Palmarejo and Kensington Exploration Update

Transcription

1 Palmarejo and Kensington Exploration Update December 13,

2 Cautionary Statements This presentation contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding exploration and development efforts and plans, exploration expenditures, drill results, production, growth, extended mine lives, investments, cash flow, future projects and mine expansion plans, resource delineation, expansion, upgrade, or conversion, and timing of publication of technical reports. 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 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 forwardlooking 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 , approved the scientific and technical information concerning Coeur's mineral projects in this presentation. 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 Select drill results highlights are included in this presentation. For a complete table of all drill results at Palmarejo and Kensington, please refer to the following link: Notes 1. 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. 2. Analytical testing for drill core samples from Palmarejo was completed by ALS Minerals on location in Chihuahua, Chihuahua, Mexico and Vancouver, British Columbia, Canada. Analyses for gold were completed by fire assay with an inductively coupled plasma ( ICP ) finish. Over limits were completed by fire assay with a gravimetric finish. Analyses for silver were completed by four-acid digestion with an ICP finish. Over limits were completed by fire assay with a gravimetric finish. 3. Analytical testing for drill core samples from Kensington was completed by Bureau Veritas on location in Juneau, Alaska, U.S. and Vancouver, British Columbia, Canada. Analyses for gold were completed by fire assay with an atomic absorption finish. Over limits were completed by fire assay with a gravimetric finish. Met screen testing was utilized in the presence of coarse gold. 2

3 Palmarejo and Kensington Exploration Overview Expanded Palmarejo and Kensington exploration program objectives: 1. Discovering and delineating resources 2. Upgrading resources to extend mine life Kensington Since the second half of 2016, exploration investment levels at Palmarejo have increased 88% while Kensington s have nearly tripled Palmarejo Companywide Exploration Investment ($M) $14.9 3Q 2017 YTD Exploration Investment Expensed Capitalized $6.2 $7.6 $12.2 $7.5 $ % Expensed $22.9M 41% 27% Capitalized $10.2M 25% $2.8 1Q 2Q 3Q 4Q 1Q 2Q 3Q % 48% Palmarejo Kensington Other 3

4 Palmarejo Validates Near-Mine Exploration Philosophy Exploration at Palmarejo has generated multiple new, high-grade discoveries near existing infrastructure Drilling activity targeted: Resource conversion and expansion at Guadalupe and Independencia Nación-Dana, which requires no additional permitting or access, and La Bavisa Considerable portions of both veins are not subject to Palmarejo s stream agreement Defining newly-discovered veins, which 2018 drilling is expected to prioritize: Zapata, Madero, and La Antena, west of Guadalupe Portales and Jacobo, east of Guadalupe Hidalgo and Reforma, north of Independencia First holes into three new targets 4

5 Results Reflect Prioritization of Mine Life Extension Highlights: Indicated resources identified in northern portion of Nación-Dana Preliminary mine planning underway Total strike length, including the southern portion, extends over 4,000 ft (1,200 m) Initial resource estimate from La Bavisa expected at year-end Intercepts indicate grade and thickness comparable to Independencia Drill results from the newlydiscovered Zapata vein, less than 500 ft west of the Guadalupe mine, are expected to support an initial resource estimate at year-end Note: For complete drill results, please 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. 5

6 Palmarejo: NW Section View with Intercepts Note: For complete drill results, please 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. 6

7 Kensington Exploration Targets High-Grade Areas Drilling at Kensington has remained focused on both upgrading resources and expanding high-grade areas Drilling activity targeted: Resource expansion in deeper zones of Kensington Main Continued indication of expansion from Block M and L intercepts Upgrade and expansion of the Jualin resource Inclusion of a Jualin reserve estimate is expected in Kensington s technical report anticipated 1Q 2018 Expansion of the Raven vein, where high-grade narrow-vein mining continues to augment Kensington s overall production 7

8 Kensington: Plan View with Intercepts Note: For complete drill results, please 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. 8

9 Kensington Main: NW Section View with Intercepts Note: For complete drill results, please 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. 9

10 Jualin: NW Section View with Intercepts Note: For complete drill results, please 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. 10

11 Jualin: SW Section of Vein #4 with Jualin Intercepts Note: For complete drill results, please 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. 11

12 Overview of Select Growth Investments Silvertip Kensington Rockhaven Resources Ltd. Klaza Project (Yukon, Canada) Renaissance Gold Inc. Exploration Alliance Agreement (Nevada, USA) Wharf Rochester Corvus Gold Inc. North Bullfrog & Mother Lode Projects (Nevada, USA) Palmarejo Northern Empire Resources Corp. Sterling Property (Nevada, USA) Aztec Minerals Corp. Cervantes Gold Project (Sonora, Mexico) San Bartolomé 12

13 Looking Ahead Exploration Palmarejo s year-end reserve and resource statement expected to reflect: Initial reserve estimate at Nación-Dana Initial resource estimate at La Bavisa and Zapata Kensington year-end reserve and resource statement to reflect 2017 depletion only Updated reserve and resource statement and technical report anticipated late 1Q exploration program Total spend expected to be comparable to 2017E levels ($32-36M expensed, $15M capitalized) and significantly higher than in 2016 ($12.9M expensed, $15.9M capitalized) Palmarejo priorities include: Continued expansion of Nación-Dana, Zapata, and La Bavisa Initial resource estimates at new Madero, Antena, Portales, Jacobo, Hidalgo, and Reforma discoveries Kensington priorities: Infill drilling at Kensington Zone 30 and expansion drilling at Jualin and Kensington Block L Silvertip priorities: Infill drilling and resource conversion to support first mine plan Other priorities: In-pit resource conversion at Rochester and Wharf Earlier-stage exploration targeting properties with synergies with existing operations Continuing to provide strategic and technical supervision to its growth investments across the U.S., Canada, and Mexico 13

