Coeur Reports Significant Increase in Mineral Reserves at Rochester
CHICAGO--(BUSINESS WIRE)--Sep. 23, 2013-- Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE: CDE) (TSX: CDM) announced contained ounces of proven and probable reserves totaling approximately 86.0 million silver ounces and 605,000 gold ounces, representing increases of 91.5% and 96.4%, respectively, at its Rochester mine in Nevada. In addition to these reserves, Coeur estimates that effective as of September 16, 2013, Rochester contains approximately 69.3 million silver ounces and 560,000 gold ounces of measured and indicated resources and approximately 26.2 million silver ounces and 105,000 gold ounces of inferred resources. The resource estimates do not reflect results from the ongoing 2013 drilling program.
Table 1: Pro-Forma1 Rochester Proven and Probable Reserves
- Effective as of September 16, 2013 using metal prices of $25.00 per silver ounce and $1,450 per gold ounce and year-end 2012 topography and parameters (other than the lower metals price assumptions and the impact of the previously-announced resolution of the claims dispute). The reserves do not reflect 2013 mine production, depletion of reserves or exploration or drilling conducted during 2013. Rounding of tons and ounces, as required by reporting guidelines, may result in apparent differences between tons, grade, and contained metal content.
Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, "Resolving the mining claims dispute at Rochester in late June enabled us to develop a new mine plan for Rochester, which significantly increased our silver and gold reserves. Based on this work, we now have a higher level of confidence in the long-term profile of Rochester, which we believe will extend well past the life of the current reserves. We expect to further increase in-situ and stockpile reserves and resources at Rochester at year end as a result of our 2013 drilling program. Rochester represents a unique and attractive source of growth for our stockholders with relatively minimal capital requirements, high expected returns, an attractive jurisdiction, and lower execution risk given its operating history of more than 25 years."
Rochester's annual crushing rate in 2012 was approximately 9.0 million tons, which resulted in production of 2.8 million silver ounces and 38,066 gold ounces. In 2013, the Company expects to crush approximately 12 million tons at Rochester. Annual crushing rates are expected to ramp up to 13 - 16.5 million tons starting in 2014. Beyond 2017, the Company anticipates increasing annual crushing rates to approximately 18.5 million tons.
Recent investments in the existing heap leach pads at Rochester have increased total capacity by 72 million tons, which Coeur expects will enable operations to continue into the second half of 2017. The removal of the claims dispute constraints allowed Coeur to reevaluate pit and pad limits and plan for new leach pad capacity. The Company is in the process of obtaining permits for 120 million tons of additional pad capacity, which are expected to be received by mid-2016. This expanded capacity is anticipated to further extend Rochester's active mine life based on existing reserves through at least 2023. The Company is also assessing the optimal scenario for a further expansion of Rochester, targeting opportunities to expand reserves from the Company's significant additional mineral resources.
The increased reserves at Rochester are inside pit limits now fully contained within the Company's land package of approximately 8,800 acres of U.S. federal unpatented claims, patented claims, and other rights. The Company is in the process of preparing a new Technical Report pursuant to Canadian National Instrument 43-101 ("NI 43-101") to document the changes to the reserves and resources at Rochester that will be filed on SEDAR within 45 days.
Coeur Mining, Inc. is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow. 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, 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 Mexico, Argentina, Nevada, Alaska and Bolivia. The Company owns strategic investment positions in eight silver and gold development companies with projects in North and South America.
Posted: September 24, 2013