Tuesday, 29th June 2004 (3481 views)

Coeur d'Alene Mines Corporation has reported a 50 per cent increase in mine life and reserves at one of its key sites, according to the Toronto Star.

The favourable figures, which also include a 20 per cent drop in estimated construction costs at a site, come just one week before shareholders of its takeover target, Wheaton River Minerals are to vote on merging with the Canada-based rival miner Iamgold.

Wheaton shareholders are expected to vote to merge with Iamgold in an all-stock deal, which has been backed by the management. The merger would then create a $2.4 billion company called Axiom Gold, two-thirds to three-quarters owned by Wheaton shareholders.

Coeur d'Alene has offered Wheaton shareholders $5 per share, of which $1 would be in cash, whilst the total deal is worth $2.8 billion.

Coeur reported that its Alaskan gold mining project is expected to produce gold for 15 years, five more than originally anticipated. The project will cost around $91.5 million to develop.

The company also announced that its Bolivian silver project is likely to produce 6 million ounces in its first operational year.

The two projects should increase Coeur's gold production by 75 per cent and silver production by 40 per cent.

 

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