Coeur Reports Year-End 2014 Mineral Reserves and Resources
CHICAGO, Feb. 18, 2015 (GLOBE NEWSWIRE) -- Coeur Mining Inc. ("Coeur" or the "Company") (NYSE:CDE) announced year-end contained proven and probable mineral reserves of approximately 390.7 million silver equivalent ounces, an increase of 6.2 million silver equivalent ounces or 2% compared to year-end 2013. This gain is net of the 32.2 million silver equivalent ounces produced in 2014. In addition to these reserves, Coeur announced measured and indicated mineral resources totaling approximately 292.4 million silver equivalent ounces and inferred mineral resources totaling 127.0 million silver equivalent ounces, decreases of 45% and 21%, respectively, compared to year-end 2013.
Click here to view year-over-year price assumption comparison: http://media.globenewswire.com/cache/29849/file/32015.pdf
Highlights
(All comparisons below refer to year-end 2014 compared with year-end 2013)
- Proven and probable silver reserves increased 10% to 280.5 million ounces
- Proven and probable gold reserves decreased 15% to 1.8 million ounces
- Measured and indicated silver resources decreased 45% to 210.7 million ounces
- Measured and indicated gold resources decreased 45% to 1.4 million ounces
- Inferred silver resources decreased 36% to 61.8 million ounces
- Inferred gold resources increased 3% to 1.1 million ounces
- Largest source of silver reserve increase from La Preciosa due to the completion of the feasibility study in July 2014. 130.9 million silver equivalent reserve ounces remain economic at year-end reserve metal prices
- Largest source of reserve decrease from San Bartolomé. A focus on higher quality production ounces reduced total reserves to 46.0 million silver ounces
- Guadalupe now represents 88% of Palmarejo's total reserves. Average grade of Palmarejo's reserves increased 32% to 8.93 silver equivalent oz/ton
- Inferred resource estimate at Kensington's high-grade Jualin deposit of 179,000 gold ounces with an average grade of 0.619 oz/ton, over three times the average reserve grade
- Measured and indicated resource estimate at Palmarejo's Independencia deposit of 16.0 million silver equivalent ounces and inferred resource estimate of 2.7 million silver equivalent ounces
Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, "By removing lower-margin ounces from our mine plans, our year-end 2014 reserves better reflect our strategy to focus on high-grade, high-quality production to maximize cash flow. We were able to offset much of the impact of significantly lower price assumptions used for year-end reserves through meaningful cost reductions during 2014. For example, Rochester's mining costs per ton declined 30% during 2014 compared to 2013 as a result of better planning, strong execution, and greater operating efficiencies.
"This theme of 'quality over quantity' was already evident in our re-scoped mine plan at Palmarejo we released last July, which did not include a significant portion of lower-grade reserves. We expect to take a similar approach at Kensington and plan to soon release a re-scoped mine plan reflecting higher-grade, higher-margin production over an extended mine life.
"Our 2015 drilling efforts will keep the focus on expanding the size and quality of higher-grade zones at existing operations such as the Jualin deposit at Kensington and the Guadalupe/Independencia corridor at Palmarejo.
"With two acquisitions expected to close during the first half of the year, we expect to meaningfully add to our reserve base during the remainder of 2015."
Year-end 2013 mineral reserves and resources are effective December 31, 2013 except Endeavor, which is effective June 30, 2013. Year-end 2014 mineral reserves and resources are effective December 31, 2014 except Endeavor, which is effective June 30, 2014. 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 Canadian National Instrument 43-101 ("NI 43-101").
About Coeur
Coeur Mining is the largest U.S.-based silver producer and a significant gold producer with four precious metals mines in the Americas employing approximately 2,000 people. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to net smelter royalties on the Cerro Bayo mine in Chile, the El Gallo complex in Mexico, the Zaruma mine in Ecuador, and the Correnso mine in New Zealand. In addition, the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic investment positions in several silver and gold development companies with projects in North and South America.
Cautionary Statement
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 grades, production, and mine life at Kensington, and strategies to focus on high-grade, high-quality production to maximize cash flow. 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 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.
W. David Tyler, Coeur's Vice President, Technical Services and a qualified person under Canadian National Instrument 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 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.
Silver equivalence assumes silver to gold ratio of 60:1.
