Mining production roundup: Coeur, Alio

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Friday, October 6, 2017

Silver production at Coeur Mining's Palmarejo mine in Mexico more than doubled in Q3.

The mine (pictured) produced 1.91Moz silver, up from 933,000oz in the same quarter last year, with gold rising to 28,948oz from 16,608oz.

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The increases were due to greater volumes of ore milled and higher silver grades.

Average mining rates were up 22%, achieving the end-2017 target of 4,500t/d one quarter early, as the ramp-up at the Independencia and Guadalupe underground deposits advanced.

Silver output at the San Bartolomé mine in Bolivia was 957,000oz, down from 1.37Moz, as worsening drought conditions hindered mill operations.

Chicago-based Coeur lowered is 2017 production guidance for San Bartolomé to 4.5-4.75Moz from 5.0-5.4Moz as a result of the drought.

Companywide production was 4.0Moz silver and 93,293oz gold. Coeur also has mines in the US and the La Preciosa silver project in Mexico.

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Alio Gold produced 19,429oz gold at its San Francisco mine in Mexico in Q3, down from 24,052oz in the same quarter last year.

The drop was due to lower grades, partly offset by an increase in ore processed.

"The third quarter was expected to be the most challenging period in the 2017 mine plan as we finished mining phase 1 of the La Chicharra pit and had not fully completed the stripping of phase 5 of the San Francisco main pit," CEO Greg McCunn said.

Vancouver-based Alio also has the Ana Paula gold project and a portfolio of exploration properties in Mexico.