Coeur Mining Updates Mine Plan for Palmarejo

Coeur Mining Inc. (NYSE:CDE) announced an “updated and re-scoped” mine plan and preliminary economic assessment for its Mexico-based Palmarejo silver and gold mine.

The new plan “reflects the mine’s transition to a lower tonnage, higher-grade, higher-margin underground operation prioritizing cash flow over production ounces.”

Highlights include:

• Guadalupe underground expected to become Palmarejo’s primary ore source by 2016
• Material increase in overall grades compared to prior years
• Palmarejo open pit life extended through mid-2015 based on current metals prices and known reserves
• Ongoing exploration initiative expected to identify new resources and continue converting a significant portion of existing resources into reserves

Mitchell J. Krebs, president and CEO of Coeur, commented:

This updated outlook for Palmarejo is based on year-end 2013 reserves and resources that we believe are economic based on prices of $20 per ounce for silver and $1,300 per ounce for gold. It demonstrates our commitment to prioritizing higher-quality, higher-margin ounces versus seeking to maximize the quantity of production ounces. It also demonstrates the significance of Guadalupe to Palmarejo’s future, which is why our recent decision to place Guadalupe into production next year was so important. In addition, the modified economics of the recently announced new gold stream agreement with Franco-Nevada will help boost Palmarejo’s future cash flow profile.

This plan includes a small percentage of overall reserves and no resources other than 1.7 million tons of inferred resources that are included in the updated Guadalupe plan. This represents a solid base from which we expect to expand and improve our operations over time. We are confident we will further add to Palmarejo’s mine life through ongoing exploration activities focused on adding higher-grade, higher-margin underground material.

Click here to read the full Coeur Mining Inc. (NYSE:CDE) press release.