Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today
announced year-end 2016 contained proven and probable mineral
reserves of 328.5 million silver equivalent ounces (AgEqOz)1. This
9% year-over-year increase was primarily driven by successful
resource conversion at Rochester. The Company also announced
measured and indicated mineral resources of approximately 360.2
million AgEqOz1 and inferred mineral resources of 131.2 million
AgEqOz1, representing a 13% decrease and 9% increase, respectively,
compared to year-end 2015.
To determine year-end 2016 reserves, Coeur used a silver price
of $17.50 per ounce and a gold price of $1,250 per ounce, which
were the same price assumptions used to determine year-end 2015
reserves.
Highlights
The comparisons below refer to year-end 2016 versus year-end
2015.
- Proven and probable silver reserves
increased 13% to 176.6 million ounces and proven and probable gold
reserves increased 4% to 2.5 million ounces
- Measured and indicated silver and gold
resources decreased 17% and 1%, respectively, to 257.3 million and
1.7 million ounces
- Inferred silver and gold resources
increased 42% and decreased 15%, respectively, to 71.5 million and
1.0 million ounces
- Increases in reserves were primarily
driven by successful resource conversion at Rochester, which added
32.7 million silver reserve ounces and 326,000 gold reserve ounces,
or increases of 41% and 68%, respectively, over its year-end 2015
reserves
- Decreases in reserves at the Company’s
other mine sites were largely due to depletion
- Decreases in measured and indicated
resources were also primarily driven by successful resource
conversion at Rochester but were partially offset by measured and
indicated resource upgrades at Kensington of over 350,000 ounces of
gold
- Inferred silver resources at Palmarejo
increased nearly 150% to 20.5 million ounces while Palmarejo’s
inferred gold resources increased over 70% to 258,000 ounces due to
increased exploration drilling across the complex, and specifically
at the Guadalupe and Independencia mines and the Los Bancos and
Nación-Dana deposits
"Our near-mine exploration efforts - where the likelihood of
success is higher and returns can be realized quicker - are
beginning to pay off, evidenced by the large increase in reserves
at Rochester, as well as resource upgrades at Kensington. After
several years of limited investment, we began increasing our
exploration spend in mid-2016 and are optimistic that our
accelerated programs will continue to extend and enhance the mine
lives at our operations,” said Mitchell J. Krebs, Coeur’s President
and Chief Executive Officer.
“For 2017, planned exploration spending on new resource
identification has almost doubled, to $14 - $17 million, compared
to 2016. The majority of our exploration budget will be spent at
our Palmarejo and Kensington operations and at our La Preciosa
silver-gold project in Mexico. Our capitalized exploration budget
targeting resource conversion is expected to increase by about 10%
to $10 - $13 million, most of which is earmarked for Palmarejo and
Kensington. We also plan to increase earlier-stage exploration
spending by around 50% to $7 million, as we seek to enhance our
pipeline of future, high-quality sources of silver and gold
production in attractive jurisdictions."
About Coeur
Coeur Mining is a well-diversified, growing precious metals
producer with five precious metals mines in the Americas employing
approximately 2,000 people. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold 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 San Bartolomé
silver mine in Bolivia. The Company also has a non-operating
interest in the Endeavor mine in Australia. In addition, the
Company owns the La Preciosa project in Mexico, a silver-gold
exploration stage project. Coeur conducts ongoing exploration
activities in Alaska, Nevada, South Dakota, and Mexico.
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, and expectations regarding returns, mine lives,
exploration efforts, future sources of silver and gold production,
and spending. 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 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 and silver 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 ore reserves, changes that could result from Coeur's future
acquisition of new mining properties or businesses, reliance on
third parties to operate certain mines where Coeur owns silver
production and reserves and the absence of control over mining
operations in which Coeur or its subsidiaries hold royalty or
streaming interests and risks related to these mining operations
including results of mining and exploration activities,
environmental, economic and political risks of the jurisdiction in
which the mining operations are located, 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 (“NI
43-101”), supervised the preparation of 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 refer to the
relevant NI 43-101 Technical Report on file at www.sedar.com.
Year-end 2016 mineral reserves and resources are effective December
31, 2016 except Endeavor, which is effective June 30, 2016. Please
refer to the tables in the Appendix for tons and average grades
associated with references of contained ounces in each category in
this news release. All reserves and resources reported herein
comply with NI 43-101.
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. For purposes of silver and gold equivalence, a 60:1
silver to gold ratio is assumed.
