CHICAGO--(BUSINESS WIRE)--Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported
year-end 2017 contained reserves and resources from continuing operations1,
which reflect significant increases compared to 2016 and demonstrate the
success of the Company’s expanded near-mine exploration program. Proven
and probable reserves of 335.8 million silver equivalent ounces (AgEqOz)2
are 10% higher, driven primarily by year-over-year silver equivalent2
reserve increases of 36% at Wharf and 17% at Palmarejo. Measured and
indicated resources of approximately 385.7 million AgEqOz2
and inferred resources of 171.0 million AgEqOz2 represent
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increases of 42% and 45%, respectively.
The Company’s year-end 2017 reserves assumed silver and gold prices of
$17.50 per ounce and $1,250 per ounce, respectively, unchanged from the
assumptions used to determine year-end 2016 and 2015 reserves.
Highlights
New discoveries boost Palmarejo’s reserves and resources –
Contained silver and gold reserves increased 15% to 47.0 million and
19% to 706,000 ounces, respectively, compared to the prior year. This
was primarily attributable to an initial reserve estimate at the
Nación-Dana deposit, for which preliminary mine planning is underway.
The Company’s 2017 drill program contributed to 56% higher measured
and indicated resources compared to 2016 and produced initial inferred
resource estimates for the La Bavisa and Zapata veins. These, along
with several additional veins discovered in the past 18 months, drove
a 48% increase in inferred resources, demonstrating significant
potential for continued resource growth
Wharf delivers 36% increase in gold reserves – Year-end 2017
reserves totaled 869,000 ounces compared to 639,000 ounces the prior
year. Wharf’s current gold reserves are also 55% higher than the
560,000 ounces at year-end 2013, the last reported reserve figure
prior to Coeur’s acquisition, despite depletion in the intervening
years of approximately 100,000 contained ounces by Goldcorp in 2014
and early 2015 and approximately 335,000 contained ounces by Coeur
Modest reserve gains at Kensington and Rochester; significant
increases to Rochester resources– Proven and probable gold
reserves at Kensington increased 5% to 520,000 ounces. At Rochester,
proven and probable AgEqOz2 reserves increased
approximately 2%, while measured and indicated resources increased 71%
and inferred resources increased 56%. The Company anticipates
publishing an updated technical report for Kensington later in the
first quarter, reflecting Jualin’s 2017 exploration results
2017 year-end resources reflect addition of high-grade Silvertip
mineralization – Silvertip had measured and indicated resources of
73.3 million AgEqOz2 and inferred resources of 14.1 million
AgEqOz2, accounting for approximately 19% and 8%,
respectively, of companywide totals. An aggressive campaign of both
surface and underground exploration drilling commenced at Silvertip
during the fourth quarter and the Company remains focused on producing
an initial reserve estimate for inclusion in the technical report
anticipated later this year
“Over the last 18 months, we have invested heavily in near-mine
exploration, which we believe offers the best risk-weighted returns to
stockholders. Our mines have been historically under-drilled, yet
present significant exploration potential as evidenced by the number of
new discoveries at Palmarejo,” said Mitchell J. Krebs, Coeur’s President
and Chief Executive Officer.
“We expect to sustain an elevated level of exploration investment in
2018 given the success our expanded programs are generating. Our 2018
programs reflect a higher proportion of capitalized drilling versus
expensed exploration. Our top priorities will remain Palmarejo,
Kensington and now Silvertip. Drilling at Palmarejo will focus on
expansion of the Nación-Dana deposit as well as delineation of several
recent discoveries where we can most effectively leverage existing
infrastructure. At Kensington, exploration efforts will target expansion
of Kensington Main and Raven, and at Silvertip, drilling will focus on
infill and expansion priorities to support our near- and medium-term
mine planning efforts.”
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious metals
producer with six mines in the Americas employing approximately 2,300
people. Coeur’s wholly-owned continuing operations include the Palmarejo
silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in
British Columbia, the Rochester silver-gold mine in Nevada, the
Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota.
In addition, the Company owns the La Preciosa project in Mexico, a
silver-gold exploration stage project. Coeur conducts exploration
activities in North America.
