Results reflect the fourth consecutive year of
growth
Initial reserve declaration at Silvertip drives
higher Companywide silver reserve grades
Measured and indicated gold and silver
resources increase 26% and 2%, respectively
Inferred gold and silver resources increase
145% and 39%, respectively
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported year-end 2018 proven and probable reserves from continuing
operations1 of 2.8 million ounces of gold, 171.3 million ounces of
silver, 291.2 million pounds of zinc and 197.5 million pounds of
lead, an overall reserve increase year-over-year. Gold reserves
declined modestly by 2%, while silver reserves increased 4%,
year-over-year. Additionally, the Company declared initial zinc and
lead reserves at its high-grade Silvertip mine located in northern
British Columbia, Canada. The strong reserve growth was driven by
the Company’s continued investment in its success-based, near-mine
exploration programs.
Year-end measured and indicated gold resources increased 26%
compared to the prior year to 2.4 million ounces, while silver
measured and indicated resources increased 2% to 228.7 million
ounces. Higher gold resources were driven largely by Coeur’s
acquisition of the Lincoln Hill Project, which is located
approximately four miles west of the Company’s Rochester mine in
northern Nevada. Zinc and lead resources declined primarily due to
conversion into reserves, which had been the Company’s drilling
priority at Silvertip since its acquisition in late 2017.
The Company also saw inferred resource growth with gold and
silver inferred resources increasing 145% and 39%, respectively,
compared to 2017. The substantial increase to the Company’s
inferred resources was primarily a result of successful drilling at
the Rochester mine and two strategic acquisitions of Nevada-based
assets in 2018, including the Sterling Mine and Crown Block in
southern Nevada.
For the year-end 2018 reserve estimate, Coeur’s assumed gold
reserve price remained unchanged at $1,250 per ounce. The Company’s
assumed silver reserve price was lowered from $17.50 per ounce to
$17.00 per ounce. Zinc and lead reserve price assumptions were
$1.25 and $1.00 per pound, respectively.
Highlights
- Fourth consecutive year of reserve
growth driven by Silvertip – The Company successfully grew its
reserve base for the fourth consecutive year in 2018, largely
driven by the initial reserve declaration at Silvertip. In late
2018, the Company reported an initial reserve estimate at
Silvertip. As of December 31, 2018, Silvertip’s proven and probable
reserves consisted of 14.9 million ounces of silver, 291.2 million
pounds of zinc and 197.5 million pounds of lead, at grades of 8.43
ounces per ton (“oz/t”), 8.2% and 5.6%, respectively. The inclusion
of these reserves also contributed to a 15.6% increase in
Companywide silver reserve grade, as the silver reserve grade at
Silvertip is currently over fifteen-times higher than the combined
grade of the Company’s other silver reserves
- Significant year-over-year increase
in Palmarejo reserve grades and measured and indicated
resources – Gold and silver reserve grades increased 15% and
25%, respectively, driven by positive grade reconciliation at the
Guadalupe and Independencia mines and by drilling success at the
nearby La Nación deposit. Measured and indicated gold and silver
resources increased 25% and 30%, respectively, similarly driven by
positive grade reconciliation at the underground mines and resource
growth at La Nación
- Substantial increase to Rochester’s
resource base – Measured and indicated silver and gold
resources increased 6% and 8%, respectively, year-over-year driven
by solid exploration results primarily at Sunflower Ridge,
immediately southwest of the Main Pit. Additionally, the Company
successfully increased its Rochester silver and gold inferred
resources 59% and nearly 100%, respectively. The substantial growth
in inferred resources resulted from successful drilling at the Main
Pit and surrounding areas, which intercepted several areas of
high-grade mineralization during 2018
- Companywide measured and indicated
resource growth – Coeur’s measured and indicated gold and
silver resources increased 26% and 2%, respectively, compared to
year-end 2017, to 2.4 million ounces and 228.7 million ounces. In
addition to the resource growth at Rochester described above, the
acquisition of the nearby Lincoln Hill Project added approximately
364,000 ounces of gold and 10.2 million ounces of silver. At
Palmarejo, expansion drilling delivered larger resources at the
underground mines and resource growth at La Nación. At Wharf, gold
resources increased by 68% year-over-year
- Strategic acquisitions of Nevada
assets drove considerable increase in inferred resources –
Year-end inferred resources totaled 2.7 million ounces of gold,
more than double 2017, and 135.6 million ounces of silver, 39%
higher than the prior year. The recently acquired Sterling Gold
Project, which includes the highly prospective Crown Block, and the
Lincoln Hill and Wilco Projects, collectively contributed
approximately 1.5 million ounces and 11.5 million ounces of
inferred gold and silver inferred resources, respectively
“Our 2018 drilling campaign delivered another year of reserve
and resource growth. Reserves reflected the initial high-grade
reserve declaration at Silvertip and higher average grades for both
gold and silver. Total measured and indicated as well as inferred
resources also increased meaningfully compared to the prior year,”
said Mitchell J. Krebs, Coeur’s President and Chief Executive
Officer. “These improvements reflected our steadfast commitment to
high-return, near-mine exploration and opportunistic acquisitions
that can bolster our future growth pipeline and enhance the overall
quality of our asset base. We prioritized resource conversion
drilling to support an initial reserve and mine plan at Silvertip,
continued to expand resources and discover new structures at
Palmarejo, Rochester and Kensington, and commenced exploration
programs at the Sterling Mine and Crown Block after closing the
Northern Empire acquisition at the beginning of the fourth
quarter.
