Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) announced
year-end contained proven and probable mineral reserves of
approximately 390.7 million silver equivalent ounces, an increase
of 6.2 million silver equivalent ounces or 2% compared to year-end
2013. This gain is net of the 32.2 million silver equivalent ounces
produced in 2014. In addition to these reserves, Coeur announced
measured and indicated mineral resources totaling approximately
292.4 million silver equivalent ounces and inferred mineral
resources totaling 127.0 million silver equivalent ounces,
decreases of 45% and 21%, respectively, compared to year-end 2013.
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Highlights
(All comparisons below refer to year-end 2014 compared with
year-end 2013)
- Proven and probable silver reserves increased 10% to 280.5
million ounces
- Proven and probable gold reserves decreased 15% to 1.8 million
ounces
- Measured and indicated silver resources decreased 45% to 210.7
million ounces
- Measured and indicated gold resources decreased 45% to 1.4
million ounces
- Inferred silver resources decreased 36% to 61.8 million
ounces
- Inferred gold resources increased 3% to 1.1 million ounces
- Largest source of silver reserve increase from La Preciosa due
to the completion of the feasibility study in July 2014. 130.9
million silver equivalent reserve ounces remain economic at
year-end reserve metal prices
- Largest source of reserve decrease from San Bartolomé. A focus
on higher quality production ounces reduced total reserves to 46.0
million silver ounces
- Guadalupe now represents 88% of Palmarejo's total reserves.
Average grade of Palmarejo's reserves increased 32% to 8.93 silver
equivalent oz/ton
- Inferred resource estimate at Kensington's high-grade Jualin
deposit of 179,000 gold ounces with an average grade of 0.619
oz/ton, over three times the average reserve grade
- Measured and indicated resource estimate at Palmarejo's
Independencia deposit of 16.0 million silver equivalent ounces and
inferred resource estimate of 2.7 million silver equivalent
ounces
Mitchell J. Krebs, Coeur's President and Chief Executive
Officer, said, "By removing lower-margin ounces from our mine
plans, our year-end 2014 reserves better reflect our strategy to
focus on high-grade, high-quality production to maximize cash flow.
We were able to offset much of the impact of significantly lower
price assumptions used for year-end reserves through meaningful
cost reductions during 2014. For example, Rochester's mining costs
per ton declined 30% during 2014 compared to 2013 as a result of
better planning, strong execution, and greater operating
efficiencies.
"This theme of 'quality over quantity' was already evident in
our re-scoped mine plan at Palmarejo we released last July, which
did not include a significant portion of lower-grade reserves. We
expect to take a similar approach at Kensington and plan to soon
release a re-scoped mine plan reflecting higher-grade,
higher-margin production over an extended mine life.
"Our 2015 drilling efforts will keep the focus on expanding the
size and quality of higher-grade zones at existing operations such
as the Jualin deposit at Kensington and the Guadalupe/Independencia
corridor at Palmarejo.
"With two acquisitions expected to close during the first half
of the year, we expect to meaningfully add to our reserve base
during the remainder of 2015."
Year-end 2013 mineral reserves and resources are effective
December 31, 2013 except Endeavor, which is effective June 30,
2013. Year-end 2014 mineral reserves and resources are effective
December 31, 2014 except Endeavor, which is effective June 30,
2014. 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 silver producer and a
significant gold producer with four precious metals mines in the
Americas employing approximately 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, the Zaruma mine in
Ecuador, and the Correnso mine in New Zealand. 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 mineral reserve and mineral resource
estimates, and expectations regarding grades, production, and mine
life at Kensington, and strategies to focus on high-grade,
high-quality production to maximize cash flow. 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, Canadian investors should refer to 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.
Silver equivalence assumes silver to gold ratio of 60:1.
