Successful transition to expansion drilling at
Silvertip with high-grade results in the Discovery zone;
Promising oxide gold assays returned from new
zones at Sterling and Crown;
Multiple high-grade discoveries made through
expansion drilling at Kensington; and
Palmarejo continuing to deliver positive
results from Guadalupe and Independencia deposits
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
provided an update on its 2019 exploration activities, which
focused primarily on resource expansion drilling. The Company
reported encouraging results from expansion drilling at its
Silvertip operation in British Columbia, its Sterling and Crown
exploration projects in southern Nevada, and the Kensington mine in
Alaska as well as positive results from the ongoing near-mine
exploration program at the Palmarejo mine in Mexico. Drilling
activities at the Rochester and Wharf operations began late in the
year and are not highlighted in this update.
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Silvertip: Plan Map (Photo: Business
Wire)
- Successful launch of expansion drilling program at
Silvertip – Drilling within the Discovery zone intercepted
multiple manto structures with high-grade assay results from
step-out holes. Notable intervals include: 13.1 feet (4.0 meters)
of 29.5 ounces per ton (“oz/t”) (1,011.9 grams per tonne (“g/t”))
silver, 20.2% zinc and 21.8% lead, and 19.2 feet (5.9 meters) of
4.1 oz/t (139.6 g/t) silver, 23.2% zinc and 2.8% lead.
- Promising assay results from new areas at Sterling and
Crown – Expansion drilling at Sterling and Crown returned
several notable intervals from the historic Sterling and Daisy
mining areas. A single hole drilled southeast of Sterling returned
390.0 feet (118.9 meters) of 0.05 oz/t (1.6 g/t) gold and 145.0
feet (44.2 meters) of 0.11 oz/t (3.8 g/t) gold, along with two
additional intercepts of 55.0 feet (16.8 meters) of 0.01 oz/t (0.4
g/t) gold and 45.0 feet (13.7 meters) of 0.01 oz/t (0.4 g/t) gold.
At Daisy, a single hole returned 150.0 feet (45.7 meters) of 0.06
oz/t (2.0 g/t) gold, 85.0 feet (25.9 meters) of 0.08 oz/t (2.6 g/t)
gold and 25.0 feet (7.6 meters) of 0.12 oz/t (4.1 g/t) gold.
- Expansion drilling discovered multiple new high-grade
targets at Kensington – Highlights include high-grade assays
from Elmira, Eureka and Johnson, all located near existing
infrastructure. Results at Elmira include 3.7 feet (1.1 meters) of
4.40 oz/t (150.7 g/t) gold, while assays at Eureka returned 15.4
feet (4.7 meters) of 0.34 oz/t (11.7 g/t) gold. Additionally, the
first hole drilled at Johnson returned 2.5 feet (0.8 meters) of
2.12 oz/t (72.7 g/t) gold.
- Continued positive results from drilling at Palmarejo –
Expansion drilling north of the Independencia mine complex returned
30.5 feet (9.3 meters) of 0.05 oz/t (1.5 g/t) gold and 5.2 oz/t
(179.0 g/t) silver. Infill drilling in the northern portion of the
Guadalupe mine complex returned several high-grade intercepts,
including 21.7 feet (6.6 meters) of 0.29 oz/t (10.0 g/t) gold and
20.2 oz/t (690.9 g/t) silver, and 18.7 feet (5.7 meters) of 0.37
oz/t (12.8 g/t) gold and 30.6 oz/t (1,047.5 g/t) silver. Infill
drilling at La Nación, located within the Independencia mine
complex, returned 31.5 feet (9.6 meters) of 0.16 oz/t (5.4 g/t)
gold and 12.5 oz/t (429.6 g/t) silver, and 5.3 feet (1.6 meters) of
1.24 oz/t (42.5 g/t) gold and 108.4 oz/t (3,714.9 g/t) silver.
Year-to-date through the end of the third quarter, Coeur’s
investment in exploration totaled approximately $21.0 million
($15.3 million expensed and $5.6 million capitalized). The Company
expects to spend approximately $26-$34 million on exploration this
year, including $18-$22 million and $8-$12 million of expensed and
capitalized exploration, respectively1. Over 90%2 of the Company’s
2019 exploration budget has been allocated to near-mine drilling,
which the Company believes offers lower risk and higher potential
returns. In 2020, Coeur expects to increase its level of
exploration investment with the objectives of (i) discovering new
resources and (ii) converting existing resources to reserves in
order to extend mine life.
