Coeur Mining, Inc. 10-K

Item 2. Properties MINING OPERATIONS The following description of the Company’s mining operations is qualified in its entirety by reference to the Technical Report Summary for each of the operations included as exhibits to this Report and incorporated by reference into this Item 2. Operating statistics for mining operations are presented in the section entitled “Operating Statistics” below. Mexico — Palmarejo The Palmarejo complex operated by our wholly-owned subsidiary, Coeur Mexicana, S.A. de C.V. (“Coeur Mexicana”) consists of (1) the Palmarejo processing facility; (2) the Guadalupe underground mine, located about eight kilometers southeast of the Palmarejo mine; (3) the Independencia underground mine, located approximately 800 meters northeast of the Guadalupe underground mine, (4) the La Nación underground mine, located adjacent to the Independencia underground mine; and (5) other nearby deposits and exploration targets. Access to the property is provided by air, rail, and all-weather paved and gravel roads from the state capitol of Chihuahua. Stage: Production Location: State of Chihuahua, Northern Mexico Mine Type: Underground Metals/Mineralization: Silver and Gold, classified as epithermal deposits and are hosted in multiple veins, breccias, and fractures Product: Doré Ownership: 100% Land Position: 67,279 net acres Mineral Tenure: 71 wholly-owned mining concessions 24 Key Permit Conditions: Authorizations are in place that regulate typical life of mine functions, including production facilities and utilities, mining operations, tailings and waste rock storage, exploration, surface disturbance, land use, vegetation and change in soil use, air emissions, water use, and reclamation. Major authorizations were obtained through the completion of several MIAs (Manifestación de Impacto Ambiental), permits associated with forestry vegetation disturbance of change in soil use (Cambio de Uso de Suelo en Terrenos Forestales), and the required authorizations from the National Water Commission (Comisión Nacional del Agua or CONAGUA) for water use, effluent discharge, and to construct facilities in federal watersheds. Operational standards and best management practices (BMPs) have been established to maintain compliance with applicable regulatory standards and permits. Other: A portion of the Palmarejo complex is subject to a gold stream agreement with a subsidiary of Franco Nevada Corporation and related property encumbrances USA (Nevada) — Rochester The Rochester mine, and associated heap leach facilities operated by our wholly-owned subsidiary, Coeur Rochester, Inc. (“Coeur Rochester”), is an open pit silver and gold mine located in Pershing County, Nevada, approximately 13 miles northeast of the city of Lovelock. The mine consists of the main Rochester deposit and the adjacent Nevada Packard deposit, southwest of the Rochester mine. In November 2018, Coeur Rochester acquired the Lincoln Hill, Gold Ridge and Wilco projects adjacent to Rochester from Alio Gold. The Rochester mine is fully supported with electricity, supplied by a local power company. Ore is mined using conventional open pit methods, with gold and silver recovered by heap leaching of crushed open-pit ore placed on pads located within the Rochester mining area. Rochester is currently undergoing an expansion under Plan of Operations Amendment 11. The expansion project includes the construction of a new leach pad, a crushing facility equipped with two high-pressure grinding roll units and a prescreen, a Merrill-Crowe process plant, and related infrastructure to support the extension of Rochester’s mine life. Stage: Production Location: Near Lovelock, Nevada (West-Central Nevada, USA) Mine Type: Open Pit Heap Leach Metals/Mineralization: Silver and Gold; mineralization is hosted in folded and faulted volcanic rocks of the Rochester Formation and overlying Weaver Formation. Silver and gold, consisting of silver sulfosalt minerals, argentite, silver-bearing tetrahedrite and minor native gold, are contained in zones of multiple quartz veins and veinlets (vein, vein swarms and stockworks) with variable amounts of pyrite Product: Doré Ownership: 100% Land Position & Mineral Tenure Coeur Rochester lands, including the Lincoln Hill and related assets, consist of approximately 43,441 net acres • 1,465 owned and 337 leased Federal unpatented lode claims and 6 owned federal unpatented placer claims, appropriating approximately 29,938 net acres of public land; • 23 patented lode claims, consisting of approximately 392 acres; • interests owned in approximately 6,929 gross acres of