APPENDIX
Total Coeur Proven and Probable
Reserves
Grade (Oz/Ton) Ounces
Short Tons Silver Gold
Silver Gold Proven Reserves
Palmarejo 1,569,000 4.44 0.080 6,971,000 126,000
Rochester 143,686,000 0.48 0.004 68,369,000 503,000 Kensington
1,133,000 — 0.194 — 220,000 Wharf 9,453,000 — 0.031 — 294,000 San
Bartolome 5,563,000 3.32 — 18,485,000 — Endeavor 476,000
2.48 — 1,181,000 —
Total Proven
Reserves 161,880,000 0.59
0.007 95,006,000 1,143,000
Probable Reserves Palmarejo 7,174,000 4.72 0.065 33,847,000
466,000 Rochester 101,118,000 0.43 0.003 43,676,000 300,000
Kensington 1,483,000 — 0.187 — 277,000 Wharf 15,581,000 — 0.022 —
345,000
San Bartolome
765,000
3.48
—
2,659,000
— Endeavor 753,000 1.92 — 1,449,000
—
Total Probable Reserves 126,874,000
0.64 0.011 81,631,000
1,388,000 Proven and Probable Reserves
Palmarejo 8,742,000 4.67 0.068 40,818,000 592,000 Rochester
244,804,000 0.46 0.003 112,045,000 803,000 Kensington 2,616,000 —
0.190 — 497,000 Wharf 25,034,000 — 0.026 — 639,000 San Bartolome
6,328,000 3.34 — 21,144,000 — Endeavor 1,229,000 2.14
— 2,630,000 —
Total Proven and Probable
Reserves 288,753,000 0.61
0.009 176,637,000 2,531,000
Total Coeur Measured and Indicated
Resources (Excluding Proven and Probable Reserves)
Grade (Oz/Ton) Ounces
Short Tons Silver Gold
Silver Gold
Measured Resources
Palmarejo 818,000 3.20 0.061 2,618,000 50,000
Rochester 39,732,000 0.59 0.003 23,281,000 132,000 Kensington
1,297,000 — 0.261 — 338,000 Wharf 2,195,000 — 0.031 — 67,000 San
Bartolome 1,575,000 2.20 — 3,466,000 — Endeavor 5,697,000 1.95 —
11,115,000 — La Preciosa 18,156,000 3.21 0.006 58,225,000 108,000
Joaquin 4,287,000 5.63 0.003 24,147,000
14,000
Total Measured Resources
73,757,000
1.67
0.010 122,852,000 709,000
Indicated Resources Palmarejo 4,082,000 3.59 0.046
14,647,000 187,000 Rochester 29,729,000 0.53 0.004 15,652,000
106,000 Kensington 1,828,000 — 0.292 — 533,000 Wharf 2,719,000 —
0.022 — 61,000 San Bartolome 286,000 1.97 — 564,000 — Endeavor
7,845,000 2.18 — 17,085,000 — La Preciosa 20,818,000 2.75 0.004
57,198,000 88,000 Joaquin 5,965,000 4.59 0.004 27,354,000 23,000
Lejano 631,000 3.09 0.011 1,952,000
7,000
Total Indicated Resources
73,903,000
1.82
0.014 134,452,000
1,005,000 Measured and Indicated Resources Palmarejo
4,900,000 3.52 0.048 17,265,000 237,000 Rochester 69,461,000 0.56
0.003 38,933,000 238,000 Kensington 3,125,000 — 0.279 — 871,000
Wharf 4,914,000 — 0.026 — 128,000 San Bartolome 1,861,000 2.17 —
4,030,000 — Endeavor 13,542,000 2.08 — 28,200,000 — La Preciosa
38,974,000 2.96 0.005 115,423,000 197,000 Joaquin 10,252,000 5.02
0.004 51,501,000 37,000
Lejano
631,000 3.09 0.011 1,952,000
7,000
Total Measured and Indicated Resources
147,660,000
1.74
0.012 257,304,000
1,715,000
Total Coeur Inferred
Resources
Grade (Oz/Ton) Ounces
Short Tons Silver
Gold Silver Gold Inferred
Resources Palmarejo 4,726,000 4.35 0.055 20,540,000
258,000 Rochester 67,778,000 0.52 0.003 35,554,000 178,000
Kensington 1,579,000 — 0.276 — 436,000 Wharf 4,231,000 — 0.026 —
108,000 San Bartolome 22,000 1.91 — 42,000 — Endeavor 2,976,000
2.54 — 7,552,000 — La Preciosa 1,359,000 2.33 0.004 3,168,000 5,000
Joaquin 649,000 4.17 0.003 2,705,000 2,000 Lejano 702,000
2.81 0.010 1,972,000 7,000
Total
Inferred Resources 84,022,000
0.85
0.012
71,533,000 994,000
Notes to the above mineral reserves and
resources:
1. Effective December 31, 2016, except Endeavor, effective June 30,
2016. 2. Assumed metal prices for Mineral Reserves were $17.50 per
ounce of silver and $1,250 per ounce of gold, except Endeavor at
$1,800 per metric ton of lead, $2,200 per metric ton of zinc, and
$20.00 per ounce of silver. 3. Assumed metal prices for estimated
Mineral Resources were $19.00 per ounce of silver and $1,275 per
ounce of gold, except Endeavor at $1,800 per metric ton of lead,
$2,200 per metric ton of zinc and $20.00 per ounce of silver. 4.
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. The
preliminary economic assessment for the re-scoped mine plan at
Kensington is preliminary in nature and includes Inferred Mineral
Resources, and does not have as high a level of certainty as a plan
that was based solely on proven and probable reserves and there is
no certainty that the results from the preliminary economic
assessment will be realized. 5. Rounding of tons and ounces, as
required by reporting guidelines, may result in apparent
differences between tons, grade, and contained metal content. 6.
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: http://www.businesswire.com/news/home/20170208006300/en/
Coeur Mining, Inc.Courtney Lynn, Vice President, Investor
Relations and Treasurer(312) 489-5837www.coeur.com
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