Posted : Wed, 18 Jun 2008 13:07:41 GMT Author :...

Posted : Wed, 18 Jun 2008 13:07:41 GMT
Author : ID-COEUR-DALENE-MINES
Category : Press Release
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POTOSI, Bolivia - (Business Wire) Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) announced today that its new San Bartolomé mine, the world’s largest pure silver mine, has poured its first silver doré. Additionally, representatives of the Company, local and national mining cooperatives and Bolivian government officials recently marked the inauguration of the new facilities at the San Bartolomé silver mine, located in South America’s historically richest silver mining area.

San Bartolomé is expected to produce six million ounces of silver this year and nine million ounces in 2009, its first full year of production. The complete crushing, milling, leaching, thickening, Merrill-Crowe and smelting facilities are now all commissioned and fully operational. San Bartolomé contains an estimated 153 million ounces of probable silver mineral reserves and an additional 34 million ounces of measured and indicated silver mineral resources, with an expected 14-year mine life.

The new plant and tailings facilities were constructed by 2,200 Bolivian workers and employs 250 local workers from Potosi and generates an additional 1,000 mining related jobs in the nearby community. Construction work at San Bartolomé, which surpassed five million man hours without a lost time accident, was recently recognized with a top safety award from the International Society of Mine Safety Professionals.

“The San Bartolomé mine, a cornerstone of Coeur’s growth, is the culmination of the efforts of a great many people, and we at Coeur are especially proud to be associated with the mining cooperatives of Potosi on this project,” Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur said at the inaugural event in Potosi. “Mining has been taking place here for nearly 450 years, and San Bartolomé represents an entirely new way of mining at Potosi. The San Bartolomé construction effort is of the highest quality, bringing economic development to Potosi, protecting the environment, and building a state-of-the-art processing plant under the safest levels of worker safety.”

Mr. Wheeler added, “Production from the San Bartolomé silver mine will drive a 40% increase in our silver production this year to sixteen million ounces and lead to a doubling of our 2008 operating cash flow based on current silver and gold prices.”

The mineral rights at San Bartolomé are owned by COMIBOL, the Bolivian mining authority, which leases the rights to Empresa Manquiri, Coeur’s wholly-owned Bolivian subsidiary, and to the cooperatives. Both COMIBOL and these cooperatives also receive a royalty. Mining taxes applicable to San Bartolomé production are returned to the local community in Potosi.

Local and National Bolivia Officials Speak at Inaugural Event in Praise of San Bartolomé

Those attending the Inaugural event in support of the project included representatives of the Bolivian Government, the state mining company COMIBOL, and representatives of the mining cooperatives in Potosi. They included:

Honorable Carmen Rosa Velásquez – Senator of Bolivian Government

Ing. Freddy Beltran Reyes – Representative of the Ministry of Mining and Metallurgy

Ing. Germán Elias – Departmental Secretary of Mining and Metallurgy and Representative of the Prefect of the Department of Potosi

Ing. Mario Zeballos – Municipal Councilman of the City of Potosi

Ing. Alejandro Vargas – Manager of Technical Services of COMIBOL

Mr. Benedicto Llano – President of the Departmental Federation of Mining Cooperatives of Potosi

Mr. Esteban Martinez – Vice President of the National Federation of Mining Cooperatives and representative of Reserva Fiscal Cooperative

Mr. Felipe Jaita – Representative of Manquiri workers

Speaking at the recent inauguration, Mr. Freddy Beltran, Representative of the Ministry of Mining and Metallurgy, stated, “We are happy to be here and see that the project is being launched – a project that will generate resources in different ways for the population of Potosí. It is not only a matter of generating direct employment for the operation – the multiplier effect of this operation is very significant. Today, we see that mining is here and has a very important future in our country. Of course the government will support these types of enterprises. We take this opportunity to express our satisfaction to have been asked to this historic ceremony and would like to thank and congratulate Coeur, Minera Manquiri and the San Bartolomé project executives.”

Germán Elías, Departmental (Provincial) Secretary of Mining and Metallurgy, remarked during his speech, “There are winds of change supported by a government that has confidence in the private sector, that has confidence in Bolivians and the mining cooperatives and that, through COMIBOL, has established a very important strategic alliance at San Bartolomé. Of course, we are delighted because Coeur is a model company in its management, in industrial safety, and in protecting the environment. This is a mega project that, together with the other mega-projects, is supported by the government. The government supports these important endeavors that involve strategic alliances with the social sector.”

Mr. Esteban Martinez, Vice President of the Bolivian National Federation of Mining Cooperatives and representative of the Reserva Fiscal Mining Cooperative, commented in his prepared remarks, “We now realize that it is imperative for Bolivia, particularly for Potosí, to bring technology and investment to the cooperative mining sector and to the mining sector as a whole. Now we realize the value of this type of company and the importance of these joint ventures for the country.”

Alejandro Vargas, Manager of Technical Services of COMIBOL, Bolivia’s state-owned mining company, added during his speech at the inauguration, “San Bartolomé is the first project in Bolivia to establish a strategic relationship with the Potosí mining cooperatives and COMIBOL. Manquiri has partnered through joint ventures and leasing contracts with COMIBOL and seven of the mining cooperatives operating in the Cerro Rico area, which represent approximately 25 percent of the population of Potosí. I wish to express my deepest congratulations to the technical team and to the company’s top executives for having made this historic project come true for the country and for the mining sector. I wish to congratulate everyone who has participated in this Project.”

Mr. Juan Tarqui, Chief of the Ayllu Jesus de Machaca, remarked, “Back when negotiations began with Empresa Manquiri, we could not even imagine what we’d be seeing today. We wish much success to Empresa Manquiri, for we know that should they do well, we, the communities and the population of Potosí will also do well.”

Photos of the inaugural event and San Bartolomé can be viewed on the company website at www.coeur.com.

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