14 Appendix 14

15 Reserves and Resources 2016 Proven and Probable Mineral Reserves Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Proven Reserves Palmarejo Mexico 1,569, ,971, ,000 Rochester Nevada, USA 143,686, ,369, ,000 Kensington Alaska, USA 1,133, ,000 Wharf South Dakota, USA 9,453, ,000 San Bartolomé Bolivia 5,563, ,485,000 - Total Proven Reserves 161,404, ,000 1,143,000 Probable Reserves Palmarejo Mexico 7,174, ,847, ,000 Rochester Nevada, USA 101,118, ,676, ,000 Kensington Alaska, USA 1,483, ,000 Wharf South Dakota, USA 15,581, ,000 San Bartolomé Bolivia 765, ,659,000 - Total Probable Reserves 126,121, ,182,000 1,388,000 Proven and Probable Reserves Palmarejo Mexico 8,742, ,818, ,000 Rochester Nevada, USA 244,804, ,045, ,000 Kensington Alaska, USA 2,616, ,000 Wharf South Dakota, USA 25,034, ,000 San Bartolomé Bolivia 6,328, ,144,000 - Total Proven and Probable Reserves 287,524, ,007,000 2,531,000 15

16 Reserves and Resources (cont.) 2016 Measured and Indicated Mineral Resources (excluding Reserves) Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Measured Resources Palmarejo Mexico 818, ,618,000 50,000 Rochester Nevada, USA 39,732, ,281, ,000 Kensington Alaska, USA 1,297, ,000 Wharf South Dakota, USA 2,195, ,000 San Bartolomé Bolivia 1,575, ,466,000 - La Preciosa Mexico 18,156, ,225, ,000 Total Measured Resources 63,773, ,590, ,000 Indicated Resources Palmarejo Mexico 4,082, ,647, ,000 Rochester Nevada, USA 29,729, ,652, ,000 Kensington Alaska, USA 1,828, ,000 Wharf South Dakota, USA 2,719, ,000 San Bartolomé Bolivia 286, ,000 - La Preciosa Mexico 20,818, ,198,000 88,000 Total Indicated Resources 59,462, ,061, ,000 Measured and Indicated Resources Palmarejo Mexico 4,900, ,265, ,000 Rochester Nevada, USA 69,461, ,933, ,000 Kensington Alaska, USA 3,125, ,000 Wharf South Dakota, USA 4,914, ,000 San Bartolomé Bolivia 1,861, ,030,000 - La Preciosa Mexico 38,974, ,423, ,000 Total Measured and Indicated Resources 123,235, ,651,000 1,671,000 16

17 Reserves and Resources (cont.) 2016 Inferred Mineral Resources Grade (oz/ton) Ounces (contained) Location Short tons Silver Gold Silver Gold Inferred Resources Palmarejo Mexico 4,726, ,540, ,000 Rochester Nevada, USA 67,778, ,554, ,000 Kensington Alaska, USA 1,579, ,000 Wharf South Dakota, USA 4,231, ,000 San Bartolomé Bolivia 22, ,000 - La Preciosa Mexico 1,359, ,168,000 5,000 Total Inferred Resources 79,695, ,304, ,000 Notes to 2016 mineral reserves and resources: (a) Effective December 31, (b) Assumed metal prices for Mineral Reserves were $17.50 per ounce of silver and $1,250 per ounce of gold. (c) Assumed metal prices for estimated Mineral Resources were $19.00 per ounce of silver and $1,275 per ounce of gold, except Endeavor at $1,800 per metric ton of lead, $2,200 per metric ton of zinc, and $20.00 per ounce of silver. (d) Mineral Resources are in addition to Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered toospeculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of Mineral Reserves, and there isno certainty that the Inferred Mineral Resources will be realized. The preliminary economic assessment for the re-scoped mine plan at Kensington is preliminary in nature and includes Inferred Mineral Resources, and does not have as high a level of certainty as a plan that was based solely on proven and probable reserves and thereis no certainty that the results from the preliminary economic assessment will be realized. (e) Rounding of tons and ounces, as required by reporting guidelines, may result in apparent differences between tons, grade, and contained metal content. (f) For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI Technical Reports for Coeur's properties on file at (g) Joaquin, Endeavor, and Lejano removed following their respective sales on February 10, 2017, July 31, 2017, and August 4,

18 Reserves and Resources (cont.) Silvertip Resource Estimates Tonnage Silver Zinc Lead Silver Equivalent tonnes tons g/t oz/t % % g/t oz/t Indicated 2,349,000 2,589, , Inferred 460, , , Notes to the Silvertip mineral resource estimates: (a) For purposes of silver equivalence, metals prices of US$1,250/oz gold, US$17.50/oz silver, US$1.13/lb lead, and US$1.40/lb zinc were used. (b) Effective September 11, (c) CIM definitions were followed for mineral resources. (d) 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 isno certainty that the inferred mineral resources will be realized. (e) Cut-off grade of 200 g/t AgEq was used for the calculation of the resource. (f) Rounding of tons and ounces, as required by reporting guidelines, may result in apparent differences between tons, grade, and contained metal content. (g) As described in this presentation and in the initial mine plan on Slide 19, the preliminary economic analysis set forth in this presentation is subject to obtaining an amended permit allowing for a mining rate of 1,000 tonnes per day on a year-round basis. 18

19 Contact Information Corporate Office Coeur Mining, Inc. 104 S. Michigan Ave., Suite 900 Chicago, IL Main Telephone +1 (312) Stock Ticker Website Contact CDE: NYSE Courtney R. B. Lynn VP, Investor Relations & Treasurer 19