Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) announced
today an initial resource estimate for its high-grade underground
Independencia silver-gold deposit, located approximately 800 meters
east of the Guadalupe underground mine currently in production at
Coeur's Palmarejo silver-gold mine in Chihuahua, Mexico. The
updated estimate was prepared with the assistance of Mine
Development Associates (MDA, www.mda.com) of Reno, Nevada and
includes data from 61 core drill holes totaling 27,000 meters.
Highlights
- Measured and indicated resources total approximately 1.9
million short tons grading 4.05 oz/ton of silver and 0.073 oz/ton
of gold, for a total of 7.7 million ounces of silver and 138,000
ounces of gold, using a silver equivalent cutoff grade of 2.63
ounces per ton
- Inferred resources total approximately 526,000 short tons
grading 2.48 oz/ton for silver and 0.045 oz/ton for gold, for a
total of 1.3 million ounces of silver and 23,000 ounces of gold,
using a silver equivalent cutoff grade of 2.63 ounces per ton
- 2015 exploration drilling will focus on four priorities:
- Expand the Independencia resource, converting some to reserve
status;
- Upgrade Guadalupe inferred resources to measured and indicated
resources;
- Test Guadalupe potential at depth where the deposit remains
open; and
- Drill two other known mineralized structures located between
Guadalupe and Independencia
"This maiden resource at Independencia demonstrates the success
of our efforts to identify additional high-grade mineralization
near existing infrastructure in order to further boost Palmarejo's
future cash flow," said Hans Rasmussen, Coeur's Vice President of
Exploration. "At the same cut-off grade used at Guadalupe, the
silver and gold grades of this new resource are higher and we
expect Independencia to grow as we continue drilling in 2015."
Frank Hanagarne, Coeur's Senior Vice President and Chief
Operating Officer, said, "Our focused exploration effort continues
to add high-quality ounces to the resource base at Palmarejo. As we
continue the transition at Palmarejo to higher-grade underground
mining, we look forward to bringing Independencia into the future
mine plan to supplement the ore we are now beginning to mine at the
nearby Guadalupe deposit."
Independencia is a high-grade silver and gold vein that runs
parallel to the Guadalupe vein.The resource is about 300 - 400
meters deep at its top and remains open at depth and along strike
to the north-northwest.
Independencia Resources
|
Cutoff |
Short Tons |
Grade (oz/t) |
Ounces (000s) |
|
(oz/t AgEq) |
(000s) |
Silver |
Gold |
Silver |
Gold |
Measured Resources |
|
|
|
|
|
|
|
1.75 |
590 |
3.59 |
0.048 |
2,114 |
28 |
|
2.63 |
417 |
4.49 |
0.063 |
1,870 |
26 |
|
3.50 |
313 |
5.40 |
0.077 |
1,692 |
24 |
|
5.25 |
205 |
7.06 |
0.101 |
1,444 |
21 |
|
8.75 |
115 |
9.74 |
0.141 |
1,111 |
16 |
Indicated Resources |
|
|
|
|
|
|
|
1.75 |
2,177 |
3.09 |
0.056 |
6,718 |
121 |
|
2.63 |
1,483 |
3.94 |
0.075 |
5,823 |
112 |
|
3.50 |
1,119 |
4.67 |
0.092 |
5,236 |
103 |
|
5.25 |
744 |
5.98 |
0.120 |
4,443 |
90 |
|
8.75 |
427 |
8.08 |
0.166 |
3,439 |
71 |
Measured and Indicated Resources |
|
|
|
|
|
|
|
1.75 |
2,767 |
3.18 |
0.054 |
8,832 |
149 |
|
2.63 |
1,899 |
4.05 |
0.073 |
7,693 |
138 |
|
3.50 |
1,432 |
4.84 |
0.089 |
6,928 |
127 |
|
5.25 |
949 |
6.21 |
0.116 |
5,887 |
111 |
|
8.75 |
541 |
8.43 |
0.160 |
4,550 |
87 |
Inferred Resources |
|
|
|
|
|
|
|
1.75 |
903 |
1.93 |
0.032 |
1,749 |
29 |
|
2.63 |
526 |
2.48 |
0.045 |
1,299 |
23 |
|
3.50 |
367 |
2.89 |
0.053 |
1,061 |
19 |
|
5.25 |
201 |
3.65 |
0.065 |
733 |
13 |
|
8.75 |
35 |
4.84 |
0.110 |
171 |
4 |
Notes to the above mineral resources: |
1. Effective December 19,
2014. |
2. Resources estimated at various
cutoff grades consistent with previous estimates. As the
Independencia deposit consists of gold-silver deposits, a silver
equivalent (AgEq) cutoff of 2.63 ounces per short ton (90 g/t) was
used because underground mining methods would likely be needed for
the potential exploitation of this resource. A PEA will better
define these economic parameters and determine underground mine
plans. Silver equivalence assumes silver to gold ratio of
60:1. |
3. The primary constraint used on
the modeling of the Independencia resources consists of mineralized
envelopes that encompass low--, mid- and high-grade mineralization
