Palmarejo hikes Coeur d'Alene's silver reserves

Silver producer Coeur d'Alene Mines Corp. said Tuesday a study of a Mexican property confirmed an increase in companywide silver reserves by 29 percent over year-end 2007 levels.

The feasibility study of the company's Palmarejo silver and gold project indicates that companywide reserves have increased to 278.8 million ounces.

Also, production from Palmarejo is expected to increase the company's overall silver output 28 percent next year to an estimated 23.6 million ounces.

Palmarejo has increased the companywide gold reserves by 50 percent to 2.2 million ounces.

"Construction remains on-schedule with an expected first-half 2009 startup," Chief Executive Dennis E. Wheeler said in a statement. "Once in production, Palmarejo will add significantly to Coeur's growing silver and gold production profile, reduce companywide cash costs, and substantially boost our cash flow."

The feasibility study will be updated later this year.

Shares of Coeur d'Alene Mines fell 14 cents, or 4.3 percent, to $3.12 in midday trading.