“Despite overall lower levels of exploration investment, we
successfully commenced several expansion drilling programs in 2019,
with notable results at Silvertip, Sterling and Crown, and
Kensington,” said Mitchell J. Krebs, Coeur’s President and Chief
Executive Officer. “We focused our efforts on exploration targets
within our current operating footprint and near existing
infrastructure in the pursuit of potential mine life extensions and
organic growth opportunities, which rank near the top of our
capital allocation framework. Overall, we are very pleased with the
results from our 2019 drilling campaign and are excited about the
potential of the high-grade targets we identified during the
year.”
For a complete table of all drill results, please refer to the
following link:
https://www.coeur.com/_resources/pdfs/2019-12-17-2019-Exploration-Update-Appendix-Final.pdf.
Please see the “Cautionary Statements” section for additional
information regarding drill results.
Silvertip
Coeur shifted its exploration focus at Silvertip from resource
conversion to expansion drilling in 2019, targeting areas close to
existing infrastructure. The Company focused on expanding areas
east of the underground mine complex, including the Discovery zone
(open in multiple directions), with up to three surface core rigs
active during the year. A table of drill results and associated
maps highlighting the initial success of the campaign were released
in conjunction with the Silvertip analyst tour in July 20193 and
were also included in the Company’s second quarter 2019
results4.
As of November 30, approximately 53,100 feet (16,200 meters)
have been drilled at Silvertip during 2019, with over 60% of
drillholes cutting manto mineralization above grade thickness
cutoff. Highlights from the drilling campaign through July
demonstrated significant thickness in the manto-style
mineralization within the Discovery zone. Similar mineralization
has been encountered throughout 2019, highlighting the success of
the drill program at Silvertip this year.
Key highlights include:
- Hole DSC19-Pad8-001 returning 9.5 feet (2.9 meters) of 22.1
oz/t (756.3 g/t) silver, 6.3% zinc and 13.9% lead, and 6.6 feet
(2.0 meters) of 8.9 oz/t (303.7 g/t) silver, 10.0% zinc and 4.1%
lead; and
- Hole DSC19-Pad1-014 returning 7.2 feet (2.2 meters) of 26.7
oz/t (913.7 g/t) silver, 23.9% zinc and 16.2% lead, 7.9 feet (2.4
meters) of 19.5 oz/t (668.6 g/t) silver, 25.5% zinc and 12.1% lead,
and 3.0 feet (0.9 meters) of 9.5 oz/t (325.7 g/t) silver, 17.5%
zinc and 6.4% lead.
Notably, both holes highlighted above fall outside the current
resource boundary at Silvertip.
In parallel with drilling activities, Coeur commenced a regional
exploration program at Silvertip in mid-2019 with several legacy
geophysical and geochemical data sets available for interpretation.
Analysis of this data helped the Company develop a targeted list of
exploration priorities, with the highest being the Tiger Terrace
zone (approximately three miles south of Silvertip’s mill).
In order to refine the drill targets at Tiger Terrace, Coeur
completed ground electromagnetic and gravity surveys during 2019.
Electromagnetic data shows a conductive zone running north-south
over a two-mile trend, coincident with the mapped location of
permissive limestone host rocks. Gravity data confirms that
portions of the conductive horizon have excess density, indicative
of a potential sulfide source. Soil sampling over the zone
confirmed that the geophysical targets also have coincident silver,
zinc and lead anomalies. First pass drilling is currently being
permitted for mid-2020.
The Company plans to begin drilling from underground stations at
Silvertip in early 2020, focusing on infill drilling in the Central
and Discovery zones. Surface expansion drilling at Silvertip,
including greenfield exploration at Tiger Terrace, is expected to
begin in mid-2020.
Sterling and Crown
At the recently acquired Sterling and Crown exploration projects
located in southern Nevada, up to two reverse circulation rigs were
active during the year and drilled approximately 88,300 feet
(26,900 meters) through the end of November.
At Sterling, one reverse circulation rig focused on infill and
expansion drilling early in the year. A second phase of expansion
drilling was initiated in August with encouraging results
discovered near the historic underground workings, located in the
southern portion of the Sterling mining area. Similar to hole
STR19-042 (highlighted in the beginning of the release), hole
STR19-043 was drilled southeast of Sterling and intercepted notable
mineralization, returning 225.0 feet (68.6 meters) of 0.04 oz/t
(1.2 g/t) gold and 40.0 feet (12.2 meters) of 0.02 oz/t (0.6 g/t)
gold. Intercepts from these holes are interpreted to be the
northern extension of higher-grade mineralization mined in the
historic underground workings.
