Expansion drilling success drives strong
resource growth
Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
reported its 2019 mineral reserves and resources. Year-end 2019
proven and probable reserves totaled 2.6 million ounces of gold,
182.9 million ounces of silver, 295.4 million pounds of zinc and
196.5 million pounds of lead. Gold reserves were lower
year-over-year given the Company’s focus on expansion targets
across its portfolio during 2019. Silver reserves increased in
2019, largely driven by the replacement of depletion at Palmarejo
and conversions at Rochester. Zinc and lead reserves were
relatively consistent as infill drilling replaced depletion at
Silvertip.
Measured and indicated resources totaled 2.6 million ounces of
gold, 244.3 million ounces of silver, 305.0 million pounds of zinc
and 143.9 million pounds of lead, reflecting year-over-year
increases across all metals. Solid measured and indicated resource
growth was driven by additions from Rochester, Kensington, Wharf
and Silvertip.
Inferred resources were 2.9 million ounces of gold, 112.7
million ounces of silver, 182.2 million pounds of zinc and 105.3
million pounds of lead. Inferred resources for gold, zinc and lead
all increased in 2019, reflecting strong growth at Kensington,
Wharf, Silvertip and the Sterling and Crown exploration properties
in southern Nevada. Inferred silver resources decreased
year-over-year, largely due to conversions at Rochester.
Results reflect the Company’s achievements on its success-based
exploration efforts during the year, which focused primarily on
resource expansion drilling. The Company drilled exploration
targets within its current operating footprint and near existing
infrastructure in the pursuit of potential mine life extensions and
organic growth opportunities.
Coeur increased its gold price assumption for year-end 2019
reserves from $1,250 per ounce to $1,350 per ounce, while its
silver reserve price assumption remained unchanged at $17.00 per
ounce. Zinc and lead reserve price assumptions were lowered from
$1.25 per pound and $1.00 per pound to $1.15 per pound and $0.95
per pound, respectively.
Highlights
- Strong reserve growth at Rochester, depletion replaced at
Palmarejo – Successful resource conversions increased
Rochester’s silver and gold reserves by 11% and 8%, respectively,
in 2019. Positive infill drilling results also helped to replace
depletion for both gold and silver at Palmarejo during the year.
Together, these results helped drive a 7% increase in Companywide
silver reserves, which have grown by nearly 50% over the last five
years1
- Double-digit increase in inferred gold resources –
Inferred gold resources increased 11% year-over-year, driven by
significant additions at Kensington and the Sterling and Crown
exploration properties. Kensington more than doubled its inferred
gold resources, including the addition of a maiden resource for the
Elmira vein. Inferred gold resources at Sterling and Crown
increased 35% year-over-year to 960,000 ounces, driven by the
expansion of the South Daisy, Secret Pass and SNA deposits (all
located within the Crown Block)
- Significant expansion of Silvertip’s resource base,
depletion also replaced – Silver, zinc and lead inferred
resources at Silvertip increased approximately 78%, 68% and 80%,
respectively, in 2019. Strong additions reflect the positive
results of Coeur’s expansion drilling program, which targeted areas
east of the underground mine complex, including the Discovery zone
(open in multiple directions). Additionally, measured and indicated
silver, zinc and lead resources each increased by nearly 40% and
the Company largely replaced depletion for all metals during the
year
- Solid growth in measured and indicated gold and silver
resources – Coeur’s measured and indicated gold and silver
resources increased 8% and 7%, respectively, year-over-year. This
growth was driven by meaningful additions from Rochester,
Kensington and Wharf. Rochester’s measured and indicated resources
increased by approximately 20% for both metals, while measured and
indicated gold resources grew 14% and 12% at Kensington and Wharf,
respectively
“We launched several resource expansion drilling campaigns in
2019 in the pursuit of potential mine life extensions and
high-return organic growth opportunities. Our efforts were
successful on multiple fronts, as demonstrated by the increase in
both our inferred resources and in our measured and indicated
resources,” said Mitchell J. Krebs, Coeur’s President and Chief
Executive Officer. “Our results at Kensington, Silvertip, and
Sterling and Crown were particularly encouraging, and represent
future growth opportunities for the Company. We also were able to
make solid progress on our reserves, despite lower overall
investment levels in our infill programs in 2019.”
“As we transition our focus to our 2020 exploration priorities,
we look forward to generating meaningful results from a higher
level of exploration investment compared to 2019. Our main
objectives are (i) to further expand the resource base at our
existing operations, with specific emphasis on resource growth at
Sterling, Crown and Silvertip, and (ii) to pursue additional new
discoveries at Palmarejo and Kensington to further extend their
mine lives. Our ability to achieve these objectives will be an
important catalyst to driving long-term value at Coeur.”
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing
precious metals producer with five wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold
mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold
mine in South Dakota, and the Silvertip silver-zinc-lead mine in
British Columbia. 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, resource growth and
conversion, mine life extensions, results and exploration
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 and
mine life extensions 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
or higher treatment and refining charge 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, silver, zinc and lead reserves, changes that
could result from Coeur's future acquisition of new mining
properties or businesses, the loss or insolvency of any third-party
smelter to which Coeur markets its production, the effects of
environmental and other governmental regulations and government
shutdowns, 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
- Comparison excludes mining properties previously divested by
Coeur.
