Exhibit 99.1
Coeur d'Alene Mines Corporation
505 Front Avenue, P.O. Box I
Coeur d'Alene, ID 83816-0316
Telephone 208.667.3511
Facsimile 208.667.2213 (COEUR LOGO)
Press Release
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COEUR ANNOUNCES FINAL APPROVAL FOR CONSTRUCTION OF
THE SAN BARTOLOME SILVER MINE
- EXPECTED 2006 STARTUP TO INCREASE SILVER PRODUCTION OVER 40%-
- PROJECT MARKS 1ST MAJOR MODERN SILVER PROJECT IN BOLIVIA-
COEUR D'ALENE, Idaho - December 15, 2004 - Coeur d'Alene Mines Corporation
(NYSE:CDE), the world's largest primary silver producer, announced today the
Company's Board of Directors has approved the final go-ahead decision to proceed
with construction of its San Bartolome silver project in Bolivia. San Bartolome
is expected to increase company-wide silver production over 40% from current
levels beginning in 2006 and will further solidify the Company's position as the
world's largest primary silver producer.
"The construction of San Bartolome further solidifies Coeur's position as the
world's leading primary silver producer," said Dennis E. Wheeler, Chairman and
Chief Executive Officer. "We expect to produce approximately eight million
ounces of silver annually during the first five years of production at an
extremely competitive cash operating cost of $3.50 per ounce, which will
generate significant cash flow for the Company. The mine has an initial
estimated mine life of 15 years. In addition, it's important to note that this
is the largest new primary silver mine built in the Americas in decades, the
first modern silver project in Bolivia and a major boon to the country's local
and national economies."
Construction of the open pit milling operation and processing facility is
currently expected to cost approximately $135 million. Total reserves of 123
million ounces of silver are contained in surface gravel deposits, or pallacos,
which lend themselves to simple, low-tech surface-mining techniques. These
reserves, which measure 35.3 million tons at average grades of 3.48 ounces of
silver per ton, are contained in three major areas. Additional mineral resources
also hold potential for future expansion.
San Bartolome is located near established industrial infrastructure in the
historically silver-rich region of Potosi where more than two billion ounces of
silver have been mined. The building of the new mine represents the first
modern, large-scale primary silver mine built in Bolivia, generating an expected
500 local jobs during construction, and approximately 370 full-time jobs during
operations.
The project will also establish a foundation, called Fundespo, to assist in the
development of new local industries, such as silversmithing and tourism.
Coeur d'Alene Mines Corporation is the world's largest primary silver producer,
as well as a significant, low-cost producer of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia.
Contact: Tony Ebersole
Director of Investor Relations
1-800-523-1535
CAUTIONARY STATEMENT
This document contains numerous forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 relating to the Company's
silver and gold mining business. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside the Company's control.
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, the completion and/or updating of mining feasibility studies,
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, 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
the Company's filings from time to time with the SEC, including, without
limitation, the Company's reports on Form 10-K and Form 10-Q. 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.
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