“As we look ahead in 2019, we remain excited about our
portfolio’s organic growth potential, especially at Silvertip,
Palmarejo, Kensington and Sterling. Although we successfully
bolstered our development pipeline through the acquisition of two
highly-prospective land packages in Nevada, our exploration
strategy remains unchanged. We’ll continue to pursue near-mine
targets and allocate capital based on our disciplined,
success-based exploration framework. Success in recent years has
proven the merits of this approach and we look forward to building
on them.”
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 Wharf gold mine in
South Dakota, and the Kensington gold mine in Alaska. 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 mineral reserve and mineral resource
estimates, exploration and drilling efforts, growth and investment.
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 (including the impact of
government shutdowns), 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
1. On February 28, 2018, Coeur divested the San Bartolomé mine
through the sale of its 100%-owned Bolivian subsidiary. As a
result, San Bartolomé is excluded from consolidating operating
statistics for all periods presented unless otherwise noted.
2018 Year-End Proven and Probable
Reserves
Grade Contained Gold
Silver Zinc Lead Gold Silver
Zinc Lead Short tons (oz/t)
(oz/t) (%) (%) (oz) (oz)
(lbs) (lbs)
PROVEN RESERVES Palmarejo
1,283,000 0.084 4.97 - - 108,000 6,376,000 - - Rochester
228,413,000 0.003 0.44 - - 657,000 101,058,000 - - Kensington
1,600,000 0.186 - - - 298,000 - - - Wharf 34,043,000 0.026 - - -
877,000 - - - Silvertip 280,000 - 10.81
9.83% 7.53% - 3,026,000
55,039,000 42,156,000 Total 265,620,000
0.007 0.42
1,940,000 110,461,000 55,039,000 42,156,000
PROBABLE RESERVES Palmarejo 8,118,000 0.072 5.39 - - 585,000
43,788,000 - - Rochester 13,166,000 0.002 0.39 - - 27,000 5,141,000
- - Kensington 986,000 0.258 - - - 254,000 - - - Wharf 153,000
0.033 - - - 5,000 - - - Silvertip 1,489,000 -
7.98 7.93% 5.22% -
11,885,000 236,200,000 155,305,000 Total
23,912,000 0.036 2.54
870,000 60,815,000 236,200,000
155,305,000
PROVEN AND PROBABLE RESERVES Palmarejo
9,401,000 0.074 5.34 - - 693,000 50,164,000 - - Rochester
241,580,000 0.003 0.44 - - 684,000 106,200,000 - - Kensington
2,586,000 0.213 - - - 552,000 - - - Wharf 34,196,000 0.026 - - -
882,000 - - - Silvertip 1,769,000 -
8.43 8.23% 5.58% - 14,911,000
291,239,000 197,461,000 Total
289,531,000 0.010 0.59
2,810,000 171,276,000 291,239,000
197,461,000
2018 Year-End Measured and Indicated
Resources
Grade Contained Gold
Silver Zinc Lead Gold Silver
Zinc Lead Short tons (oz/t)
(oz/t) (%) (%) (oz) (oz)
(lbs) (lbs)
MEASURED RESOURCES Palmarejo
604,000 0.086 4.77 - - 52,000 2,880,000 - - Rochester 164,704,000
0.002 0.35 - - 372,000 57,121,000 - - Kensington 1,610,000 0.254 -
