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-Forma 1 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.”