Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE)
announced year-end contained proven and probable mineral reserves
of approximately 302.2 million silver equivalent ounces, a decrease
of 88.5 million silver equivalent ounces compared to year-end 2014,
primarily due to the reclassification of silver reserves at La
Preciosa to resources and from the production of 35.6 million
silver equivalent ounces, comprised of 15.9 million silver ounces
and 327,908 gold ounces, during 2015. In addition to these
reserves, Coeur announced measured and indicated mineral resources
totaling approximately 414.7 million silver equivalent ounces, and
inferred mineral resources totaling 120.3 million silver equivalent
ounces, a 42% increase and 5% decrease, respectively, compared to
year-end 2014.
To reflect the current volatile metals price environment, Coeur
has implemented short and long-term pricing assumptions in
determining mineral reserves. Short-term reserve price assumptions
for 2016 – 2017 are $15.50 per silver ounce and $1,150 per gold
ounce, an 18% and 10% decrease, respectively, from year-end 2014
reserve price assumptions. Long-term reserve price assumptions for
2018 and beyond are $17.50 per silver ounce and $1,250 per gold
ounce, an 8% and 2% decrease, respectively, compared to year-end
2014 reserve prices.
Highlights
All comparisons below refer to year-end 2015 compared with
year-end 2014.
- Proven and probable gold reserves
increased 33% to 2.4 million ounces
- Measured and indicated gold resources
increased 28% to 1.7 million ounces
- Inferred gold resources increased 7% to
1.2 million ounces
- Largest source of reserve increase was
from Wharf, acquired by Coeur in February 2015, which added 712,000
ounces of proven and probable gold reserves
- Inferred resources at Kensington’s
high-grade Jualin deposit total 179,000 gold ounces with an average
grade of 0.619 ounces per ton, over three times the average reserve
grade
- Palmarejo silver equivalent reserves
increased 44%, primarily as a result of the consolidation of the
Independencia deposit, through the acquisition of Paramount Gold
and Silver Corp. in April 2015
- Proven and probable silver reserves
decreased 44% to 155.9 million ounces
- Measured and indicated silver resources
increased 47% to 310.4 million ounces
- Inferred silver resources decreased 18%
to 50.4 million ounces
- Largest source of silver reserve
decrease was from La Preciosa, as 119 million ounces were
reclassified from reserves to resources due to lower metals price
assumptions
“Year-end 2015 reserves reflect the continuing theme of ‘quality
over quantity’ of silver and gold ounces and align with our
strategy to produce higher-grade, higher-margin ounces to maximize
free cash flow across our operations,” said Mitchell J. Krebs,
Coeur’s President and Chief Executive Officer. “We removed the
lower-grade material that was not economical at these lower metals
prices, primarily from La Preciosa, using silver and gold reserve
prices over the next two years that are 18% and 10% lower,
respectively, than year-end 2014. Companywide gold reserves
increased by over 600,000 ounces at 33% higher grade compared with
last year, primarily due to the addition of Independencia Este,
Wharf, and higher grade material at Kensington.
“Our exploration efforts are driven by the discovery of
high-grade deposits near our existing operations, and in 2016, will
focus on expanding the resource in the Guadalupe-Independencia
corridor, infill drilling of the high-grade East Rochester
discovery, and expansion of the Jualin deposit at Kensington.”
Year-end 2014 mineral reserves and resources are effective
December 31, 2014 except Endeavor, which is effective June 30,
2014. Year-end 2015 mineral reserves and resources are effective
December 31, 2015 except Endeavor, which is effective June 30,
2015. Please refer to the tables in the Appendix for tons and
average grades associated with references of contained ounces in
each category in this news release. All reserves and resources
reported herein comply with Canadian National Instrument 43-101
(“NI 43-101”).
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a
significant gold producer with five precious metals mines in the
Americas employing approximately 2,000 people. Coeur produces from
its wholly owned operations: the Palmarejo silver-gold mine in
Mexico, the San Bartolomé silver mine in Bolivia, the Rochester
silver-gold mine in Nevada, the Kensington gold mine in Alaska, and
the Wharf gold mine in South Dakota. The Company also has a
non-operating interest in the Endeavor mine in Australia in
addition to royalties on the Cerro Bayo mine in Chile, the El Gallo
complex in Mexico, the Zaruma mine in Ecuador, and the Correnso
mine in New Zealand. In addition, the Company has two silver-gold
exploration projects - the La Preciosa project in Mexico and the
Joaquin project in Argentina. The Company also conducts ongoing
exploration activities in Alaska, Argentina, Bolivia, Mexico, and
Nevada. The Company owns strategic investment positions in several
silver and gold development companies with projects in North and
South America.
