Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
provided an update on the exploration programs at its Silvertip,
Kensington and Palmarejo mines. The Company plans to invest
approximately $40 million1 in exploration this year, split evenly
between capitalized infill and resource expansion drilling.
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the full release here:
https://www.businesswire.com/news/home/20220428005345/en/
Silvertip - Plan View (Graphic: Business
Wire)
Coeur’s $240 million investment in exploration over the last
five years has led to strong reserve and resource growth with
multiple new discoveries and meaningful extensions to mine lives.
Infill-focused drilling programs successfully replaced 1.8 million
and 56.4 million ounces of cumulative gold and silver production,
respectively, and added an additional 0.5 million ounces of gold
and 85.4 million ounces of silver reserves. Expansion-focused
drilling programs successfully added 1.8 million and 123.6 million
ounces of measured and indicated gold and silver resources,
respectively, and an additional 1.8 million and 29.3 million ounces
of new inferred gold and silver resources, respectively.
Key Highlights2,3
- New discovery at Silvertip indicates significant growth
potential immediately west of existing infrastructure – Surface
and underground drilling led to the discovery of a new high-grade
chimney west of the Camp Creek resource located at a shallower
depth, called Camp Creek West. The first drill holes into the zone
returned the highest grade-thickness assays at Silvertip to date.
Notable results from the new zone include: Camp Creek West –
Expansion
- Hole CCF21-PAD03-015 returned 39.4 feet (12.0 meters) of 13.4
ounces per ton (“oz/t”) (459.6 grams per tonne (“g/t”)) silver,
15.1% zinc and 8.7% lead
- Hole CCF21-PAD05-026 returned 20.3 feet (6.2 meters) of 22.7
oz/t (778.3 g/t) silver, 13.6% zinc, and 14.7% lead
- Kensington cuts significant high-grade gold in the uppermost
portion of main ore body – Assay results from late 2021 along
with recent drilling into the uppermost Kensington Zone 30
resulting in excellent grade thicknesses. In addition, drilling in
early 2022 continues to expand the nearby Elmira and Jualin veins.
Notable results include: Kensington Zone 30 (uppermost) –
Infill
- K21-2050-216-X01A returned 8.1 feet (2.5 meters) of 2.5 oz/t
(85.8 g/t) gold and 16.9 feet (5.2 meters) of 0.63 oz/t (21.6 g/t)
gold Elmira – Expansion
- Hole EL21-0850-156-X22 returned 9.9 feet (3.0 meters) of 0.75
oz/t (25.7 g/t) gold and 8.4 feet (2.6 meters) of 0.18 oz/t (6.2
g/t) gold
- Drilling success at Palmarejo’s Hidalgo zone supports
further high-grade growth – Coeur’s aggressive infill and
expansion drilling campaign continues to demonstrate growth
opportunities within the Independencia and Guadalupe deposits.
Assays across multiple target areas, including the Hidalgo zone
located at the northwest edge of Independencia and near the
Palmarejo Mine haul road, have returned high-grade intercepts that
support significant near-mine growth potential. Key highlights
include: Hidalgo zone (Independencia deposit) – Infill
- HGDH_105 returned 110.9 feet (33.8 meters) of 0.05 oz/t (1.7
g/t) gold and 3.87 oz/t (132.7 g/t) silver
- HGDH_106 returned 68.6 feet (20.9 meters) of 0.12 oz/t (4.1
g/t) gold and 11.0 oz/t (373.7 g/t) silver Zapata zone (Guadalupe
deposit) – Infill
- DC3-ZPA-0013 returned 30.2 feet (9.2 meters) of 0.14 oz/t (4.8
g/t) gold and 5.6 oz/t (192.0 g/t) silver and 2.3 feet (0.7 meters)
of 0.43 oz/t (14.7 g/t) gold and 26.2 oz/t (898.3 g/t) silver La
Patria zone (Guadalupe deposit) –Expansion
- Hole LPDH_271 returned 30.5 feet (9.3 meters) of 0.37 oz/t
(12.7 g/t) gold and 2.8 oz/t (96.0 g/t) silver
“Recent assays from the newly discovered Camp Creek West zone of
Silvertip are among the best results ever returned at the property
and underscore the potential of what we believe is a truly
world-class deposit,” said Mitchell J. Krebs, President and Chief
Executive Officer. “In addition to the impressive grade and
thickness of the Camp Creek West discovery, its location across a
fault zone not previously known to contain ore-grade material has
the potential to significantly expand the extent of this deposit.
