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Coeur D'Alene Mines Starts Production In Mexico

The Associated Press

COEUR D' ALENE, Idaho (AP) — Coeur d'Alene Mines Corp. said Monday it has begun producing silver and gold at its Palmarejo mine in northern Mexico.

The mine, of which Coeur d'Alene Mines is the sole owner, 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 mine plan, Palmarejo has the capacity to produce an average of 9 million ounces of silver and 120,000 ounces of gold annually, the company said in a statement.

Combined with production from the company's other new silver mine, San Bartolome in Bolivia, Coeur d'Alene Mines expects its silver production to increase 66 percent this year to about 20 million ounces.

In midday trading, shares fell 1 cent to 91 cents per share.