Coeur also drilled expansion targets at the Crown Block, located
approximately 4.0 miles (6.4 kilometers) north of the Sterling
project, initially focusing on the South Daisy and SNA deposits.
Importantly, all of the Company’s drilling within the Crown Block
has been contained on two separate five-acre disturbance drill
permits: (i) Daisy-Secret Pass, and (ii) SNA. These permits limited
the number of step-out holes that Coeur was able to drill in 2019;
however, the Company is currently working on a larger 300-acre
disturbance permit, which it expects to receive in the second
quarter of 2020.
Within the Daisy-Secret Pass disturbance area, the Company
targeted oxide heap-leachable gold hosted in Paleozoic sedimentary
rocks, similar to those found in other gold trends in Nevada.
Notable intercepts include:
- Hole D19-025 returning 145.0 feet (44.2 meters) of 0.06 oz/t
(2.0 g/t) gold;
- Hole D19-011 returning 40.0 feet (12.2 meters) of 0.15 oz/t
(5.1 g/t) gold; and
- Hole D19-007 returning 175.0 feet (53.3 meters) of 0.08 oz/t
(2.6 g/t) gold.
Following its success at Daisy, the Company shifted its focus to
expansion drilling at SNA during the fourth quarter. Results were
encouraging, highlighted by:
- Hole SNA19-010 returning 75.0 feet (22.9 meters) of 0.05 oz/t
(1.7 g/t) gold.
In parallel with ongoing drilling activities, Coeur began a
regional target generation program, conducting surface geologic
mapping, rock chip sampling and gravity surveys. Results from these
studies have been integrated with prior airborne magnetic data to
generate several new targets, helping to identify four specific
target types (ranked below according to priority):
- Structurally controlled sediment-hosted oxide gold, similar to
the Daisy and SNA deposits;
- Structurally controlled sediment- and volcanic-hosted gold
(oxide and sulfide), similar to the Secret Pass and nearby Mother
Lode (owned by Corvus Gold Inc.) deposits;
- A larger, deep sediment-hosted gold target north of the Mother
Lode deposit; and
- A deep, intrusive-type target that could be a potential source
for gold mineralization in the area.
Coeur intends to focus on the top two priority target types at
Crown for the near future. The Company has identified several
potential oxide heap-leachable targets along a seven-mile,
east-west trend in the Fluorspar Canyon, located to the north and
west of the Daisy and Secret Pass deposits, respectively. Coeur
plans to test the targets in this area upon receipt of the 300-acre
disturbance drill permit. The deeper sulfidic gold targets are
expected to be drilled opportunistically.
Coeur plans to continue resource expansion drilling at both
Sterling and Crown in 2020, beginning the year with one reverse
circulation drill at Sterling and two at Crown. One of the rigs at
Crown is expected to conduct step-out drilling to the north of the
Mother Lode deposit to test deeper targets identified in recent
geophysical interpretations. The targets are believed to be an
upthrown block of potential gold-host rocks, similar to other
deposits in the area. Additionally, the Company plans to add a
diamond core rig for part of the year to conduct resource infill
drilling at both Sterling and Crown to provide samples for
engineering and metallurgical testing.
Kensington
2019 represented a year of district-wide expansion at
Kensington, resulting in the drilling and discovery of several
high-grade targets. Three underground core rigs were active during
the year and drilled approximately 123,000 feet (37,500 meters)
through the end of November. Approximately 70% of Coeur’s
exploration budget at Kensington was dedicated to expansion
drilling, while the remaining 30% targeted resource conversion.
Infill drilling took place during the beginning of the year,
primarily at Kensington, Zone 30 and Lower Raven. In the upper
portion of Zone 30, hole K19-2050-221-X01 returned several
intervals above grade thickness cutoff, including 34.6 feet (10.5
meters) of 0.74 oz/t (25.5 g/t) gold and 8.6 feet (2.6 meters) of
1.77 oz/t (60.8 g/t) gold. The Company plans to continue drilling
in this area during 2020.
Exploration activities then transitioned to expansion drilling,
targeting Lower Raven, Eureka, Elmira, Jualin and Johnson. Results
continue to be encouraging, particularly at Eureka, with consistent
intervals above grade thickness cutoff as drilling continues down
dip from the 1,400-foot level in the Kensington mine. Key
highlights include:
- Jualin hole JU19-0185-315-X01 returning 8.8 feet (2.7 meters)
of 0.47 oz/t (15.9 g/t) gold, 1.2 feet (0.4 meters) of 1.07 oz/t
(36.6 g/t) gold and 1.0 feet (0.3 meters) of 1.18 oz/t (40.6 g/t)
gold;
- Eureka hole EU19-2050-216-X03 returning 6.5 feet (2.0 meters)
of 1.24 oz/t (42.4 g/t) gold; and
- Eureka hole EU19-2050-196-X02 returning 15.4 feet (4.7 meters)
of 0.34 oz/t (11.5 g/t) gold.
