Coeur Announces Major Memorandum of Understanding for Kensington
Mine Permitting Signed By State and Federal Agencies
July 28, 2003
Coeur anticipates receiving all necessary permits for Kensington by the end of January 2004, and plans to reach a final decision on developing the mine after completion of the permitting and a feasibility study update.
"The Kensington Project is one that has been very important to Southeast and all of Alaska for some time," Alaska Governor Frank H. Murkowski said. "It is consistent with our goal of helping to create high-paying jobs in the natural resource sector. I am pleased with the signing of the MOU and look forward to the permitting and construction of the project."
Dennis E. Wheeler, Coeur's Chairman and Chief Executive Officer, said, "The signing of this MOU brings certainty regarding completion of permitting so the final feasibility study can be updated on this major gold project, which would significantly increase Coeur's gold production and bring several hundred jobs to Southeast Alaska.
"We appreciate very much Governor Murkowski's efforts to implement the agreement, as well as the participation by the key federal agencies. We will enthusiastically pursue this priority objective to complete the permitting program by January of 2004," Mr. Wheeler added.
The Kensington Gold Project is located approximately 45 miles north of Juneau, Alaska and contains an estimated 1.8 million ounces of proven and probable gold reserves and 1.4 million ounces of resources. Capital costs necessary to place Kensington into production are currently estimated to be $150 million, while annual gold production is projected to average 175,000 ounces annually at estimated average cash operating costs of approximately $200 per ounce. Coeur believes that significant exploration potential exists at Kensington that could materially increase the project's total resources.
Coeur d'Alene Mines Corporation is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile and Bolivia.
Contact: Tony Ebersole
This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. 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 and resources, mining and processing conditions, 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, and risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries. 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 these forward-looking statements, whether as a result of new information, future events or otherwise.
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