additional real property; and • Certain rights in and to approximately 6,182 acres, held either through lease, letter agreement or license. Key Permit Conditions: The Rochester Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving exploration, the open pit mines, heap leach pads, processing infrastructure, and all necessary support facilities. Operational standards and best management practices have been established to maintain compliance with applicable regulatory standards and permits. Major permits or approvals are in place from the U.S. Department of Interior Bureau of Land Management, Nevada Division of Water Resources, the Nevada Division of Environmental Protection, as well through other federal, state, and local entities. The environmental effects of the operation were comprehensively evaluated through the National Environmental Policy Act (NEPA) through Environmental Impact Statements. Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities. Other: • A security interest in the Rochester mine has been granted in favor of the lenders under the RCF (as defined below) • Certain royalty interests have been granted with respect to the Rochester property 25 USA (Alaska) — Kensington The Kensington underground gold mine and associated milling facilities operated by our wholly-owned subsidiary, Coeur Alaska, Inc. (“Coeur Alaska”) are located on the east side of the Lynn Canal about 45 miles north-northwest of Juneau, Alaska. The mine consists of the (i) Kensington Main deposit, (ii) Raven deposit, (iii) Jualin deposit, and (iv) other nearby deposits and exploration targets. The mine is accessed by a horizontal tunnel and utilizes conventional and mechanized underground mining methods. Ore is processed in a flotation mill that produces a concentrate that is sold to third-party smelters. Power is supplied by on-site diesel generators. Access to the mine is by either a combination of road vehicles, boat, helicopter, floatplane, or by boat direct from Juneau. Kensington is currently undertaking a planned expansion under Plan of Operations Amendment 1, which would increase tailings and waste rock storage capacity to support an expected longer mine life, reflecting positive exploration results, improved metal prices and ongoing operational efficiencies. Stage: Production Location: Juneau, Alaska (Southeast Alaska, USA) Mine Type: Underground Metals/Mineralization: Gold; gold-bearing mesothermal, quartz, carbonate and pyrite vein swarms and discrete quartz-pyrite veins hosted in Cretaceous-aged Jualin diorite. Most of the gold is contained in calaverite (AuTe2) that occurs in association with native gold as inclusions in and interstitial to pyrite grains and in microfractures in pyrite. Product: Gold Concentrate Ownership: 100% Land Position & Mineral Tenure • The Kensington Group, totaling approximately 3,972 net acres, consists of 51 patented lode and patented mill site claims comprising approximately 766 net acres, 291 Federal unpatented lode claims covering approximately 3,141 net acres, and 13 State of Alaska mining claims covering approximately 95 net acres. • The Jualin Group, totaling approximately 8,366 net acres, is comprised of 23 patented lode and patented mill site claims covering approximately 388 net acres, 444 Federal unpatented lode claims and 75 Federal unpatented mill site claims appropriating approximately 7,814 net acres, a State of Alaska upland mining lease comprising approximately 682 acres, one State of Alaska mining claim comprising approximately three acres and four State-selected mining claims covering approximately 60 acres. • 14 of the 23 patented lode claims cover private surface estate only. The mineral estate to these 14 patented lode claims is owned by the State of Alaska, the mineral rights to which are secured by a State of Alaska upland mining lease • The Company controls properties comprising the Jualin Group, under a lease agreement with Hyak Mining Company, which is valid until August 5, 2035 and thereafter, provided mining and production are actively occurring within and from the leased premises. Key Permit Conditions: The Kensington Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving mine operations and production/processing facilities and infrastructure, tailings and waste rock storage, exploration, surface disturbance, air emissions, water use, marine transport, and reclamation. Operational standards and best management practices have been established to maintain compliance with applicable regulatory standards and permits. Major permits or approvals are in place from the U.S. Department of Agriculture National Forest Service, U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, National Oceanic and Atmospheric Administration, State of Alaska, as well through other federal, state, and local entities. The environmental effects of the operation were comprehensively evaluated through the National Environmental Policy Act (NEPA) through Environmental Impact Statements. Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities. Other: • A security interest in the Kensington mine has been granted in favor of the lenders under the RCF • Certain royalty interests have been granted with respect to the Kensington property USA (South Dakota) — Wharf The Wharf mine operated by our wholly-owned subsidiaries, Wharf Resources (U.S.A.) Inc. (“Wharf”) and Golden Reward Mining Limited Partnership (“Golden Reward”), is located in the northern Black Hills of western South Dakota, approximately four miles southwest of the city of Lead, South Dakota. Access is established by paved road with power supplied by a local power company. 26 Stage: Production Location: Lead, South Dakota, USA Mine Type: Open Pit Heap Leach Metals/Mineralization: Gold and Silver by-product; a structurally controlled disseminated gold deposit Product: Electrolytic Cathodic Sludge Ownership: 100% Land Position & Mineral Tenure • The Wharf Group is comprised of 362 patented lode claims, 35 government lots, 123 subdivided lots, and 59 federal unpatented lode claims. These interests cover approximately 3,585 net surface acres, 652 net mineral acres where both the Precambrian and younger formations are owned or controlled, 3,243 net mineral acres of non-Precambrian mineral estate, 1,603 net mineral acres of Precambrian mineral estate and 287 net acres of federal unpatented lode claims. • The Golden Reward Group encompasses 218 patented lode claims, 14 government lots, 19 subdivided lots and 34 federal unpatented lode claims. The Golden Reward Group is comprised of approximately 1,564 net acres of surface estate, 2,988 net mineral acres of mineral estate where both the Precambrian and younger formations are owned or controlled, 357 net mineral acres of Non-Precambrian mineral estate, 153 net mineral acres of Precambrian mineral estate and 25 net acres of federal unpatented lode claims. Key Permit Conditions: The Wharf Mine has in place and operates subject to all necessary environmental permits and licenses from the appropriate local, state, and federal agencies for typical life of mine functions involving exploration, the open pit mines, heap leach pads, processing infrastructure, and all necessary support facilities. Operational standards and best management practices have been established to maintain compliance with applicable state and federal regulatory standards and permits. Major permits or approvals are in place from the South Dakota Department of Agriculture and Natural Resources, Lawrence County, as well through other federal, state, and local entities. Monitoring programs are in place, and there is an approved reclamation and closure plan that reflects current mining, mitigation, and site facilities. Other: • A security interest in the Wharf mine has been granted in favor of the lenders under the RCF • Certain royalty interests have been granted with respect to the Wharf property MINING PROJECTS Canada (British Columbia) — Silvertip The Silvertip silver-zinc-lead development property owned by our wholly-owned subsidiary, Coeur Silvertip Ltd. (“Coeur Silvertip”), is an underground project located in northern British Columbia, Canada just south of the Yukon border. The project is accessible via a 25-kilometer mine access road off the Alaska Highway. Stage: Development Location: Northern British Columbia, Canada (10 miles south of the Yukon Territory Border) Mine Type: Underground Metals/Mineralization: Silver, Zinc and Lead; carbonate-hosted massive sulfide deposit Product: Concentrate Ownership: 100% Land Position & Mineral Tenure: • Sixty-six (66) contiguous mineral claims containing approximately 39,375 hectares (97,298 acres) and two mining leases containing approximately 1,528 hectares (3,777 acres). In total, the Silvertip mine covers an area of approximately 40,904 hectares (101,076 acres) Other: • Suspended operating activities in February 2020; ongoing exploration and technical work to evaluate and support a potential expansion and restart • Certain royalty interests have been granted with respect to the Silvertip property USA (Nevada) – Sterling and Crown The Sterling and Crown exploration properties are owned by the Company’s wholly-owned subsidiary, Coeur Sterling, Inc. (“Coeur