- - 409,000 - - - Wharf 8,070,000 0.034 - - - 271,000 - - -
Silvertip 112,000 - 11.08 10.03% 8.06% - 1,241,000 22,521,000
18,109,000 Lincoln Hill 4,642,000 0.012 0.34 - - 58,000 1,592,000 -
- La Preciosa 9,536,000 0.005 3.04
- - 45,000 29,001,000 -
- Total 189,279,000 0.006 0.49
1,208,000
91,835,000 22,521,000 18,109,000
INDICATED
RESOURCES Palmarejo 7,544,000 0.054 4.27 - - 407,000 32,194,000
- - Rochester 34,290,000 0.002 0.37 - - 82,000 12,733,000 - -
Kensington 1,071,000 0.245 - - - 262,000 - - - Wharf 626,000 0.042
- - - 26,000 - - - Silvertip 1,179,000 - 6.04 8.44% 3.69% -
7,118,000 199,096,000 87,082,000 Lincoln Hill 27,668,000 0.011 0.31
- - 306,000 8,655,000 - - La Preciosa 19,141,000
0.006 3.98 - - 118,000
76,185,000 - - Total 91,519,000
0.013 1.50
1,200,000 136,885,000 199,096,000 87,082,000
MEASURED AND INDICATED RESOURCES Palmarejo 8,149,000 0.056
4.30 - - 458,000 35,074,000 - - Rochester 198,994,000 0.002 0.35 -
- 454,000 69,854,000 - - Kensington 2,681,000 0.250 - - - 671,000 -
- - Wharf 8,696,000 0.034 - - - 297,000 - - - Silvertip 1,292,000 -
6.47 8.58% 4.07% - 8,359,000 221,617,000 105,191,000 Lincoln Hill
32,310,000 0.011 0.32 - - 364,000 10,247,000 - - La Preciosa
28,677,000 0.006 3.67 - -
163,000 105,186,000 - - Total
280,798,000 0.009 0.81
2,408,000 228,720,000
221,617,000 105,191,000
2018 Year-End Inferred
Resources
Grade Contained Gold
Silver Zinc Lead Gold Silver
Zinc Lead Short tons (oz/t)
(oz/t) (%) (%) (oz) (oz)
(lbs) (lbs)
INFERRED RESOURCES Palmarejo
5,875,000 0.065 4.36 - - 384,000 25,609,000 - - Rochester
235,062,000 0.002 0.37 - - 542,000 88,075,000 - - Kensington
710,000 0.227 - - - 161,000 - - - Wharf 2,553,000 0.026 - - -
66,000 - - - Silvertip 583,000 - 7.91 9.31% 5.02% - 4,612,000
108,621,000 58,593,000 Lincoln Hill 22,952,000 0.011 0.36 - -
255,000 8,163,000 - - Sterling 10,922,000 0.065 - - - 709,000 - - -
Wilco 25,736,000 0.021 0.13 - - 531,000 3,346,000 - - La Preciosa
1,761,000 0.003 3.31 - -
6,000 5,835,000 - - Total
306,154,000 0.009 0.44
2,655,000 135,641,000
108,621,000 58,593,000
Notes to above mineral reserves and resources:
- Effective December 31, 2018.
- Assumed metal prices for estimated
Mineral Reserves were $1,250 per ounce of gold, $17.00 per ounce of
silver, $1.25 per pound zinc, $1.00 per pound lead.
- Assumed metal prices for estimated
Mineral Resources were $1,400 per ounce of gold, $20.00 per ounce
of silver, $1.30 per pound zinc, $1.05 per pound lead, except
Lincoln Hill and Wilco at $1,350 per ounce gold and $22.00 per
ounce silver, and Sterling at $1,200 per ounce of gold.
- 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190220005127/en/
For Additional InformationCoeur Mining, Inc.104 S.
Michigan Avenue, Suite 900Chicago, Illinois 60603Attention: Paul
DePartout, Director, Investor RelationsPhone: (312)
489-5800www.coeur.com
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