Cautionary Statement
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, and expectations regarding grades, production, and
exploration efforts. 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 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 and silver 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 ore reserves, changes that could result from Coeur's future
acquisition of new mining properties or businesses, reliance on
third parties to operate certain mines where Coeur owns silver
production and reserves and the absence of control over mining
operations in which Coeur or its subsidiaries hold royalty or
streaming interests and risks related to these mining operations
including results of mining and exploration activities,
environmental, economic and political risks of the jurisdiction in
which the mining operations are located, 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 reports 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.
Dana Willis, Coeur’s Director, Resource Geology and a qualified
person under Canadian National Instrument 43-101, supervised the
preparation of 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 refer to the relevant
NI 43-101 Technical Report on file 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.
Silver equivalence assumes silver to gold ratio of 60:1.
APPENDIX
Palmarejo Mineral Reserves and
Resources
Grade (oz/t) Ounces
Short Tons Silver Gold
Silver Gold Underground Proven and
Probable Reserves: Guadalupe 4,813,000 4.49 0.070
21,611,000 338,000 Palmarejo 82,000 4.88 0.085 400,000 7,000
Independencia Este 3,258,000 5.53 0.078 18,026,000 255,000
Independencia Oeste 946,000 5.16 0.096
4,882,000 91,000
Total Proven and Probable Reserves
9,100,000 4.94 0.076
44,919,000 690,000 Underground Measured
and Indicated Resources: Guadalupe 4,941,000 4.25 0.058 21,008,000
286,000 Independencia Este 421,000 4.81 0.055 2,026,000 23,000
Independencia Oeste 283,000 3.86 0.060 1,091,000 17,000 Open-Pit
M&I Resources Guadalupe 276,000 4.16 0.015
1,148,000 4,000
Total Measured and Indicated
Resources 5,922,000 4.27
0.056 25,273,000 330,000
Underground Inferred Resources: Guadalupe 509,000 4.92 0.102
2,504,000 52,000 Independencia Este 1,011,000 4.94 0.081 4,993,000
82,000 Independencia Oeste 169,000 3.69 0.071 624,000 12,000
Open-Pit Inferred Resources: Guadalupe 32,000 3.72
0.031 119,000 1,000
Total Inferred
Resources 1,721,000 4.79
0.085 8,240,000 147,000
Kensington Mineral Reserves and
Resources
Grade Short Tons
(oz/ton) Ounces Proven and Probable
Reserves: Kensington 2,659,000 0.194 517,000 Raven 166,000
0.259 43,000
Total Proven and Probable
Reserves 2,825,000 0.198
560,000 Measured and Indicated Resources: Kensington
1,775,000 0.278 493,000 Raven 58,000 0.414
24,000
Total Measured and Indicated Resources
1,833,000 0.282 517,000 Inferred
Resources: Kensington 1,741,000 0.285 496,000 Raven 29,000 0.517
15,000 Jualin 289,000 0.619 179,000
Total
Inferred Resources 2,059,000 0.335
690,000
Total Coeur Proven and Probable
Reserves
Grade (Oz/Ton) Ounces
Short Tons Silver Gold
Silver Gold Proven Reserves
Palmarejo 802,000 6.29 0.077 5,048,000 62,000 Rochester
96,520,000 0.53 0.003 51,007,000 316,000 Kensington 338,000 — 0.198
— 67,000 Wharf 11,791,000 — 0.032 — 374,000 San Bartolome 6,850,000
3.32 — 22,742,000 — Endeavor 904,000 2.18 —
1,969,000 —
Total Proven Reserves
117,205,000 0.69 0.007
80,766,000 819,000 Probable Reserves
Palmarejo 8,297,000 4.81 0.076 39,871,000 628,000 Rochester
54,171,000 0.52 0.003 28,336,000 161,000 Kensington 2,487,000 —
0.198 — 493,000 Wharf 14,984,000 — 0.023 — 338,000 San Bartolome
1,388,000 - 3.69 — 5,122,000 — Endeavor 849,000 2.12
— 1,800,000 —
Total Probable Reserves
82,176,000 0.91 0.020
75,129,000 1,620,000 Proven and
Probable Reserves Palmarejo 9,100,000 4.94 0.076 44,919,000
690,000 Rochester 150,691,000 0.53 0.003 79,343,000 477,000
Kensington 2,825,000 — 0.198 — 560,000 Wharf 26,775,000 — 0.027 —
712,000 San Bartolome 8,238,000 3.38 — 27,864,000 — Endeavor
1,753,000 2.15 — 3,769,000 —
Total
Proven and Probable Reserves 199,382,000
0.78 0.012 155,895,000
