Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE:CDE) today
provided an update on its expanded exploration initiatives at three
of its five operating mines. The focus of the Company’s exploration
program continues to be upgrading existing, higher-grade resources
to reserves and the discovery of new, higher-grade resources
located near existing infrastructure that have the potential to
further grow the Company’s production and cash flow, reduce unit
costs, and extend expected mine lives.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20161010005265/en/
Palmarejo (Graphic: Business Wire)
The Company expects to invest a total of $30-$34 million in
exploration during 2016, including $14-$16 million for expensed
exploration and $16-$18 million for capitalized exploration. This
represents an 82% increase over 2015 exploration spending. Of the
$30-$34 million expanded exploration budget, approximately 85% is
expected to be allocated to drilling at or near the Company’s
existing operations and nearly 75% is expected to be invested at
the Company’s Palmarejo underground silver-gold mine in Mexico, its
Kensington underground gold mine in Alaska, and its Rochester
open-pit silver-gold mine in Nevada.
Select highlights from the drilling results at Palmarejo,
Kensington and Rochester are included below. For a complete table
of all drill results at Palmarejo, Kensington and Rochester during
the applicable periods identified in this press release, please
refer to the following link:
(http://investors.coeur.com/interactive/lookandfeel/4349317/Exploration_Update_Release_Appendix.pdf)
PALMAREJO HIGHLIGHTS:
- Exploration efforts have focused on
definition drilling to aid in mine planning at the Independencia
underground deposit and on upgrading existing high-grade inferred
resources at the Guadalupe underground deposit, which are located
approximately 800 meters apart and remain open at depth and along
strike.
- Highlights include a recent intercept
at the center of Independencia that returned 14.4 feet (4.39
meters, “m”, true thickness) of 84.1 ounces per ton (“oz/t”) silver
(2,883 grams per tonne, “g/t”) and 1.14 oz/t gold (39.1 g/t). The
same hole also intersected a second vein that returned 6.9 feet
(2.1 m) of 23.7 oz/t (811 g/t) silver and 0.30 oz/t gold (10.3
g/t).
- At Guadalupe, highlights include an
intercept within mining Block C of 16.4 feet (5.0 m) (true
thickness) averaging 15.2 oz/t silver (520 g/t) and 1.35 oz/t gold
(46.3 g/t).
- The average reserve grades at Palmarejo
at year-end 2015 were 4.94 oz/t silver (169 g/t) and 0.076 oz/t
gold (2.61 g/t).
- In the corridor zone between
Independencia and Guadalupe, drilling has focused on resource
definition of the Los Bancos and Nación-Dana veins and on gaps
between the two structures. Both of these zones are near the new
decline accessing Independencia and could be more easily
developed.
- Drilling will soon commence on the La
Bavisa deposit, which is located approximately 1,300 feet (~400 m)
northeast of Independencia and was part of the Paramount Gold &
Silver land package that was acquired by Coeur in 2015.
KENSINGTON HIGHLIGHTS:
- After years of being underexplored
following a lengthy permitting process and the Company’s focus on
first bringing stability and consistency to Kensington’s
operations, the mine’s exploration program is now generating
high-grade results from the Kensington Main deposit in addition to
making a new discovery in 2015 of the Jualin high-grade deposit.
Both areas represent expected near-term high-grade ore sources,
which are expected to drive higher future production and cash flow
at lower unit costs.
- One notable hole from the Zone 41 gap
target in the Kensington Main deposit returned 12.2 feet (3.7 m) of
1.21 oz/t gold (41.5 g/t) (see hole #K16-0910-258-X02 in the table
below).
- In the Zone 12 target, one hole
intercepted 20.5 feet (6.2 m) of 0.37 oz/t gold (12.7 g/t).
Underground drilling at Jualin has also been accelerated following
recent underground access to exploration targets. An initial
reserve from Jualin #4 – one of five known veins – is expected at
year-end. The current resource at Jualin #4 is 179,000 ounces of
gold at a grade of 0.619 oz/t gold (21.2 g/t).
