High-grade oxide gold assays from drilling in
new zones at Sterling and Daisy on recently-acquired Nevada
projects;
Positive results from several veins at
Palmarejo including Las Animas zone and Guadalupe;
High-grade drill results at Kensington from the
Elmira and Ophir veins;
Continued high-grade success at the Discovery
and Silver Creek zones at Silvertip; and
High-grade results received from the Sunflower
Ridge and Northeast (“NE”) pit zones at Rochester
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
provided an update on its 2018 exploration activities highlighting
encouraging results from the recently acquired Sterling Mine in
Nevada, the ongoing near-mine exploration at Palmarejo in Mexico,
and positive results from Kensington in Alaska, Silvertip in
British Columbia and Rochester in Nevada. Highlights include:
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- Encouraging drill results from new
areas west of the Sterling Mine and Daisy zone – While drilling
is ongoing, results from a new condemnation drill hole at Sterling
returned 70.0 feet (21.3 meters) of 0.18 ounces per ton (“oz/t”)
(6.1 grams per tonne (“g/t”)) gold near its historic leach
pad.
- Promising results from the Daisy
zone north of Sterling – Large step out drill holes at the
Daisy zone returned 40.0 feet (12.2 meters) of 0.13 oz/t (4.4 g/t)
gold and 60.0 feet (18.3 meters) of 0.04 oz/t (1.4 g/t) gold; both
holes are in oxidized mineralization.
- At Palmarejo, drilling at La Nación,
Guadalupe and Independencia continues to expand the deposits –
Drill results at La Nación include 25.6 feet (7.8 meters) of 0.17
oz/t (5.7 g/t) gold and 24.3 oz/t (833.1 g/t) silver. Development
toward this new deposit remains on-schedule with production
expected to commence in the second half of 2019. Drilling at the
southern portion of Guadalupe, in the Las Animas zone, has
discovered three potentially-mineralized zones, with one drill hole
returning 9.2 feet (2.8 meters) of 0.07 oz/t (2.3 g/t) gold and 9.8
oz/t (336.6 g/t) silver, 17.1 feet (5.2 meters) of 0.08 oz/t (2.7
g/t) gold and 6.7 oz/t (229.0 g/t) silver, and 22.3 feet (6.8
meters) of 0.07 oz/t (2.3 g/t) gold and 3.6 oz/t (122.4 g/t)
silver. At Independencia, near-mine drilling successfully extended
mineralization by approximately 500 feet (152 meters) to the south;
drill highlights from 2018 include one interval with 13.1 feet (4.0
meters) of 0.20 oz/t (6.8 g/t) gold and 20.2 oz/t (693.4 g/t)
silver.
- At Kensington, exploration drilling
generated strong drill results at Elmira and Ophir – Recent
drill results at the Elmira vein, located 1,200 feet (366 meters)
east of the Kensington Mine, include 14.3 feet (4.4 meters) of 1.01
oz/t (34.5 g/t) gold. At the new Ophir vein, located approximately
4,000 feet (1,219 meters) west of the Kensington Mine, drill
results returned 2.4 feet (0.7 meters) of 0.86 oz/t (29.5 g/t)
gold. Due to their proximity to existing underground
infrastructure, the Elmira and Ophir veins represent potential
high-grade gold mineralization.
- Infill drilling at Silvertip
continued through late 2018 – One area of focus of the 2018
drilling program was resource conversion and further developing a
reserve-based mine plan. Resource growth and expansion remain a
longer-term priority for the Company. Multiple manto and vertical
chimney structures were intercepted in the Silver Creek and
Discovery zones; highlights include 27.6 feet (8.4 meters) of 21.9
oz/t (750.1 g/t) silver, 11.9% zinc and 15.7% lead from a hole in
the Silver Creek zone.
- At Rochester, the Sunflower Ridge
and NE pit zones returned high-grade results – Drill results at
Sunflower Ridge, located on the southwestern edge of the Rochester
Mine, include 80.0 feet (24.4 meters) of 1.2 oz/t (41.4 g/t) silver
and 0.02 oz/t (0.5 g/t) gold. At the NE Rochester pit zone, drill
results returned 400.0 feet (121.9 meters) of 1.0 oz/t (35.8 g/t)
silver and 0.003 oz/t (0.1 g/t) gold.
