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Coeur Mining, Inc. ("Coeur" or the "Company") CDE, +0.58% announced the discovery of new high-grade silver-gold mineralization at the Palmarejo Complex in Mexico, including at Guadalupe, at Independencia, and at the Nación and Los Bancos zones, which are located in the 800 meter wide corridor between Guadalupe and Independencia. The latest drill results at Guadalupe demonstrate the highest grades and widest intercepts observed to date and compare favorably to the current average silver and gold reserve grades of 4.90 oz/t and 0.075 oz/t, respectively, at Palmarejo. 

The results from the newly-discovered Nación zone are located approximately 300 meters south of existing Independencia underground development and approximately 500 meters east of Guadalupe, with grade, thickness, and host rock similar to Independencia. The results at Los Bancos are concentrated in an area approximately 250-750 meters north of the twin declines currently being driven from Guadalupe to Independencia.

Guadalupe Infill Drilling Highlights1:

  • Hole DC3-GC-0030: 22.6 feet averaging 6.46 oz/t of silver and 0.12 oz/t of gold
  • Hole DC3-GC-0033: 12.7 feet averaging 11.98 oz/t of silver and 0.13 oz/t of gold
  • Hole DC3-GC-0035: 22.1 feet averaging 5.76 oz/t of silver and 0.12 oz/t of gold
  • Hole DC3-GC-0037: 28.54 feet averaging 36.23 oz/t of silver and 0.62 oz/t of gold, including 3.61 feet averaging 212.1 oz/t silver and 3.44 oz/t gold 
     

Independencia Oeste Step-Out Drilling Highlights1:

  • Hole DC3-IND-0001: 21.5 feet averaging 22.3 oz/t of silver and 0.31 oz/t of gold, including 3.3 feet averaging 58.0 oz/t silver and 0.88 oz/t gold 
     

Nación Step-Out Drilling Highlights1:

  • Hole LBDH_083: 30 feet averaging 11.5 oz/ton of silver and 0.16 oz/t of gold, including 16.2 feet averaging 18.3 oz/t of silver and 0.30 oz/t of gold
  • Hole LBDH_080: 17.4 feet averaging 15.7 oz/t of silver and 0.13 oz/t of gold, including 6.8 feet averaging 25.9 oz/t of silver and 0.26 oz/t of gold
  • Hole LBDH_050: 31.4 feet averaging 5.6 oz/t of silver and 0.17 oz/t of gold, including 8.7 feet averaging 13.9 oz/t of silver and 0.47 oz/t of gold 
     

Los Bancos Step-Out Drilling Highlights1:

  • Hole LBDH_058: 37.8 feet averaging 7.2 oz/t of silver and 0.03 oz/t of gold, including 8.8 feet averaging 13.0 oz/t of silver and 0.07 oz/t of gold
  • Hole LBDH_047: 26.0 feet averaging 4.5 oz/t of silver and 0.02 oz/t of gold, including 3.4 feet averaging 13.6 oz/t of silver and 0.06 oz/t of gold 
     

"These high-grade discoveries are the result of a focused program to map and drill known mineralized structures along a structural corridor between the Guadalupe mine and the Independencia deposit," said Hans Rasmussen, Coeur's Vice President of Exploration. "As we have found with Independencia, silver-gold mineralization at Nación and Los Bancos is concentrated within a 200-300 meter vertical elevation. We are optimistic that our new geologic models and discoveries along with the assimilation of the new geologic team from our acquisition of Paramount Gold and Silver Corp. in April will contribute to the discovery of further high-grade veins both within the corridor and along extensions of known deposits like Independencia and Guadalupe."

Frank Hanagarne, Coeur's Senior Vice President and Chief Operating Officer, said, "The high-grade results from deeper portions of Guadalupe are located below existing development and represent an excellent near-term opportunity to further enhance the grade and cost profile of the operation. The new Nación discovery as well as Los Bancos have the potential to become additional sources of nearby, high-grade ore in 2017 and beyond assuming continued drilling success, resource modeling, and applied mine engineering."

Guadalupe:

Deeper portions of the center of Guadalupe in areas referred to as Blocks C and D demonstrate the highest grades and the widest intercepts observed at Guadalupe to date, with the deepest drilling currently at Hole 37 in the central portion of Block C.

Guadalupe remains open at depth along the entire length of the deposit. Underground drifts are currently being developed to allow for additional drilling planned for early 2016 in a targeted effort to convert existing, high-grade resources to reserves and to grow the size of the resource at depth.

Independencia:

Coeur completed five surface drill holes at Independencia in July – September 2015 with the aim of upgrading the resource and growing the size of the deposit. This includes two drill holes at Independencia Este, which is not subject to the gold stream agreement with Franco-Nevada. Deeper drilling from underground in Independencia Oeste is planned for 2016.

Nación and Los Bancos:

Coeur also expects to complete a new resource estimate to incorporate the drill results at Nación and Los Bancos by the third quarter of 2016 with infill drilling along strike planned for 2016 to focus on both resource conversion and on expanding the size of the deposit. Nación currently extends 450 meters in length and remains open to the north and south along strike. Detailed drilling conducted at Los Bancos extends 200 meters in length. The structure remains open to the south along strike where it was cut by the Independencia tunnel.

Other:

Additional veins have also been identified for drill testing between the Independencia deposit and Guadalupe mine as well as east of Independencia Este. These include the La Bavisa vein where limited drilling conducted by Paramount Gold and Silver Corp. returned 40.0 feet of drilling thickness averaging 6.59 oz/t of silver and 0.04 oz/t of gold.

Given recent positive exploration results, Coeur's 2016 exploration program in the Palmarejo Complex is anticipated to be about $5 million for expensed drilling and $4 million for capitalized drilling. 
 

Palmarejo Mineral Reserves and Resources by Area
  Grade (oz/t) Ounces
 Short TonsSilverGold SilverGold
Underground Reserves:      
Guadalupe5,005,0004.490.071 22,456,000353,000
Independencia Oeste946,0005.160.096 4,882,00091,000
Independencia Este3,259,0005.530.078 18,026,000255,000
Palmarejo  64,0004.500.063 288,0004,000
Open-Pit Reserves:      
Palmarejo170,0003.580.029 609,0005,000
Total Proven and Probable Reserves9,444,0004.900.075 46,262,000707,000
Underground M&I Resources:      
Guadalupe5,592,0004.460.064 24,952,000360,000
Independencia Oeste283,0003.860.060 1,091,00017,000
Independencia Este421,0004.810.055 2,026,00023,000
Total Measured and Indicated Resources6,297,0004.460.064 28,069,000400,000
Underground Inferred Resources:      
Guadalupe479,0004.970.104 2,381,00050,000
Independencia Oeste169,0003.690.071 624,00012,000
Independencia Este1,011,0004.940.081 4,993,00082,000
Total Inferred Resources1,658,0004.820.087 7,998,000144,000
 

 

Original Article: http://www.marketwatch.com/story/coeur-discovers-new-high-grade-mineralization-at-palmarejo-2015-11-12

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