Coeur Mining Inc (NYSE:CDE) issued an update on promising results from its expanded Kensington and Palmarejo exploration programs. The main objectives of these recently supported programs are to delineate and discover additional adjacent, top-grade resources close to current operations and upgrade premium grade resources to reserves to increase mine life.
Drilling at these two assets constituted around two-thirds of the Coeur Mining’s total year-to-date, through September 30, 2017, exploration expense of $22.4 million. Since the 2H2016, exploration levels at company’s Palmarejo have surged 88% while exploration expenditures at Kensington have almost tripled.
Mitchell J. Krebs, the CEO and President of Coeur, reported that provided the relatively high success rates of near-mine drilling activities at deposits with considerable untapped potential like Kensington and Palmarejo, they consider allocating higher levels of funds to exploration at these two exploration operations makes immense strategic sense.
Both of these assets have been under-drilled and they are recording new discoveries and promising results after just 18 months of funding these top levels of investment. At Palmarejo, they have recorded seven new, premium-grade discoveries based near current underground infrastructure. At Kensington, they are working to increase higher-grade regions such as Raven and Jualin that possesses the potential to post higher cash flow and margin production. At both operations, they see remarkable potential to considerably expand and upgrade their resource base over the imminent years and, as a result, project to maintain these increased exploration investment levels.
Coeur Mining is a well-diversified, expanding precious metals manufacturer with six mines in the U.S. engaging around 2,300 people. The company’s wholly-owned businesses comprise the Palmarejo silver-gold complex, the Silvertip silver-lead-zinc mine, the Rochester gold-silver mine, the Kensington gold mine, the Wharf gold mine and the San Bartolomé silver mine. Moreover, the firm owns the La Preciosa assignment in Mexico, a gold-silver exploration stage project.