APPENDIX
Palmarejo Mineral
Reserves and Resources |
|
|
|
|
|
|
|
|
Grade
(oz/t) |
Ounces |
|
Short Tons |
Silver |
Gold |
Silver |
Gold |
Underground Reserves: |
|
|
|
|
|
Guadalupe |
4,899,000 |
4.42 |
0.088 |
21,637,000 |
431,000 |
Palmarejo |
412,000 |
4.54 |
0.070 |
1,870,000 |
29,000 |
Open-Pit Reserves: |
|
|
|
|
|
Guadalupe |
728,000 |
7.38 |
0.014 |
5,370,000 |
10,000 |
Palmarejo |
677,000 |
2.66 |
0.025 |
1,799,000 |
17,000 |
Total Proven and Probable
Reserves |
6,715,000 |
4.57 |
0.073 |
30,677,000 |
488,000 |
Underground M&I Resources |
|
|
|
|
|
Guadalupe |
2,683,000 |
5.09 |
0.101 |
13,649,000 |
272,000 |
Palmarejo |
— |
— |
— |
— |
— |
Independencia |
1,900,000 |
4.05 |
0.073 |
7,693,000 |
138,000 |
Open-Pit M&I Resources |
|
|
|
|
|
Guadalupe |
388,000 |
6.29 |
0.018 |
2,439,000 |
7,000 |
Palmarejo |
— |
— |
— |
— |
— |
Total Measured and Indicated
Resources |
4,971,000 |
4.78 |
0.084 |
23.781,000 |
417,000 |
Underground Inferred Resources |
|
|
|
|
|
Guadalupe |
1,164,000 |
5.80 |
0.177 |
6,754,000 |
206,000 |
Palmarejo |
— |
— |
— |
— |
— |
Independencia |
526,000 |
2.47 |
0.044 |
1,299,000 |
23,000 |
Open-Pit Inferred Resources |
|
|
|
|
|
Guadalupe |
374,000 |
5.97 |
0.029 |
2,233,000 |
11,000 |
Palmarejo |
— |
— |
— |
— |
— |
Total Inferred
Resources |
2,064,000 |
4.98 |
0.116 |
10,286,000 |
240,000 |
|
Kensington Mineral
Reserves and Resources |
|
|
|
|
|
|
Grade |
|
|
Short Tons |
(oz/ton) |
Ounces |
Proven Reserves |
|
|
|
Kensington |
400,000 |
0.180 |
72,000 |
Raven |
17,000 |
0.412 |
7,000 |
Probable Reserves |
|
|
|
Kensington |
2,824,000 |
0.181 |
512,000 |
Raven |
162,000 |
0.241 |
39,000 |
Total Proven and Probable
Reserves |
3,403,000 |
0.185 |
629,000 |
Measured Resources |
|
|
|
Kensington |
177,000 |
0.260 |
46,000 |
Raven |
4,000 |
0.250 |
1,000 |
Indicated Resources |
|
|
|
Kensington |
1,292,000 |
0.241 |
312,000 |
Raven |
93,000 |
0.258 |
24,000 |
Total Measured and Indicated
Resources |
1,566,000 |
0.244 |
382,000 |
Kensington inferred resources |
1,265,000 |
0.296 |
375,000 |
Raven inferred resources |
68,000 |
0.235 |
16,000 |
Jualin inferred
resources |
289,000 |
0.619 |
179,000 |
Total Inferred
Resources |
1,622,000 |
0.351 |
570,000 |
|
Total Coeur Proven and
Probable Reserves |
|
|
Grade
(Oz/Ton) |
Ounces |
|
Short Tons |
Silver |
Gold |
Silver |
Gold |
Proven Reserves |
|
|
|
|
|
Rochester |
89,077,000 |
0.56 |
0.004 |
49,786,000 |
346,000 |
San Bartolomé |
1,206,000 |
2.73 |
— |
3,287,000 |
— |
Kensington |
417,000 |
— |
0.187 |
— |
78,000 |
Endeavor |
1,323,000 |
1.82 |
— |
2,411,000 |
— |
Palmarejo |
1,089,000 |
3.37 |
0.043 |
3,670,000 |
46,000 |
La Preciosa |
18,830,000 |
3.16 |
0.006 |
59,534,000 |
111,000 |
Total Proven
Reserves |
111,942,000 |
1.06 |
0.005 |
118,688,000 |
581,000 |
Probable Reserves |
|
|
|
|
|
Rochester |
56,158,000 |
0.54 |
0.003 |
30,418,000 |
172,000 |
San Bartolomé |
13,337,000 |
3.20 |
— |
42,724,000 |
— |
Kensington |
2,986,000 |
— |
0.185 |
— |
551,000 |
Endeavor |
1,102,000 |
2.24 |
— |
2,469,000 |
— |
Palmarejo |
5,627,000 |
4.80 |
0.078 |
27,007,000 |
441,000 |
La Preciosa |
21,851,000 |
2.71 |
0.004 |
59,196,000 |
91,000 |
Total Probable
Reserves |
101,061,000 |
1.60 |
0.012 |
161,814,000 |
1,255,000 |
Proven and Probable
Reserves |
|
|
|
|
|
Rochester |
145,235,000 |
0.55 |
0.004 |
80,204,000 |
518,000 |
San Bartolomé |
14,543,000 |
3.16 |
— |
46,011,000 |
— |
Kensington |
3,403,000 |
— |
0.185 |
— |
629,000 |
Endeavor |
2,425,000 |
2.01 |
— |
4,880,000 |
— |
Palmarejo |
6,715,000 |
4.57 |
0.073 |
30,677,000 |
488,000 |
La Preciosa |
40,681,000 |
2.92 |
0.005 |
118,730,000 |
202,000 |
Total Proven
and Probable Reserves |
213,002,000 |
1.32 |
0.009 |
280,502,000 |
1,837,000 |
|
Total Coeur Measured and
Indicated Resources (Excluding Proven and Probable
Reserves) |
|
|
|
|
|
|
|
|
Grade
(Oz/Ton) |
Ounces |
|
Short Tons |
Silver |
Gold |
Silver |
Gold |
