Positive results at new Nación-Dana deposit at
Palmarejo include 4.4 meters (14.4 feet) at 19.9 g/t (0.58 oz/t)
gold and 1,875.4 g/t (54.7 oz/t) silver
Accelerated program has led to discovery of
seven new veins near existing development at Palmarejo
High-grade results received from Kensington
Main, Jualin, and Raven zones
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE)
provided an update on encouraging results from its expanded
Palmarejo and Kensington exploration programs. The primary
objectives of these recently accelerated programs are to (i)
discover and delineate additional adjacent, high-grade resources
near current operations and (ii) upgrade higher-grade resources to
reserves to extend mine life. Drilling at these two properties
comprised approximately two-thirds of the Company’s total
year-to-date (through September 30, 2017) exploration expense of
$22.4 million ($15.0 million expensed, $7.4 million capitalized).
Since the second half of 2016, exploration levels at Palmarejo have
increased 88% while Kensington’s exploration expenditures have
nearly tripled.
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Palmarejo: Mine Map (Graphic: Business
Wire)
“Given the high relative success rates of near-mine drilling at
deposits with significant untapped potential like Palmarejo and
Kensington, we believe allocating higher levels of capital to
exploration at these two operations makes strong strategic sense.
Both of these properties have been historically under-drilled and
we are generating new discoveries and positive results after only
eighteen months of funding these higher levels of investment,” said
Mitchell J. Krebs, Coeur’s President and Chief Executive Officer.
“At Palmarejo, we have made seven new, high-grade discoveries
located near existing underground infrastructure. At Kensington, we
are working to expand higher-grade areas such as Jualin and Raven
that have the potential to yield higher margin production and cash
flow. At both operations, we see excellent potential to
meaningfully expand and upgrade our resource base over the next
several years and, as a result, expect to maintain these elevated
exploration investment levels.”
Select highlights are included below and in the Company’s
presentation materials available on its website at www.coeur.com.
Please see “Cautionary Statements” for additional information
regarding drill results. For a complete table of all drill results
at Palmarejo and Kensington, please refer to the following link:
http://investors.coeur.com/interactive/lookandfeel/4349317/2017_Exploration_Update_Release_Appendix.pdf
Palmarejo Highlights
- Drilling at Nación-Dana continues to
successfully define and expand the deposit – The Nación-Dana
vein extends for over 4,000 feet (approximately 1,200 meters) of
strike length and is located between the Guadalupe and
Independencia underground mines, approximately 1,000 feet (300
meters) from existing underground development. Intersections
include 14.4 feet (4.4 meters) at 0.58 ounces per ton (“oz/t”)
(19.9 grams per tonne (“g/t”)) gold and 54.7 oz/t (1,875.4 g/t)
silver and 17.8 feet (5.4 meters) at 0.42 oz/t (14.4 g/t) gold and
30.0 oz/t (1,058.6 g/t) silver.
- An initial resource estimate for the
La Bavisa deposit is expected to be included in Palmarejo’s 2017
year-end resource statement – The La Bavisa vein is located 500
meters northeast of the Independencia underground mine. Over 41,000
feet (approximately 12,600 meters) of drilling in 25 holes was
completed earlier this year. Significant intercepts include 33.3
feet (10.2 meters) of 0.11 oz/t (3.8 g/t) gold and 16.7 oz/t (572.6
g/t) silver. This initial set of drill holes covered approximately
1,500 feet (500 meters) of total strike length. Based on surface
mapping, La Bavisa is believed to exceed two miles (three
kilometers) in total strike length.
- Successful definition drilling of
the newly-discovered Zapata vein located less than 500 feet
(approximately 150 meters) from Guadalupe is expected to result in
an initial resource estimate at year-end – Drilling of 35 holes
was conducted from underground in the adjacent Guadalupe
underground mine. Drill results included 0.39 oz/t (13.4 g/t) gold
and 15.6 oz/t (534.9 g/t) silver over 18.4 feet (5.6 meters). Some
of these holes also intersected the newly-discovered and parallel
Madero and La Antena veins, which are expected to be drilled
further in 2018.
