-- San Bartolome Remains on Track for February Startup; Sets New Safety
COEUR D'ALENE, IDAHO, November 26 /CNW/ - Coeur d'Alene Mines Corporation
(NYSE: CDE) (TSX:CDM) today announced that the Bolivian Congress on Friday
approved a reform to the mining tax code, bringing tax certainty to the
country's mining industry and Coeur's San Bartolome silver mine in Potosi,
Construction at San Bartolome, which is nearing three million man hours
without a lost time accident, is scheduled for completion and startup in
February, 2008, at an annualized rate of 9 million ounces of silver per year.
As reported in newswires late last week, Bolivia's Congress approved a
reform to the mining tax code that will increase income tax rates to 37.5
percent from 25 percent. In addition, payments under Bolivia's Complementary
Mining Tax (CMT), which are based on gross revenues and range from 1% to 10%
and are tied to metals prices, will now be deductible for tax purposes rather
than creditable against income taxes under the previous mining tax code.
"We are pleased that the Bolivian Congress has passed President Morales'
legislation which brings certainty to the mining tax issue, as well as to
Coeur's San Bartolome project, the largest new pure silver mine in the world,"
said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of
Coeur. "Coeur considers these tax reforms to be consistent with what the
company has utilized in its economic model for the mine. We look forward to
startup in February, and the mine's ongoing contribution to Bolivian worker
safety, representative of Coeur's approach to safe and environmentally sound
The 1,600 strong workforce, made up primarily of Bolivians, is nearing
three million man hours without a lost time accident.
San Bartolome is expected to produce at an annualized rate of
approximately 9 million silver ounces per year. In 2007, silver ore reserves
were increased by 3.5 million ounces to a total of 155.4 million ounces at
June 30. Additional indicated mineral resources increased to 32.3 million
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.
Cautionary Statement: Company press releases may contain numerous
forward-looking statements within the meaning of securities legislation in the
United States and Canada relating to the company's silver and gold mining
business. Such statements are subject to numerous assumptions and
uncertainties, many of which are outside the company's control. Operating,
exploration and financial data, and other statements in this document are
based on information the company believes reasonable, but involve significant
uncertainties as 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 the
company's future acquisition 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 the company's filings from
time to time with the SEC and the Ontario Securities Commission, including,
without limitation, the company's reports on Form 10-K and Form 10-Q. Actual
results and timetables could vary significantly from the estimates presented.
Readers are cautioned not to put undue reliance on forward-looking statements.
The company disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information, future
events or otherwise. Donald J. Birak, Coeur's Senior Vice President of
Exploration, is the qualified person responsible for the preparation of the
scientific and technical information in this document. Mr. Birak has reviewed
the available data and procedures and believes the collection of exploration
data and calculation of mineral reserves reported in this document was
conducted in a professional and competent manner. 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 project as filed on SEDAR at www.sedar.com.
For further information:
For further information: Coeur d'Alene Mines Corporation Tony Ebersole,
Director of Investor Relations 208-665-0777