Palmarejo (Mexico) – Coeur’s Newest World-Class Silver/Gold Project
As one of the world's newest and highest quality silver-gold mines, Palmarejo has the capacity to produce an average of approximately 120,000 ounces of gold and 9.0 million ounces of silver annually.
2009 production at Palmarejo was 3.0 million ounces of silver and 54,740 ounces of gold at an average cash operating cost of $9.80 per ounce of silver due to higher costs of startup.
• Fourth quarter production of 1.2 million ounces of silver and nearly 21,000 ounces of gold at an average cash operating cost of $6.15 per ounce of silver.
• Giving effect to 2009 production, year-end proven and probable silver and gold reserves increased 50% and 54%, respectively, and currently stand at 90.5 million ounces of silver and 1.1 million ounces of gold.
• Underground and open pit mining operations performed in-line with expectations during 2009.
• Processing plant performance during 2009 met expectations for gold recovery rates and underperformed expectations for silver recovery rates, leading to lower than budgeted 2009 silver production.
• Startup indicated the need for the Company to validate its silver recovery process at Palmarejo. During the fourth quarter, substantial metallurgical test work and third party review of the processing plant took place and continues, leading to a number of improvements being implemented and resulting in increases to silver recoveries up to the mid 70’s level during February.
• 2010 production is expected to reach 7.9 million ounces of silver and 109,000 ounces of gold at a cash cost under $2.50 per ounce of silver.
• Coeur anticipates investing approximately $55 million in capital at Palmarejo in 2010.
• For the second year in a row, Coeur Mexicana and its staff received the Mexican Center for Philanthropy (CEMEFI) Award for corporate social responsibility. This award is a national recognition by over 170 Mexican charitable foundations of the exceptional work done by Coeur Mexicana to secure the best entrepreneurial practices in the areas of company ethics, quality of life, environmental protection and its ongoing contributions to the community.
• 2009 exploration at Palmarejo realized large gains in mineral reserves at the Guadalupe deposit, located approximately six kilometers from the Palmarejo mine. Potential to expand Guadalupe exists at the north and south ends.
• Identification of 2 new areas targeted for 2010 drilling near Guadalupe at Palmarejo--La Antena and La Higuera.
| Stage | Production |
| Location | Northern Mexico |
| Type | Open Pit/Underground |
| Metals Produced | Silver and Gold |
| Product | Concentrate |
