16% Increase in Silver Reserves and 12%
Increase in Gold Reserves Extends Coeur’s Operating Profile
Coeur Mining, Inc. (“Coeur” or the “Company”)
(NYSE:CDE)(TSX:CDM) announced contained ounces of proven and
probable mineral reserves totaling approximately 255.4 million
silver ounces and 2.2 million gold ounces, representing increases
of 15.9% and 12.3%, respectively, compared to year-end 2012. These
gains are net of the 17.0 million ounces of silver and 262,217
ounces of gold produced during 2013. In addition to these reserves,
Coeur announced measured and indicated mineral resources totaling
approximately 386.3 million silver ounces and 2.5 million gold
ounces, up 26.6% and 1.4%, respectively, compared to year-end
2012.
Highlights
(All comparisons below refer to year-end 2013 compared with
year-end 2012)
- Proven and probable silver reserves
increased 15.9% to 255.4 million ounces
- 26.6% increase in measured and
indicated silver resources to 386.3 million ounces
- Proven and probable gold reserves
increased 12.3% to 2.2 million ounces
- 1.4% increase in measured and indicated
gold resources to 2.5 million ounces
- Inferred silver resources increased
45.5% to 96.4 million ounces
- Inferred gold resources increased 36.5%
to 1.1 million ounces
Mitchell J. Krebs, Coeur’s President and Chief Executive
Officer, said, “For the past several years, our main focus has been
to get all four of our mines up and running consistently. 2012 was
the first year we devoted significant capital to exploration and we
are starting to see the fruits of these efforts. We have spent $74
million in exploration expenditures over the past two years and
will continue to fund exploration activities using a success-based
approach focused on resource conversion. We believe a robust
exploration program represents a high-return use of our capital
based on the results we have achieved.
“In 2014, we plan to invest $23 - $28 million in exploration,
including approximately $10 million in capitalized drilling, but
may increase this budget if we receive positive drill results that
warrant further exploration activity. We are continuing a targeted
focus on resource conversion at Palmarejo, which we believe holds
considerable opportunity for new sources of production.”
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 primary silver producer
and a significant gold producer. The Company has four precious
metals mines in the Americas generating strong production, sales
and cash flow in continued robust metals markets. 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 and the Kensington gold mine in Alaska.
The Company also has a non-operating interest in the Endeavor mine
in Australia in addition to net smelter royalties on the Cerro Bayo
mine in Chile, the El Gallo complex in Mexico, and the Zaruma mine
in Ecuador. In addition, the Company has two silver-gold
feasibility stage 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 eight
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 resource
estimates, exploration expenditures, exploration and development
efforts, and expectations regarding new sources of production. 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 and 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.
W. David Tyler, Coeur's Vice President, Technical Services 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, please 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.
Table 1: 2013
Proven and Probable Reserves
GRADE (Oz/Ton) OUNCES
LOCATION SHORT TONS SILVER
GOLD SILVER GOLD PROVEN RESERVES
Rochester Nevada, USA 132,188,000 0.53 0.004 69,915,000 551,000
Martha Argentina — — — — — San Bartolomé Bolivia 1,206,000 2.87 —
3,456,000 — Kensington Alaska, USA 354,000 — 0.243 — 86,000
Endeavor Australia 2,646,000 2.58 — 6,820,000 — Palmarejo Mexico
5,100,000 3.68 0.050 18,762,000 256,000 Joaquin Argentina — — — — —
La Preciosa Mexico — — —
— —
Total 141,494,000
98,953,000 893,000
PROBABLE RESERVES Rochester Nevada, USA 55,046,000 0.57
0.002 31,454,000 130,000
Martha
Argentina — — — — — San Bartolomé Bolivia 39,700,000 2.52 —
100,072,000 — Kensington Alaska, USA 5,662,000 — 0.158 — 897,000
Endeavor Australia 1,433,000 1.41 — 2,026,000 — Palmarejo Mexico
6,135,000 3.73 0.051 22,891,000 313,000 Joaquin Argentina — — — — —
La Preciosa Mexico — — —
— —
