Coeur Mining, a US company that operates the Palmarejo mine in Chihuahua, has planned to increase its investment in mineral exploration in Mexico.
In 2021, the company expects to spend between $ 8.5 million and $ 9.5 million in expansion drilling expenses focused on the discovery and expansion of the three zones of mineralization.
These are the portions of the Independencia deposit; the Hidalgo area located northwest of the Independencia deposit; the La Bavisa vein located approximately 2000 feet (600 meters) east-northeast of the Independencia deposit.
It also comprises several new targets that have been identified by your geological team north of the La Prieta/La Blanca deposits.
In addition, Coeur Mining is planning between $ 4.6 million and $ 5.6 million of infill resource conversion drilling in various areas of the Guadalupe and Independencia deposits.
In 2020, the company recorded exploration expenses of $ 7.0 million, related to mapping, sampling, generating drill targets and drilling new silver-gold mineralization (131,100 feet or 39,950 meters).
Earlier in 2019, Coeur Mining incurred exploration expenses of $ 5.6 million.
The Palmarejo complex is operated by its wholly owned subsidiary, Coeur Mexicana.
This consists of:
- Palmarejo processing plant.
- Guadalupe underground mine, located about eight kilometers southeast of the Palmarejo mine.
- Independencia underground mine, located approximately 800 meters northeast of the Guadalupe underground mine.
- The La Nación underground mine, located adjacent to the Independencia underground mine.
- Other deposits and exploration targets nearby.
Access to the property is provided by air, rail, and all-weather paved and gravel roads from the state capital of Chihuahua.
The Palmarejo complex consists of 71 wholly owned mining concessions, covering approximately 67,296 acres (27,233 hectares) of land.
In total, the Palmarejo complex covers more than 105 square miles.
All mining concessions owned by Coeur Mexicana are valid until at least 2029.
A part of the Palmarejo complex is subject to a gold flow agreement with a subsidiary of Franco-Nevada Corporation, according to which Coeur Mexicana sells 50% of the applicable gold production for the lesser of $ 800 or cash price for ounce.