Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported year-end 2017 contained reserves and resources from
continuing operations1, which reflect significant increases
compared to 2016 and demonstrate the success of the Company’s
expanded near-mine exploration program. Proven and probable
reserves of 335.8 million silver equivalent ounces (AgEqOz)2 are
10% higher, driven primarily by year-over-year silver equivalent2
reserve increases of 36% at Wharf and 17% at Palmarejo. Measured
and indicated resources of approximately 385.7 million AgEqOz2 and
inferred resources of 171.0 million AgEqOz2 represent increases of
42% and 45%, respectively.
The Company’s year-end 2017 reserves assumed silver and gold
prices of $17.50 per ounce and $1,250 per ounce, respectively,
unchanged from the assumptions used to determine year-end 2016 and
2015 reserves.
Highlights
- New discoveries boost Palmarejo’s
reserves and resources – Contained silver and gold reserves
increased 15% to 47.0 million and 19% to 706,000 ounces,
respectively, compared to the prior year. This was primarily
attributable to an initial reserve estimate at the Nación-Dana
deposit, for which preliminary mine planning is underway. The
Company’s 2017 drill program contributed to 56% higher measured and
indicated resources compared to 2016 and produced initial inferred
resource estimates for the La Bavisa and Zapata veins. These, along
with several additional veins discovered in the past 18 months,
drove a 48% increase in inferred resources, demonstrating
significant potential for continued resource growth
- Wharf delivers 36% increase in gold
reserves – Year-end 2017 reserves totaled 869,000 ounces
compared to 639,000 ounces the prior year. Wharf’s current gold
reserves are also 55% higher than the 560,000 ounces at year-end
2013, the last reported reserve figure prior to Coeur’s
acquisition, despite depletion in the intervening years of
approximately 100,000 contained ounces by Goldcorp in 2014 and
early 2015 and approximately 335,000 contained ounces by Coeur
- Modest reserve gains at Kensington
and Rochester; significant increases to Rochester resources–
Proven and probable gold reserves at Kensington increased 5% to
520,000 ounces. At Rochester, proven and probable AgEqOz2 reserves
increased approximately 2%, while measured and indicated resources
increased 71% and inferred resources increased 56%. The Company
anticipates publishing an updated technical report for Kensington
later in the first quarter, reflecting Jualin’s 2017 exploration
results
- 2017 year-end resources reflect
addition of high-grade Silvertip mineralization – Silvertip had
measured and indicated resources of 73.3 million AgEqOz2 and
inferred resources of 14.1 million AgEqOz2, accounting for
approximately 19% and 8%, respectively, of companywide totals. An
aggressive campaign of both surface and underground exploration
drilling commenced at Silvertip during the fourth quarter and the
Company remains focused on producing an initial reserve estimate
for inclusion in the technical report anticipated later this
year
“Over the last 18 months, we have invested heavily in near-mine
exploration, which we believe offers the best risk-weighted returns
to stockholders. Our mines have been historically under-drilled,
yet present significant exploration potential as evidenced by the
number of new discoveries at Palmarejo,” said Mitchell J. Krebs,
Coeur’s President and Chief Executive Officer.
“We expect to sustain an elevated level of exploration
investment in 2018 given the success our expanded programs are
generating. Our 2018 programs reflect a higher proportion of
capitalized drilling versus expensed exploration. Our top
priorities will remain Palmarejo, Kensington and now Silvertip.
Drilling at Palmarejo will focus on expansion of the Nación-Dana
deposit as well as delineation of several recent discoveries where
we can most effectively leverage existing infrastructure. At
Kensington, exploration efforts will target expansion of Kensington
Main and Raven, and at Silvertip, drilling will focus on infill and
expansion priorities to support our near- and medium-term mine
planning efforts.”
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 continuing
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, and
the Wharf gold mine in South Dakota. 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 mineral reserve and mineral resource
estimates, exploration and drilling efforts and investment, timing
of publication of technical reports, mine planning, and reserve and
resource 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 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, lead and
zinc 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 report on Form
10-K. 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,
reviewed and approved 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 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.