APPENDIX
| Palmarejo Mineral Reserves and Resources | |||||
| Grade (oz/t) | Ounces | ||||
| Short Tons | Silver | Gold | Silver | Gold | |
| Underground Reserves: | |||||
| Guadalupe | 4,899,000 | 4.42 | 0.088 | 21,637,000 | 431,000 |
| Palmarejo | 412,000 | 4.54 | 0.070 | 1,870,000 | 29,000 |
| Open-Pit Reserves: | |||||
| Guadalupe | 728,000 | 7.38 | 0.014 | 5,370,000 | 10,000 |
| Palmarejo | 677,000 | 2.66 | 0.025 | 1,799,000 | 17,000 |
| Total Proven and Probable Reserves | 6,715,000 | 4.57 | 0.073 | 30,677,000 | 488,000 |
| Underground M&I Resources | |||||
| Guadalupe | 2,683,000 | 5.09 | 0.101 | 13,649,000 | 272,000 |
| Palmarejo | — | — | — | — | — |
| Independencia | 1,900,000 | 4.05 | 0.073 | 7,693,000 | 138,000 |
| Open-Pit M&I Resources | |||||
| Guadalupe | 388,000 | 6.29 | 0.018 | 2,439,000 | 7,000 |
| Palmarejo | — | — | — | — | — |
| Total Measured and Indicated Resources | 4,971,000 | 4.78 | 0.084 | 23.781,000 | 417,000 |
| Underground Inferred Resources | |||||
| Guadalupe | 1,164,000 | 5.80 | 0.177 | 6,754,000 | 206,000 |
| Palmarejo | — | — | — | — | — |
| Independencia | 526,000 | 2.47 | 0.044 | 1,299,000 | 23,000 |
| Open-Pit Inferred Resources | |||||
| Guadalupe | 374,000 | 5.97 | 0.029 | 2,233,000 | 11,000 |
| Palmarejo | — | — | — | — | — |
| Total Inferred Resources | 2,064,000 | 4.98 | 0.116 | 10,286,000 | 240,000 |
| Kensington Mineral Reserves and Resources | |||
| Grade | |||
| Short Tons | (oz/ton) | Ounces | |
| Proven Reserves | |||
| Kensington | 400,000 | 0.180 | 72,000 |
| Raven | 17,000 | 0.412 | 7,000 |
| Probable Reserves | |||
| Kensington | 2,824,000 | 0.181 | 512,000 |
| Raven | 162,000 | 0.241 | 39,000 |
| Total Proven and Probable Reserves | 3,403,000 | 0.185 | 629,000 |
| Measured Resources | |||
| Kensington | 177,000 | 0.260 | 46,000 |
| Raven | 4,000 | 0.250 | 1,000 |
| Indicated Resources | |||
| Kensington | 1,292,000 | 0.241 | 312,000 |
| Raven | 93,000 | 0.258 | 24,000 |
| Total Measured and Indicated Resources | 1,566,000 | 0.244 | 382,000 |
| Kensington inferred resources | 1,265,000 | 0.296 | 375,000 |
| Raven inferred resources | 68,000 | 0.235 | 16,000 |
| Jualin inferred resources | 289,000 | 0.619 | 179,000 |
| Total Inferred Resources | 1,622,000 | 0.351 | 570,000 |
| Total Coeur Proven and Probable Reserves | |||||
| Grade (Oz/Ton) | Ounces | ||||
| Short Tons | Silver | Gold | Silver | Gold | |
| Proven Reserves | |||||
| Rochester | 89,077,000 | 0.56 | 0.004 | 49,786,000 | 346,000 |
| San Bartolomé | 1,206,000 | 2.73 | — | 3,287,000 | — |
| Kensington | 417,000 | — | 0.187 | — | 78,000 |
| Endeavor | 1,323,000 | 1.82 | — | 2,411,000 | — |
| Palmarejo | 1,089,000 | 3.37 | 0.043 | 3,670,000 | 46,000 |
| La Preciosa | 18,830,000 | 3.16 | 0.006 | 59,534,000 | 111,000 |
| Total Proven Reserves | 111,942,000 | 1.06 | 0.005 | 118,688,000 | 581,000 |
| Probable Reserves | |||||
| Rochester | 56,158,000 | 0.54 | 0.003 | 30,418,000 | 172,000 |
| San Bartolomé | 13,337,000 | 3.20 | — | 42,724,000 | — |
| Kensington | 2,986,000 | — | 0.185 | — | 551,000 |
| Endeavor | 1,102,000 | 2.24 | — | 2,469,000 | — |
| Palmarejo | 5,627,000 | 4.80 | 0.078 | 27,007,000 | 441,000 |
| La Preciosa | 21,851,000 | 2.71 | 0.004 | 59,196,000 | 91,000 |
| Total Probable Reserves | 101,061,000 | 1.60 | 0.012 | 161,814,000 | 1,255,000 |
| Proven and Probable Reserves | |||||
| Rochester | 145,235,000 | 0.55 | 0.004 | 80,204,000 | 518,000 |
| San Bartolomé | 14,543,000 | 3.16 | — | 46,011,000 | — |
| Kensington | 3,403,000 | — | 0.185 | — | 629,000 |
| Endeavor | 2,425,000 | 2.01 | — | 4,880,000 | — |
| Palmarejo | 6,715,000 | 4.57 | 0.073 | 30,677,000 | 488,000 |
| La Preciosa | 40,681,000 | 2.92 | 0.005 | 118,730,000 | 202,000 |
| Total Proven and Probable Reserves | 213,002,000 | 1.32 | 0.009 | 280,502,000 | 1,837,000 |
