Coeur and Palmarejo Silver and Gold File Preliminary Assessment for Palmarejo Silver & Gold Project



    COEUR D'ALENE, IDAHO & LONGUEUIL, QUEBEC, September 5 /CNW/ - Coeur
d'Alene Mines Corporation (NYSE:  CDE) (TSX:CDM) ("Coeur") and Palmarejo Silver
and Gold Corporation (TSX-V:PJO) ("Palmarejo") announced today that a
preliminary assessment report has been filed on the Palmarejo Project located
in Northern Mexico. The purpose of this report is to provide details of the
scoping study completed by Coeur that assumes mining at the Palmarejo Project
takes place by both open pit and underground mining methods.

    Under this scenario, annual production at the Palmarejo Project is
anticipated to begin initially by open pit mining methods in late 2008. During
the initial five years of operations, production is expected to average
approximately 10.4 million ounces of recovered silver and 115,000 ounces of
recovered gold with average cash operating costs of negative $0.41 per ounce
of silver after gold by-product credits.

    The production and cost profiles highlighted above are based on the
mining of the following mineral resources within the Palmarejo deposit area
only:

    
    Open Pit                                            Contained Ounces
                                                       -------------------
                            Tonnes   Au (g/t) Ag (g/t)   Gold     Silver
                           -----------------------------------------------
    Measured + Indicated   4,503,000     1.63      213  236,607 30,782,587
    Inferred                 238,000     1.95      254   14,923  1,943,779

    Underground

    Measured + Indicated   5,360,000     3.06      239  527,524 41,255,251
    Inferred                 151,000     3.03      283   14,711  1,374,041

    Assumed metals prices were $550 per ounce for gold and $10 per ounce
     for silver. Cut-off grades were 50 g/t Ag equivalent for open pit
     mineral resources and 106 g/t Ag equivalent for underground.
    Mineral resources that are not mineral reserves do not have
     demonstrated economic viability.
    

    For comparison, the total current mineral resources at the Palmarejo
Project, including the nearby Guadalupe and La Patria deposits, are as
follows:

    
                                                       Contained Ounces
                                                     ---------------------
                       Tonnes     Au (g/t)  Ag (g/t)    Gold      Silver
                     -----------------------------------------------------
    Palmarejo (1)
    Measured           5,400,000       2.22      200    384,000 34,600,000
    Indicated          9,100,000       2.00      186    587,000 54,660,000
                     -----------                     ---------------------
    Subtotal          14,500,000                        971,000 89,260,000

    Inferred           4,000,000       1.31      138    169,000 17,930,000

    Guadalupe (2)
    Inferred           5,700,000       0.83      106    155,000 19,570,000

    La Patria (3)
    Inferred           3,600,000       1.49       35    171,000  4,030,000
    (1) 0.8 g/t Au equivalent cut-off Source: Palmarejo Updated Resource
     Statement dated October 24, 2006.
    (2) 0.8 g/t Au equivalent cut-off applied above 1,300 meter elevation
     and a 3 g/t Au equivalent cut-off applied below 1,300 meter
     elevation. Source: Palmarejo Initial Resource Statement for Guadalupe
     dated October 24, 2006.
    (3) 0.8 g/t Au equivalent cut-off. Source: Palmarejo Initial Mineral
     Resource Statement for the La Patria Project dated January 16, 2007.
    

    The study also confirms the earlier reported construction cost estimates
of approximately $200 million to achieve commercial production at the
Palmarejo Project, including pre-stripping, underground development, mining
fleet, power line, ongoing permitting, owner's costs and contingency.

    A technical report describing the preliminary assessment is available
under the Palmarejo profile on the Canadian Securities Administration website
at www.sedar.com.

    On May 3, 2007, Coeur, Bolnisi Gold NL, and Palmarejo announced that they
entered into agreements, which were approved unanimously by their respective
boards of directors, as well as a special committee of independent directors
of the Palmarejo board of directors, to merge. Pursuant to the agreements,
Coeur will acquire all of the shares of Bolnisi, and all the shares of
Palmarejo not owned by Bolnisi, in a transaction valued at approximately
US$1.1 billion. As previously reported, the companies expect the transaction
to be completed in the fourth quarter of this year.

    About Coeur d'Alene Mines

    Coeur d'Alene Mines Corporation is one of the world's leading primary
silver producers and a growing gold producer. The company has mining interests
in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Tanzania. In
2006, Coeur produced 12.8 million ounces of silver and 116,000 ounces of gold.
Cash costs in 2006 were $3.33 per ounce of silver for 2006.

    About Bolnisi

    Bolnisi Gold NL is an Australia-based company engaged in mining and
exploration for gold and minerals. The Company's activities are all Mexican
precious metals operations with an existing portfolio of projects, which
include the Palmarejo Silver-Gold project (including Trogan), Chihuahua; the
Yecora Gold-Silver project, Sonora, and the El Realito Gold-Silver project,
Chihuahua.

