Coeur Reports Year-End 2023 Mineral Reserves and Resources
Expansion drilling success drove strong resource growth at all assets
CHICAGO, February 20, 2024--(BUSINESS WIRE)--Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE: CDE) today reported year-end 2023 proven and probable reserves of 3.2 million ounces of gold and 243.9 million ounces of silver, net of depletion.
Measured and indicated resources totaled 3.2 million ounces of gold, 196.3 million ounces of silver, 1,517 million pounds of zinc and 768.7 million pounds of lead, reflecting year-over-year increases for all metals driven by additions at Palmarejo, Rochester, Wharf and Silvertip.
Inferred resources were 2.0 million ounces of gold, 92.5 million ounces of silver, 481.8 million pounds of zinc and 199.8 million pounds of lead, signifying year-over-year increases of approximately 14%, 32%, 27% and 20%, respectively.
Key Highlights1
Rochester increased total reserve tonnage for second consecutive year, leading to a 23% increase in mine life to 16 years – Pit design optimization drove a 10% increase in reserve tons to a total of 510 million tons, which drove silver and gold reserve increases of 7% and 6%, respectively, to 192.9 million ounces of silver and 1.2 million ounces of gold. Additionally, silver and gold measured and indicated resources increased 16% and 15%, respectively, while silver inferred resources increased 76% to 46.0 million ounces and gold inferred resources increased 80% to 267,000 ounces
Kensington successfully replaced 2023 gold production and boosted inferred resources by 11% – Infill, expansion and scout drilling contributed to reserve replacement that positions Kensington for expected future mine life extensions beginning in 2024 from its multi-year development and drilling program. Expansion of Kensington Zone 30 and Elmira remain key targets for future reserve growth
Resource expansion program at Palmarejo led to double digit resource growth – The top exploration priority at Palmarejo in 2023 was resource expansion, which was achieved with a 13% and 15% increase in gold and silver measured and indicated resources, respectively, as well as a 6% increase in silver inferred resources. Palmarejo ended 2023 with gold and silver reserves of 770,000 ounces and 51.0 million ounces, respectively
Double digit resource growth at Wharf positions it for potential reserve growth in 2024 – Wharf’s measured and indicated resources increased 70% and year-end 2023 gold reserves totaled 760,000 ounces, or a 6-year mine life
Continued resource growth at Silvertip – After resuming drilling in July 2023, exploration success in the Southern Silver zone and Saddle Zone led to an increase across all resource classes resulting in 7.2 million tons of measured and indicated resources and 2.3 million tons of inferred resources of silver, zinc and lead at one of the world’s highest grade polymetallic deposits
"In a year when completing Rochester’s expansion was our top priority, it’s fitting that it led the way with strong reserve and resource growth in 2023," said Mitchell J. Krebs, President and Chief Executive Officer. "Coeur’s total exploration investment in 2023 was lower than in recent years and resource expansion was our primary goal for the year, which was achieved across all of our sites. Organic growth through elevated levels of exploration investment has been a defining characteristic of Coeur over the last several years, and our commitment to reserve and resource growth through the drill bit will continue in 2024."
Coeur’s gold and silver price assumptions for year-end 2023 reserves remained unchanged year-over-year at $1,600 per ounce and $21.00 per ounce, respectively, except Kensington at $1,850 per gold ounce. The Company’s price assumptions for year-end 2023 resources also remained unchanged year-over-year at $1,800 per ounce of gold, $25.00 per ounce of silver, $1.30 per pound of zinc, and $1.00 per pound of lead, except Kensington at $2,000 per gold ounce.
About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, 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 wholly-owns the Silvertip silver-zinc-lead exploration project in British Columbia and has interests in 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 estimated, exploration efforts and plans, growth, mine lives, mine expansion and development plans, and resource delineation, expansion, and upgrade or conversion. 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 are not attained, the risk that planned exploration 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, zinc and lead 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 and recovery variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves and mineral resources, the potential effects of pandemics or epidemics, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, 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 its production, 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 Forms 10-K and 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.
The scientific and technical information concerning our mineral projects in this news release have been reviewed and approved by a "qualified person" under Item 1300 of Regulation S-K under the Securities Exchange Act of 1934, as amended ("SK 1300"), namely our Senior Director, Technical Services, Christopher Pascoe. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources for Coeur’s material properties included in this news release, 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, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company’s material properties which are available at www.sec.gov.
Notes
The potential quantity and grade for the deposits described herein are conceptual in nature. There is insufficient exploratory work to define a mineral resource and it is uncertain if further exploration will result in the applicable target being delineated as a mineral resource.