- The average reserve grade at Kensington
at year-end 2015 was 0.198 oz/t gold (6.79 g/t).
ROCHESTER HIGHLIGHTS:
- Exploration efforts have focused on
in-fill and expansion drilling of the higher-grade East Rochester
expansion to support a revised economic analysis at year-end 2016
(see February 29, 2016 news release for full update on East
Rochester).
- Of particular note was an intercept
from the 2016 drill program of 150 feet (45.6 m) at 4.13 oz/t
silver (142 g/t) and 0.013 oz/t gold (0.45 g/t) (see hole
ROCR16-1027 in the table below), which are approximately eight
times Rochester’s current reserve grades. Another hole returned 400
feet (121.9 m) of 1.2 oz/t silver (41.1 g/t) and 0.007 oz/t gold
(0.24 g/t) (see hole ROCR16-1018 in the table below).
- Infill drilling was also completed at
West Rochester, the results of which are expected to be included in
Coeur’s year-end 2016 reserve statement.
“Near-mine exploration remains a key pillar of our
returns-driven growth strategy,” said Mitchell J. Krebs, Coeur’s
President and Chief Executive Officer. “Prioritizing our drilling
efforts in and around our operations where we have existing people,
permits, and processing infrastructure offers a higher probability
of success and a quicker payback on these investments. Our
success-based exploration philosophy, which prioritizes targeting
higher grades and rewards tight integration with our operations
teams, is generating strong results that we believe will have a
positive impact on the Company’s future production profile, mine
lives, and cash flow.”
Palmarejo, Mexico
From late March to August 2016:
- At Independencia, a total of 84 core
holes have been completed, five from surface focused on resource
expansion and 79 from underground focused on infill drilling, for a
total of 61,411 feet (18,723 m).
- At Guadalupe, a total of 44 core holes
have been completed, focused on resource infill drilling, for a
total 27,273 feet (8,313 m) from underground drill stations.
- At Los Bancos, a total of 13 core holes
have been completed, focused on resource infill drilling for a
total of 8,294 feet (2,528 m) from surface drill stations.
By contrast, in 2015:
- At Independencia, a total of six holes
were drilled from surface for 11,618 feet (3,542 m).
- At Guadalupe a total of 25 holes were
drilled from surface for 37,818 feet (11,530 m).
- No underground drilling was conducted
as the underground drill stations were not set up until late
2015.
Drilling will continue for the remainder of 2016 both
underground and on surface at Independencia and Guadalupe with an
estimated budget of $5.4 million for the year on expansion of
resources and about $6.8 million on infill drilling. Drilling will
mainly focus on Independencia for the remainder of 2016 with three
drill stations currently active underground and one on surface (a
second is being prepared on surface), with one drill station
currently active at Guadalupe. By contrast, in 2015, $4.7 million
was spent on resource expansion and $2.1 million in resource infill
drilling and conversion to reserves.
The recent focus of Palmarejo’s drill program has been to expand
the deeper portions of the Guadalupe and Independencia deposits as
well as further define the Los Bancos and La Nación-Dana veins,
which are located between Guadalupe and Independencia. There are
currently six active drill rigs, four of which are being used for
both Guadalupe and Independencia underground drilling, and two
surface drill rigs that are drilling the northern extension of
Independencia vein and the gap between the Los Bancos and Nación
veins. Two additional drill rigs are set to begin drilling the
Nación-Dana veins and the new La Bavisa vein, located 1,300 feet
(~400 meters) east-northeast of Independencia, this quarter, which
will bring the total number of active drills at Palmarejo to
eight.
Palmarejo’s strongest exploration results are from the central
portion of the Independencia deposit along the border of
Independencia Este (“East”) and Oeste (“West”). As underground
development at Independencia progresses, additional exploration
stations are expected to become accessible and will allow for
further potential resource conversion and expansion at depth.
Drilling at Guadalupe is currently focused on testing the
southern portion of mining block C and northern mining block D.
