Question-and-Answer Session
Operator
(Operator's Instructions) Your first question comes from the line of Jorge Beristain with Deutsche Bank Securities.
Jorge Beristain – Deutsche Bank Securities
Hi. Good afternoon, Dennis, Mitch, Karli. Quite a few questions; but could you comment a little bit on Cerro Bayo? I didn't notice any updated guidance. Is there a possibility that that mine could come back online at 2010 at this point?
Dennis E. Wheeler
Jorge, we've completed a positive internal review study with regard to Cerro Bayo. Our exploration there has identified several new targets. Having said that, we are currently exploring the question of the sale of Cerro Bayo which is consistent with our objective of rationalizing our asset portfolio now that we have our large long-life new mines nearly completed.
Jorge Beristain – Deutsche Bank Securities
Okay. So at this point would it be a safe assumption to not include it in 2010 either because you won't restart it or it may be sold?
Dennis E. Wheeler
I don't think that I would draw that conclusion necessarily. We'll keep you timely apprised. We think there's good value at Cerro Bayo so we're not going to commit to a sale unless the consideration offered meets our expectations.
Jorge Beristain – Deutsche Bank Securities
Okay. And then just this restart of the Rochester mine, do you have an update as to what the implied CapEx for that would be and/or the potential timing for when you would start to see primary ounces there?
Mitchell J. Krebs
Jorge, Mitch here. The way we were looking at that right now is that construction of new pads would take place in the second half of next year. The two big CapEx items are essentially that pad and a new lease of equipment so we're looking at leasing options for the equipment and building that tailings paid that would probably run about $20 million in total, 10 or 15 of that in the second half of next year and the remainder then in 2011, and that's the first year then we would expect to see ounces coming off the pads in 2011 from this restart.
Jorge Beristain – Deutsche Bank Securities
Great. And in terms of your cash costs, I just ran some quick back-of-the-envelope numbers for what you're implying for the fourth quarter based on your quarterly operating cash flows diagram on page 15; it would seem that you're kind of intoning still some cost headwinds at San Barts and Palmarejo. And I can obviously understand San Barts if you're taking your production down by half a million ounces, but could you also keep us up to date as to what's happening at Palmarejo and why we would not be seeing a very strong sequential step-down in the fourth quarter as you start to ramp up your production there?
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