PALMAREJO
On November 4th, 2009, Coeur announced an approximately 40% increase in silver and gold reserves at Palmarejo to a total of 88.6 million ounces of silver and 1.1 million ounces of gold, based on its ongoing drilling at the nearby Guadalupe deposit.
The 25.8 million ounces of new silver reserves and 315,000 ounces of new gold reserves represent the initial underground ore reserves at Guadalupe, located approximately 6 kilometers southeast of the current Palmarejo mine and processing facilities. The Company plans to continue drilling at Guadalupe and anticipates commencement of underground development of Guadalupe’s reserves in 2010. Ore from Guadalupe would then be expected to begin contributing to Palmarejo’s silver and gold production in 2011. At the Palmarejo project there were 63.6 million ounces of silver reserves and 756,000 ounces of gold reserves reported at the beginning of this year.
“We are very pleased with the reserve development at the Guadalupe deposit, which demonstrates our commitment to growing the overall mineral reserves in the expanding Palmarejo District,” said Don Birak, Coeur’s Senior Vice President of Exploration. “The Guadalupe vein system is now over 2.1 kilometers long and remains open along strike to the north and at depth. We are currently drilling on the Guadalupe structure between the Las Animas and Guadalupe Sur zones or clavos, where there is excellent potential to expand resources and reserves. This area, along with other targets near Guadalupe, will continue to be the focus of our aggressive drilling program into 2010.”
The entire Palmarejo District is held in 46.9 square miles, with multiple trends and targets. Guadalupe and Chapotillo – one of five zones within the immediate Palmarejo mine – have been the main areas of focus for drilling in 2009, with over 18,000 meters of core drilling through September of this year.
The full budget for Mexico exploration in 2009 is $8.2 million, of which over 90% will be devoted to the Palmarejo District including La Currita.
UCurrent Proven and Probable Reserves
|
Classification |
Tonnes |
Average Grade (g/t) |
Contained Ounces |
||
|
Au |
Ag |
Au |
Ag |
||
|
Palmarejo |
|||||
|
Proven |
6,122,500 |
2.05 |
174.3 |
404,400 |
34,318,000 |
|
Probable |
4,806,000 |
2.27 |
184.0 |
350,000 |
28,432,000 |
|
Subtotal |
10,928,500 |
2.15 |
178.6 |
754,400 |
62,750,000 |
|
Guadalupe |
|||||
|
Proven |
657,000 |
1.91 |
183.3 |
40,400 |
3,872,300 |
|
Probable |
4,314,200 |
1.98 |
158.3 |
274,800 |
21,961,400 |
|
Subtotal |
4,971,200 |
1.97 |
161.6 |
315,200 |
25,833,700 |
|
Proven + Probable |
15,899,700 |
2.09 |
173.3 |
1,069,600 |
88,583,700 |
Palmarejo effective January 1, 2009 at $750 Au and $13.25 Ag. Guadalupe effective November 4, 2009 at $800 Au ounce and $14 Ag
Guadalupe: AuEq (equivalent) = Au g/t + (Ag g/t/57).AuEq Cutoff for reserves = (mining $ per tonne + processing $ per tonne + transportation $ per tonne + G&A $ per tonne)/(((gold $ per ounce-refining cost per ounce)/31.103)*% recovery Au* %payable Au).