One helicopter-supported drill rig tested the Comet and Seward
veins for the first time from surface. Both veins are strategically
located immediately above the main access tunnel. As part of
Coeur’s 2018 and 2019 surface exploration program, the Company
mapped and sampled both veins with visible gold occurring at both
locations. Key highlights at Comet and Seward include:
- Hole C19-X007 returning 4.1 feet (1.2 meters) of 0.36 oz/t
(12.4 g/t) gold; and
- Hole C19-X001 returning 2.0 feet (0.6 meters) of 5.55 oz/t
(190.1 g/t) gold.
Based on the successful 2019 program, Coeur’s top priorities for
2020 include: (i) drilling Elmira, Eureka, Johnson, Raven and
Seward, and (ii) continuing the infill programs at the upper
portion of Zone 30 and Jualin.
Palmarejo
Coeur’s top exploration priority at Palmarejo in 2019 was to
continue locating thicker zones of mineralization near the
Guadalupe and Independencia mine complexes with the goal of
discovering new resources and extending mine life. Importantly, the
Company focused on new veins that could potentially be mined
utilizing existing infrastructure. A total of 200,000 feet (61,000
meters) were drilled through the end of November 2019, with up to
ten core rigs active simultaneously.
Initial drilling activity was focused on infill and resource
expansion around the Guadalupe mine complex. As the year
progressed, the Company gradually migrated rigs to the
Independencia mine complex where it focused on testing the
extension of the veins to the north.
Highlights from the Company’s 2019 drilling campaign at
Palmarejo include:
- Positive infill results at the western and southern portion of
the Guadalupe mine complex, including hole DC3-ZPA-0010 returning
18.7 feet (5.7 meters) of 0.37 oz/t (12.8 g/t) gold and 30.6 oz/t
(1,047.4 g/t) silver.
- New resource expansion intercepts from the northern portion of
the Independencia mine complex, including hole VIDH_120 returning
30.5 feet (9.3 meters) of 0.05 oz/t (1.5 g/t) gold and 5.2 oz/t
(179.0 g/t) silver.
- New resource expansion intercepts from the northeastern-most
portion of the Independencia mine complex, including hole BVDH_039
returning 14.8 feet (4.5 meters) of 0.03 oz/t (1.1 g/t) gold and
4.8 oz/t (164.5 g/t) silver.
Coeur’s geologic team also expanded its footprint in the
district by mapping and sampling exposures of new veins southwest
and northeast of the two underground mining complexes as well as
new veins west and east of the legacy open pit mine. Coeur expects
to seek drill permits for several new areas in 2020 based on
positive surface trace-element geochemistry and alteration
results.
The Company plans to continue aggressively drilling resource
expansion targets in several areas during 2020, including the
southwest portion of the Guadalupe mine complex as well as the
northern and northeastern portion of the Independencia mine
complex, while stepping up exploration efforts across the remainder
of the more than 66,700-acre (27,000-hectare) land package.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver 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 Silvertip silver-zinc-lead mine in
British Columbia. In addition, the Company has interests in several
precious metals exploration projects throughout 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 efforts and plans,
exploration expenditures, timing of permitting, drill results,
growth, extended mine lives, grade, thickness, investments, mine
expansion and development 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, silver, zinc and lead 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 (including the impact of
government shutdowns), ground conditions, grade variability, any
future labor disputes or work stoppages, the uncertainties inherent
in the estimation of mineral 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 its production, 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. Differences in drill thickness may result
from rounding values.
- Guidance as published by Coeur on November 4, 2019.
- Based on the midpoint of guidance published by Coeur on
November 4, 2019.
-
https://www.coeur.com/_resources/presentations/2019-07-17-Silvertip-Site-Tour.pdf.
-
https://www.coeur.com/_resources/presentations/2019-08-08-2QEarnings.pdf.
View source
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Coeur Mining, Inc. 104 S. Michigan Avenue, Suite 900 Chicago,
Illinois 60603 Attention: Paul DePartout, Director, Investor
Relations Phone: (312) 489-5800 www.coeur.com
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