Coeur Reports 89% Increase in Silver Reserves and 76% Increase in Gold Reserves at Palmarejo Post-Paramount Acquisition

Transcription

1 NEWS RELEASE Coeur Reports 89% Increase in Silver Reserves and 76% Increase in Gold Reserves at Palmarejo Post-Paramount Acquisition Contains 31% Higher Average Silver Grade Chicago, Illinois April 27, Coeur Mining, Inc. ( Coeur or the Company ) (NYSE: CDE) announced the addition of 25.4 million silver ounces and 376,000 gold ounces to the proven and probable reserves at its Palmarejo mine in Mexico, representing 89% and 76% increases, respectively, compared to year-end Palmarejo s reserves now total 54.0 million silver ounces and 876,000 gold ounces. Included in these reserves are 20.1 million silver ounces and 278,000 gold ounces at the newly-acquired deposit previously named Don Ese by Paramount Gold and Silver Corp. (now called Independencia Este ), which is the continuation of Coeur's recently-discovered Independencia deposit (now called Independencia Oeste ). Mitchell J. Krebs, Coeur s President and Chief Executive Officer, said, Closing the acquisition of Paramount has further enabled Palmarejo s transition to a high-grade, high-margin underground operation and is an important milestone in Coeur s strategic repositioning. These new Independencia reserves represent a 12% increase to our companywide silver equivalent reserves and boost our overall silver equivalent reserve grade by 10%. Importantly, ore mined from Independencia Este is not subject to any non-government royalty or streaming obligation, which will further boost Palmarejo s margins and cash flow. With the Independencia deposit as a second source of highgrade silver and gold to supplement the rising production rates from the Guadalupe deposit, we anticipate Palmarejo will become our lowest cost and largest mine, contributing approximately half of Coeur s $190-$200 million of expected free cash flow in Palmarejo now has an expected mine life of around seven years of high-grade underground mining based on these reserves. We expect to further extend the mine life based on the significant amount of mineralization contained in the resource categories and based on the continued drilling success we are having at Guadalupe, at Independencia, and on targets located between these two growing deposits. Coeur will file a National Instrument compliant technical report for Palmarejo on during the second quarter of Highlights (Comparisons below refer to the addition of the Independencia resource as of April 23, 2015 to Palmarejo s total year-end 2014 resource) Proven and probable silver reserves increased 89% to 54.0 million ounces Proven and probable gold reserves increased 76% to 876,000 ounces Measured and indicated silver resources decreased 19% to 21.0 million ounces Measured and indicated gold resources decreased 25% to 304,000 ounces Inferred silver resources increased 47% to 15.1 million ounces Inferred gold resources increased 33% to 318,000 ounces Paramount acquisition adds 36.8 million silver equivalent ounces to Palmarejo s reserves with an average grade of AgEq oz/ton Guadalupe and Independencia represent 94% of Palmarejo s total reserves with a combined average grade of silver equivalent oz/ton 35% of Palmarejo s total reserves are not subject to any non-government royalty or streaming obligation Development continues on the 1,000 meter decline to Independencia from near Palmarejo s Guadalupe underground deposit, which was placed into production late last year and is expected to average 1,500 tons per day of mining by September. Mining activity is expected to begin at Independencia in early 2016 and to accelerate to 2,000 tons per day by early Guadalupe and Independencia have the potential to produce at a combined rate of 5,000 tons per day. 1

