Palmarejo (Mexico) – Coeur’s Newest World-Class Silver/Gold Mine

As one of the world's newest and highest quality silver-gold mines, Palmarejo has the capacity to produce an average of approximately 120,000 ounces of gold and 9.0 million ounces of silver annually.

Palmarejo (Mexico) – 2Q Highlights

• Quarterly silver production jumped 37% compared to the prior quarter due to increases in open pit and underground grades.  In addition, silver recovery rates increased from 72.7% in the first quarter to 78.3% in the second quarter.
• Quarterly gold production increased 20% compared to the prior quarter.
• During the second half of 2011, mill throughput is expected to increase and silver recovery rates are expected to remain near second quarter levels, leading to increased production compared to the first half of the year.
• Second quarter metal sales were $123.7 million, operating cash flow was $78.6 million, and capital expenditures totaled $10.3 million.

Exploration in 2Q

The Company completed 16,841 meters (55,253 feet) of core drilling in the second quarter in the large Palmarejo District. This work was divided nearly equally between targets around the Palmarejo mine from both surface and underground drill platforms, specifically the Rosario, Tucson and Chapotillo zones, and at the  Guadalupe and La Patria deposits, located near the mine.  Drilling at La Patria represents the first drilling by Coeur on this mineralized, northwest-trending, district-scale structure.  La Patria is over four kilometers (2.5 miles) long and consists of three separate zones.  This year’s drilling on just the north zone of La Patria has encountered several gold- and silver-bearing veins located near the surface, suggesting the potential for a surface mineable deposit.

• Year-end 1020 proven and probable reserves totaled 71.8 million silver ounces and 870,200 gold ounces, measured and indicated resources were 16.6 million silver ounces and 191,474 gold ounces, and inferred resources were 33.8 million silver ounces and 625,319 gold ounces.

Corporate Social Responsibility

• For the third year in a row, Coeur Mexicana and its staff received the Mexican Center for Philanthropy (CEMEFI) Award for corporate social responsibility. This award is a national recognition by over 170 Mexican charitable foundations of the exceptional work done by Coeur Mexicana to secure the best entrepreneurial practices in the areas of company ethics, quality of life, environmental protection and its ongoing contributions to the community.

Reserves and Resources

To topPrint