Sterling”) and are located in southern Nevada, The Sterling gold project is a past-producing open-pit and underground heap leach gold mine located in the southern portion of the land package with major permits in place. The Crown 27 Block, which is located in the northern portion of the land package, includes four heap-leachable deposits, Daisy, Secret Pass, SNA and C-Horst. Stage: Exploration Location: Beatty, Nevada (approximately 115 miles north of Las Vegas, Nevada, USA) Mine Type: Open Pit Heap Leach Metals/Mineralization: Gold Product: Electrolytic Cathodic Sludge Ownership: 100% Land Position & Mineral Tenure • Approximately 37,254 net acres (15,076 hectares) • Coeur Sterling lands consist of 1,909 owned federal unpatented lode claims appropriating approximately 36,904 net acres, and 30 leased federal unpatented lode claims, appropriating approximately 620 net acres. Other: • A security interest in the Sterling/Crown project has been granted in favor of the lenders under the Company’s revolving credit facility Mexico (Durango) – La Preciosa The La Preciosa silver exploration-stage project owned by our wholly-owned subsidiary, Coeur La Preciosa Silver Corp. (“Coeur La Preciosa”), is situated approximately 85 kilometers northeast of the city of Durango, within Durango State, México. The Company has entered into an agreement to sell Coeur La Preciosa, which is expected to close in the first quarter of 2022. OTHER PROPERTIES The Company has interests in several exploration-stage properties in North America, as well as leased or owned real property for office space. OPERATING STATISTICS Palmarejo Rochester 2021 2020 2019 2021 2020 2019 Gold produced (oz.) 109,202 110,608 111,932 27,051 27,147 35,400 Silver produced (oz.) 6,820,589 6,269,206 6,762,265 3,158,017 3,174,529 3,761,060 Kensington Wharf 2021 2020 2019 2021 2020 2019 Gold produced (oz.) 121,140 124,867 127,914 91,136 93,056 84,172 Silvertip 2021 2020 2019 Silver produced (oz.) — 139,287 1,161,926 Zinc produced (lb.) — 2,459,756 17,103,427 Lead produced (lb.) — 2,176,847 16,555,622 MINERAL RESERVES AND MINERAL RESOURCES Internal Controls The company’s internal controls are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results as well as mineral resource and reserve estimation are reasonable and in line with industry best practices. These internal controls include quality assurance and quality control (“QA/QC”) programs in the collection, analysis, verification, storage, reporting and use of drillhole, assay, metallurgical and other technical and scientific information, including the following: • Third-party fully certified labs are used for assays used in public disclosure or resource models ; • Drill programs include insertion of blank, duplicate, and certified reference materials; • QA/QC program with sufficient results for the analytical programs; 28 • All core and reverse-circulation samples have been cataloged and stored in secure and designated areas on company property; • Data is subject to validation, which includes checks on downhole surveys, collar coordinates, geological data, and assay data; • Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation are downloaded from the database into a project file and reviewed for improbable entries and high values; • Written procedures and guidelines are used to support estimation methods and approaches; • Completion of annual technical statements on each mineral resource and mineral reserve estimate by qualified persons. These technical statements include evaluation of modifying and technical factors, incorporate available reconciliation data, and are based on a cashflow analysis; • Internal reviews of block models, mineral resources and mineral reserves using a “layered responsibility” approach with Qualified Person involvement at the site and corporate levels; Internal controls are discussed where required in the relevant chapters of the technical report summary. The following sub-sections summarize the types of procedures, protocols, guidance and controls that Coeur has in place for its exploration and mineral resource and reserve estimation efforts, and the type of risk assessments that are undertaken. Exploration and Drilling Coeur has the following internal controls protocols in place for exploration data: • Written procedures and guidelines to support preferred sampling methods and approaches; periodic compliance reviews of adherence to such written procedures and guidelines; • Maintenance of a complete chain-of-custody, ensuring the traceability and integrity of the samples at all handling stages from collection, transportation, sample