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. The 2010 projected production – solely from the Palmarejo deposit – is estimated to be 7.4 million ounces of silver and 92,000 ounces of gold.
• Palmarejo continued ramp-up activities during the third quarter:
– Silver production increased 117% to 1.3 million ounces in the third quarter compared to 587,716 ounces of silver production in the second quarter while gold production increased 150% to 24,289 ounces in the third quarter versus 9,730 ounces of gold production in the second quarter
– Tons milled increased 44% during the third quarter compared to the prior quarter
– Average silver grade increased 10% and the average gold grade increased 41% versus the second quarter
– Average silver recoveries increased 37% from 53.6% in the second quarter to 73.4% during the third quarter. Further increases in recovery are being seen in the fourth quarter of 2009.
– Average gold recoveries increased 22% from 77.0% to 94.3% during the third quarter.
– Cash operating costs per ounce declined over 55% from the mine’s initial quarter of operations to $8.76 per ounce during the third quarter. Further cost reductions are expected in the fourth quarter and in 2010 as the operation’s production levels continue to ramp-up.
• The mine is now operating at near full-scale production levels and expects to be in position to achieve its full-year 2010 production targets of approximately 9 million ounces of silver and 110,000 ounces of gold with cash operating costs per ounce of approximately $1.50
An aggressive exploration program is continuing at Palmarejo to expand the reserve and resource base. In the third quarter, the Company reported a nearly 40% increase in both silver and gold reserves based on ongoing drilling at the Guadalupe deposit located six kilometers from the Palmarejo mine and processing facilities. These new reserves – 25.0 million silver ounces and 313,000 gold ounces – significantly add to the 63.6 million silver ounces and 756,000 gold ounces in reserves reported at the Palmarejo project at the beginning of the year.
| Stage | Production |
| Location | Northern Mexico |
| Type | Open Pit/Underground |
| Metals Produced | Silver and Gold |
| Product | Concentrate |