2,439,000
Total Coeur Measured and Indicated
Resources (Excluding Proven and Probable Reserves)
Grade (Oz/Ton)
Ounces Short Tons
Silver
Gold Silver Gold
Measured Resources Palmarejo 134,000 4.86
0.052 651,000 7,000 Rochester 60,528,000 0.49 0.004 29,709,000
233,000 Kensington 347,000 — 0.277 — 96,000 Wharf 2,513,000 — 0.030
— 75,000 San Bartolome 6,592,000 2.15 — 14,143,000 — Endeavor
8,135,000 2.22 — 18,067,000 — La Preciosa 18,156,000 3.21 0.006
58,225,000 108,000 Joaquin 4,287,000 5.63
0.003 24,147,000 14,000
Total Measured
Resources 100,692,000 1.44
0.005 144,942,000 533,000
Indicated Resources Palmarejo 5,787,000
4.25
0.056 24,622,000 323,000 Rochester 80,423,000
0.47
0.003 37,745,000 250,000 Kensington 1,485,000
—
0.284 — 422,000 Wharf 4,051,000
—
0.023 — 92,000 San Bartolome 1,468,000
1.90
— 2,787,000 — Endeavor 5,434,000
2.40
— 13,044,000 — La Preciosa 20,818,000
2.75
0.004 57,198,000 88,000 Joaquin 5,965,000
4.59
0.004 27,354,000 23,000 Lejano 631,000
3.09
0.011 1,952,000 7,000 Martha 57,000
13.60
0.018 775,000 1,000
Total Indicated
Resources 126,119,000 1.31
0.010 165,477,000 1,206,000
Measured and Indicated Resources Palmarejo 5,922,000 4.27
0.056 25,273,000 330,000 Rochester 140,951,000 0.48 0.003
67,454,000 483,000 Kensington 1,832,000 — 0.283 — 518,000 Wharf
6,564,000 — 0.025 — 167,000 San Bartolome 8,060,000 2.10 —
16,930,000 — Endeavor 13,569,000 2.29 — 31,111,000 — La Preciosa
38,974,000 2.96 0.005 115,423,000 197,000 Joaquin 10,252,000 5.02
0.004 51,501,000 37,000 Lejano 631,000 3.09 0.011 1,952,000 7,000
Martha 57,000 13.60 0.018 775,000
1,000
Total Measured and Indicated Resources
226,812,000 1.37 0.008
310,419,000 1,740,000
Total Coeur Inferred
Resources
Grade (Oz/Ton) Ounces
Short Tons Silver Gold
Silver Gold Inferred Resources
Palmarejo 1,721,000 4.79 0.085 8,240,000 147,000
Rochester 59,597,000 0.52 0.003 31,195,000 179,000 Kensington
2,059,000 — 0.335 — 690,000 Wharf 4,488,000 — 0.030 — 134,000 San
Bartolome 56,000 1.59 — 89,000 — Endeavor 661,000 3.18 — 2,103,000
— La Preciosa 1,359,000 2.33 0.004 3,168,000 5,000 Joaquin 649,000
4.17 0.003 2,705,000 2,000 Lejano 702,000 2.81 0.010 1,972,000
7,000 Martha 204,000 4.75 0.005 969,000
1,000
Total Inferred Resources
71,496,000 0.71 0.016
50,441,000 1,165,000
Notes to the above mineral reserves and resources:
1.
Effective December 31, 2015 except
Endeavor, effective July 1, 2015.
2. Assumed metal prices for estimated reserves were $17.50 per
ounce silver and $1,250 per ounce gold, except San Bartolomé,
Rosario and lower 76 underground deposits at Palmarejo at $15.50
per ounce of silver and $1,150 per ounce of gold, Endeavor at
$2,400 per metric ton zinc, $2,200 per metric ton lead, and $17.00
per ounce of silver, and Wharf at $1,275 per ounce of gold. Proven
and probable reserves (other than Endeavor) were also evaluated
using $15.50 per ounce of silver and $1,150 per ounce of gold. It
was determined that substantially all proven and probable reserves
could be economically and legally extracted or produced at these
lower price assumptions. Assumed metal prices for estimated 2014
proven and probable reserves were $19.00 per ounce silver and
$1,275 per ounce gold except where otherwise noted. 3. 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. 4.
Rounding of tons and ounces, as required by reporting guidelines,
may result in apparent differences between tons, grade, and
contained metal content. 5.
For details on the estimation of mineral
resources and reserves, including the key assumptions, parameters
and methods used to estimate the mineral resources and reserves,
Canadian investors should refer to the NI 43-101-compliant
Technical Report for Coeur's properties on file at
www.sedar.com.
Conversion Table 1 short ton = 0.907185
metric tons 1 troy ounce = 31.10348 grams
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version on businesswire.com: http://www.businesswire.com/news/home/20160210006634/en/
Coeur Mining, Inc.Rebecca Hussey, Senior Analyst, Investor
Relations(312) 489-5827www.coeur.com
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