    About Palmarejo

    Palmarejo Silver And Gold Corporation is a silver/gold exploration
company listed on the TSX Venture Exchange under the symbol "PJO". Palmarejo's
principal activity is to explore and develop gold and silver properties
located in the Temoris District of Chihuahua, Mexico within the Sierra Madre
Occidental mountain range.

    Cautionary Statement

    This press release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
statements regarding the terms and conditions of the proposed transaction and
anticipated operating results. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside the control of Coeur
or Palmarejo, as the case may be. Operating, exploration and financial data,
and other statements in this press release are based on information that Coeur
or Palmarejo, as the case may be, believes is reasonable, but involve
significant uncertainties affecting the business of Coeur or Palmarejo, as the
case may be, 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 and the Ontario Securities Commission,
including, without limitation, Coeur's reports on Form 10-K and Form 10-Q and
Palmarejo's Annual Information Form. Additionally, there are risks that the
parties will not proceed with the proposed transaction, that the ultimate
terms of the proposed transaction will differ from those that currently are
contemplated, and that the proposed transaction will be not be successfully
completed for any reason (including the failure to obtain the required
approvals or clearances from regulatory authorities). 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 and Palmarejo disclaim any intent or obligation to update
publicly such forward-looking statements, whether as a result of new
information, future events or otherwise. Additionally, Coeur and Palmarejo
undertake no obligation to comment on analyses, expectations or statements
made by third parties in respect of Coeur and Palmarejo, their financial or
operating results or their securities or the proposed transaction.

    Additional Information

    The proxy statement that Coeur plans to file with the United States
Securities and Exchange Commission ("SEC") and Canadian securities regulators
and mail to its shareholders will contain information about Coeur, Bolnisi,
Palmarejo, the Palmarejo Project, the proposed transaction and related
matters. Shareholders are urged to read the proxy statement carefully when it
is available, as it will contain important information that shareholders
should consider before making a decision about the proposed transaction. In
addition to receiving the proxy statement from Coeur by mail, shareholders
will also be able to obtain the proxy statement, as well as other filings
containing information about Coeur, without charge, from the SEC's website
(www.sec.gov) and the Canadian securities regulators' website (www.sedar.com)
or, without charge, from Coeur. This announcement is neither a solicitation of
a proxy, an offer to purchase, nor a solicitation of an offer to sell shares
of Coeur. Coeur and its executive officers and directors may be deemed to be
participants in the solicitation of proxies from Coeur's shareholders with
respect to the proposed transaction. Information regarding any interests that
Coeur's executive officers and directors may have in the proposed transaction
will be set forth in the proxy statement. The Coeur shares to be issued in the
proposed transaction have not been and will not be registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements. Coeur intends to issue such Coeur shares pursuant to the
exemption from registration set forth in Section 3(a)(10) of the Securities
Act.

    Technical Information

    The preliminary assessment is preliminary in nature and includes inferred
mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessment will be realized. The basis of the preliminary
assessment and the qualifications and assumptions made by the authors of the
preliminary assessment are included in the Technical Report filed concurrently
with this press release.

    The information in this report that relates to production and cost
profiles is based on information compiled by Neil B. Prenn of Mine Development
Associates, Reno, Nevada who is a Registered Mining Engineer in the State of
Nevada, a Member of the Society of Mining Engineers and councilor-at-large for
the Mining and Metallurgy Society of America and a Qualified Person by
Canadian National Instrument 43-101 standards. Neil B. Prenn has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves'. Neil B. Prenn has consented to the inclusion in this report of
the matters based on his information in the form and context in which it
appears.

    The information in this report that relates to Exploration Results,
Mineral Resources or Mineral Reserves is based on information compiled by
Michael M. Gustin of Mine Development Associates, Reno, Nevada who is a
Registered Geologist in the States of Utah and Washington and a Qualified
Person by Canadian 43-101 standards and by Kenneth M. Phillips, geologist of
VOP Mining Services Pty Ltd and a Director of Bolnisi Gold NL, who is a Member
of the Australasian Institute of Mining and Metallurgy and a Qualified Person
by Canadian 43-101 standards. Kenneth M. Phillips has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Kenneth
M. Phillips has consented to the inclusion in this report of the matters based
on his information in the form and context in which it appears.

    Copies of the merger implementation agreements and certain related
documents will be filed with the SEC and Canadian securities regulators and
will be available at the SEC's website at www.sec.gov and at the Canadian
securities regulators' website at www.sedar.com.




For further information:

For further information: Coeur: Director -- Investor Relations Tony
Ebersole, 208-771-0150 or Senior Vice President -- Corporate Development
Mitchell J. Krebs, 888-545-1138 or Bolnisi: Norman Seckold, Chairman,
011-61-2-9247-5300 or Palmarejo: James Crombie, President & CEO, 450-677-2253

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