COEUR D’ALENE, Idaho--()--Coeur d’Alene Mines Corporation (NYSE:CDE)(TSX:CDM)(ASX:CXC) today announced the discovery of a new high-grade vein system at its Kensington Gold Mine, which is scheduled to commence production in the third quarter of 2010 at the rate of approximately 120,000 ounces of gold annually.
“This first phase of drilling at Kimberly intersected mineralization typical of other major gold systems at Kensington. We are encouraged with the style and strength of mineralization in this first phase of drilling and that Kimberly consists of at least two structures that are open at depth and on strike”
The new structure, named the Kimberly, is a gold-bearing vein system exposed in the decline from the mill to the Kensington mine, within the large exploration district Coeur controls around the mine, located 45 miles northwest of Juneau, Alaska. In a drilling program initiated in 2009, eight phase-one core holes intersected very significant gold mineralization. Assays ranged from 0.144 ounces per ton to over 1.29 ounces per ton (see table of results in this release). A total of fourteen core holes, totaling over 4,080 feet, were completed in the fourth quarter.
“This first phase of drilling at Kimberly intersected mineralization typical of other major gold systems at Kensington. We are encouraged with the style and strength of mineralization in this first phase of drilling and that Kimberly consists of at least two structures that are open at depth and on strike,” said Coeur Senior Vice President Exploration Donald Birak. “Phase-one drilling has defined gold mineralization over a north-south strike length of 600 feet and nearly 600 foot down dip to the southwest. These characteristics suggest that Kimberly may develop into a major, new gold system at Kensington and bodes well for other future discoveries in this gold district. Our future exploration will focus on expanding and defining Kimberly, testing other targets, and exploring for other similar blind veins nearby.”
Kensington is scheduled to begin in the third quarter of 2010 at a rate of 120,000 ounces of annualized gold production. At December 31, 2009, Kensington held 1.5 million ounces of proven and probable gold reserves with an initial mine life expected at 12.5 years.
Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer. The Company’s three new long-life mines include the San Bartolomé silver mine in Bolivia, the Palmarejo silver/gold mine in Mexico, which began operations in 2009, and the Kensington gold mine in Alaska, which is expected to begin operations in the third quarter of 2010. The Company also operates underground mines in southern Chile and 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, Chile and Mexico. Coeur common shares are traded on the New York Stock Exchange under the symbol CDE, the Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary Interests are traded on the Australian Securities Exchange under symbol CXC.
Photos of operations and projects and other information can be accessed through company website at www.coeur.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 fourth 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 press release. 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 press release, 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 obtained from us, or from the SEC’s website at http://www.sec.gov/edgar.shtml.
|Hole I.D.||Mineralized Interval (feet)||Assays (oz/ton)|
|KMB-002||no significant intecepts|
|KMB-003||no significant intecepts|
|KMB-009||no significant intecepts|
|KMB-012||no significant intecepts|
|KMB-014||no significant intecepts|
241 core samples analyzed at ALS Chemex in Reno, Nevada
Drill intercepts calculated at 0.1 oz/ton cutoff. “Incl” (includes) calculated at 1.0 oz/ton cutoff
|Maximum of 7.2 feet of internal dilution (less than cutoff) permitted on compositing|
Samples from whole NQ-diameter drill core
QA/QC standards (31) , blanks (17) and duplicates (36) returned within acceptable limits.
|QA/QC check samples (25) results pending.|