2023 reserves and resources were determined in accordance with Item 1300 of SEC Regulation S-K. Reserves and resources for certain prior periods were determined in accordance with Canadian National Instrument 43-101. Both sets of reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but the standards embody slightly different approaches and definitions.
2023 Year-End Proven and Probable Reserves
Grade | Contained | |||||
Gold | Silver | Gold | Silver | |||
Short tons | (oz/t) | (oz/t) | (oz) | (oz) | ||
PROVEN RESERVES | ||||||
Palmarejo | 4,203,000 | 0.060 | 4.21 | 252,000 | 17,698,000 | |
Rochester | 465,919,000 | 0.002 | 0.38 | 1,135,000 | 177,472,000 | |
Kensington | 1,009,000 | 0.186 | - | 188,000 | - | |
Wharf | 5,931,000 | 0.032 | - | 188,000 | - | |
Total | 477,062,000 | 0.004 | 0.41 | 1,763,000 | 195,170,000 | |
PROBABLE RESERVES | ||||||
Palmarejo | 8,580,000 | 0.060 | 3.88 | 517,000 | 33,283,000 | |
Rochester | 44,524,000 | 0.002 | 0.35 | 104,000 | 15,413,000 | |
Kensington | 1,109,000 | 0.201 | - | 223,000 | - | |
Wharf | 21,318,000 | 0.027 | - | 575,000 | - | |
Total | 75,531,000 | 0.019 | 0.64 | 1,418,000 | 48,695,000 | |
PROVEN AND PROBABLE RESERVES | ||||||
Palmarejo | 12,783,000 | 0.060 | 3.99 | 769,000 | 50,981,000 | |
Rochester | 510,443,000 | 0.002 | 0.38 | 1,238,000 | 192,885,000 | |
Kensington | 2,119,000 | 0.194 | - | 411,000 | - | |
Wharf | 27,249,000 | 0.028 | - | 764,000 | - | |
Total | 552,594,000 | 0.006 | 0.44 | 3,182,000 | 243,865,000 | |
Notes to above Mineral Reserves:
Certain definitions: The term "reserve" means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term "proven (measured) reserves" means reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling; and (b) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term "probable (indicated) reserves" means reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observation. The term "cutoff grade" means the lowest grade of mineralized material considered economic to process. Cutoff grades vary between deposits depending upon prevailing economic conditions, mineability of the deposit, by-products, amenability of the mineralized material to silver or gold extraction and type of milling or leaching facilities available.
The Mineral Reserve estimates are current as of December 31, 2023, are reported using the definitions in Item 1300 of Regulation S-K and were prepared by the Company’s technical staff.
Assumed metal prices for 2023 Mineral Reserves were $21.00 per ounce of silver, $1,600 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead, except for Kensington at $1,850 per ounce of gold.
Palmarejo Mineral Reserve estimates use the following key input parameters: assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 2.11–2.97 g/t AuEq and an incremental development cut-off grade ranging from 1.16–1.55 g/t AuEq; metallurgical recovery assumption of 92.0% for gold and 83.0% for silver; mining dilution assumes 0.4–1.1 meter of hanging/foot wall waste dilution; mining loss of 15% was applied; variable mining costs that range from US$44.72–US$85.71/tonne, surface haulage costs of US$4.92/tonne, process costs of US$32.70/tonne, general and administrative costs of US$14.06/tonne, and surface/auxiliary support costs of US$3.18/tonne. Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Reserves. No assurances can be given that all mineral reserves will be mined, as mineralized material that may qualify as reserves under applicable standards by virtue of having positive economics may not generate attractive enough returns to be included in our mine plans, due to factors such as the impact of the gold stream at Palmarejo. As a result, we may elect not to mine portions of the mineralized material reported as reserves.
Rochester Mineral Reserve estimates are tabulated within a confining pit design and use the following input parameters: Rochester oxide variable recovery Au = 77.7–85.9% and Ag = 59.4-61.0%; Rochester sulfide variable recovery Au = 15.2–77.7% and Ag = 0.0–59.4%; with a net smelter return cutoff of $3.01/st oxide and US$3.11/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $5.51/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 48º over the life-of-mine.
Kensington Mineral Reserve estimates use the following key input parameters: assumption of conventional underground mining; gold price of $1,850/oz; reported above a gold cut-off grade of 0.135 oz/st Au; metallurgical recovery assumption of 93.5%; gold payability of 97.5%; mining dilution of 20%; mining loss of 12% was applied; mining costs of US$103.67/ton mined; process costs of US$55.06/ton processed; general and administrative costs of US$55.37/ton processed; Sustaining capital US$4.50/ton processed; and concentrate refining and shipping costs of US$108.67/oz sold.