2 Coeur expects to expand Palmarejo s reserve base through an approximately $15 million drilling program over the next two years, with a focus on adding new resources at Guadalupe and upgrading the mine s 39.2 million silver equivalent ounces of measured and indicated resources, which have an average grade of 9.40 silver equivalent oz/ton. Additional high-grade mineralization was recently identified through drilling activity close to existing infrastructure at Guadalupe. Highlights from the latest drilling program, which began in October 2014, are shown in the table below. All 29 holes that have returned results identified mineralization. These results are expected to be incorporated into year-end reserve and resource estimates. Palmarejo Mineral Reserves and Resources by Area Grade (oz/t) Short Tons Silver Gold Silver Gold Underground Reserves: Guadalupe 5,492, ,978, ,000 Independencia Oeste 1,012, ,264,000 98,000 Independencia Este 3,456, ,129, ,000 Palmarejo 412, ,870,000 29,000 Open-Pit Reserves: Palmarejo 677, ,799,000 17,000 Total Proven and Probable Reserves 11,049, ,040, ,000 Underground M&I Resources: Guadalupe 3,206, ,117, ,000 Independencia Oeste 374, ,032,000 16,000 Independencia Este 588, ,814,000 21,000 Total Measured and Indicated Resources 4,169, ,964, ,000 Underground Inferred Resources: Guadalupe 1,434, ,493, ,000 Independencia Oeste 231, ,000 13,000 Independencia Este 1,271, ,421,000 88,000 Open-Pit Inferred Resources: Guadalupe 104, ,000 3,000 Total Inferred Resources 3,040, ,131, ,000 Note: Effective December 31, 2014 except Independencia, effective April 23, Independencia Este represents the section of Independencia formerly known as Don Ese acquired from Paramount Gold and Silver Corp. on April 17, Independencia Oeste represents the section of Independencia historically owned by Coeur. See notes in the Appendix for additional information on mineral reserves and resources. Select Guadalupe Resource Discovery Drill Results: October 2014 March 2015 (not reflected in December 31, 2014 reserves and resources) Hole From To Thickness Guadalupe Center Mineralized Interval (Feet) Estimated True Thickness Gold Assays (Oz/short ton) Silver Assays (Oz/short ton) DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC

3 DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC About Coeur Coeur Mining is the largest U.S.-based silver producer and a significant gold producer with five precious metals mines in the Americas employing approximately 2,100 people. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to royalties on the Cerro Bayo mine in Chile, the El Gallo complex in Mexico, the Zaruma mine in Ecuador, and the Correnso mine in New Zealand. In addition, the Company has two silver-gold exploration projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic investment positions in several silver and gold development companies with projects in North and South America. Cautionary Statement This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding mine life, mining rates, future drilling activity, production, costs, cash flow, margins, grade, development efforts, Palmarejo's transition to an underground operation, strategic repositioning, and the ability to increase reserves. 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 the anticipated benefits of the Paramount Gold & Silver Corp. acquisition will not be realized, 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 (including those involving third parties), the uncertainties inherent in the estimation of gold and silver ore reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves and the absence of control over mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, 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 report on Form 10-K. 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. W. David Tyler, Coeur's Vice President, Technical Services and a qualified person under Canadian National Instrument , supervised the preparation of the scientific and technical information concerning Coeur's mineral projects in this news release. Mineral resources are in addition to mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized. 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 relevant NI compliant Technical Report on file at and the Technical Report for Palmarejo which will be filed at during the second quarter of Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in public disclosures, such as "measured," "indicated," "inferred and resources," that are 3

4 recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at Silver equivalence assumes 60:1 silver to gold ratio as follows: Gold x Ratio + Silver = Silver Equivalent / Short Tons = Silver Equivalent Grade 278,000 60:1 20,129,000 36,809,000 3,456, ,000 60:1 50,371, ,111,000 9,960, ,000 60:1 20,964,000 39,204,000 4,169, For Additional Information: Bridget Freas, Director, Investor Relations (312) Donna Mirandola, Director, Corporate Communications (312)

5 APPENDIX Total Coeur Proven and Probable Reserves Grade (Oz/Ton) Short Tons Silver Gold Silver Gold Proven Reserves Rochester 89,077, ,786, ,000 San Bartolomé 1,206, ,287,000 Kensington 417, ,000 Endeavor 1,323, ,411,000 Palmarejo 1,942, ,254, ,000 La Preciosa 18,830, ,534, ,000 Total Proven Reserves 112,795, ,272, ,000 Probable Reserves Rochester 56,158, ,418, ,000 San Bartolomé 13,337, ,724,000 Kensington 2,986, ,000 Endeavor 1,102, ,469,000 Palmarejo 9,107, ,786, ,000 La Preciosa 21,851, ,196,000 91,000 Total Probable Reserves 104,541, ,593,000 1,575,000 Proven and Probable Reserves Rochester 145,235, ,204, ,000 San Bartolomé 14,543, ,011,000 Kensington 3,403, ,000 Endeavor 2,425, ,880,000 Palmarejo 11,049, ,040, ,000 La Preciosa 40,681, ,730, ,000 Total Proven and Probable Reserves 217,336, ,865,000 2,225,000 5

