Coeur Discovers High-Grade Mineralization at Kensington

CHICAGO, Oct. 6, 2014 (GLOBE NEWSWIRE) -- Coeur Mining, Inc. ("Coeur" or the "Company") (NYSE:CDE) announced high-grade drill results today from its Kensington gold mine in Alaska, including at the nearby Jualin zone.

Coeur expects to complete a new resource estimate for Kensington to incorporate these results by year-end 2014 and anticipates releasing a new mine plan in early 2015. The new mine plan is expected to reflect higher-grade production, lower unit costs, and higher cash flow over the life of the mine.

Highlights

Kensington:

• Drilling has encountered high-grade gold in Kensington South (Zones 10 and 20) immediately beneath current production areas, 100 to 200 feet away from current mine development
• Several holes have returned grades greater than 1.0 oz/ton gold
• Grade and thickness of mineralization is improving at depth and to the southern portion of the ore body. The zones are open in all directions

Jualin:

• Drilling activity in Jualin Veins 4 and 5 has encountered several multi-ounce gold intercepts
• Underground development at Jualin is planned for 2015 and production from Vein 4 is expected to begin in 2017. Vein 4 is open in all directions

"The renewed focus of our drilling program at Kensington has discovered high-grade mineralization to enhance the economics of the mine, resulting in a considerable number of drill holes containing multi-ounce gold intercepts," said Hans Rasmussen, Coeur's Vice President, Exploration.

Frank Hanagarne, Coeur's Senior Vice President and Chief Operating Officer, said, "Operating consistency has improved at Kensington in the past two years, which has allowed us to increase our effort on exploration and long-term planning. The discovery at Jualin has the potential to significantly boost production grades, reduce unit costs, and increase free cash flow."

At December 31, 2013, Kensington estimated proven and probable reserves totaled 6.0 million tons at an average grade of 0.15 oz/ton containing 902,000 ounces of gold. Coeur expects to spend a total of $9.1 million for exploration at Kensington in 2014, including $1.7 million in capitalized drilling. This is $3.0 million higher than the initial budget, reflecting Coeur's success-based approach to funding exploration.

Jualin Vein 4 remains open at depth and to the north towards Kensington, reaching within 300 feet beneath the Jualin portal, which is near current mine infrastructure. Permitting is underway for underground development at Jualin to provide access to underground drill stations. Drilling in Vein 4 is expected to continue in 2015 and 2016 with initial production expected in 2017. Once underground development has advanced, drilling is expected to also focus on further delineation of Vein 5, which has been encountered only 500 feet beneath Vein 4.

Zones 10 and 20 of Kensington South, located just 100-200 feet away from current mine development, are expected to be further drilled and developed over the next year and bring additional high-grade production into the mine plan beginning in 2016.

About Coeur

Coeur Mining is the largest U.S.-based primary silver producer and a significant gold producer with four precious metals mines in the Americas employing nearly 2,000 people. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to net smelter royalties on the Cerro Bayo mine in Chile, the El Gallo complex in Mexico, and the Zaruma mine in Ecuador. In addition, the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic investment positions in several silver and gold development companies with projects in North and South America.

Cautionary Statement

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding exploration results and anticipated results from planned future exploration activities, reserves and resources, mine plans, grades, unit costs, cash flow, development, and production. 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 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 ore reserves, changes that could result from Coeur's future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves and the absence of control over mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, 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 and 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 forward-looking 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.

W. David Tyler, Coeur's Vice President, Technical Services and a qualified person under Canadian National Instrument 43-101, supervised the preparation of the scientific and technical information concerning Coeur's mineral projects in this news release. 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 is no certainty that the inferred mineral resources will be realized. 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, please refer to the NI 43-101-compliant Technical Report for Kensington dated January 1, 2013 and filed February 28, 2013 on www.sedar.com.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in public disclosures, such as "measured," "indicated," "inferred" and "resources," that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at www.sec.gov.

Appendix

Notes:  

1. Drill intercepts from 5,064 assays from full and half HQ and NQ core for infill holes, samples prepared at Kensington Mine, Juneau, AK, and at ALS-Chemex Labs, Reno, NV with final sample preparation to pulp and analyses at ALS-Chemex Labs, Reno, NV.
2. Samples were analyzed by 30 gram fire assay with atomic absorption finish for Au <1 ppm or by 1000 gram Metallic Screen.
3. Drill intercepts calculated at 0.05 oz/ton Au. Maximum of 5 feet of internal dilution (less than cutoff) permitted in compositing. "Including" calculated at 0.15 cut-off grade.
4. All assays uncapped.
5. External QA/QC checks performed at ALS-Chemex Labs, Reno, NV consisting of 299 duplicates and 313 standards and 313 blanks.
6. External QA/QC checks were sent during June 2014. 

Notes:                   

1. Drill intercepts from 1,057 assays from full and half HQ and NQ core for infill holes, samples prepared at Kensington Mine, Juneau, AK, and at ALS-Chemex Labs, Reno, NV with final sample preparation to pulp and analyses at ALS-Chemex Labs, Reno, NV.
2. Samples were analyzed by 30 gram fire assay with atomic absorption finish for Au <1 ppm or by 1000 gram Metallic Screen.
3. Drill intercepts calculated at 0.05 oz/ton Au. Maximum of 5 feet of internal dilution (less than cutoff) permitted in compositing. "Including" calculated at 0.15 cut-off grade.
4. All assays uncapped.
5. External QA/QC checks performed at ALS-Chemex Labs, Reno, NV consisting of 63 duplicates and 72 standards and 64 blanks.
6. External QA/QC checks were sent during June 2014.