Measured Resources |
|
|
|
|
|
Rochester |
72,228,000 |
0.45 |
0.003 |
32,565,000 |
218,000 |
Martha |
— |
— |
— |
— |
— |
San Bartolomé |
— |
— |
— |
— |
— |
Kensington |
181,000 |
— |
0.260 |
— |
47,000 |
Endeavor |
7,716,000 |
2.28 |
— |
17,625,000 |
— |
Palmarejo |
417,000 |
4.48 |
0.062 |
1,870,000 |
26,000 |
Joaquin |
4,709,000 |
5.30 |
0.003 |
24,966,000 |
15,000 |
La Preciosa |
2,305,000 |
1.40 |
0.003 |
3,216,000 |
7,000 |
Total Measured
Resources |
87,556,000 |
0.92 |
0.004 |
80,242,000 |
313,000 |
Indicated Resources |
|
|
|
|
|
Rochester |
100,973,000 |
0.42 |
0.003 |
42,476,000 |
273,000 |
Martha |
57,000 |
13.60 |
0.018 |
775,000 |
1,000 |
San Bartolomé |
7,033,000 |
1.91 |
— |
13,445,000 |
— |
Kensington |
1,385,000 |
— |
0.242 |
— |
335,000 |
Endeavor |
5,181,000 |
2.39 |
— |
12,375,000 |
— |
Palmarejo |
4,554,000 |
4.81 |
0.086 |
21,911,000 |
391,000 |
Joaquin |
6,842,000 |
4.25 |
0.004 |
29,110,000 |
25,000 |
Lejano |
631,000 |
3.09 |
0.011 |
1,952,000 |
7,000 |
La Preciosa |
4,808,000 |
1.74 |
0.004 |
8,389,000 |
17,000 |
Total Indicated
Resources |
131,464,000 |
0.99 |
0.008 |
130,433,000 |
1,049,000 |
Measured and Indicated
Resources |
|
|
|
|
|
Rochester |
173,201,000 |
0.43 |
0.003 |
75,041,000 |
491,000 |
Martha |
57,000 |
13.60 |
0.018 |
775,000 |
1,000 |
San Bartolomé |
7,033,000 |
1.91 |
— |
13,445,000 |
— |
Kensington |
1,566,000 |
— |
0.244 |
— |
382,000 |
Endeavor |
12,897,000 |
2.33 |
— |
30,000,000 |
— |
Palmarejo |
4,971,000 |
4.78 |
0.084 |
23,781,000 |
417,000 |
Joaquin |
11,551,000 |
4.68 |
0.003 |
54,076,000 |
40,000 |
Lejano |
631,000 |
3.09 |
0.011 |
1,952,000 |
7,000 |
La Preciosa |
7,114,000 |
1.63 |
0.003 |
11,605,000 |
24,000 |
Total Measured
and Indicated Resources |
219,021,000 |
0.96 |
0.006 |
210,675,000 |
1,362,000 |
|
Total Coeur Inferred
Resources |
|
|
|
|
|
|
|
|
Grade
(Oz/Ton) |
Ounces |
|
Short Tons |
Silver |
Gold |
Silver |
Gold |
Inferred Resources |
|
|
|
|
|
Rochester |
96,039,000 |
0.42 |
0.003 |
40,789,000 |
263,000 |
Martha |
204,000 |
4.75 |
0.005 |
969,000 |
1,000 |
San Bartolomé |
66,000 |
1.68 |
— |
111,000 |
— |
Kensington |
1,622,000 |
— |
0.351 |
— |
570,000 |
Endeavor |
661,000 |
3.18 |
— |
2,103,000 |
— |
Palmarejo |
2,065,000 |
4.98 |
0.116 |
10,286,000 |
240,000 |
Joaquin |
720,000 |
3.99 |
0.003 |
2,873,000 |
2,000 |
Lejano |
702,000 |
2.81 |
0.010 |
1,972,000 |
7,000 |
La Preciosa |
1,344,000 |
1.98 |
0.004 |
2,657,000 |
5,000 |
Total Inferred
Resources |
103,423,000 |
0.60 |
0.011 |
61,760,000 |
1,088,000 |
Notes to the above mineral reserves and resources:
- Effective December 31, 2014 except Endeavor, effective June 30,
2014.
- Assumed metal prices for estimated mineral reserves were $19.00
per ounce of silver and $1,275 per ounce of gold, except Endeavor,
at $2,200 per metric ton of lead, $2,400 per metric ton of zinc,
and $20.00 per ounce of silver. Assumed metal prices for mineral
resources were $22.00 per ounce of silver and $1,350 per ounce of
gold, except for Endeavor, at $2,200 per metric ton of lead, $2,400
per metric ton of zinc and $20.00 per ounce of silver.
- Palmarejo mineral reserves and resources are the addition of
Palmarejo, Guadalupe, and Independencia deposits (measured,
indicated, and inferred). There are no mineral reserves and
resources for La Patria.
- 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.
- Rounding of tons and ounces, as required by reporting
guidelines, may result in apparent differences between tons, grade,
and contained metal content.
- 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, Canadian
investors should refer to the NI 43-101-compliant Technical Report
for Coeur's properties on file at www.sedar.com.
Conversion
Table |
1 short ton |
= |
0.907185 metric tons |
1 troy ounce |
= |
31.10348 grams |
CONTACT: For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
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