2019 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
1,093,000
0.093
5.17
-
-
102,000
5,649,000
-
-
Rochester
249,815,000
0.003
0.45
-
-
710,000
112,286,000
-
-
Kensington
898,000
0.200
-
-
-
180,000
-
-
-
Wharf
23,436,000
0.024
-
-
-
571,000
-
-
-
Silvertip
176,000
-
11.31
9.84%
8.07%
-
1,990,000
34,577,000
28,366,000
Total
275,418,000
0.006
0.44
1,563,000
119,925,000
34,577,000
28,366,000
PROBABLE RESERVES Palmarejo
10,576,000
0.056
4.24
-
-
591,000
44,843,000
-
-
Rochester
13,577,000
0.002
0.38
-
-
27,000
5,187,000
-
-
Kensington
779,000
0.239
-
-
-
186,000
-
-
-
Wharf
7,530,000
0.026
-
-
-
197,000
-
-
-
Silvertip
1,636,000
-
7.94
7.97%
5.14%
-
12,986,000
260,847,000
168,096,000
Total
34,097,000
0.029
1.85
1,001,000
63,016,000
260,847,000
168,096,000
PROVEN AND PROBABLE RESERVES Palmarejo
11,669,000
0.059
4.33
-
-
693,000
50,492,000
-
-
Rochester
263,392,000
0.003
0.45
-
-
737,000
117,473,000
-
-
Kensington
1,677,000
0.218
-
-
-
366,000
-
-
-
Wharf
30,965,000
0.025
-
-
-
768,000
-
-
-
Silvertip
1,812,000
-
8.26
8.15%
5.42%
-
14,976,000
295,424,000
196,463,000
Total
309,515,000
0.008
0.59
2,564,000
182,941,000
295,424,000
196,463,000
2019 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
870,000
0.055
3.69
-
-
48,000
3,210,000
-
-
Rochester
194,330,000
0.002
0.35
-
-
450,000
67,602,000
-
-
Kensington
2,062,000
0.239
-
-
-
493,000
-
-
-
Wharf
6,631,000
0.027
-
-
-
178,000
-
-
-
Silvertip
138,000
-
10.85
9.79%
7.70%
-
1,497,000
26,924,000
21,183,000
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
218,209,000
0.006
0.47
1,272,000
102,902,000
26,924,000
21,183,000
INDICATED RESOURCES Palmarejo
7,894,000
0.048
3.97
-
-
377,000
31,313,000
-
-
Rochester
42,015,000
0.002
0.36
-
-
96,000
15,195,000
-
-
Kensington
1,164,000
0.231
-
-
-
269,000
-
-
-
Wharf
4,926,000
0.032
-
-
-
156,000
-
-
-
Silvertip
1,579,000
-
6.39
8.81%
3.89%
-
10,091,000
278,081,000
122,734,000
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
104,385,000
0.013
1.35
1,323,000
141,438,000
278,081,000
122,734,000
MEASURED AND INDICATED RESOURCES Palmarejo
8,764,000
0.048
3.94
-
-
425,000
34,522,000
-
-
Rochester
236,345,000
0.002
0.35
-
-
546,000
82,797,000
-
-
Kensington
3,226,000
0.236
-
-
-
762,000
-
-
-
Wharf
11,557,000
0.029
-
-
-
334,000
-
-
-
Silvertip
1,716,000
-
6.75
8.89%
4.19%
-
11,588,000
305,005,000
143,917,000
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
322,594,000
0.008
0.76
2,594,000
244,340,000
305,005,000
143,917,000
2019 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
6,469,000
0.057
4.07
-
-
367,000
26,341,000
-
-
Rochester
171,042,000
0.002
0.36
-
-
378,000
60,803,000
-
-
Kensington
1,562,000
0.229
-
-
-
358,000
-
-
-
Wharf
2,483,000
0.033
-
-
-
81,000
-
-
-
Silvertip
976,000
-
8.40
9.34%
5.39%
-
8,199,000
182,181,000
105,267,000
Lincoln Hill
22,952,000
0.011
0.36
-
-
255,000
8,163,000
-
-
Sterling
32,013,000
0.030
-
-
-
960,000
-
-
-
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
264,996,000
0.011
0.43
2,936,000
112,687,000
182,181,000
105,267,000
Notes to above mineral reserves and resources:
- The qualified person for these estimates is Christopher Pascoe
Coeur's Director, Technical Services.
- Effective December 31, 2019.
- Assumed metal prices for estimated Mineral Reserves were $1,350
per ounce of gold, $17.00 per ounce of silver, $1.15 per pound
zinc, $0.95 per pound lead.
- Assumed metal prices for estimated Mineral Resources were
$1,500 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
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version on businesswire.com: https://www.businesswire.com/news/home/20200218005891/en/
For Additional Information Coeur Mining, Inc. 104 S.
Michigan Avenue, Suite 900 Chicago, Illinois 60603 Attention: Paul
DePartout, Director, Investor Relations Phone: (312) 489-5800
www.coeur.com
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