preparation and analysis to long-term sample storage; • Geological logs are checked and verified, and there is a physical sign-off to attest to the validation protocol required; • Quality control checks on collar and downhole survey data for errors or significant deviations; • Third-party fully certified labs are used for assays used in public disclosure or resource models • Appropriate types of quality control samples are inserted into the sample stream at appropriate frequencies to assess analytical data quality; • Regular inspection of analytical and sample preparation facilities by appropriately experienced Coeur personnel; • QA/QC data are regularly verified to ensure that outliers sample mix-ups, contamination, or laboratory biases during the sample preparation and analysis steps are correctly identified, mitigated or remediated. Changes to database entries are required be documented; • Database upload and verification procedures to ensure the accuracy and integrity of the data being entered into the Project database(s). These are typically performed using software data-checking routines. Changes to database entries are required to be documented. Data are subject to regular backups. Mineral Resource and Mineral Reserve Estimates Coeur has the following internal controls protocols in place for mineral resource and mineral reserve estimation: • Prior to use in mineral resource or mineral reserve estimation, the selected data to support estimation are downloaded from the database into a project file and reviewed for improbable entries and high values; • Written procedures and guidelines are used to support estimation methods and approaches; • Completion of annual technical statements on each mineral resource and mineral reserve estimate by qualified persons. These technical statements include evaluation of modifying and technical factors, incorporate available reconciliation data, and are based on a cashflow analysis; • Internal reviews of block models, mineral resources and mineral reserves using a “layered responsibility” approach with Qualified Person involvement at the site and corporate levels; 29 Development of our mineral resource and mineral reserve estimates use tools and processes such as mine design, scheduling and geostatistical tools that conform to industry best practices and are regularly reviewed and reconciled by internal and external parties. There are internal and external audit processes for mineral resource and mineral reserve estimation. Mineral resources and mineral reserves are estimates that contain inherent risk and depend upon geologic interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. See Risk Factors in Item 1A for additional information. MINERAL RESERVES Summary Gold Mineral Reserves at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(9) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 3,754 0.066 247 12,139 0.052 637 15,893 0.056 884 United States Rochester (5) 386,008 0.003 998 31,769 0.003 82 417,777 0.003 1,080 Kensington (6) 656 0.191 125 690 0.197 136 1,346 0.194 261 Wharf (7) 27,976 0.022 621 8,306 0.028 231 36,282 0.023 852 Total Gold Reserves 418,394 0.005 1,991 52,904 0.021 1,086 471,298 0.007 3,077 Summary Silver Mineral Reserves at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(9) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo (4) 3,754 4.39 16,480 12,139 3.78 45,875 15,893 3.92 62,355 United States Rochester (5) 386,008 0.39 149,652 31,769 0.36 11,593 417,777 0.39 161,245 Canada Silvertip (8) 186 12.01 2,233 1,618 7.67 12,403 1,804 8.11 14,636 Total Silver 389,948 0.43 168,365 45,526 1.53 69,871 435,474 0.55 238,236 Summary Zinc Mineral Reserves at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(9) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip (8) 186 10.1 % 37,647 1,618 8.0 % 258,418 1,804 8.2 % 296,065 Summary Lead Mineral Reserves at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(9) Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip (8) 186 8.5 % 31,656 1,618 5.0 % 161,569 1,804 5.4 % 193,225 (1) Certain definitions: The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “proven (measured) reserves” means reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling; and (b) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term “probable (indicated) reserves” means reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observation. The term “cutoff grade” means the lowest grade of mineralized material considered economic to process. Cutoff grades vary between deposits depending upon prevailing economic conditions, mineability of the deposit, by-products, amenability of the mineralized material to silver or gold extraction and type of milling or leaching facilities available. (2) Assumed metal prices for 2021 Mineral Reserves were $20.