Plans are underway to drill near the South Portal as development
progresses and offers access to this area of the deposit. Future
underground exploration stations will focus on expanding blocks C
and D at depth as well as potential resource conversion and
expansion to the south.
Highlights from Independencia Drilling (March-August
2016) Mineralized Interval (feet)
Assays (oz/short ton) Hole From
To Length
EstimatedThickness
Silver Gold DC3-IND-0010 313.6
321.0 7.4 6.9 55.78 0.58 DC3-IND-0018
277.1 283.5 6.4 5.6 39.53 0.37 DC3-IND-0021 472.4 479.8 7.4 6.9
27.20 0.29 DC3-IND-0022 707.8 724.2 16.4 4.9 61.20 0.91
DC3-IND-0025 421.2 435.2 14.0 11.8 49.88 0.55 DC3-IND-0025 438.5
443.4 4.9 4.3 37.90 0.38 DC3-IND-0025 483.0 487.4 4.4 3.9 32.22
0.33 DC3-IND-0027 492.1 504.7 12.6 11.5 96.43 1.31 DC3-IND-0029
419.0 426.5 7.5 6.9 23.66 0.30 DC3-IND-0029 433.1 449.1 16.1 14.4
84.13 1.15 DC3-IND-0039 526.5 531.3 4.8 4.3 119.53 4.01
DC3-IND-0044 595.9 601.0 5.1 4.9 25.60 0.97 DC3-IND-0047 693.6
697.5 3.9 3.6 27.55 0.22 DC3-ICA-0058 216.5 224.2 7.7 6.2 32.84
0.29 DC3-ICA-0058 275.6 280.5 4.9 3.9 58.31 0.90 DC3-ICA-0067
345.3 355.5 10.2 9.5 42.77
1.35
Highlights from Guadalupe Drilling
(March-August 2016) Mineralized Interval (feet)
Assays (oz/short ton) Hole From
To Length
EstimatedThickness
Silver Gold DC3-GPE-0001 322.2
340.8 18.6 15.4 4.53 0.31 DC3-GPE-0001
498.7 505.2 6.5 5.2 0.57 0.13 DC3-GPE-0003 305.8 326.7 20.8 12.8
9.47 0.46 DC3-GPE-0004 257.2 288.8 31.6 22.0 8.23 0.43 DC3-GPE-0005
364.8 382.4 17.7 16.4 15.16 1.35 DC3-GPE-0007 370.4 380.6 10.2 8.5
8.03 1.18 DC3-GPE-0009 425.5 434.6 9.1 6.6 52.59 4.37 DC3-GPE-0011
175.4 189.0 13.6 12.5 7.98 0.45 DC3-GPE-0011 408.5 416.7 8.2 7.5
4.06 0.16 DC3-GPE-0012 97.8 110.6 12.8 12.8 4.15 0.05 DC3-GPE-0013
35.7 39.8 4.1 3.3 5.16 0.04 DC3-GPE-0014 295.9 304.7 8.9 5.2 5.70
0.32 DC3-GPE-0015 40.8 43.2 2.4 2.3 7.43 0.08 DC3-GPE-0018 273.1
283.8 10.7 7.2 5.68 0.19 DC3-GPE-0019 283.5 317.9 34.4 14.4 5.93
0.13 DC3-GPE-0022 281.7 316.6 34.9 28.9 3.71 0.20 DC3-GPE-0022
466.2 488.7 22.5 18.4 3.39 0.08 DC3-GPE-0022 496.4 499.0 2.6 2.3
13.38 0.39 DC3-GPE-0023 41.6 45.1 3.5 3.0 5.25 0.06 DC3-GPE-0023
100.7 103.8 3.1 2.6 5.07 0.09 DC3-GPE-0023 212.4 216.2 3.8 3.0 6.53
0.10 DC3-GPE-0023 320.5 329.2 8.7 6.9 6.46 0.32 DC3-GPE-0025 119.8
126.1 6.4 5.9 8.94 0.28 DC3-GPE-0026 322.5 332.0 9.5 5.6 68.19 2.47
DC3-GPE-0030 607.0 611.9 4.9 2.6 13.64 0.17 DC3-GPE-0031 380.2
389.6 9.4 6.2 8.40 0.22 DC3-GPE-0034 283.6 297.9 14.3 10.2 6.62
0.16 DC3-GPE-0037 347.4 373.9 26.4 24.3 3.31 0.22 DC3-GPE-0037
390.6 399.1 8.5 7.9 6.56
11.23
Kensington, Alaska
Kensington’s exploration program continues to focus on potential
resource conversion and expansion within the Kensington Main
orebody, the nearby Raven vein, and the high-grade Jualin deposit.