Kensington Highlights
- Exploration of deeper portions of
Kensington Main continues to indicate an expansion of the zone’s
resource – Drill results included 7.8 feet (2.4 meters) at 0.62
oz/t (21.1 g/t) gold and 2.3 feet (0.7 meters) at 1.66 oz/t (56.9
g/t) gold from Block M. Coeur has subsequently added new drill
stations and resumed drilling in the adjacent Block L.
- At Jualin, two rigs have been active
from underground focused on upgrading existing resources and two
have been drilling from surface – While the majority of holes
are still pending assay results from the 2017 exploration program,
results from 2016 include 4.5 feet (1.4 meters) of 4.48 oz/t (153.6
g/t) gold and 4.5 feet (1.4 meters) with 6.68 oz/t (229.0 g/t)
gold. Portions of Jualin Vein #4 are believed to continue at depth
and to the northeast based on current drill results.
- Drilling has resumed on the nearby
Raven vein, where high-grade narrow-vein mining continues to
augment Kensington’s overall production – Results include 5.0
feet (1.5 meters) of 3.23 oz/t (110.7 g/t) gold.
Palmarejo
Exploration at Palmarejo remains focused on low-risk,
high-return vein targets near the Independencia and Guadalupe
underground operations, with the primary objective of expanding
resources and extending mine life. Drilling confirmed
mineralization at the Nación-Dana vein, which the Company expects
to become a significant future source of high-grade material,
subject to further drilling and upgrading to reserves. The
Company’s accelerated exploration investment over the past eighteen
months has led to the discovery of seven new veins, which Coeur
will continue to explore, define, and seek to expand in future
years. Coeur’s 2017 year-end reserves and resources are expected to
reflect the positive results from the Nación-Dana, La Bavisa, and
Zapata veins, while significant intercepts reported from the newly
discovered Madero, La Antena, Portales, Jacobo, Hidalgo, and
Reforma veins will be the basis of further exploration efforts in
2018 and beyond.
The northern portion of the Nación-Dana vein achieved sufficient
drill hole density to support preliminary mine planning. Given
Nación-Dana’s proximity to Independencia underground access
approximately 1,000 feet (300 meters) away, it represents
Palmarejo’s next likely vein to be developed, subject to further
drilling and upgrading to reserve status. Importantly, Nación-Dana
does not require additional permitting and access can be gained
from existing infrastructure. Preliminary designs are evaluating
optimization of ore haulage and the inclusion of ore passes to
reduce capital and operating costs. Concurrently, the Company is
planning a resource expansion program targeting the southern
portion of the vein. Recent drilling has demonstrated the presence
of at least two thicker zones of mineralization (“clavos”) and a
third clavo is beginning to emerge on the southern portion of the
structure.
Coeur drilled 25 holes at the La Bavisa vein in 2017, which is
located 1,500 feet (500 meters) northeast of Independencia. In
combination with the twelve holes drilled by Paramount Gold prior
to its acquisition by Coeur in 2015, drill intercepts indicate
silver grades and thicknesses that are comparable to Independencia.
Drilling at La Bavisa in 2018 will focus on further definition,
including extending the total strike length, which is believed to
be approximately two miles (three kilometers) based on surface
alteration and geochemistry. Coeur expects an initial resource
estimate from La Bavisa to be included in the Company’s year-end
resource statement.
Considerable portions of the Nación-Dana and La Bavisa veins are
located within the claims acquired from Paramount in 2015, which
are not subject to Palmarejo’s gold stream agreement.
The newly-discovered Zapata vein and nearby Madero and La Antena
veins were discovered by drilling both from the surface and
underground at Guadalupe. They are located immediately west of the
existing Guadalupe underground mine. Through December 10, 2017, a
total of 41 holes were drilled, the results of which are expected
to support an initial resource estimate for Zapata at year-end.
These three veins all trend at an angle and intersect the Guadalupe
structure. Based on new geologic and structural models, these
intersections are where grades and thicknesses appear highest,
comparable to the mineralization at the Palmarejo, Guadalupe, and
Independencia mines. As a result, future drilling will prioritize
targeting these intersections.
Drilling from underground exploration stations at Guadalupe also
yielded the discovery of new veins at Portales and Jacobo, both
located east of the Guadalupe mine declines. Additional drilling in
2018 is expected to determine whether economic thicknesses occur in
these newly-discovered veins.
