Pit Resource Expansion
Overview
Pit Resource Expansion Plan
Goals and Objectives
“Once you find ore, stay in it.”
Increase Nieves’ reported and assessed resource that can be mined using an open pit to plus 200,000,000 ounces of silver;
With an average reported silver ore grade of 85.05 g/t;
With a reported and assessed resource capable of hosting a open pit mine producing 5,000,000 -10,000,000 ounces of silver a year for 10-20 years
Goals and Objectives
Systematic drilling laterally along and within the 10km strike length of the three major braided vein systems and at depth in targeted veins with known mineralization: San Gregorio; California; Dolores; Orion; Nino and Santa Rita Veins.
Drill 300 core holes averaging 270 meters in depth on 100 meter centers, up to 100 drill holes west along the 10km California Vein System, up to 100 drill holes west along and within the 10km Concordia Vein System and up to 100 drill holes west along and within the 10km Santa Rita Vein System.
Number of holes in each vein system to be determined by drilling results.
Third Party Resource Report
Secure an update Form 43-101 PEA Technical Report upon assessing results of the Pit Resource Expansion Program.
Budget
$10,000,000 fully burdened
Timeline
12 months
Time Frame
January 1, 2020 – December 31, 2020
Case for Nieves’ Pit Resource Expansion Using Geophysical Data with Drilling
A detailed analysis of the geophysics data acquired to date has resulted in the identification of 21 interpreted vein targets (conductors) within the three known braided veins systems located within the eastern portion of the Property with an estimated cumulative length east to west of 185 km. To date, 10.7 km — less than 6% — have been tested with a drill.
Known Eastern Vein Systems From 2012 43-101 Technical Report
This image shows the eastern region of the Nieves property. The 2012 proposed pit is outlined in dark red.
Value Proposition Pit Resource Expansion
Value Proposition
| Expense | Cost in USD |
|---|---|
|
Funding Required for Pit Resource Expansion |
$ 10,000,000 |
|
Pit Valuation Pre-Pit Resource Expansion |
$ 103,500,000 |
|
Pit Valuation Post-Resource Expansion |
$ 300,000,000 |
|
Uplift |
$ 186,500,000 |
Pit Expansion Timeline
18 months/30 months cumulative
Goals and Objectives Pit Resource Expansion
Maintain pit development economic feasibility at current silver prices.
Goals and Objectives Pit Resource Expansion
| Expense | Cost in USD |
|---|---|
|
To drill 300, core holes averaging 270 meters |
$ 9,000,000 |
|
To sustain BBV and Nieves through Pit Expansion Phase |
$ 500,000 |
|
To update Form 43-101 PEA post-pit resource expansion |
$ 250,000 |
|
Contingency |
$ 250,000 |
Anticipated Value of Nieves Pit Resource Post Expansion
Assuming a found, reported, and assessed resource of 200,000,000 ounces of silver equivalent, a $15 average silver price over the life of the mine, and a $2.50 estimated value of an ounce of mineable silver resource in the ground, we get a fair value of $500,000,000 for the Nieves Expanded Pit Resource.
Nieves Compared to La Preciosa Sale
| Nieves Open Pit Resource | La Preciosa Open Pit Resource | |
|---|---|---|
|
|
Estimated End of 2021 |
Actual unless otherwise noted (July 2013) |
|
Timeframe to Execute |
≤ 12 months |
|
|
Mine |
Open Pit |
Open Pit |
|
Stripping Ratio |
5.4:1 |
10.6:1 |
|
Tonnes silver ore |
66,666,667 |
69,421,638 |
|
Grade |
85.05 g/t |
75.1 g/t |
|
Ounces of Silver |
200,000,000 |
183,900,000 |
|
Category |
Measured, indicated, and inferred |
Measured, indicated, and inferred |
|
Cumulative finding costs |
$33,000,000 |
$31,891,000 |
|
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||
|
Holes Drilled |
608 |
741 |
|
Cost per Hole |
$54,276 |
$43,038 |
|
Ounces of silver per hole |
328,947 |
248,178 |
|
Finding costs per ounce silver |
$0.165 |
$0.173 |
|
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||
|
Meters drilled |
134,770 |
238,082 |
|
Ounces silver per meter drilled |
1,484 |
772 |
|
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||
|
Annual silver production Life of mine |
10M oz. |
9.1M oz. for first 14 years |
|
Life of Mine |
20 years |
17 years |
|
Value per ounce of silver in situ |
$2.50 |
$2.03 |
|
Resource Fair Value |
$500,000,000 |
$373,317,000 |
|
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||
|
Purchase Details |
||
|
Cash |
|
$97.2M Cash |
|
Common Shares |
|
11,572,918 Common shares of Coeur |
|
Warrants |
|
1,588,768 Warrants to purchase common shares of Coeur |
|
Percent Ownership |
|
Percent of Coeur/Orko owned
by Orko investors: 11% |
Strategy
Pit Optimization
We are currently in development of an exit plan. Blackberry Ventures LLC’s business plan calls for finding, delineating, and assessing a plus-billion ounces silver resource, demonstrating the economic feasibility of mining the resource, and exiting through a sale, joint venture or exploration option (“farmout”) to a best-in-class mining group while Nieves is still in development.
Further Exploration
To achieve our goals, a comprehensive exploration program will be conducted at Nieves. The program will involve a series of surveys, including magnetic, geological, and geochemical surveys, to identify potential drill targets. The data collected from these surveys will be analyzed to determine the location of the intrusive source of mineralization and other magnetic anomalies that may indicate the presence of undiscovered veins.
Exit Strategy
We are currently in development of an exit plan. Blackberry Ventures LLC’s business plan calls for finding, delineating, and assessing a plus-billion ounces silver resource, demonstrating the economic feasibility of mining the resource, and exiting through a sale, joint venture or exploration option (“farmout”) to a best-in-class mining group while Nieves is still in development.