Drilling at Kensington Main is currently being conducted at four
zones – lower Block M and zones 41, 44, and 12 – with a focus on
the potential expansion of the Kensington resource down-dip and to
the south of the current resource model. In addition, drilling at
Raven has targeted the down-plunge extension of a high-grade
ore-shoot. A total of 31,586 feet (9,627 m) has been drilled in
resource infill with potential to convert to reserve – total
budgeted 60,000 feet (18,288 m) with a projected budget for 2016 of
$4.6 million. A total of 16,712 feet (5,094 m) has been drilled
underground in resource expansion in 2016 – total budgeted 25,000
(7,620 m) feet with a projected budget for 2016 of $4.65 million.
By comparison, in 2015 $2.6 million was spent on resource expansion
and $1.4 million on resource infill and conversion to reserves.
Coeur has accelerated exploration of the high-grade Jualin
deposit following the development of a new exploration station and
completing three drill holes targeting the potential upgrade and
expansion of the Jualin resource. Surface drilling twinning
historic Jualin drill holes began in August with a total of 4,074
feet (1,241.8 m) completed. The surface drill program has six holes
for a total of 11,000 feet (~3,350 m) budgeted. A surface, winter
drilling program focused on potential expansion of Jualin Vein #4
will begin once the twinning program is completed this fall; this
will be the focus of the remainder of the 2016 budget. Vein #4
remains open at depth and extends about 1,000 feet (~305 m) to the
south; Vein #5 sits 300 feet (~90 m) below Vein #5 and has similar
grade-thicknesses to Vein #4 in 5 out of 6 holes drilled to this
depth.
Highlights from Kensington Main, Jualin Vein #4 and Raven
Vein Drilling (2016) Mineralized Interval (feet)
Hole From To
Length
EstimatedThickness
Gold Assays(oz/short
ton)
K15-0445-211-X01 295.0 310.4 15.4 10.1 1.66
including 307.3 310.4 3.1 2.0 5.37 K15-0445-222-X06 230.0 246.6
16.6 16.5 0.55 including 242.2 246.6 4.4 4.4 1.43 265.8 275.0 9.2
9.1 1.19 including 269.5 271.6 2.1 2.1 2.73 K15-0445-211-X04 232.5
240.0 7.5 7.4 2.07 K15-0445-222-X02 282.0 300.0 18.0 14.6 0.98
including 285.4 289.0 3.6 2.9 2.98 including 290.0 292.2 2.2 1.8
1.81 K15-0520-178-X06 191.0 206.0 15.0 12.2 0.90 including 201.0
206.0 5.0 4.1 1.41 K16-1170-102-X01 235.0 237.5 2.5 2.5 2.69 419.5
427.0 7.5 7.5 0.57 482.0 502.5 20.5 20.5 0.37 including 496.0 499.0
3.0 3.0 0.75 including 499.0 502.5 3.5 3.5 0.58 541.7 547.0 5.3 5.3
1.23 K16-0910-258-X02 67.5 71.3 3.8 2.3 7.47 113.0 133.0 20.0 12.2
1.21 K16-1170-112-X03 508.5 513.2 4.7 4.5 2.56 K16-1170-073-X04
633.0 638.0 5.0 4.9 0.83 K16-1170-112-X04 582.9 591.2 8.4 7.5 1.27
including 585.0 587.6 2.6 2.3
3.08
Raven Vein R16-0820-224-X03 492.3 494.3
2.0 1.5 1.485
Rochester, Nevada
Rochester’s exploration program has prioritized both in-fill and
expansion drilling of the higher-grade East Rochester deposit. A
total of 67,760 feet (20,653 m) have been drilled in 79 holes
through the end of August 2016 and focused on resource infill and
conversion to reserves. A total of 7,060 feet (2,152 m) in seven
holes have been completed in resource expansion drilling. Drilling
in the existing pit, focused mostly in the West Rochester area, has
been conducted to evaluate the potential for additional resource
conversion as well as for the discovery of new adjacent mineralized
structures. For the remainder of 2016, drilling will focus on the
South Pit for both expansion and conversion of resources to
reserves. Rochester’s 2016 exploration budget includes $1.25
million for expansion drilling and $3.66 million for resource
infill/conversion drilling. By comparison, in 2015 Rochester spent
$1.32 million on expansion drilling and $1.60 million on resource
infill/conversion drilling.
