Coeur estimates annual silver production of 9.1m oz. at Mexican mine
Coeur Mining (NYSE:CDE) has completed a preliminary economic assessment for its planned La Precious silver and gold project in Mexico's Durango state. The estimates show an annual silver production of 9.1 million ounces during the first 14 years of the mine's 17-year life.
Assuming silver and gold prices of $25 and $1,500 per ounce respectively, the after-tax internal rate of return will be approximately 17%.
Initial capital expenditures are expected to run the company $348 million for commercial start-up and average annual cash operating costs are estimated at $13.86 per ounce.
Coeur is the largest U.S.-based primary silver producer and operates four precious metals mines in the Americas. The miner acquired La Preciosa in April when it purchased Canada's Orko Silver Corp.
The company's next step is a feasibility study which it intends to complete by mid-2014.
Despite the announcement, Coeur was down slightly on the New York exchange on Wednesday, losing 0.6%.
Creative Commons image by: Brenda Gottsabend