Notes
- On December 22, 2017, the Company
entered into an agreement to sell its wholly-owned Bolivian
subsidiary, which owns and operates the San Bartolomé mine. The
transaction is expected to close in the first quarter. As a result,
the mine is considered a discontinued operation and excluded from
discussion of consolidated mineral reserves and resources unless
otherwise noted.
- Silver and gold equivalence assumes a
60:1 silver-to-gold ratio. Silver and zinc equivalence assumes a
0.06:1 silver-to-zinc ratio. Silver and lead equivalence assumes a
0.05:1 silver-to-lead ratio.
For Additional Information
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, Illinois 60603
Attention: Courtney Lynn, Vice President, Investor Relations and
Treasurer
Phone: (312) 489-5800
www.coeur.com
2017 Year-End Proven and Probable
Reserves
Grade Contained Silver Gold Lead
Zinc Silver Gold Lead Zinc
Short tons (oz/t) (oz/t) (%) (%)
(oz) (oz) (lbs) (lbs)
PROVEN
RESERVES Palmarejo 1,571,000 3.81 0.073 5,978,000 115,000
Rochester 195,724,000 0.45 0.003 87,518,000 598,000 Kensington
1,284,000 - 0.198 - 254,000 Wharf 18,125,000 - 0.027 - 483,000 San
Bartolome 1,640,000 2.70 -
4,429,000 -
Total 218,344,000 0.45
0.007 97,925,000
1,450,000 PROBABLE
RESERVES Palmarejo 9,414,000 4.36 0.063 41,033,000 591,000
Rochester 77,703,000 0.39 0.002 30,105,000 159,000 Kensington
1,389,000 - 0.192 - 266,000 Wharf 16,560,000 - 0.023 - 386,000 San
Bartolome 162,000 2.98 -
482,000 -
Total 105,228,000 0.68
0.013 71,620,000
1,402,000 PROVEN AND
PROBABLE RESERVES Palmarejo 10,985,000 4.28 0.064 47,011,000
706,000 Rochester 273,427,000 0.43 0.003 117,623,000 758,000
Kensington 2,673,000 - 0.195 - 520,000 Wharf 34,685,000 - 0.025 -
869,000 San Bartolome 1,802,000 2.73 -
4,911,000 -
Total 323,572,000 0.52
0.009
169,545,000 2,853,000
2017 Year-End Measured and Indicated
Resources
Grade Contained Silver Gold Lead
Zinc Silver Gold Lead Zinc
Short tons (oz/t) (oz/t) (%) (%)
(oz) (oz) (lbs) (lbs)
MEASURED
RESOURCES Palmarejo 629,000 3.07 0.051 1,928,000 32,000
Rochester 101,929,000 0.37 0.003 37,827,000 257,000 Kensington
1,546,000 - 0.255 - 395,000 Wharf 2,150,000 - 0.025 - 54,000
Silvertip - - - - - La Preciosa 9,536,092 3.04 0.005 29,001,000 -
San Bartolome 3,472,000 3.39 -
11,777,000 -
Total 119,262,092 0.68
0.007 - -
80,533,000 783,000 -
- INDICATED RESOURCES Palmarejo 7,445,000 3.37 0.045
25,120,000 336,000 Rochester 77,956,000 0.36 0.002 27,814,000
165,000 Kensington 1,332,000 - 0.289 - 385,000 Wharf 5,560,000 -
0.022 - 122,000 Silvertip 2,589,000 10.26 - 6.74 9.41 26,573,000 -
348,835,000 487,318,000 La Preciosa 19,141,000 3.98 0.006
76,185,000 118,000 San Bartolome 614,000 3.57
- 2,194,000 -
Total 114,637,000
1.38 0.010 - -
157,886,000 1,126,000
348,835,000 487,318,000 MEASURED AND
INDICATED RESOURCES Palmarejo 8,074,000 3.35 0.046 27,049,000
368,000 Rochester 179,885,000 0.36 0.002 65,641,000 422,000
Kensington 2,878,000 - 0.271 - 780,000 Wharf 7,710,000 - 0.023 -
176,000 Silvertip 2,589,000 10.26 - 6.74 9.41 26,573,000 -
348,835,000 487,318,000 La Preciosa 28,677,000 3.67 0.006
105,186,000 163,000 San Bartolome 4,087,000 3.42
- 13,971,000 -
Total 223,900,000
1.02 0.008 -
- 238,420,000 1,909,000
348,835,000 487,318,000
2017 Year-End Inferred
Resources
