CHICAGO--(BUSINESS WIRE)--Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported year-end 2017 contained reserves and resources from continuing operations1, which reflect significant increases compared to 2016 and demonstrate the success of the Company’s expanded near-mine exploration program. Proven and probable reserves of 335.8 million silver equivalent ounces (AgEqOz)2 are 10% higher, driven primarily by year-over-year silver equivalent2 reserve increases of 36% at Wharf and 17% at Palmarejo. Measured and indicated resources of approximately 385.7 million AgEqOz2 and inferred resources of 171.0 million AgEqOz2 represent increases of 42% and 45%, respectively.
The Company’s year-end 2017 reserves assumed silver and gold prices of $17.50 per ounce and $1,250 per ounce, respectively, unchanged from the assumptions used to determine year-end 2016 and 2015 reserves.
- New discoveries boost Palmarejo’s reserves and resources – Contained silver and gold reserves increased 15% to 47.0 million and 19% to 706,000 ounces, respectively, compared to the prior year. This was primarily attributable to an initial reserve estimate at the Nación-Dana deposit, for which preliminary mine planning is underway. The Company’s 2017 drill program contributed to 56% higher measured and indicated resources compared to 2016 and produced initial inferred resource estimates for the La Bavisa and Zapata veins. These, along with several additional veins discovered in the past 18 months, drove a 48% increase in inferred resources, demonstrating significant potential for continued resource growth
- Wharf delivers 36% increase in gold reserves – Year-end 2017 reserves totaled 869,000 ounces compared to 639,000 ounces the prior year. Wharf’s current gold reserves are also 55% higher than the 560,000 ounces at year-end 2013, the last reported reserve figure prior to Coeur’s acquisition, despite depletion in the intervening years of approximately 100,000 contained ounces by Goldcorp in 2014 and early 2015 and approximately 335,000 contained ounces by Coeur
- Modest reserve gains at Kensington and Rochester; significant increases to Rochester resources– Proven and probable gold reserves at Kensington increased 5% to 520,000 ounces. At Rochester, proven and probable AgEqOz2 reserves increased approximately 2%, while measured and indicated resources increased 71% and inferred resources increased 56%. The Company anticipates publishing an updated technical report for Kensington later in the first quarter, reflecting Jualin’s 2017 exploration results
- 2017 year-end resources reflect addition of high-grade Silvertip mineralization – Silvertip had measured and indicated resources of 73.3 million AgEqOz2 and inferred resources of 14.1 million AgEqOz2, accounting for approximately 19% and 8%, respectively, of companywide totals. An aggressive campaign of both surface and underground exploration drilling commenced at Silvertip during the fourth quarter and the Company remains focused on producing an initial reserve estimate for inclusion in the technical report anticipated later this year
“Over the last 18 months, we have invested heavily in near-mine exploration, which we believe offers the best risk-weighted returns to stockholders. Our mines have been historically under-drilled, yet present significant exploration potential as evidenced by the number of new discoveries at Palmarejo,” said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer.
“We expect to sustain an elevated level of exploration investment in 2018 given the success our expanded programs are generating. Our 2018 programs reflect a higher proportion of capitalized drilling versus expensed exploration. Our top priorities will remain Palmarejo, Kensington and now Silvertip. Drilling at Palmarejo will focus on expansion of the Nación-Dana deposit as well as delineation of several recent discoveries where we can most effectively leverage existing infrastructure. At Kensington, exploration efforts will target expansion of Kensington Main and Raven, and at Silvertip, drilling will focus on infill and expansion priorities to support our near- and medium-term mine planning efforts.”
Coeur Mining, Inc. is a well-diversified, growing precious metals producer with six mines in the Americas employing approximately 2,300 people. Coeur’s wholly-owned continuing operations include 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 owns the La Preciosa project in Mexico, a silver-gold exploration stage project. Coeur conducts exploration activities in North America.
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 and investment, timing of publication of technical reports, mine planning, and reserve and resource growth. 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, 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.
- On December 22, 2017, the Company entered into an agreement to sell its wholly-owned Bolivian subsidiary, which owns and operates the San Bartolomé mine. The transaction is expected to close in the first quarter. As a result, the mine is considered a discontinued operation and excluded from discussion of consolidated mineral reserves and resources unless otherwise noted.
- Silver and gold equivalence assumes a 60:1 silver-to-gold ratio. Silver and zinc equivalence assumes a 0.06:1 silver-to-zinc ratio. Silver and lead equivalence assumes a 0.05:1 silver-to-lead ratio.
For Additional Information
Coeur Mining, Inc.
104 S. Michigan Avenue, Suite 900
Chicago, Illinois 60603
Attention: Courtney Lynn, Vice President, Investor Relations and Treasurer
Phone: (312) 489-5800
2017 Year-End Proven and Probable Reserves
|PROVEN AND PROBABLE RESERVES|
2017 Year-End Measured and Indicated Resources
|MEASURED AND INDICATED RESOURCES|
2017 Year-End Inferred Resources
Notes to above mineral reserves and resources:
- Effective December 31, 2017.
- Assumed metal prices for estimated Mineral Reserves were $17.50 per ounce of silver and $1,250 per ounce of gold.
- Assumed metal prices for estimated Mineral Resources were $20.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound Zinc and $1.00 per pound Lead.
- 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.
|1 short ton||=||0.907185 metric tons|
|1 troy ounce||=||31.10348 grams|
Wharf’s Historical Mineral Reserves and Resources
|PROVEN AND PROBABLE RESERVES|
|MEASURED AND INDICATED RESOURCES|
Notes to above Mineral Reserves and Mineral Resources:
- Mineral Reserves and Mineral Resources estimate as reported by Goldcorp, Inc. (“Goldcorp”) in its Annual Information Form dated March 31, 2014 ("AIF") for the financial year ended December 31, 2013, available to Canadian investors at www.sedar.com under Goldcorp's profile. As discussed in the AIF, Mineral Reserves and Mineral Resources were prepared by Goldcorp in accordance with NI 43-101 under the supervision of a qualified person. Coeur is not treating these historical estimates as current and has not completed sufficient work to classify the historical estimate as current mineral reserves or mineral resources for Coeur’s purposes. Following Coeur's acquisition of Wharf, its qualified person reviewed and verified the scientific and technical information of Goldcorp as well as completed other work necessary for purposes of preparing a 43-101 technical report, including validation of data quality, resource model accuracy, and costs used in reserve and resource cutoffs.
- As discussed in the AIF, mineral reserves were calculated by Goldcorp using metal prices of $1,300 per gold ounce and $22 per silver ounce, and mineral resources were calculated using $1,500 per gold ounce and $24 per silver ounce. Mineral resources are in addition to mineral reserves and do not have demonstrated economic viability. Rounding of tons, as required by reporting guidelines, may result in apparent differences between tons and grade.