Cautionary Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
statements regarding mineral reserve and mineral resource estimates,
exploration and drilling efforts and investment, timing of publication
of technical reports, mine planning, and reserve and resource growth.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the risk
that anticipated additions or upgrades to reserves and resources are not
attained, the risk that planned drilling programs may be curtailed or
canceled due to budget constraints or other reasons, the risks and
hazards inherent in the mining business (including risks inherent in
developing large-scale mining projects, environmental hazards,
industrial accidents, weather or geologically related conditions),
changes in the market prices of gold, silver, lead and zinc and a
sustained lower price environment, the uncertainties inherent in Coeur's
production, exploratory and developmental activities, including risks
relating to permitting and regulatory delays, ground conditions, grade
variability, any future labor disputes or work stoppages, the
uncertainties inherent in the estimation of gold and silver reserves,
changes that could result from Coeur's future acquisition of new mining
properties or businesses, the loss of any third-party smelter to which
Coeur markets silver and gold, the effects of environmental and other
governmental regulations, the risks inherent in the ownership or
operation of or investment in mining properties or businesses in foreign
countries, Coeur's ability to raise additional financing necessary to
conduct its business, make payments or refinance its debt, as well as
other uncertainties and risk factors set out in filings made from time
to time with the United States Securities and Exchange Commission, and
the Canadian securities regulators, including, without limitation,
Coeur's most recent report on Form 10-K. Actual results, developments
and timetables could vary significantly from the estimates presented.
Readers are cautioned not to put undue reliance on forward-looking
statements. Coeur disclaims any intent or obligation to update publicly
such forward-looking statements, whether as a result of new information,
future events or otherwise. Additionally, Coeur undertakes no obligation
to comment on analyses, expectations or statements made by third parties
in respect of Coeur, its financial or operating results or its
securities.
Christopher Pascoe, Coeur's Director, Technical Services and a qualified
person under Canadian National Instrument 43-101, reviewed and approved
the scientific and technical information concerning Coeur's mineral
projects in this news release. Mineral resources are in addition to
mineral reserves and do not have demonstrated economic viability.
Inferred mineral resources are considered too speculative geologically
to have the economic considerations applied to them that would enable
them to be considered for estimation of mineral reserves, and there is
no certainty that the inferred mineral resources will be realized. For a
description of the key assumptions, parameters and methods used to
estimate mineral reserves and resources, as well as data verification
procedures and a general discussion of the extent to which the estimates
may be affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant factors, Canadian
investors should see the Technical Reports for each of Coeur's
properties as filed on SEDAR at www.sedar.com.
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We may use certain terms in
public disclosures, such as "measured," "indicated," "inferred” and
“resources," that are recognized by Canadian regulations, but that SEC
guidelines generally prohibit U.S. registered companies from including
in their filings with the SEC. U.S. investors are urged to consider
closely the disclosure in our Form 10-K which may be secured from us, or
from the SEC's website at http://www.sec.gov.
Notes
On December 22, 2017, the Company entered into an agreement to sell
its wholly-owned Bolivian subsidiary, which owns and operates the San
Bartolomé mine. The transaction is expected to close in the first
quarter. As a result, the mine is considered a discontinued operation
and excluded from discussion of consolidated mineral reserves and
resources unless otherwise noted.
Silver and gold equivalence assumes a 60:1 silver-to-gold ratio.
Silver and zinc equivalence assumes a 0.06:1 silver-to-zinc ratio.
Silver and lead equivalence assumes a 0.05:1 silver-to-lead ratio.
For Additional Information
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, Illinois 60603
Attention: Courtney Lynn, Vice President, Investor Relations and
Treasurer
Phone: (312) 489-5800
