Idaho-based
The world’s largest producer of primary silver expects the mine to boost its silver output by more than 40% starting in 2006. In all of 2004, Coeur expects to produce 13.7 million oz. silver at the cost of US$3.41 per oz.
During each of its first five years of operation, San Bartolom is expected to produce 8 million oz. at a cash operating cost of US$3.50 per oz. The mine is expected to last 15 years.
A final feasibility study has raised the capital cost estimate by US$35 million, to $135 million, reflecting higher costs for fuel, concrete, steel and labour. Annual operating cash flow is projected to be US$20 million.
Reserves stand at 35.3 million tons grading 3.5 oz. silver per ton, or 123 million oz. The reserves are in three gravel deposits on surface: Huacajchi, Diablo and Santa Rita. The gravels can be hauled directly to processing plants.
Construction of the open-pit mine is expected to last 18 months and employ about 500 people. During operation, full-time staff will number about 370.
San Bartolom will enjoy exemptions from import duties and value-added tax on imported construction capital, thanks to Bolivian tax benefits for new investments in mining projects. Final environmental permits were granted last summer.
Coeur intends to establish the Fundespo Foundation, aimed at helping silver-smithing, tourism and other local industries.
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