| Total Coeur Measured and Indicated Resources (Excluding Proven and Probable Reserves) | |||||
| Grade (Oz/Ton) | Ounces | ||||
| Short Tons | Silver | Gold | Silver | Gold | |
| Measured Resources | |||||
| Rochester | 72,228,000 | 0.45 | 0.003 | 32,565,000 | 218,000 |
| Martha | — | — | — | — | — |
| San Bartolomé | — | — | — | — | — |
| Kensington | 181,000 | — | 0.260 | — | 47,000 |
| Endeavor | 7,716,000 | 2.28 | — | 17,625,000 | — |
| Palmarejo | 417,000 | 4.48 | 0.062 | 1,870,000 | 26,000 |
| Joaquin | 4,709,000 | 5.30 | 0.003 | 24,966,000 | 15,000 |
| La Preciosa | 2,305,000 | 1.40 | 0.003 | 3,216,000 | 7,000 |
| Total Measured Resources | 87,556,000 | 0.92 | 0.004 | 80,242,000 | 313,000 |
| Indicated Resources | |||||
| Rochester | 100,973,000 | 0.42 | 0.003 | 42,476,000 | 273,000 |
| Martha | 57,000 | 13.60 | 0.018 | 775,000 | 1,000 |
| San Bartolomé | 7,033,000 | 1.91 | — | 13,445,000 | — |
| Kensington | 1,385,000 | — | 0.242 | — | 335,000 |
| Endeavor | 5,181,000 | 2.39 | — | 12,375,000 | — |
| Palmarejo | 4,554,000 | 4.81 | 0.086 | 21,911,000 | 391,000 |
| Joaquin | 6,842,000 | 4.25 | 0.004 | 29,110,000 | 25,000 |
| Lejano | 631,000 | 3.09 | 0.011 | 1,952,000 | 7,000 |
| La Preciosa | 4,808,000 | 1.74 | 0.004 | 8,389,000 | 17,000 |
| Total Indicated Resources | 131,464,000 | 0.99 | 0.008 | 130,433,000 | 1,049,000 |
| Measured and Indicated Resources | |||||
| Rochester | 173,201,000 | 0.43 | 0.003 | 75,041,000 | 491,000 |
| Martha | 57,000 | 13.60 | 0.018 | 775,000 | 1,000 |
| San Bartolomé | 7,033,000 | 1.91 | — | 13,445,000 | — |
| Kensington | 1,566,000 | — | 0.244 | — | 382,000 |
| Endeavor | 12,897,000 | 2.33 | — | 30,000,000 | — |
| Palmarejo | 4,971,000 | 4.78 | 0.084 | 23,781,000 | 417,000 |
| Joaquin | 11,551,000 | 4.68 | 0.003 | 54,076,000 | 40,000 |
| Lejano | 631,000 | 3.09 | 0.011 | 1,952,000 | 7,000 |
| La Preciosa | 7,114,000 | 1.63 | 0.003 | 11,605,000 | 24,000 |
| Total Measured and Indicated Resources | 219,021,000 | 0.96 | 0.006 | 210,675,000 | 1,362,000 |
| Total Coeur Inferred Resources | |||||
| Grade (Oz/Ton) | Ounces | ||||
| Short Tons | Silver | Gold | Silver | Gold | |
| Inferred Resources | |||||
| Rochester | 96,039,000 | 0.42 | 0.003 | 40,789,000 | 263,000 |
| Martha | 204,000 | 4.75 | 0.005 | 969,000 | 1,000 |
| San Bartolomé | 66,000 | 1.68 | — | 111,000 | — |
| Kensington | 1,622,000 | — | 0.351 | — | 570,000 |
| Endeavor | 661,000 | 3.18 | — | 2,103,000 | — |
| Palmarejo | 2,065,000 | 4.98 | 0.116 | 10,286,000 | 240,000 |
| Joaquin | 720,000 | 3.99 | 0.003 | 2,873,000 | 2,000 |
| Lejano | 702,000 | 2.81 | 0.010 | 1,972,000 | 7,000 |
| La Preciosa | 1,344,000 | 1.98 | 0.004 | 2,657,000 | 5,000 |
| Total Inferred Resources | 103,423,000 | 0.60 | 0.011 | 61,760,000 | 1,088,000 |
Notes to the above mineral reserves and resources:
- Effective December 31, 2014 except Endeavor, effective June 30, 2014.
- Assumed metal prices for estimated mineral reserves were $19.00 per ounce of silver and $1,275 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,400 per metric ton of zinc, and $20.00 per ounce of silver. Assumed metal prices for mineral resources were $22.00 per ounce of silver and $1,350 per ounce of gold, except for Endeavor, at $2,200 per metric ton of lead, $2,400 per metric ton of zinc and $20.00 per ounce of silver.
- Palmarejo mineral reserves and resources are the addition of Palmarejo, Guadalupe, and Independencia deposits (measured, indicated, and inferred). There are no mineral reserves and resources for La Patria.
- 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 reserves, Canadian investors should refer to the NI 43-101-compliant Technical Report 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 |
Contact
For Additional Information:
Bridget Freas, Director, Investor Relations
(312) 489-5819
Donna Mirandola, Director, Corporate Communications
(312) 489-5842
www.coeur.com