North of the Independencia mine, the Hidalgo and Reforma veins
were discovered by surface drilling in 2017. Both veins are located
1,000 feet (300 meters) north of the current mining at
Independencia and appear to intersect the main Independencia
structure, converging into a thicker, horizontal clavo-type zone.
Additional drilling in 2018 will be completed prior to developing a
resource model.
Kensington
At Kensington, up to five core rigs were active throughout 2017,
with four focused on definition and expansion of the Jualin veins
and the fifth on Kensington Main and Raven veins. Prior to ramping
up the drill program at Jualin, several resource infill holes were
drilled in Kensington Main Zones 12 and 41 and Blocks M and L.
Since June, two rigs have actively drilled Jualin from the
underground and two from the surface. The two underground rigs
focused on infill drilling and conversion of inferred resource of
Jualin Vein #4. These programs have since been completed and a
reserve estimate at Jualin is expected to be included in the
updated Kensington technical report anticipated during the first
quarter of 2018.
The two rigs drilling from surface remain focused on expansion
of the Jualin resource. Initial planned holes were designed to test
for extensions of Vein #4, with a secondary priority of testing
extensions of Veins #2 and #3 above Vein #4. Drill results from
Veins #2 and #3 have demonstrated additional resource potential.
Several holes were deepened to test the deepest known structure,
Vein #5. Preliminary results have suggested grades and thicknesses
of mineralization similar to those of Vein #4.
In 2018, the Company anticipates reducing the number of drill
rigs at Kensington as production at Jualin ramps up. The focus of
Kensington’s exploration program is expected to shift to zones in
both upper and lower Kensington Main, with additional drilling at
the Raven vein. Specifically, infill drilling and resource
conversion will target Zone 30 in upper Kensington, while resource
expansion drilling will continue to focus on Block L of lower
Kensington.
Conference Call
There will be a conference call on Coeur's Palmarejo and
Kensington exploration programs on December 14, 2017 at 2:00 p.m.
Eastern Time.
Dial-in Numbers: (855) 560-2581 (US) (855) 669-9657 (Canada)
(412) 542-4166 (International) Conference ID: Coeur Mining
Hosting the call will be Mitchell J. Krebs, President and Chief
Executive Officer of Coeur, who will be joined by Peter C.
Mitchell, Senior Vice President and Chief Financial Officer, Frank
L. Hanagarne, Jr., Senior Vice President and Chief Operating
Officer, Hans Rasmussen, Senior Vice President of Exploration, and
other members of management. A replay of the call will be available
through December 28, 2017.
Replay Numbers: (877) 344-7529 (US) (855) 669-9658 (Canada)
(412) 317-0088 (International) Conference ID:
101 14 985
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 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, the
Wharf gold mine in South Dakota, and the San Bartolomé silver mine
in Bolivia. 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 exploration and development efforts
and plans, exploration expenditures, drill results, production,
growth, 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
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 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 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 reports on Form
10-K or Form 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.
Christopher Pascoe, Coeur's Director, Technical Services and a
qualified person under Canadian National Instrument 43-101,
approved 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.
Notes
- The potential quantity and grade for
the deposits described herein are conceptual in nature. There is
insufficient exploratory work to define a mineral resource and it
is uncertain if further exploration will result in the applicable
target being delineated as a mineral resource.
- Analytical testing for drill core
samples from Palmarejo was completed by ALS Minerals on location in
Chihuahua, Chihuahua, Mexico and Vancouver, British Columbia,
Canada. Analyses for gold were completed by fire assay with an
inductively coupled plasma (“ICP”) finish. Over limits were
completed by fire assay with a gravimetric finish. Analyses for
silver were completed by four-acid digestion with an ICP finish.
Over limits were completed by fire assay with a gravimetric
finish.
- Analytical testing for drill core
samples from Kensington was completed by Bureau Veritas on location
in Juneau, Alaska, U.S. and Vancouver, British Columbia, Canada.
Analyses for gold were completed by fire assay with an atomic
absorption finish. Over limits were completed by fire assay with a
gravimetric finish. Met screen testing was utilized in the presence
of coarse gold.
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Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and TreasurerPhone: (312) 489-5800www.coeur.com
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