Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
filed a NI 43-101 Technical Report (“technical report”) for its
Kensington gold mine in Alaska, which reflects a 25% increase in
proven and probable reserves to 620,700 ounces and a 10% increase
in average reserve grade to 0.21 ounces per ton (“oz/t”), or 7.2
grams per tonne (“g/t”), compared to year-end 2016 reserves.
Contained in this reserve is an initial reserve estimate for the
high-grade Jualin deposit of 74,100 contained ounces of gold based
on 157,600 tons of ore at an average grade of 0.47 oz/t, or 16.1
g/t.
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Kensington: Mine Map with Near-Term
Exploration Targets (Graphic: Business Wire)
Summary highlights from Kensington’s technical report
include:
- A 13% increase in expected average
annual payable production to approximately 130,000 ounces of gold
from 2019 through 2021 compared to payable production in 2017
- 17% increase in anticipated
life-of-mine head grade of 0.21 oz/t compared to the 2017 average
head grade of 0.18 oz/t
- Anticipated 8% reduction in average
costs from $920 in 2017 to $855 per payable ounce
- Average annual pre-tax cash flows of
over $30 million over the three-year period, up from $1.4 million
of pre-tax cash flow in 2017
- An extension of mine life from 2020 to
2022 based on current reserves
- Mining rates at the high-grade Jualin
deposit expected to ramp up to 100 tons per day in 2019 and average
over 180 tons per day in 2020
- 84% increase in expected life-of-mine
pre-tax cash flows to $90 million compared to $49 million in
Kensington’s 2014 technical report
- Addition of 713,000 ounces of measured
and indicated resources and 305,000 ounces of inferred resources,
conveying potential for further mine life extensions
“The results of Kensington’s technical report illustrate the
significant impact a relatively small amount of high-grade mill
feed can have on this mine’s prospects,” said Mitchell J. Krebs,
Coeur’s President and Chief Executive Officer. “Once we complete
dewatering efforts at Jualin, we plan to ramp up mining rates
beginning in the fourth quarter.
“This initial reserve declaration at Jualin represents an
important milestone, and we continue to work towards defining
Kensington’s greater potential. Our exploration team has identified
numerous high-grade, historically-producing veins that are
drill-ready, close to existing infrastructure, and we intend to
explore their potential to serve as supplemental sources of
high-margin production. Like Jualin and Raven, these targets have
the potential to drive value at Kensington for many years to
come.”
The Kensington district once hosted several past producing mines
and prospects, which are located on the figure below, illustrating
a lengthy mineralization corridor. The Company intends to explore
these historic vein structures over the next 18 months to determine
their potential to provide high-grade mill feed, both supplementing
feed from Raven and Jualin as well as succeeding them in the
longer-term. Surface mapping and sampling of these historic veins
have demonstrated encouraging results. Coeur’s exploration team
on-site will endeavor to drill test several of these targets for
continuity at depth.
2017 Year-End Proven and Probable Reserves
Short tons Gold Grade (oz/t)
Contained Gold (oz)
PROVEN RESERVES Kensington
1,271,200 0.20 251,800 Raven 13,500
0.23 3,100
Total 1,284,700
0.20 254,900
PROBABLE RESERVES
Kensington 1,499,600 0.19 286,700 Raven 19,200 0.26 5,000 Jualin
157,600 0.47 74,100
Total
1,676,300 0.22 365,800
PROVEN
AND PROBABLE Total 2,961,000
0.21 620,700
2017 Year-End Measured and Indicated Resources
Short tons Gold Grade (oz/t)
Contained Gold (oz)
MEASURED RESOURCES
Kensington 1,480,300 0.25 374,100 Raven
66,000 0.32 20,900
Total
1,546,300 0.26 395,000
INDICATED RESOURCES Kensington 1,146,000 0.25 287,100 Raven
14,700 0.22 3,200 Jualin 36,800 0.74 27,200
Total 1,197,500 0.27
317,600
MEASURED AND INDICATED Total
2,743,800
0.26
712,600
2017 Year-End Inferred Resources
Short tons Gold Grade (oz/t)
Contained Gold (oz)
INFERRED RESOURCES
Kensington 1,244,800 0.22 272,400 Raven
134,400 0.20 27,500 Jualin 8,600 0.58
5,000
INFERRED RESOURCES Total
1,387,800 0.22 304,800
Notes to above mineral reserves and
resources (effective December 31, 2017):
1. Assumed metal price for estimated Mineral Reserves was $1,250
per ounce of gold. 2. Assumed metal price for estimated Mineral
Resources was $1,400 per ounce of gold. 3. Mineral Reserves are
estimated using a cut-off grade between 0.036 and 0.146 oz./ton
gold depending on deposit. Mineral Resources are estimated using a
cut-off grade of 0.129 oz./ton gold. 4. 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. 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, 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 Kensington on file at www.sedar.com.
Comparison of the 2015 and 2018 Technical Reports’ Life of
Mine (“LOM”) Economic Analyses
February 2015 Technical Report
April 2018 Technical Report Estimated Mine
Life 2020 2022
Production Mill throughput tons (000s)
3,403,000 2,960,973 Head grade oz/t Au 0.18 0.21 Contained metal oz
Au 627,943 620,707 Overall recovery % 93% 93% Payable metal
oz Au 599,689 577,955
REVENUE Gold price $/oz
$1,275 $1,250 Gross revenue $M
$765
$722
Refining cost $M
($35)
($20)
Net revenue $M
$730
$702
OPERATING COSTS Mining $M ($290) ($262) Processing $M ($127)
($118) General and administrative $M ($109) ($109) Royalty $M ($6)
($5) Corporate charges $M ($35)
$-
Total operating cost $M
($566)
($494) Cost per payable gold ounce $/oz
$944
$855
CASH FLOW Operating cash flow $M $164 $209 Capital
expenditures $M ($103) ($97) Reclamation $M ($11)
($22)
Total pre-tax cash flow $M
$49 $90
Notes to the above economic analyses:
a. April 2018 Technical Report is effective December 31, 2017 and
the February 2015 Technical Report is effective December 31, 2014.
b. Rounding of tons and ounces, as required by reporting
guidelines, may result in apparent differences between tons, grade,
and contained metal content. c.
For details on the estimation of mineral
reserves, mineral resources, and inferred mineral resources,
including the key assumptions, parameters and methods used to
estimate the Mineral Reserves, Mineral Resources, and Inferred
Mineral Resources, Canadian investors should refer to the
applicable NI 43-101 Technical Report for Kensington on file at
www.sedar.com.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious
metals producer with five mines in North America. Coeur produces
from its wholly-owned operations: 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 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 the anticipated installation of
dewatering pumps at Jualin and production ramp-up, exploration
efforts and value creation, as well as anticipated financial and
operating results, including production, mining rates, capital
expenditures, recoveries, costs, revenues, asset values, margins,
cash flows, and mine life. 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 the
expected financial and operating results for Kensington are not
achieved on a timely basis or at all, 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 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 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.
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 refer to the NI
43-101 Technical Report for Kensington filed April 25, 2018 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.
Conversion Table
1 short ton = 0.907185 metric tons 1 troy ounce =
31.10348 grams
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version on businesswire.com: https://www.businesswire.com/news/home/20180425006688/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and TreasurerPhone: (312) 489-5800www.coeur.com
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