Coeur Reports 2014 Silver Equivalent Production of 8 Million Ounces

Coeur Mining Inc. (NYSE:CDE) announced preliminary Q1 production numbers, noting that it put out 3.8 million ounces of silver and 69,734 ounces of gold during the quarter. That amounts to 8 million silver equivalent ounces.

Palmarejo highlights include:

• Production at Palmarejo continues to transition to underground mining at the Guadalupe mine and – beginning in 2016 – the Independencia mine while mining activities in the historic zones are gradually reduced. Open-pit operations are expected to end in the second quarter of 2015 and underground mining at the legacy zones is expected to end by January 2016.
• Underground mining from Guadalupe continues to accelerate and is on track to reach 1,500 tons per day in the third quarter.
• Development continues on the 1,000 meter decline to the high-grade Independencia deposit, which combines Paramount Gold and Silver Corp.’s Don Ese deposit with Coeur’s Independencia structure.
• Closing of the previously announced acquisition of Paramount Gold and Silver Corp. is expected to occur on April 17, 2015.
• The oxide ore bypass in the process plant is expected to be fully implemented during the second quarter and lead to higher recovery rates. Recovery rates for both silver and gold were slightly lower during the first quarter due to a higher proportion of oxide ore from open pit mining.

In terms of Rochester, Kensington, San Bartolome, Wharf and Endeavour, the company said:

• Silver equivalent production decreased 7% compared to the fourth quarter at Rochester but remains significantly higher than the first three quarters of 2014. The average silver grade increased 23% compared to the fourth quarter.
• Silver equivalent production is expected to increase by 15% – 30% in 2015 compared to 2014.

• Higher head grades offset lower throughput at Kensington in the first quarter, generating strong production in line with fourth quarter performance.
• Coeur anticipates releasing a new mine plan at Kensington in April 2015, which is expected to reflect higher-grade, higher-margin production over the life of the mine.

• First quarter production at San Bartolomé was affected by maintenance downtime and heavy rain, which resulted in processing a higher proportion of lower-grade stockpiled ore.
• Full-year 2015 production, grade, and recovery rates are expected to be similar to 2014 levels.

• First quarter operating results at Wharf represent production since the acquisition closed on February 20, 2015.

• Silver production received from the Company’s silver stream from the Endeavor mine in Australia decreased by 30% in the first quarter.

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