Coeur Mining Provides Exploration Update
Chicago, Illinois – October 10, 2016 – Coeur Mining, In c. (“Coeur” or the “Company” ) (NYSE: CDE) today provided an update on its expanded exploration initiative s at three of its five operating mines. The focus of the Company’s exploration program continues to be upgrading existing, higher-grade resources to reserves and the discovery of new, higher-grade resources located near existing infrastructure that have the potential to further grow the Company’s production and cash flow, reduce unit costs, and extend expected mine lives.
The Company expects to invest a total of $30-$34 million in exploration during 2016, including $14-$16 million for expensed exploration and $16-$18 million for capitalized exploration. This represents an 82% increase over 2015 exploration spending. Of the $30-$34 million expanded exploration budget, approximately 85% is expected to be allocated to drilling at or near the Company’s existing operations and nearly 75% is expected to be invested at the Company’s Palmarejo underground silver-gold mine in Mexico, its Kensington underground gold mine in Alaska, and its Rochester open-pit silver-gold mine in Nevada.
Select highlights from the drilling results at Palmarejo, Kensington and Rochester are included below. For a complete table of all drill results at Palmarejo, Kensington and Rochester during the applicable periods identified in this press release, please refer to the following link:
- After years of being underexplored following a lengthy permitting process and the Company’s focus on first bringing stability and consistency to Kensington’s operations, the mine’s exploration program is now generating high-grade results from the Kensington Main deposit in addition to making a new discovery in 2015 of the Jualin high-grade deposit
- Both areas represent expected near-term high-grade ore sources, which are expected to drive higher future production and cash flow at lower unit costs.
- One notable hole from the Zone 41 gap target in the Kensington Main deposit returned 12.2 feet (3.7 m) of 1.21 oz/t gold (41.5 g/t) (see Hole #K16-0910-258-X02 in the table below).
- In the Zone 12 target, one hole intercepted 20.5 feet (6.2 m) of 0.37 oz/t gold (12.7 g/t). Underground drilling at Jualin has also been accelerated following recent underground access to exploration targets. An initial reserve from Jualin #4 – one of five known veins – is expected at year-end. The current resource at Jualin #4 is 179,000 ounces of gold at a grade of 0.619 oz/t gold (21.2 g/t).
- The average reserve grade at Kensington at year-end 2015 was 0.198 oz/t gold (6.79 g/t).