Coeur Targets Year-End Start for San Bartolomé


Concrete is poured during construction at Coeur's San Bartolomé project in Bolivia
Coeur d’Alene Mines reported in mid-April 2007 that its San Bartolomé silver project in the Potosí district of Bolivia remains on schedule for completion before year end 2007. Regarding rumblings related to the Bolivian government’s desire to obtain greater benefits from mining operations in the country, Coeur said it has discussed issues related to the project with government officials and received repeated expressions of support from them. “The government has expressed a desire to increase taxes in the mining sector but has not yet submitted a formal proposal in this regard,” the company said. The project is currently subject to taxes of about 25% and royalties of 4%.

San Bartolomé is being developed by Empresa Minera Manquiri, a wholly owned Coeur subsidiary. The project has reserves of 152 million oz of silver in ore that grades 3.29 oz/st. Production is expected to total about 9 million oz during the first full year of operation and to average more than 8 million oz/y over the life of the mine.

Capital cost to develop the San Bartolomé project is estimated at $175 million, up from $135 million in the 2005 feasibility study. The increase is attributed to the overall cost inflation that is impacting mining-project capital costs worldwide. Production costs are expected to be in the range of $4/oz. Fluor Chile is the EPCM contractor for the project.

San Bartolomé development is based on several distinct gravel-like, silver-bearing deposits formed by erosion of the silver- rich upper part of the Cerro Rico volcanic dome complex. Mining conditions are ideal for application of free-digging surface-mining techniques, with no need for drilling and blasting. The mine will produce about 8,000 st/d of ore, and after washing and screening, will send about 5,000 st/d to the grinding circuit.

Processing will be by cyanide extraction, using carbon-in-leach and countercurrent decantation. The plant will produce doré bullion containing more than than 95% silver for shipment to overseas refiners.

Coeur has established a foundation to promote sustainable development in Potosí, including silversmithing and other training programs and promotion of tourism. The company is also funding a development plan for indigenous communities affected by San Bartolomé, including training and other benefits. The San Bartolomé project is environmentally sound and will address historical remediation needs in its area of operation.

San Bartolomé will add significantly to Coeur’s silver production, which totaled 12.8 million oz in 2006 from five mines: 4.2 million oz plus 62,000 oz of gold from Rochester, Nevada; 2.8 million oz from Martha, Argentina; 2.7 million oz plus 50,000 oz of gold from Cerro Bayo, Chile; 2.3 million oz from Broken Hill, Australia; and 800,000 oz from Endeavour, Australia. The company currently expects to produce about 13 million oz in 2007 and, with San Bartolomé contributing to production totals, 19 million oz in 2008.