New Silver Mine Starts Production in Mexico

The Owner of Coeur d'Alene Mines Corp. said Monday it has begun producing silver and gold at its mine in Palmerjo in northern Mexico. The mine is expected to produce 5.3 million ounces of silver and 72,000 ounces of gold this year at an average cash operating cost of about 50 cents per silver ounce. Based on an initial 11-year plan, the mine has the capacity to produce an average of 9 million ounces of silver and 120,000 ounces of gold annually. 

Palmarejo began production in March.  As one of the world's newest and highest quality silver-gold mines, Palmarejo is expected to 5.3 million ounces of silver and 72,000 ounces of gold in 2009.  These initial ounces are expected to contribute to a  66% increase in Company-wide silver production to 20 million ounces, and an 85% increase in gold production to over 85,000 ounces compared to 2008 levels. The company believes that Palmarejo is developing into a world-class mining district. With an updated mine plan, Palmarejo will have 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.  An aggressive exploration program is continuing at Palmarejo to expand the reserve and resource base, which at year-end totaled 63.6 million ounces of silver and 2.3 million ounces of gold Proven and Probable reserves, and an additional 53.3 million ounces of silver and 676,000 ounces of gold Measured and Indicated resources.  The property also has an additional 58.5 million ounces of silver and 880,000 ounces of gold in Inferred resources.  Coeur d'Alene Mines is a silver producer Company, through its subsidiaries is engaged in the operation and ownership, development and exploration of silver and gold mining properties and companies located within the United States, South America, Australia, Mexico and Africa.