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Grade | Contained | |||||||||||||||||
Silver | Gold | Lead | Zinc | Silver | Gold | Lead | Zinc | |||||||||||
Short tons | (oz/t) | (oz/t) | (%) | (%) | (oz) | (oz) | (lbs) | (lbs) | ||||||||||
PROVEN RESERVES | ||||||||||||||||||
Palmarejo | 1,571,000 | 3.81 | 0.073 | 5,978,000 | 115,000 | |||||||||||||
Rochester | 195,724,000 | 0.45 | 0.003 | 87,518,000 | 598,000 | |||||||||||||
Kensington | 1,284,000 | - | 0.198 | - | 254,000 | |||||||||||||
Wharf | 18,125,000 | - | 0.027 | - | 483,000 | |||||||||||||
San Bartolome | 1,640,000 | 2.70 | - | 4,429,000 | - | |||||||||||||
Total | 218,344,000 | 0.45 | 0.007 | 97,925,000 | 1,450,000 | |||||||||||||
PROBABLE RESERVES | ||||||||||||||||||
Palmarejo | 9,414,000 | 4.36 | 0.063 | 41,033,000 | 591,000 | |||||||||||||
Rochester | 77,703,000 | 0.39 | 0.002 | 30,105,000 | 159,000 | |||||||||||||
Kensington | 1,389,000 | - | 0.192 | - | 266,000 | |||||||||||||
Wharf | 16,560,000 | - | 0.023 | - | 386,000 | |||||||||||||
San Bartolome | 162,000 | 2.98 | - | 482,000 | - | |||||||||||||
Total | 105,228,000 | 0.68 | 0.013 | 71,620,000 | 1,402,000 | |||||||||||||
PROVEN AND PROBABLE RESERVES | ||||||||||||||||||
Palmarejo | 10,985,000 | 4.28 | 0.064 | 47,011,000 | 706,000 | |||||||||||||
Rochester | 273,427,000 | 0.43 | 0.003 | 117,623,000 | 758,000 | |||||||||||||
Kensington | 2,673,000 | - | 0.195 | - | 520,000 | |||||||||||||
Wharf | 34,685,000 | - | 0.025 | - | 869,000 | |||||||||||||
San Bartolome | 1,802,000 | 2.73 | - | 4,911,000 | - | |||||||||||||
Total | 323,572,000 | 0.52 | 0.009 | 169,545,000 | 2,853,000 | |||||||||||||
| ||||||||||||||||||
Grade | Contained | |||||||||||||||||
Silver | Gold | Lead | Zinc | Silver | Gold | Lead | Zinc | |||||||||||
Short tons | (oz/t) | (oz/t) | (%) | (%) | (oz) | (oz) | (lbs) | (lbs) | ||||||||||
MEASURED RESOURCES | ||||||||||||||||||
Palmarejo | 629,000 | 3.07 | 0.051 | 1,928,000 | 32,000 | |||||||||||||
Rochester | 101,929,000 | 0.37 | 0.003 | 37,827,000 | 257,000 | |||||||||||||
Kensington | 1,546,000 | - | 0.255 | - | 395,000 | |||||||||||||
Wharf | 2,150,000 | - | 0.025 | - | 54,000 | |||||||||||||
Silvertip | - | - | - | - | - | |||||||||||||
La Preciosa | 9,536,092 | 3.04 | 0.005 | 29,001,000 | - | |||||||||||||
San Bartolome | 3,472,000 | 3.39 | - | 11,777,000 | - | |||||||||||||
Total | 119,262,092 | 0.68 | 0.007 | - | - | 80,533,000 | 783,000 | - | - | |||||||||
INDICATED RESOURCES | ||||||||||||||||||
Palmarejo | 7,445,000 | 3.37 | 0.045 | 25,120,000 | 336,000 | |||||||||||||
Rochester | 77,956,000 | 0.36 | 0.002 | 27,814,000 | 165,000 | |||||||||||||
Kensington | 1,332,000 | - | 0.289 | - | 385,000 | |||||||||||||
Wharf | 5,560,000 | - | 0.022 | - | 122,000 | |||||||||||||
Silvertip | 2,589,000 | 10.26 | - | 6.74 | 9.41 | 26,573,000 | - | 348,835,000 | 487,318,000 | |||||||||
La Preciosa | 19,141,000 | 3.98 | 0.006 | 76,185,000 | 118,000 | |||||||||||||
San Bartolome | 614,000 | 3.57 | - | 2,194,000 | - | |||||||||||||
Total | 114,637,000 | 1.38 | 0.010 | - | - | 157,886,000 | 1,126,000 | 348,835,000 | 487,318,000 | |||||||||
MEASURED AND INDICATED RESOURCES | ||||||||||||||||||
Palmarejo | 8,074,000 | 3.35 | 0.046 | 27,049,000 | 368,000 | |||||||||||||
Rochester | 179,885,000 | 0.36 | 0.002 | 65,641,000 | 422,000 | |||||||||||||
Kensington | 2,878,000 | - | 0.271 | - | 780,000 | |||||||||||||
Wharf | 7,710,000 | - | 0.023 | - | 176,000 | |||||||||||||
Silvertip | 2,589,000 | 10.26 | - | 6.74 | 9.41 | 26,573,000 | - | 348,835,000 | 487,318,000 | |||||||||
La Preciosa | 28,677,000 | 3.67 | 0.006 | 105,186,000 | 163,000 | |||||||||||||
San Bartolome | 4,087,000 | 3.42 | - | 13,971,000 | - | |||||||||||||
Total | 223,900,000 | 1.02 | 0.008 | - | - | 238,420,000 | 1,909,000 | 348,835,000 | 487,318,000 | |||||||||
| ||||||||||||||||||
Grade | Contained | |||||||||||||||||
Silver | Gold | Lead | Zinc | Silver | Gold | Lead | Zinc | |||||||||||
Short tons | (oz/t) | (oz/t) | (%) | (%) | (oz) | (oz) | (lbs) | (lbs) | ||||||||||
INFERRED RESOURCES | ||||||||||||||||||
Palmarejo | 7,336,000 | 4.23 | 0.050 | 31,061,000 | 369,000 | |||||||||||||
Rochester | 131,570,000 | 0.42 | 0.002 | 55,472,000 | 275,000 | |||||||||||||
Kensington | 1,471,000 | - | 0.271 | - | 399,000 | |||||||||||||
Wharf | 1,050,000 | - | 0.026 | - | 27,000 | |||||||||||||
Silvertip | 507,000 | 9.89 | - | 6.18 | 9.81 | 5,012,000 | - | 62,634,000 | 99,447,000 | |||||||||
La Preciosa | 1,761,000 | 3.31 | 0.003 | 5,835,000 | 6,000 | |||||||||||||
San Bartolome | 19,000 | 2.53 | - | 48,000 | - | |||||||||||||
Total | 143,695,000 | 0.68 | 0.007 | - | - | 97,380,000 | 1,076,000 | 62,634,000 | 99,447,000 | |||||||||
Notes to above mineral reserves and resources:
Effective December 31, 2017.
