from EquityAlert.com.
Coeur Announces Successful First Month of Production At Cerro Bayo and Continued Intersection of High Grade Mineralization and Wider Veins
COEUR D'ALENE, Idaho, Jun 10, 2002 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (NYSE:CDE) is pleased to announce positive results from the first month of operations at its Cerro Bayo high-grade gold and silver mine in southern Chile.
In addition, the Company's exploration program continues to extend the known mineralization and identify new vein structures.
Robert Martinez, Coeur's Chief Operating Officer commented, "Wider than expected veins and higher than anticipated grades yielded silver production twenty-one percent above May's budget, while gold production met budgeted levels. Operating costs, which included substantial amounts of low-grade startup ore, were $172 per gold equivalent ounce. For 2002, Cerro Bayo is expected to contribute 52,000 ounces of gold and 3.6 million ounces of silver to Coeur's total production. Cash costs for the year are forecast to be under $150 per gold equivalent ounce."
Dennis E. Wheeler, Coeur's Chairman, President and Chief Executive Officer said, "Thanks to the excellent efforts of the Operations Group, we commenced operations at Cerro Bayo a month ahead of schedule in April. We are delighted by these early results, and fully expect Cerro Bayo and the nearby Martha mine to meet 2002 production and operating cost targets. We will soon begin shipping Martha mine high-grade ore in Argentina to Cerro Bayo for processing, which will help to lower total production costs."
Commenting on the exploration results to date and significant remaining exploration potential, Mr. Wheeler added, "As further exploration and development of Cerro Bayo proceeds, our newest mine continues to surpass all earlier expectations. During construction of the upper and lower access ramps to the main Lucero and Luz Eliana veins, a total of nine major vein structures were encountered of which only four have received any detailed exploration work to date."
Since the beginning of this year, Coeur has drilled 39 core holes for a total of 16,650 feet. The most recent dimensions of the four prominent veins are summarized as follows:
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Mineralized Vertical Zone of
Strike Length Mineralization
Vein (feet) (feet)
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Lucero 2,625 330 - 575
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Luz Eliana 2,460 165 - 245
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Celia 490 165
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Andrea 655 165
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Dieter Krewedl, Coeur's Senior Vice President of Exploration said, "All of these veins remain open along strike and at depth, and can be mined from our existing upper and lower access ramps. This year's excellent drilling results are expected to add significant new reserves at Cerro Bayo. Of particular note are the following high-grade intercepts on the Celia vein, which was not included in previous reserve estimates, and has the potential of becoming an important source of new, easily accessible ounces."
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Down the Hole
Drill Depth Thickness(a) Gold Equivalent Grade
Drill Hole (feet) (feet) (oz. / ton)
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#406 372 7.1 0.44
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#408 328 17.2 0.46
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#409 210 10.7 1.28
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(a) Correlation between underground data and drill results indicates that there is no material difference between drilled intervals and true thickness.
Mr. Krewedl added, "This thicker zone of high-grade mineralization in the Celia vein is open at depth and along strike and is located approximately 330 feet south of the upper access ramp. The Celia vein was previously intersected in the upper access ramp where it contained 1.08 gold equivalent ounces per ton over an 11.5 feet interval. Coeur has already commenced drifting to the south on the Celia vein from the upper access ramp. Approximately 200 feet of drifting has been completed to date and the Company plans to continue for at least another 130 feet towards the newly discovered high-grade mineralization. Assay results and thicknesses of the Celia vein in the first 200 feet of the drift have confirmed the previous drill data."
Coeur is the country's largest silver producer, as well as a significant producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Chile, Argentina and Bolivia. For more information, visit Coeur's website at www.coeur.com.
This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. The United States Private Securities Litigation Reform Act of 1955 provides a "safe harbor" for certain forward-looking statements. Operating, exploration and financial data, and other statements in this document are based on information the company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, changes that could result from the Company's future acquisition 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, and risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Coeur d'Alene Mines Corporation
Michael A. Steeves, 208/769-8155
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