Airborne geophysical models also suggest that these zones may
extend an additional mile and a quarter (two kilometers) from
current drilling positions. In addition, Kensington has recently
returned strong grade thicknesses in Kensington Zone 30 as we
prioritize further mine life extensions, and new assay results at
Palmarejo are among the best grade-thicknesses in several years.
These results highlight the compelling opportunities for growth
within Coeur’s portfolio and the success of our multi-year
exploration investment.”
For a complete table of all drill results, please refer to the
following link:
https://www.coeur.com/_resources/pdfs/2022-04-28-Exploration-Update-Appendix.pdf.
Please see the “Cautionary Statements” section for additional
information regarding drill results.
Silvertip2,3
Coeur began 2022 with two underground core rigs focused on
resource infill drilling within the Discovery and Southern Silver
zones, while also logging and shipping core samples from the 2021
season.
Assay results from late 2021 surface drilling to the west of the
Camp Creek zone returned one of the highest grade-thickness
intervals ever at Silvertip, leading to the discovery of the new
Camp Creek West zone (see hole CCF21-PAD03-015). This high-grade
silver-lead-zinc zone has been interpreted as a chimney system
which occurs within the McDame Formation limestone, in the footwall
of the Camp Creek Fault, and is shallower than the Camp Creek
zone.
No previous drilling exists on the west side of the Camp Creek
Fault, as the typical Silvertip ore host rock was previously
assumed to be eroded away. The new chimney system coincides
directly with a moderately conductive zone detected in airborne
geophysics SkyTEM models performed in 2021. Based on modeling and
interpretation of adjacent lines, the zone could potentially extend
another 1.5 miles (two kilometers) from the new Camp Creek West
discovery hole. New drill sites are being permitted that plan to
test extensions north and south of these initial intercepts.
For the remainder of 2022, Coeur expects to continue infill
drilling in the Southern Silver and Central zones from underground.
An additional surface core rig is expected to be added following
the snow melt to perform expansion drilling at Camp Creek West.
Kensington2,3
The 2021 Kensington exploration program focused on infill and
expansion drilling along the upper Kensington, Elmira, Johnson and
Raven vein structures as well as testing new district targets.
During the first quarter of 2022, the Company focused on infill
drilling at Elmira and Kensington Zone 30 from underground and
recently added a surface core rig at Jualin.
New infill holes into upper Kensington Zone 30 have encountered
excellent grade thickness, as demonstrated by hole
K21-2050-216-X01A highlighted in the graphic above. These grades
are similar to Jualin but are tellurium-type ore typically
encountered in the Kensington deposit, which provides the bulk of
Kensington’s gold production.
Elmira and the development drift established in late 2020
represent potential areas of future mining at Kensington. The
Company plans to continue drilling these areas while focusing on
refining the vein shapes through 2022. Coeur declared a maiden
reserve for Elmira at year-end 2021 with the goal of mining the
deposit beginning in early 2023.
During the remainder of 2022, Coeur plans to (i) prioritize
infill drilling at Elmira and Eureka, (ii) continue expansion
drilling around the edges of Elmira, Johnson, and Jennifer, (iii)
conduct surface expansion drilling at Jualin and the Valentine
prospect and (iv) drill at new areas of Kensington Zone 30 and the
southern portion of Kensington.