During 2018, Coeur anticipates spending approximately $45–$55
million on exploration, approximately three times higher than
exploration investment in 2015, including $25–$30 million of
expensed exploration and $20–$25 million of capitalized
exploration.1 Approximately 85%1 of the Company’s 2018 exploration
budget has been allocated to expected lower risk and higher return
near-mine drilling, with the objectives of (i) discovering new
resources and (ii) converting existing resources to reserves to
extend mine life. The remaining 15%1 has been earmarked for
early-stage greenfield programs. Total rig count and feet drilled
in 2018 is expected exceed 2017 levels and reach their highest
levels since 2012.
“As a result of our ongoing commitment to high-return, near-mine
exploration, and despite a persistently lower metal price
environment, we have continued to deliver year-over-year growth in
our reserve base since 2014,” said Mitchell J. Krebs, Coeur’s
President and Chief Executive Officer. “Over this period, we have
tripled our results-driven exploration investment. The Company’s
operations have been historically under-drilled and represent a
unique opportunity to generate long-term value by increasing mine
lives as well as expanding resources through brownfield programs.
Our disciplined exploration programs are continuing to realize this
value potential.
“Drilling at Palmarejo and Rochester continues to yield new
discoveries and expand mineralized zones, highlighting the
opportunity to build upon our existing, high-quality assets. We are
also seeing positive drill results from Kensington, Sterling and
Silvertip, which will provide both near- and longer-term growth
opportunities for the Company. After closing the Northern Empire
acquisition in October, we have accelerated the drill program at
Sterling and have two active drills on site. At Palmarejo, we
continue to find new high-grade discoveries near existing
underground infrastructure. At Silvertip, we remain focused on
defining the resource through our infill drilling program; however,
we’ve also identified several new targets for expansion. Drill
results from all of our operations demonstrate the potential to
expand and upgrade our resource base over the next several
years.”
Please see the following pages for additional details on the
Company’s 2018 exploration program. For a complete table of all
drill results, please refer to the following link:
www.coeur.com/_resources/pdfs/181212_COEUR_Exploration_PR_Appendix_vFinal.pdf.
Please see “Cautionary Statements” for additional information
regarding drill results.
Sterling
Exploration at Coeur’s recently acquired Sterling Gold Project,
near Beatty, Nevada, reflects a continuation and expansion of
Northern Empire’s prior drill program. At the Sterling Mine, two
reverse circulation drill rigs are currently focused on resource
infill and expansion drilling.
Expansion drilling results at the Sterling Mine included 70.0
feet (21.3 meters) of 0.18 oz/t (6.1 g/t) gold. This interval is
interpreted as a north-south mineralized fault that begins at the
144 Mine and is projected to continue for over 2.5 miles to the
Mary-Goldspar Mines. The new hole is 1.3 miles north of the 144
Mine entrance; additional drilling, along strike as well as at
angles across the zone, is planned to continue.
Additional highlights from the Secret Pass zone of the Crown
Block include:
- Hole SP18-003C had 234.0 feet (71.3
meters) of 0.05 oz/t (1.7 g/t) gold
- Hole SP18-017 had 125.0 feet (38.1
meters) of 0.03 oz/t (1.0 g/t) gold
The Company will focus on targets around the Sterling Mine until
year-end 2018. By mid-2019, Coeur anticipates most of the drilling
will be focused on the Daisy, Secret Pass and SNA deposits,
collectively known as the Crown Block, to both infill and expand
known resources.
Coeur expects full-year 2018 exploration spending at Sterling to
total approximately $1.5 million1, with approximately 65% spent on
capitalized infill drilling intended to convert a portion of the
historic resource to reserves. The core holes are planned to infill
and provide samples for metallurgical testing.