Wharf Mineral Reserve estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 79.0%; royalty burden of US$64/oz Au; pit slope angles that vary from 34–50º; mining costs of US$2.44/ton mined, process costs of US$11.71/ton processed (includes general and administrative costs).
Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents.
2023 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 | 5,674,000 | 0.070 | 4.56 | - | - | 396,000 | 25,875,000 | - | - |
Rochester | 110,460,000 | 0.002 | 0.29 | - | - | 200,000 | 31,587,000 | - | - |
Kensington | 1,653,000 | 0.289 | - | - | - | 477,000 | - | - | - |
Wharf | 1,666,000 | 0.024 | - | - | - | 40,000 | - | - | - |
Silvertip | 734,000 | - | 10.56 | 9.93% | 7.88% | - | 7,749,000 | 145,703,000 | 115,648,000 |
Lincoln Hill | 4,642,000 | 0.012 | 0.34 | - | - | 58,000 | 1,592,000 | - | - |
Total | 124,828,000 | 0.009 | 0.54 | 1,171,000 | 66,803,000 | 145,703,000 | 115,648,000 | ||
INDICATED RESOURCES | |||||||||
Palmarejo | 15,500,000 | 0.060 | 3.85 | - | - | 926,000 | 59,701,000 | - | - |
Rochester | 27,170,000 | 0.002 | 0.41 | - | - | 47,000 | 11,237,000 | - | - |
Kensington | 1,278,000 | 0.268 | - | - | - | 342,000 | - | - | - |
Wharf | 22,150,000 | 0.021 | - | - | - | 458,000 | - | - | - |
Silvertip | 6,418,000 | - | 7.78 | 10.68% | 5.09% | - | 49,919,000 | 1,371,074,000 | 653,008,000 |
Lincoln Hill | 27,668,000 | 0.011 | 0.31 | - | - | 306,000 | 8,655,000 | - | - |
Total | 100,184,000 | 0.021 | 1.29 | 2,078,000 | 129,512,000 | 1,371,074,000 | 653,008,000 | ||
MEASURED AND INDICATED RESOURCES | |||||||||
Palmarejo | 21,174,000 | 0.062 | 4.04 | - | - | 1,321,000 | 85,576,000 | - | - |
Rochester | 137,630,000 | 0.002 | 0.31 | - | - | 247,000 | 42,824,000 | - | - |
Kensington | 2,931,000 | 0.279 | - | - | - | 819,000 | - | - | - |
Wharf | 23,816,000 | 0.021 | - | - | - | 498,000 | - | - | - |
Silvertip | 7,152,000 | - | 8.06 | 10.60% | 5.37% | - | 57,668,000 | 1,516,777,000 | 768,657,000 |
Lincoln Hill | 32,310,000 | 0.011 | 0.32 | - | - | 364,000 | 10,247,000 | - | - |
Total | 225,012,000 | 0.014 | 0.87 | 3,249,000 | 196,315,000 | 1,516,777,000 | 768,657,000 | ||
2023 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 | 4,207,000 | 0.091 | 4.50 | - | - | 381,000 | 18,933,000 | - | - |
Rochester | 135,104,000 | 0.002 | 0.34 | - | - | 267,000 | 45,959,000 | - | - |
Kensington | 1,567,000 | 0.248 | - | - | - | 388,000 | - | - | - |
Wharf | 7,125,000 | 0.021 | - | - | - | 149,000 | - | - | - |
Silvertip | 2,345,000 | - | 6.86 | 10.27% | 4.26% | - | 16,084,000 | 481,791,000 | 199,815,000 |
Lincoln Hill | 22,952,000 | 0.011 | 0.36 | - | - | 255,000 | 8,163,000 | - | - |
Wilco | 25,736,000 | 0.021 | 0.13 | - | - | 531,000 | 3,346,000 | - | - |
Total | 199,037,000 | 0.010 | 0.46 | 1,971,000 | 92,485,000 | 481,791,000 | 199,815,000 | ||
Notes to above Mineral Resources:
Certain definitions: The term "resource" means that it is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quantity that there are reasonable prospects for economic extraction. Inferred, Indicated, and Measured resources are in order of increasing confidence based on level of underlying geological evidence. The term ‘inferred resource’ is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The term "limited geological evidence" means evidence that is only sufficient to establish that geological and grade or quality continuity is more likely than not. The level of geological uncertainty associated an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability and must have a reasonable expectation that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration. In addition, no assurances can be given that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves or that inferred resources will be upgraded to measured or indicated resources.