Priorities for 2017 will include additional in-fill and
expansion drilling in those areas expected to be permitted as part
of the next planned expansion at Rochester, called POA 11.
Additional drilling will be allocated to offset drilling of some of
the higher grade mineralized faults encountered and modeled in the
2016 program.
Highlights from East Rochester Drilling (February-August
2016) Mineralized Interval (feet)
Assays (oz/short ton) Hole From
To Length Silver
Gold EP15-002 70 710 640 0.80
0.004 ROCR16-1001 140 260 120 1.12 0.007 ROCR16-1014 310 560 250
0.76 0.009 ROCR16-1018 250 650 400 1.20 0.007 ROCR16-1024 380 480
100 1.12 0.005 ROCR16-1025 210 680 470 1.21 0.004 ROCR16-1026 200
500 300 1.02 0.004 ROCR16-1027 550 700 150 4.13 0.013 ROCR16-1028
210 300 90 2.15 0.006 ROCR16-1030 360 670 310 0.77 0.002
ROCR16-1034 770 920 150 2.99 0.012 ROCR16-1040 410 660 250 1.74
0.005 ROCR16-1042 440 660 220 2.06 0.007 ROCR16-1049 450 630 180
1.06 0.027 ROCR16-1062 320 490 170 1.77
0.004
About Coeur
Coeur Mining is a well-diversified, growing precious metals
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 complex in Mexico, the
Rochester silver-gold mine in Nevada, the Kensington gold mine in
Alaska, the Wharf gold mine in South Dakota, and the San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia as well as a royalty
interest in Ecuador. In addition, the Company has two silver-gold
exploration stage projects – the La Preciosa project in Mexico and
the Joaquin project in Argentina. Coeur conducts ongoing
exploration activities in Alaska, Nevada, South Dakota and
Mexico.
Cautionary Statements
This news release contains forward-looking statements within the
meaning of securities legislation in the United States and Canada,
including statements regarding exploration and development efforts,
exploration expenditures, drill results, production, growth,
reduced unit costs, extended mine lives, investments, cash flow,
future projects and mine expansion plans, and resource delineation,
expansion and upgrade or conversion. 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 (including those involving third parties), the
uncertainties inherent in the estimation of gold and silver
reserves and resources, changes that could result from Coeur's
future acquisition of new mining properties or businesses, the loss
of access to 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 Forms 10-K and 10-Q. 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. 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 Technical
Reports for each of Coeur's properties as filed on SEDAR at
www.sedar.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161010005265/en/
For Additional InformationCoeur Mining, Inc.Courtney R.
B. Lynn, 312-489-5837Vice President, Investor Relations and
TreasurerorRebecca Hussey, 312-489-5827Manager, Investor
Relationswww.coeur.com
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Apr 2023 to Apr 2024