Coeur d’Alene enters Mexico

Vancouver — The world’s largest primary silver producer has inked a letter of intent to purchase the assets of Minera Real de Cosala S.A. de C.V.

Coeur d’Alene Mines (CDE-N) agreed to pay US$10 million over 5 years for the assets, which include the La Verde underground silver mine 160 km north of Mazatlan in Sinaloa State, Mexico. Over the past 20 years, small-scale mining has generated production of 30 million oz of silver and 40 million lbs of copper.

“Coeur is excited to establish a presence in Mexico, which provides the Company with numerous opportunities to add to our production and reserves profile," says company CEO, Dennis Wheeler. "The La Verde mine and surrounding areas represent a unique opportunity for Coeur to potentially develop a large, low-cost operation that will generate value over many years.”

The company aims to conduct a confirmation sampling and drilling program over the next several months, which will focus on the viability of developing a larger-scale, low-cost operation.