Assumed metal prices for estimated Mineral Reserves were $17.50 per
ounce of silver and $1,250 per ounce of gold.
Assumed metal prices for estimated Mineral Resources were $20.00 per
ounce of silver, $1,400 per ounce of gold, $1.15 per pound Zinc and
$1.00 per pound Lead.
Mineral Resources are in addition to Mineral Reserves and do not have
demonstrated economic viability. Inferred Mineral Resources are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be considered
for estimation of Mineral Reserves, and there is no certainty that the
Inferred Mineral Resources will be realized.
Rounding of tons and ounces, as required by reporting guidelines, may
result in apparent differences between tons, grade, and contained
metal content.
For details on the estimation of mineral resources and reserves,
including the key assumptions, parameters and methods used to estimate
the Mineral Resources and Mineral Reserves, Canadian investors should
refer to the NI 43-101 Technical Reports for Coeur's properties on
file at www.sedar.com.
| ||||
1 short ton | = | 0.907185 metric tons | ||
1 troy ounce | = | 31.10348 grams | ||
| ||||||||||
Grade | Contained | |||||||||
Gold | Silver | Gold | Silver | |||||||
Short tons | (oz/t) | (oz/t) | (oz) | (oz) | ||||||
PROVEN AND PROBABLE RESERVES | ||||||||||
Proven Reserves | 15,179,000 | 0.022 | 0.078 | 340,000 | 1,190,000 | |||||
Probable Reserves | 8,245,000 | 0.026 | 0.108 | 220,000 | 890,000 | |||||
Total | 23,424,000 | 0.024 | 0.089 | 560,000 | 2,080,000 | |||||
MEASURED AND INDICATED RESOURCES | ||||||||||
Measured Resources | 4,795,000 | 0.020 | 0.104 | 100,000 | 500,000 | |||||
Indicated Resources | 1,642,000 | 0.020 | 0.102 | 30,000 | 170,000 | |||||
Total | 6,437,000 | 0.020 | 0.104 | 130,000 | 670,000 | |||||
Notes to above Mineral Reserves and Mineral Resources:
Mineral Reserves and Mineral Resources estimate as reported by
Goldcorp, Inc. (“Goldcorp”) in its Annual Information Form dated March
31, 2014 ("AIF") for the financial year ended December 31, 2013,
available to Canadian investors at www.sedar.com
under Goldcorp's profile. As discussed in the AIF, Mineral Reserves
and Mineral Resources were prepared by Goldcorp in accordance with NI
43-101 under the supervision of a qualified person. Coeur is not
treating these historical estimates as current and has not completed
sufficient work to classify the historical estimate as current mineral
reserves or mineral resources for Coeur’s purposes. Following Coeur's
acquisition of Wharf, its qualified person reviewed and verified the
scientific and technical information of Goldcorp as well as completed
other work necessary for purposes of preparing a 43-101 technical
report, including validation of data quality, resource model accuracy,
and costs used in reserve and resource cutoffs.
As discussed in the AIF, mineral reserves were calculated by Goldcorp
using metal prices of $1,300 per gold ounce and $22 per silver ounce,
and mineral resources were calculated using $1,500 per gold ounce and
$24 per silver ounce. Mineral resources are in addition to mineral
reserves and do not have demonstrated economic viability. Rounding of
tons, as required by reporting guidelines, may result in apparent
differences between tons and grade.
Contacts
Coeur Mining, Inc.
Courtney Lynn, Vice President, Investor
Relations and Treasurer
(312) 489-5800