for silver and gold individually. These two sets of envelopes were
first interpreted on vertical cross sections and then rectified on
five-meter level plans that were used to code a model comprised of
2.5 x 2.5 x 5 meter (high) blocks. Inverse distance, ordinary
kriging, and nearest neighbor estimations of gold and silver grades
were completed; the inverse distance results were found to be the
most representative of the deposit as defined by the drill data and
it was therefore selected for reporting the resources. All modeling
of the Independencia project resources were performed using GEOVIA
Surpac™ mining software. |
4. Geotechnical risks of
underground mining are expected to be similar to Coeur's experience
at the other Palmarejo underground operations. Poor mining
conditions may increase the cost of mining or make mining
economically unfeasible. |
5. 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. |
6. Rounding of tons and ounces, as
required by reporting guidelines, may result in apparent
differences between tons, grade, and contained metal content. |
7. 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 and known risks that could materially affect the potential
development, please refer to the NI 43-101-compliant Technical
Report for Coeur's Palmarejo Project dated January 1, 2013 and
filed February 28, 2013 at www.sedar.com. |
Palmarejo Reserves and Resources (Excluding
Independencia)
|
Short Tons |
Grade (oz/t) |
Ounces (000s) |
|
(000s) |
Silver |
Gold |
Silver |
Gold |
Underground Reserves: |
|
|
|
|
|
Guadalupe |
5,964 |
3.92 |
0.056 |
23,368 |
336 |
Palmarejo |
2,355 |
3.98 |
0.073 |
9,368 |
173 |
Open-Pit Reserves: |
|
|
|
|
|
Guadalupe |
420 |
5.21 |
0.015 |
2,188 |
6 |
Palmarejo |
2,497 |
2.70 |
0.022 |
6,729 |
54 |
Total Proven and Probable
Reserves |
11,235 |
3.71 |
0.051 |
41,653 |
569 |
Underground M&I Mineralized Material |
|
|
|
|
|
Guadalupe |
2,457 |
5.81 |
0.063 |
14,287 |
154 |
Palmarejo |
4,160 |
6.36 |
0.104 |
26,467 |
432 |
Open-Pit M&I Mineralized Material |
|
|
|
|
|
Guadalupe |
1,648 |
3.57 |
0.035 |
5,887 |
58 |
Palmarejo |
507 |
1.42 |
0.011 |
719 |
6 |
La Patria |
17,529 |
0.56 |
0.028 |
9,828 |
491 |
Total Measured and Indicated
Resources |
26,301 |
2.17 |
0.043 |
57,188 |
1,140 |
Underground Inferred Resources |
|
|
|
|
|
Guadalupe |
3,951 |
4.78 |
0.110 |
18,895 |
433 |
Palmarejo |
32 |
3.66 |
0.056 |
117 |
2 |
Open-Pit Inferred Mineralized Material |
|
|
|
|
|
Guadalupe |
217 |
3.28 |
0.039 |
709 |
8 |
Palmarejo |
3 |
2.07 |
0.018 |
7 |
-- |
La Patria |
7,408 |
0.33 |
0.024 |
2,461 |
178 |
Total Inferred Mineralized
Material |
11,611 |
1.91 |
0.053 |
22,188 |
621 |
Notes to the above mineral reserves and
resources: |
1. Effective December 31,
2013. |
2. Metal prices used for mineral
reserves were $25.00 per ounce of silver and $1,450 per ounce of
gold. Metal prices used for mineral resources were $29.00 per ounce
of silver and $1,600 per ounce of gold. La Patria was calculated at
$33 per silver ounce and $1,700 per gold ounce. |
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, please refer to the NI 43-101-compliant Technical Report
for Coeur's Palmarejo Project dated January 1, 2013 and filed
February 28, 2013 at www.sedar.com. |
|
Conversion
Table |
1 short ton |
= |
0.907185 metric tons |
1 troy ounce |
= |
31.10348 grams |
About Coeur
Coeur Mining is the largest U.S.-based primary silver producer
and a significant gold producer with four precious metals mines in
the Americas employing nearly 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 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 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 exploration results and anticipated
results from planned future exploration activities, reserves and
resource estimates, mine plans, grades, cost savings, cash flow,
and growth. 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. 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, please refer to the NI 43-101-compliant
Technical Report for Palmarejo dated January 1, 2013 and filed
February 28, 2013 on 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 www.sec.gov.
Silver equivalence assumes 60:1 ratio.
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5910
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Sep 2024 to Oct 2024
Coeur Mining (NYSE:CDE)
Historical Stock Chart
From Oct 2023 to Oct 2024