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead. 30 (3) The Mineral Reserve estimates are current as of December 31, 2021, and are reported using the definitions in SK 1300 and were prepared by the company’s technical staff. (4) Mineral Reserve estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.94–2.51 g/t AuEq and an incremental development cut-off grade of 1.08 g/t AuEq; metallurgical recovery assumption of 93.1% for gold and 81.9% for silver; mining dilution assumes 1 meter of hanging wall waste dilution; mining loss of 5% was applied; variable mining costs that range from US$36.01–US$41.75/tonne, surface haulage costs of US$3.52/t, process costs of US$27.29/tonne, general and administrative costs of US$11.00/tonne, and surface/auxiliary support costs of US$3.19/tonne. Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Reserves. (5) Mineral Reserve estimates are tabulated within a confining pit shell and use the following input parameters: Rochester oxide recovery Au = 85% and Ag = 59%; Nevada Packard oxide recovery Au = 95% and Ag = 61%; with a net smelter return cutoff of $2.55/st oxide and US$2.65/st sulfide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); variable pit slope angles that approximately average 43º over the life-of-mine. (6) Mineral Reserve estimates use the following key input parameters: assumption of conventional underground mining; gold price of $1400/oz; reported above a gold cut-off grade of 0.143-0.201 oz/st Au; metallurgical recovery assumption of 95%; gold payability of 97.5%; mining dilution varies from 15-23%; mining loss of 5% was applied; variable mining costs that range from US$90.91–150.73/ton mined; process costs of US$46.93/ton processed; general and administrative costs of US$38.83/ton processed; and concentrate refining and shipping costs of US$60.00/oz sold. (7) Mineral Reserve estimate uses the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; metallurgical recovery assumption of 80%; royalty burden of US$56/oz Au; pit slope angles that vary from 34–50º; mining costs of US$2.15/ton mined, rehandle costs of US$1.65/ton rehandled, process costs of US$10.34/ton processed (includes general and administrative costs). (8) Underground Mineral Resource estimates are reported using a net smelter return (“NSR”) cutoff of US$130-160/tonne. Mineral Resources are reported insitu using the following assumptions: The estimate use the following key input parameters: lead recovery of 87-88%, zinc recovery of 81-82% and silver recovery of 88-89 %. Lead concentrate grade of 51-53%; zinc concentrate grade of 48-50%; mining dilution varies from 5-25%; mining loss of 5% was applied; mining costs of US$68.77/tonne; processing costs of US$58.20/tonne and US$46.49/tonne, where the NSR ($/tonne) = tonnes x grade x metal prices x metallurgical recoveries – royalties – TCRCs – transport costs over the life of the mine. (9) Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents. MINERAL RESOURCES Summary Gold Mineral Resources at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(13) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 3,696 0.053 195 17,377 0.049 852 21,073 0.050 1,047 4,713 0.052 246 La Preciosa Project, Mexico (10) 9,536 0.005 45 19,141 0.006 118 28,677 0.006 163 1,761 0.003 6 United States Rochester Mine, USA (7) 191,889 0.002 372 39,565 0.002 74 231,454 0.002 446 128,410 0.002 243 Kensington Mine, USA (5) 2,860 0.231 660 1,263 0.256 323 4,123 0.238 983 1,915 0.238 455 Wharf Mine, USA (6) 13,947 0.020 273 6,379 0.022 139 20,326 0.020 412 3,724 0.024 90 Lincoln Hill Project, USA (11) 4,642 0.012 58 27,668 0.011 306 32,310 0.011 364 22,952 0.011 255 Sterling Project, USA (9) — — — — — — — — — 36,824 0.025 914 Wilco Project, USA (12) — — — — — — — — — 25,736 0.021 531 Total Gold 226,570 0.007 1,603 111,393 0.016 1,812 337,963 0.010 3,415 226,035 0.012 2,740 31 Summary Silver Mineral Resources at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)13) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Tons (000s) Grade (oz./ton) Ounces (000s) Mexico Palmarejo Mine, Mexico (4) 3,696 3.89 14,373 17,377 3.41 59,340 21,073 3.50 73,713 4,713 3.70 17,453 La Preciosa Project, Mexico (10) 9,536 3.04 29,001 19,141 3.98 76,185 28,677 3.67 105,186 1,761 3.31 5,835 United States Rochester Mine, USA (7) 191,889 0.29 56,573 39,565 0.33 12,932 231,454 0.30 69,505 128,410 0.30 38,626 Lincoln Hill Project, USA (11) 