Palmarejo
Exploration at Palmarejo remains focused on thicker zones of
mineralization (“clavos”) near the Independencia and Guadalupe
underground operations. The primary objective of exploration in
these areas is to expand resources and extend mine life. In 2018, a
total of approximately 250,000 feet (76,000 meters) in 238 holes
has been drilled on the following targets:
- Las Animas – In late 2018, two
surface drill rigs have been focused on the Las Animas portion of
the mineralized Guadalupe vein system. The Company is encouraged by
the gold grades in the zone indicated by early drilling results,
including 38.4 feet (11.7 meters) of 0.08 oz/t (2.6 g/t) gold and
8.9 oz/t (304.4 g/t) silver. Up to three mineralized zones are
present in different portions of the Animas zone; one drill hole
returned 9.2 feet (2.8 meters) of 0.07 oz/t (2.3 g/t) gold and 9.8
oz/t (336.6 g/t) silver, 17.1 feet (5.2 meters) of 0.08 oz/t (2.7
g/t) gold and 6.7 oz/t (229.0 g/t) silver, and 22.3 feet (6.8
meters) of 0.07 oz/t (2.3 g/t) gold and 3.6 oz/t (122.4 g/t)
silver.
- La Nación – Drilling to expand
mineralization at La Nación was completed by mid-2018. The vein
extends for over 4,000 feet (approximately 1,200 meters) of strike
length with two clavos occurring in the northern half of La Nación
and a third clavo present in the southern portion of the structure.
The entire vein is located exactly halfway between the Guadalupe
and Independencia underground mines. Production from La Nación is
expected to commence in the second half of 2019, providing
additional high-quality mill feed to supplement existing ore
sources. Assays from the 2018 drill program, including 25.6 feet
(7.8 meters) of 0.17 oz/t (5.7 g/t) gold and 24.3 oz/t (833.1 g/t)
silver, continue to refine the resource model. Further resource
conversion drilling is planned for 2019.
- Zapata – Both infill and
expansion drilling continued during 2018. The vein is located
immediately west of the Guadalupe Mine, allowing for relatively
straightforward access in future mine plans. Further drilling is
planned to be completed in 2019 focused on growing the resource
along strike to the west. Highlights from the 2018 program include
47.6 feet (14.5 meters) of 0.12 oz/t (4.1 g/t) gold and 12.7 oz/t
(435.8 g/t) silver in one drill hole.
- Independencia – Both southern
and northern Independencia, including the Hidalgo and Reforma
veins, were the focus of drilling in 2018. Significant results were
drilled from the surface and underground on the southern portion of
Independencia, where drilling was focused around the contact of a
rhyolite dome. Surface drilling also tested the northern portion of
Independencia, where the vein separates into the distinct Hidalgo
and Reforma veins. Drill results from 2018 were encouraging,
leaving the northern regions of both veins, as well as the Barrera
vein, open for future potential growth in 2019. At Independencia,
near-mine drilling successfully extended mineralization to the
south by 500 feet (152 meters), including 13.1 feet (4.0 meters) of
0.20 oz/t (6.8 g/t) gold and 20.2 oz/t (693.4 g/t) silver.
Silvertip
Since completing the acquisition of Silvertip in late 2017, a
key focus of Coeur’s exploration efforts has been resource
definition and conversion within the Silver Creek, Central and
Discovery zones; up to six diamond core drill rigs were active in
these areas during 2018. On July 26, 2018, the Company provided an
update on the initial drilling program totaling 145,960 feet
(44,500 meters). As a result of this program’s success, the Company
completed a second phase of drilling focused on resource conversion
and expansion drilling. An additional 43,165 feet (13,160 meters)
were drilled bringing cumulative total drilling since the
acquisition to 189,125 feet (57,660 meters).
Infill and expansion in the Central and Discovery zones were
successful; holes from CEN18-Pad11 targeted the Earn-McDame contact
footwall to the Discovery fault and mineralization in the merged
the Discovery/Central zones. The structural intersection between
the Earn contact and Discovery fault is a favorable host to
mineralization. The CEN18-Pad11 holes also extended the merged
Discovery/Central zone to the north. Significant manto intercepts,
referred to as Lower Zone (“LZ”) in the McDame Limestone
include:
- Phase II resource expansion drilling at
DSC18-Pad1 followed-up on the early season “Haul Road Pad”
drilling. Four holes were drilled from this pad, all reached their
targets and intercepted manto mineralization. Significant LZ
intercepts are shown above and a full list is included in the
Company’s complete table of drill results. Coeur expects that the
DSC18-Pad1 will be a high priority drill target in 2019.