Total 107,976,000
156,443,000
1,340,000 PROVEN AND PROBABLE RESERVES Rochester
Nevada, USA 187,234,000 0.54 0.004 101,369,000 681,000 Martha
Argentina — — — — — San Bartolomé Bolivia 40,906,000 2.53 —
103,528,000 — Kensington Alaska, USA 6,016,000 — 0.163 — 983,000
Endeavor Australia 4,079,000 2.17 — 8,846,000 — Palmarejo Mexico
11,235,000 3.71 0.051 41,653,000 569,000 Joaquin Argentina — — — —
— La Preciosa Mexico — — —
— —
Total Proven and Probable
249,470,000
255,396,000 2,233,000
Table 2: 2013
Measured and Indicated Resources (Excluding Proven and Probable
Reserves)
GRADE (Oz/Ton) OUNCES
LOCATION SHORT TONS SILVER
GOLD SILVER GOLD MEASURED RESOURCES
Rochester Nevada, USA 66,190,000 0.45 0.003 29,860,000 186,000
Martha Argentina — — — — — San Bartolomé Bolivia — — — — —
Kensington Alaska, USA 387,000 — 0.238 — 92,000 Endeavor Australia
6,724,000 2.33 — 15,690,000 — Palmarejo Mexico 4,507,000 6.27 0.095
28,238,000 429,000 Joaquin Argentina 5,865,000 4.62 0.003
27,106,000 19,000 La Preciosa Mexico 11,119,000
2.78 0.005 30,856,000 58,000
Total 94,792,000
131,750,000 784,000 INDICATED
RESOURCES Rochester Nevada, USA 75,532,000 0.42 0.004
31,893,000 268,000
Martha
Argentina 57,000 13.60 0.018 775,000 1,000 San Bartolomé Bolivia
17,015,000 2.17 — 36,869,000 — Kensington Alaska, USA 2,299,000 —
0.206 — 474,000 Endeavor Australia 8,267,000 2.51 — 20,737,000 —
Palmarejo Mexico 21,795,000 1.33 0.033 28,950,000 711,000 Joaquin
Argentina 11,098,000 3.39 0.004 37,670,000 41,000 Lejano Argentina
1,233,000 2.42 0.008 2,983,000 10,000 La Preciosa Mexico
38,231,000 2.48 0.004 94,670,000
172,000
Total 175,527,000
254,547,000
1,677,000 MEASURED AND INDICATED RESOURCES Rochester
Nevada, USA 141,722,000 0.44 0.003 61,753,000 454,000 Martha
Argentina 57,000 13.60 0.018 775,000 1,000 San Bartolomé Bolivia
17,015,000 2.17 — 36,869,000 — Kensington Alaska, USA 2,686,000 —
0.211 — 566,000 Endeavor Australia 14,991,000 2.43 — 36,427,000 —
Palmarejo Mexico 26,302,000 2.17 0.043 57,188,000 1,140,000 Joaquin
Argentina 16,963,000 3.82 0.004 64,776,000 60,000 Lejano Argentina
1,233,000 2.42 0.008 2,983,000 10,000 La Preciosa Mexico
49,350,000 2.54 0.005
125,526,000 230,000
Total Measured and Indicated
270,319,000
386,297,000 2,461,000
Table 3: 2013
Inferred Resources
GRADE (Oz/Ton) OUNCES
LOCATION SHORT TONS SILVER
GOLD SILVER GOLD INFERRED RESOURCES
Rochester Nevada, USA 37,365,000 0.62 0.003 23,295,000 101,000
Martha Argentina 204,000 4.75 0.005 969,000 1,000 San Bartolomé
Bolivia 3,683,000 1.26 — 4,638,000 — Kensington Alaska, USA
1,014,000 — 0.259 — 263,000 Endeavor Australia 1,653,000 2.86 —
4,726,000 — Palmarejo Mexico 11,611,000 1.91 0.053 22,188,000
621,000 Joaquin Argentina 1,022,000 3.02 0.004 3,084,000 4,000
Lejano Argentina 3,307,000 1.73 0.006 5,713,000 19,000 La Preciosa
Mexico 16,791,000 1.89 0.003
31,810,000 49,000
Total Inferred
76,650,000
96,423,000 1,058,000 Notes to the above
mineral reserves and resources: 1. Effective December 31,
2013 except Endeavor, effective June 30, 2013. 2. Metal prices used
for mineral reserves were $25.00 per ounce of silver and $1,450 per
ounce of gold, except Endeavor, at $2,300 per metric ton of lead,
$2,300 per metric ton of zinc, and $34.00 per ounce of silver.
Metal prices used for mineral resources were $29.00 per ounce of
silver and $1,600 per ounce of gold, except for Endeavor, at $2,300
per metric ton of lead, $2,300 per metric ton of zinc and $34.00
per ounce of silver. 3. Palmarejo mineral resources are the
addition of Palmarejo, Guadalupe, and La Patria (measured,
indicated, and inferred). 4. Mineral resources are in addition to
mineral reserves and have not 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. 5. Rounding of tons and ounces, as required by reporting
guidelines, may result in apparent differences between tons, grade,
and contained metal content. 6.
For details on the estimation of mineral
resources and reserves for each property, please refer to the
relevant NI 43-101-compliant Technical Report on file at
www.sedar.com and the updated Technical Report for Rochester to be
filed within 45 days on www.sedar.com.
Coeur Mining, Inc.Bridget Freas, Director, Investor
Relations(312) 489-5819orDonna Mirandola, Director, Corporate
Communications(312) 489-5824www.coeur.com
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