Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today provided an update on the 44,500-meter (146,000-foot) drilling program at its 100%-owned Silvertip operation located in northern British Columbia. This program has been primarily focused on infill drilling to support ongoing mine planning efforts and has successfully discovered several new mineralized zones. Given the success of this initial program, the Company has approved and commenced a US$4 million second phase focused on expanding resources and testing prospective targets located on the mine’s 93,000-acre (37,650 hectare) land package.
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Silvertip: Plan View of Expanded Resource Interpretation (Graphic: Business Wire)
“Results from exploration at Silvertip during the first half of 2018 have demonstrated both the quality of the known resource and the strong potential for significant mine life extensions,” said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “Drilling targeted three zones with a particular emphasis on upgrading resources to reserves in the Central Zone, where results also confirmed the continuity of mineralization in zones previously thought to be discrete. At the Silver Creek and Discovery zones, both close to existing underground infrastructure, drilling has successfully delineated and expanded the resource through the identification of newly discovered mineralized zones and feeder structures. We look forward to continued exploration success during the program’s second phase.”
Select highlights are included below and in the Company’s presentation materials available on its website at www.coeur.com. Please see “Cautionary Statements” for additional information regarding drill results. For a complete table of all drill results at Silvertip, please refer to the following link: http://www.coeur.com/_resources/pdfs/180725_SILVERTIP_Exploration_PR_Appendix_v2.pdf
Highlights
Discovery Zone remains open to the north, south, east and at depth.
Silvertip
Coeur completed its acquisition of the Silvertip mine in late 2017. Since then, the Company’s exploration focus has been on resource definition and conversion within three previously known zones, Silver Creek, Central and Discovery, with up to six diamond core drill rigs active. Coeur’s new drill results have indicated an expanded and more continuous resource model as illustrated in the Silvertip plan view map shown above.
At Central Zone, up to four surface and underground rigs completed approximately 17,700 meters (58,000 feet) of drilling in 103 holes. Initial modeling portrayed the Central Zone as a discontinuous zone composed of discrete pods of manto-style mineralization due to insufficient drilling data. New infill drill holes have discovered continuity between the discrete pods and assay results have indicated metal grades exceeding prior expectations. The newly modeled thickness within these manto zones may be amenable to more efficient high-volume mining methods. Resource growth from Central Zone represents short- and mid-term opportunities to add additional mining areas located near existing infrastructure.
The cross-sectional view (shown above) of a Central Zone intercept illustrates how drilling has indicated thicker resource mineralization than previously modeled.
At Discovery Zone, drilling activity targeted resource infill and expansion with up to two surface rigs drilling a combined 6,700 meters (22,000 feet) in 22 holes. Several mineralized zones with thicknesses exceeding 14 meters (approximately 45 feet) were intercepted with grades comparable to, or exceeding, those reported historically. Drilling at Discovery has also demonstrated the possible presence of multiple stacked manto horizons forming a thicker ore zone, which has the potential to increase tonnage and mine-ability. Because of the success in the first phase of drilling this zone, the Company plans to continue here with up to two surface drill rigs in the second half of 2018 with the goal of expanding the resource to the north, south, and down-dip to the east.
At Silver Creek, up to two surface rigs completed 4,100 meters (13,500 feet) of drilling in 14 holes within the main manto horizon. This drilling has demonstrated the potential for resource expansion along the north-south Camp Creek Fault, where multiple mineralized stacked manto horizons were intercepted. Underground drilling at Silver Creek targeted vertically-oriented feeders with up to two underground rigs completing 15,800 meters (51,800 feet) in 121 holes. The program successfully discovered two new feeder systems in the area. Surface drilling later this year will continue to test mineralized manto and feeder zones along the Camp Creek Fault. Due to their geometry, these new mineralized vertical feeder structures may be amenable to long hole stoping, which may provide for more efficient and cost-effective mining than drift-and-fill in the original mine plan.
The Company approved a second phase of Silvertip’s exploration program, which commenced in early July, with a budget of approximately US$4 million, consisting of US$1.5 million of capitalized resource infill drilling, and US$2.5 million of expensed resource expansion drilling. The Company expects to complete a total of at least 18,000 meters (59,000 feet) of surface drilling by year-end.
About Coeur
Coeur Mining, Inc. is a well-diversified, growing precious metals producer with five mines in North America. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in British Columbia, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota. 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 exploration efforts and plans, exploration expenditures, drill results, resource conversion and upgrade, mine life extension, drilling, grade, thickness, mining volume and timing for publication of a technical report. 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 resource conversion and upgrade 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 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 reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, 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 or 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.
Christopher Pascoe, Coeur's Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur's mineral projects in this news release. 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.
Notes
Silvertip 2017 Year-End Resources
Grade | ||||||||||||
Silver | Zinc | Lead | ||||||||||
Tonnes | Short tons | (g/t) | (oz/t) | (%) | (%) | |||||||
Indicated Resources | 2,349,000 | 2,589,000 | 352 | 10.26 | 9.41% | 6.74% | ||||||
Inferred Resources | 460,000 | 507,000 | 343 | 9.89 | 9.81% | 6.18% | ||||||
Notes to Mineral Resource Estimates
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Coeur Mining, Inc.
Jonathan Chung, Associate, Investor Relations
Phone:
(312) 489-5800
www.coeur.com