Coeur d’Alene buys Endeavor’s silver

Vancouver — Coeur d’Alene Mines (CDE-N) is buying the silver production and reserves of the Endeavor zinc-lead-silver mine, near Cobar in central New South Wales, Australia.

The company is slated to pay US$38.5 million to Australian-listed CBH Resources for byproduct silver and rights to proven and probable reserves of 11 million tonnes grading 68.6 grams silver per tonne (equivalent to 24 million oz.).

Endeavor is equipped with a plant that provides 450,000 cubic metres per year of paste backfill. The backfilling is expected to double the life of the underground mine to 8.5 years and make stopes more accessible.

GBH Resources will continue to own and operate the mine, which has been producing since 1983. However, Coeur will contribute to operating costs to the tune of US$1 (minimum) per ounce of payable silver plus US25 for each new ounce added to proven and probable reserves.

In 2004, the mine processed 1.2 million tonnes of ore averaging 7.8% zinc, 4.7% lead and 51 grams silver. From this tonnage were extracted 74,000 tonnes zinc (163 million lbs.), 38,400 tonnes lead (85 million lbs.), and 950,000 oz. silver.

Endeavor is expected to produce 1.3 million oz. silver annually, which would boost Coeur’s total output by more than 9%.

In 2004, the company produced a total of 14.1 million oz. silver and 129,000 oz. gold.

Coeur operates mines in Argentina, Chile and in the U.S. The company is also building the San Bartolome mine in Bolivia, which, starting in 2006, is expected to produce at least 8 million oz. silver annually.

Meanwhile, in Alaska, construction of the Kensington gold mine is slated to get under way in mid-2005.

Coeur d’Alene Mines recently traded at US$3.50.