6 Total Coeur Measured and Indicated Resources (Excluding Proven and Probable Reserves) Grade (Oz/Ton) Short Tons Silver Gold Silver Gold Measured Resources Rochester 72,228, ,565, ,000 Martha San Bartolomé Kensington 181, ,000 Endeavor 7,716, ,625,000 Palmarejo 184, ,000 6,000 Joaquin 4,709, ,966,000 15,000 La Preciosa 2,305, ,216,000 7,000 Total Measured Resources 87,323, ,954, ,000 Indicated Resources Rochester 100,973, ,476, ,000 Martha 57, ,000 1,000 San Bartolomé 7,033, ,445,000 Kensington 1,385, ,000 Endeavor 5,181, ,375,000 Palmarejo 3,985, ,381, ,000 Joaquin 6,842, ,110,000 25,000 Lejano 631, ,952,000 7,000 La Preciosa 4,808, ,389,000 17,000 Total Indicated Resources 130,895, ,903, ,000 Measured and Indicated Resources Rochester 173,201, ,041, ,000 Martha 57, ,000 1,000 San Bartolomé 7,033, ,445,000 Kensington 1,566, ,000 Endeavor 12,897, ,000,000 Palmarejo 4,169, ,964, ,000 Joaquin 11,551, ,076,000 40,000 Lejano 631, ,952,000 7,000 La Preciosa 7,114, ,605,000 24,000 Total Measured and Indicated Resources 218,219, ,858,000 1,249,000 6

7 Total Coeur Inferred Resources Grade (Oz/Ton) Short Tons Silver Gold Silver Gold Inferred Resources Rochester 96,039, ,789, ,000 Martha 204, ,000 1,000 San Bartolomé 66, ,000 Kensington 1,622, ,000 Endeavor 661, ,103,000 Palmarejo 3,040, ,131, ,000 Joaquin 720, ,873,000 2,000 Lejano 702, ,972,000 7,000 La Preciosa 1,344, ,657,000 5,000 Total Inferred Resources 104,398, ,605,000 1,166,000 Notes to the above mineral reserves and resources: 1. Effective December 31, 2014 except the Independencia deposit at Palmarejo, effective April 23, 2015, and Endeavor, effective June 30, Guadalupe reserves and resources adjusted April 23, Assumed metal prices for estimated mineral reserves were $19.00 per ounce of silver and $1,275 per ounce of gold, except Endeavor, at $2,200 per metric ton of lead, $2,400 per metric ton of zinc, and $20.00 per ounce of silver. Assumed metal prices for mineral resources were $22.00 per ounce of silver and $1,350 per ounce of gold, except for Endeavor, at $2,200 per metric ton of lead, $2,400 per metric ton of zinc and $20.00 per ounce of silver. 3. Palmarejo mineral reserves and resources are the addition of Palmarejo, Guadalupe, and Independencia deposits (measured, indicated, and inferred). There are no mineral reserves and resources for La Patria. Mineral resources are in addition to mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be realized. 4. Rounding of tons and ounces, as required by reporting guidelines, may result in apparent differences between tons, grade, and contained metal content. 5. For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the mineral resources and reserves, Canadian investors should refer to the NI compliant Technical Report for Coeur's properties on file at and the Technical Report for Palmarejo to be filed at during the second quarter of Conversion Table 1 short ton = metric tons 1 troy ounce = grams Guadalupe Resource Discovery Drill Results: October 2014 March 2015 Mineralized Interval (Feet) Hole From To Thickness Estimated True Thickness Guadalupe Center Gold Assays (Oz/short ton) Silver Assays (Oz/short ton) DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC

8 DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC

9 DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC

10 DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC DC3-GC Notes to the above drill results: 1. Drill intercepts full and half HQ and NQ core for infill holes, samples prepared at Guadalupe Mine, Guadalupe, CHI, and at ALS-Chemex Labs, Chihuahua, CHI with final sample preparation to pulp and analyses at ALS-Chemex Labs, Chihuahua, CHI. 2. Samples were analyzed by 30 gram fire assay with atomic absorption finish for Au <1 ppm or by 1000 gram Metallic Screen. 3. Drill intercepts calculated at 0.05 oz/ton Au. Maximum of 5 feet of internal dilution (less than cutoff) permitted in compositing. "Including" calculated at 0.15 cut-off grade. 4. All assays uncapped. 5. Assays not yet received for holes DC3-CG-0030 through