Coeur Reports Year-End 2019 Mineral Reserves and Resources
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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Contact
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