Mineral Resource estimates are reported exclusive of mineral reserves, are current as of December 31, 2023, and are reported using definitions in Item 1300 of Regulation S and were prepared by the Company’s technical staff.
Assumed metal prices for 2023 estimated Mineral Resources were $25.00 per ounce of silver, $1,800 per ounce of gold, $1.30 per pound of zinc, $1.00 per pound of lead, unless otherwise noted.
Palmarejo Mineral Resource estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.87–2.64 g/t AuEq; metallurgical recovery assumption of 92.0% for gold and 83.0% for silver; variable mining costs that range from US$44.72–US$85.71/tonne, surface haulage costs of US$4.92/tonne, process costs of US$32.70/tonne, general and administrative costs of US$14.06/tonne, and surface/auxiliary support costs of US$3.18/tonne. Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Resources.
Kensington Mineral Resource estimates use the following key input parameters: metal price of $2,000 per ounce gold, assumption of conventional longhole underground mining; reported above a variable gold cut-off grade of 0.124 oz/ton Au; metallurgical recovery assumption of 93.5%; gold payability of 97.5%, mining costs of US$103.67/ton mined; process costs of US$55.06/ton processed; general and administrative costs of US$55.37/ton processed; Sustaining capital US$4.50/ton processed; and concentrate refining and shipping costs of US$108.67/oz sold.
Wharf Mineral Resource estimates use the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; average metallurgical recovery assumption of 79.0% across all rock types; royalty burden of US$72/oz Au; pit slope angles that vary from 34–50º; mining costs of $2.44/ton mined, process costs of US$11.71/ton processed (includes general and administrative costs).
Rochester Mineral Resource estimates are tabulated within a confining pit shell and use the following input parameters: Rochester oxide variable recovery Au = 77.7–85.9% and Ag = 59.4%; Rochester sulfide variable recovery Au = 15.2–77.7% and Ag = 0.0–59.4%; with a net smelter return cutoff of $3.01/st oxide and US$3.11/st sulfide; Nevada Packard oxide recovery Au = 92.0% and Ag = 61.0%; with a net smelter return cutoff of $5.51/st for oxide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 48º over the life-of-mine.
Silvertip Underground Mineral Resource estimates are reported using a net smelter return ("NSR") cutoff of US$130/tonne. Mineral Resources are reported insitu using the following assumptions: The estimate use the following key input parameters: lead recovery of 89-90%, zinc recovery of 82-83% and silver recovery of 83-84%. Lead concentrate grade of 53-54%; zinc concentrate grade of 56-57%; mining costs of US$68.77/tonne; processing costs of US$58.20/tonne and US$46.49/tonne, where the NSR ($/tonne) = tonnes x grade x metal prices x metallurgical recoveries – royalties – TCRCs – transport costs over the life of the mine.
Lincoln Hill Open Pit Mineral Resource estimates are reported in-situ and are contained within a confining pit shell and use the following key input parameters: reported above an oxide gold equivalent cutoff of 0.15 ounces per ton and 0.20 oz ounces per ton assuming a silver to gold ratio of 60:1; gold recoveries of 64%; silver recoveries of 59%; mining costs of US$3.10/ton; process costs of US$3.60/ton; general and administrative costs of $1.50/ton processed; average pit slope angles of 45º over the life-of-mine. The technical and economic parameters are those that were used in the 2018 Resource Estimation. Based on the QPs review of the estimate, there would be no material change to the Mineral Resource if a gold price of US$1,700/oz, a silver price of US$22/oz or economic parameters were updated. Therefore the 2018 Mineral Resource is considered current and is presented unchanged.
Wilco Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained withed a conceptual measured, indicated and inferred optimized pit shell. Silver price of US$20/oz, gold price of US$1,400/oz. Average oxide and sulfide gold recovery is 70%, average carbonaceous gold recovery is 50%. Average oxide and sulfide gold recovery is 60%. Average carbonaceous silver recovery is 50%. Open pit mining cost is US$1.50/ton, processing and processing and G&A cost is US$5.46/ton; average pit slope angles of 50º. The technical and economic parameters are those that were used in the 2018 Resource Estimation. Based on the QPs review of the estimate, there would be no material change to the mineral resources if a gold price of US$1,700/oz, a silver price of US$22/oz or economic parameters were updated. Therefore the 2018 Mineral Resource report is considered current and is presented unchanged.
Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents.
Conversion Table
1 short ton | = | 0.907185 metric tons |
1 troy ounce | = | 31.10348 grams |
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Contacts
Coeur Mining, Inc.
Jeff Wilhoit, Director, Investor Relations
Phone: (312) 489-5800
www.coeur.com
