Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) provided an update on encouraging results from its expanded Palmarejo and Kensington exploration programs. The primary objectives of these recently accelerated programs are to (i) discover and delineate additional adjacent, high-grade resources near current operations and (ii) upgrade higher-grade resources to reserves to extend mine life. Drilling at these two properties comprised approximately two-thirds of the Company’s total year-to-date (through September 30, 2017) exploration expense of $22.4 million ($15.0 million expensed, $7.4 million capitalized).
Since the second half of 2016, exploration levels at Palmarejo have increased 88% while Kensington’s exploration expenditures have nearly tripled.
“Given the high relative success rates of near-mine drilling at deposits with significant untapped potential like Palmarejo and Kensington, we believe allocating higher levels of capital to exploration at these two operations makes strong strategic sense. Both of these properties have been historically under-drilled and we are generating new discoveries and positive results after only eighteen months of funding these higher levels of investment,” said Mitchell J. Krebs, Coeur’s President and Chief Executive Officer. “At Palmarejo, we have made seven new, high-grade discoveries located near existing underground infrastructure. At Kensington, we are working to expand higher-grade areas such as Jualin and Raven that have the potential to yield higher margin production and cash flow. At both operations, we see excellent potential to meaningfully expand and upgrade our resource base over the next several years and, as a result, expect to maintain these elevated exploration investment levels.”