Grade Contained Silver Gold Lead
Zinc Silver Gold Lead Zinc
Short tons (oz/t) (oz/t) (%) (%)
(oz) (oz) (lbs) (lbs)
INFERRED
RESOURCES Palmarejo 7,336,000 4.23 0.050 31,061,000 369,000
Rochester 131,570,000 0.42 0.002 55,472,000 275,000 Kensington
1,471,000 - 0.271 - 399,000 Wharf 1,050,000 - 0.026 - 27,000
Silvertip 507,000 9.89 - 6.18 9.81 5,012,000 - 62,634,000
99,447,000 La Preciosa 1,761,000 3.31 0.003 5,835,000 6,000 San
Bartolome 19,000 2.53 -
48,000 -
Total 143,695,000 0.68
0.007 - -
97,380,000 1,076,000 62,634,000
99,447,000
Notes to above mineral reserves and resources:
- Effective December 31, 2017.
- Assumed metal prices for estimated
Mineral Reserves were $17.50 per ounce of silver and $1,250 per
ounce of gold.
- Assumed metal prices for estimated
Mineral Resources were $20.00 per ounce of silver, $1,400 per ounce
of gold, $1.15 per pound Zinc and $1.00 per pound Lead.
- 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
Mineral Reserves, Canadian investors should refer to the NI 43-101
Technical Reports 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
Wharf’s Historical Mineral Reserves and
Resources
Grade Contained Gold Silver Gold
Silver Short tons (oz/t) (oz/t)
(oz) (oz)
PROVEN AND PROBABLE RESERVES Proven
Reserves 15,179,000 0.022 0.078 340,000 1,190,000 Probable Reserves
8,245,000 0.026 0.108 220,000
890,000
Total 23,424,000 0.024
0.089 560,000 2,080,000
MEASURED AND INDICATED RESOURCES Measured Resources
4,795,000 0.020 0.104 100,000 500,000 Indicated Resources
1,642,000 0.020 0.102 30,000 170,000
Total 6,437,000 0.020
0.104 130,000 670,000
Notes to above Mineral Reserves and Mineral
Resources:
- Mineral Reserves and Mineral Resources
estimate as reported by Goldcorp, Inc. (“Goldcorp”) in its Annual
Information Form dated March 31, 2014 ("AIF") for the financial
year ended December 31, 2013, available to Canadian investors at
www.sedar.com under Goldcorp's profile. As discussed in the AIF,
Mineral Reserves and Mineral Resources were prepared by Goldcorp in
accordance with NI 43-101 under the supervision of a qualified
person. Coeur is not treating these historical estimates as current
and has not completed sufficient work to classify the historical
estimate as current mineral reserves or mineral resources for
Coeur’s purposes. Following Coeur's acquisition of Wharf, its
qualified person reviewed and verified the scientific and technical
information of Goldcorp as well as completed other work necessary
for purposes of preparing a 43-101 technical report, including
validation of data quality, resource model accuracy, and costs used
in reserve and resource cutoffs.
- As discussed in the AIF, mineral
reserves were calculated by Goldcorp using metal prices of $1,300
per gold ounce and $22 per silver ounce, and mineral resources were
calculated using $1,500 per gold ounce and $24 per silver ounce.
Mineral resources are in addition to mineral reserves and do not
have demonstrated economic viability. Rounding of tons, as required
by reporting guidelines, may result in apparent differences between
tons and grade.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180206006385/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5800
Coeur Mining (NYSE:CDE)
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