Coeur Mining announced the discovery of new high-grade silver-gold mineralization at the Palmarejo Complex in Mexico. The latest drill results located from an 800-m wide corridor between Guadalupe and Independencia projects demonstrate the highest grades and widest intercepts observed to date and compare favorably to the current average silver and gold reserve grades of 4.9 ounces per metric ton (oz/mt) and 0.075 oz/mt, respectively, at Palmarejo.
The results from the newly discovered Nación zone are located approximately 300 m south of existing Independencia underground development and approximately 500 m east of Guadalupe, with grade, thickness, and host rock similar to Independencia. The results at Los Bancos are concentrated in an area approximately 250 to 750 m north of the twin declines currently being driven from Guadalupe to Independencia.
“These high-grade discoveries are the result of a focused program to map and drill known mineralized structures along a structural corridor between the Guadalupe mine and the Independencia deposit,” said Hans Rasmussen, Coeur vice president of exploration. “As we have found with Independencia, silver-gold mineralization at Nación and Los Bancos is concentrated within a 200- to 300-m vertical elevation. We are optimistic that our new geologic models and discoveries along with the assimilation of the new geologic team from our acquisition of Paramount Gold and Silver Corp. in April will contribute to the discovery of further high-grade veins both with in the corridor and along extensions of known deposits like Independencia and Guadalupe.”
Frank Hanagarne, Coeur senior vice president and COO, said, “The high-grade results from deeper portions of Guadalupe are located below existing development and represent an excellent near-term opportunity to further enhance the grade and cost profile of the operation. The new Nación discovery as well as LosBancos have the potential to become additional sources of nearby, high-grade ore in 2017 and beyond assuming continued drilling success, resource modeling, and applied mine engineering.”
Given recent positive exploration results, Coeur’s 2016 exploration program in the Palmarejo Complex is anticipated to be about $5 million for expensed drilling and $4 million for capitalized drilling.