- Three resource expansion holes drilled
at DSC18-Pad7 (see results in complete table) targeted the southern
extension of Discovery zone. While all three holes hit manto-style
mineralization, the intercepts are zinc-rich with low silver-lead
values; for example, hole DSC18-Pad7-002 returned 4.6 feet (1.4
meters) of 1.5 oz/t (52.0 g/t) silver, 24.1% zinc and 0.2% lead.
The presence of manto on the southern extent of the Discovery zone
is encouraging and indicates the continuation of mineralization to
the southeast, which will be targeted in future drill
programs.
Kensington
Infill and expansion drilling continued on Kensington’s upper
Zone 30 and Upper Raven, while the geology team at Kensington
initiated a district-wide exploration program to identify and map
new vein targets in the district.
In addition, several new potential high-grade vein targets were
drilled, including Elmira, Ophir and Seward. Approximately 90,000
feet (27,430 meters) have been drilled at Kensington in 2018.
To date, 11 holes have been drilled and assayed on the Elmira
prospect from two stations underground. Results confirmed the
existence of a mineralized zone approximately 1,300 feet (396
meters) east of existing underground infrastructure. Several
high-grade intercepts were returned with overall zone morphology
strongly resembling Kensington’s Zone 10. Significant intercepts
were noted in eight of these holes, including 14.3 feet (4.4
meters) of 1.01 oz/t (34.5 g/t) gold and 12.8 feet (3.9 meters) at
1.05 oz/t (35.9 g/t) gold. Drilling has confirmed that the Elmira
vein remains open to growth in all directions.
The Ophir prospect outcrops on surface as an 8-foot thick vein
near existing Kensington infrastructure. Surface drilling confirmed
its continuity throughout the seven completed surface drill
holes; significant assay results were returned from one drill
hole. Additional underground drilling is currently underway to
develop understanding of the vein’s morphology and grade
distribution.
At Seward, two of four holes drilled intercepted gold-bearing
structures 1,900 (579 meters) below the surface. The Orval
Shear, a major regional structural control, was intercepted in the
two holes where veins were not encountered, indicating the vein may
have been offset by a shear, or structural discontinuity.
Additional drilling is planned in 2019 as a result of the
successful results of Kensington’s exploration programs. Likely
priorities include expansion and infill of Elmira, Raven, Ophir and
Seward veins, as well as continuation of the infill programs at
Kensington Main and Jualin.
Rochester
Exploration around the Rochester Mine, specifically the
Sunflower Ridge, NE Pit and South Charlie areas, has focused on
infill drilling with the objective of expanding resources and
converting a portion of the resource to reserves to extend mine
life. New, higher-grade structures were intersected at Sunflower
Ridge and NE Pit with the potential to increase the grade of any
future reserves in those areas.
Additionally, several holes have been directed at engineering
and condemnation drilling for the Plan of Operation Amendment
(“POA”) 11 expansion area, called Plainview. A total of 41,530 feet
(11,576 meters) in 71 holes have been drilled in 2018, for which
the priorities included:
- Resource conversion drilling at
Sunflower Ridge and NE pit zones.
- Resource conversion and growth drilling
was completed, primarily at the South Charlie inferred resource.
Drilling began near the end of October 2018.
- POA 11 condemnation drilling for
potential leach pad and processing infrastructure has been ongoing
since October 2018.
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 exploration efforts and plans,
exploration expenditures, drill results, growth, value creation,
extended mine lives, grade, thickness, investments, mine expansion
plans, and resource delineation, expansion, and 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, 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 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 or 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,
approved the scientific and technical information concerning
Coeur’s mineral projects in this news release. 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.
Notes
The potential quantity and grade for the deposits described
herein are conceptual in nature. There is insufficient exploratory
work to define a mineral resource and it is uncertain if further
exploration will result in the applicable target being delineated
as a mineral resource.
1. Based on the midpoint of guidance published by Coeur on
October 31, 2018.
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Coeur Mining, Inc.104 S. Michigan Avenue, Suite 900Chicago,
Illinois 60603Attention: Paul DePartout, Director, Investor
RelationsPhone: (312) 489-5800www.coeur.com
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