Palmarejo2,3
Several key highlights from the 2021 exploration program
include:
Hidalgo zone (Independencia deposit)
- Drill assay intervals continued to produce some of the best
grade-thickness at Palmarejo in recent years
- Expansion continued north-northwest in the direction of the
existing processing facility and parallel to the haul road, which
is where drilling in 2022 will focus
North Independencia zone (Independencia deposit)
- Following the completion of the infill program (currently
expected in mid-2022), Coeur plans to begin expansion drilling
further northwest of the current resource limits
La Nacion zone (Independencia deposit)
- The 2022 infill program is focused on converting inferred
resources at depth in both the south-central and northern areas.
Drilling is expected to continue in the south- central portion of
the resource in the first half of the year, before moving to the
northern extension
Zapata zone ( Guadalupe deposit)
- Infill drilling has been performed during the first quarter of
2022 targeting inferred resources associated with linking
structures between Zapata and Guadalupe. This program is expected
to be completed in the second quarter of the year
La Patria zone (Guadalupe deposit)
- Infill and expansion drilling was performed in 2021 targeting
the inferred portions of this resource. No additional drilling in
this zone was included in 2022 Coeur drill plan
Guazapares district (greenfields exploration)
- Field reconnaissance identified areas of surface alteration and
quartz veining east of Palmarejo in the La Carmela, south of the
historic La Union deposit. This area was acquired in 2015 as part
of the acquisition of Paramount Gold and Silver Corp. and sits
outside the area of influence of Palmarejo’s existing gold stream,
roughly 6.2 miles (10 kilometers) east of the Guadalupe
deposit
In addition, Coeur expects to continue testing new targets in
the Guazapares district including the La Carmela zone, which is
located immediately to the east and outside of claims subject to
the Franco Nevada Stream.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with four wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, 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 wholly-owns the
Silvertip silver-zinc-lead development project in British Columbia
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 exploration efforts and plans,
timing of receipt of permits, exploration expenditures, drill
results, investments, resource delineation, expansion, upgrade or
conversion. 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, zinc and
lead 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 and recovery variability, any future labor
disputes or work stoppages, the uncertainties inherent in the
estimation of mineral reserves, the potential effects of the
COVID-19 pandemic, including impacts to the availability of our
workforce, continued access to financing sources, government orders
that may require temporary suspension of operations at one or more
of our sites and effects on our suppliers or the refiners and
smelters to whom the Company markets its production, 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 its production, 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.
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and approved by a
“qualified person” under S-K 1300, namely our Director, Technical
Services, Christopher Pascoe. For a description of the key
assumptions, parameters and methods used to estimate mineral
reserves and mineral resources included in this news release, 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, sociopolitical,
marketing or other relevant factors, please review the Technical
Report Summaries for each of the Company’s material properties
which are available at www.sec.gov.
Notes
The ranges of potential tonnage and grade (or quality) of the
exploration results described in this news release are conceptual
in nature. There has been insufficient exploration work to estimate
a mineral resource. It is uncertain if further exploration will
result in the estimation of a mineral resource. The exploration
results described in this news release therefore does not
represent, and should not be construed to be, an estimate of a
mineral resource or mineral reserve.
For additional information regarding 2021 mineral reserves and
mineral resources, see
https://www.coeur.com/operations/operations/reserves-resources/.
For additional information regarding 2016 mineral reserves and
mineral resources, see
https://www.coeur.com/_resources/pdfs/2022-04-28-Exploration-Update-2016-RR-Appendix.pdf.
- Reflects midpoint of guidance as published by Coeur on February
16, 2022 of $36-$46 million.
- For a complete table of all drill results included in this
release, please refer to the following link:
https://www.coeur.com/_resources/pdfs/2022-04-28-Exploration-Update-Appendix.pdf.
- Rounding of grades, to significant figures, may result in
apparent differences.
Conversion Table
1 short ton
=
0.907185 metric tons
1 troy ounce
=
31.10348 grams
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Coeur Mining, Inc. 104 S. Michigan Avenue, Suite 900 Chicago,
Illinois 60603 Attention: Jeff Wilhoit, Director, Investor
Relations Phone: (312) 489-5800 www.coeur.com
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