CHICAGO, February 16, 2022--(BUSINESS WIRE)--Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE: CDE) today reported year-end 2021 proven and probable reserves of 3.1 million ounces of gold, 238.2 million ounces of silver, 296.1 million pounds of zinc and 193.2 million pounds of lead. Year-over-year gold reserves were essentially unchanged, net of depletion, driven by a higher cut-off grade assumption at Rochester offset by increases at Wharf and Palmarejo. Year-over-year silver reserves decreased due primarily to the higher cut-off grade applied at Rochester partially offset by an increase at Palmarejo.
Measured and indicated resources totaled 3.4 million ounces of gold, 285.0 million ounces of silver, 589.4 million pounds of zinc and 312.6 million pounds of lead, reflecting double-digit year-over-year increases across all metals driven by additions from Palmarejo, Silvertip and Kensington.
Inferred resources were 2.7 million ounces of gold, 91.2 million ounces of silver, 422.3 million pounds of zinc and 200.7 million pounds of lead. Year-over-year gold and silver inferred resources declined due to the higher cut-off grade assumption used at Rochester, partially offset by increases at Kensington and Wharf. Silvertip’s silver, zinc and lead inferred resources increased 48%, 37% and 40%, respectively.
Key Highlights
Success from five-year, nearly $240 million investment in exploration – Infill-focused drilling programs successfully replaced 1.8 million and 56.4 million ounces of cumulative gold and silver production, respectively, as well as added an additional 0.5 million ounces of gold and 85.4 million ounces of silver reserves. Expansion-focused drilling programs successfully added 1.7 million and 113.4 million ounces of measured and indicated gold and silver resources, respectively, and an additional 1.8 million and 31.9 million ounces of new inferred gold and silver resources, respectively
Resource conversions at Palmarejo and Wharf led to reserve increases net of depletion – Successful infill drilling in the Hidalgo Zone at Palmarejo drove reserve increases in gold and silver of approximately 4% and 5%, respectively, in 2021. A roughly 18% increase in gold reserves at Wharf has added two years to its mine life, further enhancing the overall return on investment from the initial $99 million cash acquisition in 2015
Significant high-grade resource increase at Silvertip – Silver, zinc and lead measured and indicated resources increased year-over-year by approximately 51%, 33% and 44%, respectively, at the Silvertip property in British Columbia. Silver, zinc and lead inferred resources grew by roughly 48%, 37% and 40%, respectively, during the same period
Updated reserves at Rochester support robust, 13-year reserve-only mine life in the top mining jurisdiction in the world – The Company raised its cut-off grade assumption to reflect higher anticipated operating costs and updated gold and silver recovery assumptions as part of its recently completed re-baselined Rochester expansion project review
Sterling and Crown properties in southern Nevada remain a key area of focus in 2022 – Resources remain relatively unchanged following a significant lag in assay results due to assay laboratory delays experienced throughout 2021. The Company is beginning to receive assay results from the 2021 campaign with encouraging drill results from C-Horst, SNA, Daisy and Secret Pass. Infill and expansion drilling is planned to continue throughout 2022 with the goal of an updated resource at Crown zone, including a maiden resource for the C-Horst discovery at year-end
"One of the largest ongoing multi-year exploration campaigns in the precious metals sector continued to drive organic growth throughout our portfolio of diversified North American assets," said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. "Over the last five years, Coeur has invested approximately $240 million in exploration capped off by our largest program in Company history last year, totaling $71 million. This elevated level of investment in exploration during the five-year period – nearly 73% focused on resource expansion programs – has dramatically increased our inventory of reserves and resources, which we expect will translate into longer mine lives and attractive returns in coming years.
"We plan to invest an additional $40 million Companywide of exploration in 2022 – approximately half focused on infill drilling and half on resource expansion drilling – in an effort to realize further reserve and resource additions throughout Coeur’s long-lived asset portfolio. These priorities include the follow-up of recent exploration success targeting higher-grade gold zones at West Rochester with the potential to be incorporated into future mine plans for the expanded Rochester operation. In addition, we will maintain an aggressive drilling program at Silvertip. With continued exploration success, coupled with successful study work in support of a larger scale operation, Silvertip holds the potential to be Coeur’s next growth driver following the completion of the Rochester expansion."
Proven & Probable Reserves
Measured & Indicated Resources
Inferred Resources
2016
2021
% Change
2016
2021
% Change
2016
2021
% Change
Gold (M oz)
2.5
3.1
22%
1.7
3.4
103%
1.0
2.7
174%
Silver (M oz)
152.9
238.2
56%
171.6
285.0
66%
59.3
91.2
54%
Zinc (M lbs)
-
296.1
NA
-
589.4
NA
-
422.3
NA
Lead (M lbs)
-
193.2
NA
-
312.6
NA
-
200.7
NA
Note: Companywide five-year cumulative gold and silver production totaled 1.8 million and 56.4 million ounces, respectively.
Coeur’s gold, zinc, and lead price assumptions for year-end 2021 reserves remained unchanged from a year ago at $1,400 per ounce, $1.15 per pound and $0.95 per pound, respectively. The Company increased its silver price assumption for year-end 2021 reserves from $17.00 per ounce to $20.00 per ounce.
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