuming a positive production decision is reached once the feasibility studies are in hand.

With a capital investment of US$80 million, San Bartolome is expected to ramp up to 6 million oz. silver per year over 14 years at an average cash operating cost of about US$2.50 per oz.

Reserves were last pegged at 123 million oz. silver hosted in silver-bearing gravel deposits that can be hauled directly to processing facilities near Potosi. There is also a significant by-product credit for tin.

At Kensington, which is situated 45 miles north of Juneau, Coeur estimates production will average 100,000 oz. gold per year at an average cash operating cost of US$195 per oz.

Capital costs will be in the neighbourhood of US$75 million; mine life at 10 years, though successful exploration could easily extend it.

Reserves last stood at 1.8 million oz. gold while another 1.4 million oz. sat in the resource category.

Coeur anticipates receiving all necessary permits for Kensington during the second quarter of 2004.

Coeur d’Alene is the world’s largest primary silver producer, with 2003 production expected to tally 14.6 million oz. silver plus 112,000 oz. gold. The company has major assets in Idaho, Nevada, Alaska, Argentina, Chile and Bolivia.