4,642 0.34 1,592 27,668 0.31 8,655 32,310 0.32 10,247 22,952 0.36 8,163 Wilco Project, USA (12) — — — — — — — — — 25,736 0.13 3,346 Canada Silvertip Mine, Canada (8) 319 10.33 3,296 2,498 9.23 23,048 2,817 9.35 26,344 2,350 7.57 17,787 Total Silver 210,082 0.46 104,835 106,249 1.58 180,160 316,331 0.84 284,995 185,922 0.40 91,210 Summary Zinc Mineral Resources at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)13) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 319 9.4 % 60,029 2,498 10.6 % 529,353 2,817 10.5 % 589,382 2,350 9.0 % 422,335 Summary Lead Mineral Resources at End of the Fiscal Year Ended December 31, 2021 (1)(2)(3)(13) Measured Mineral Resources Indicated Mineral Resources Measured + Indicated Mineral Resources Inferred Mineral Resources Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Tons (000s) Grade (%) Pounds (000s) Canada Silvertip Mine, Canada (8) 319 6.6 % 41,939 2,498 5.4 % 270,643 2,817 5.6 % 312,582 2,350 4.3 % 200,725 (1) Certain definitions: The term “resource” means that it is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quantity that there are reasonable prospects for economic extraction. Inferred, Indicated, and Measured resources are in order of increasing confidence based on level of underlying geological evidence. The term ‘inferred resource’ is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The term “limited geological evidence” means evidence that is only sufficient to establish that geological and grade or quality continuity is more likely than not. The level of geological uncertainty associated an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability and must have a reasonable expectation that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration. (2) Mineral Resource estimates are reported exclusive of mineral reserves, are current as of December 31, 2021, and are reported using definitions in SK 1300 and were prepared by the company’s technical staff. (3) Assumed metal prices for 2021 estimated Mineral Resources were $22.00 per ounce of silver, $1,700 per ounce of gold, $1.30 per pound of zinc, $1.00 per pound of lead, unless otherwise noted. (4) Mineral Resource estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.59-2.21 g/t AuEq; metallurgical recovery assumption of 93.1% for gold and 81.9% for silver; variable mining costs that range from US$36.01–US$41.75/t, surface haulage costs of US$3.52/tonne, process costs of US$27.29/tonne, general and administrative costs of US$11.00/tonne, and surface/auxiliary support costs of US$3.19/tonne. Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Resources. (5) Mineral Resource estimates use the following key input parameters: assumption of conventional longhole underground mining; reported above a variable gold cut-off grade that ranges from 0.116–0.164 oz/ton Au; metallurgical recovery assumption of 95%; gold payability of 97.5%, variable mining costs that range from US$90.91–150.73/ton mined, process costs of US$46.93/ton processed, general and administrative costs of US$38.83/ton processed. and concentrate refining and shipping costs of US$60.00/oz sold. (6) Mineral Resource estimate uses the following key input parameters: assumption of conventional open pit mining; reported above a gold cut-off grade of 0.010 oz/ton Au; metallurgical recovery assumption of 78.7% across all rock types; royalty burden of US$56/oz Au; pit slope angles that vary from 34–50º; mining costs of $2.15/ton mined, rehandle costs of US$1.65/ton rehandled, process costs of US$10.34/ton processed (includes general and administrative costs) (7) Mineral Resource estimates are tabulated within confining pit shells that uses the following input parameters: oxide gold recovery of 77.7%-93.7% and silver recovery with range of 59%-61%; sulfide gold recovery range of 15.2%-77.7% and silver recovery with range of 0.0%-59% with a net smelter return cutoff of US$2.55–US$3.70/ton oxide and US$2.65/ton sulfide, where the NSR is calculated as resource net smelter return (NSR) = silver grade (oz/ton) * silver recovery (%) * (silver price ($/oz) - refining cost ($/oz)) + gold grade (oz/ton) * gold recovery (%) * (gold price ($/oz) - refining cost ($/oz)); and variable pit slope angles that approximately average 43º over the life-of-mine. (8) Underground Mineral Resource estimates are reported using a net smelter return (“NSR”) cutoff of US$130/tonne. Mineral Resources are reported insitu using the following assumptions: The estimate use the following key input parameters: lead recovery of 87-88%, zinc recovery of 81-82% and silver recovery of 88-89 %. Lead concentrate grade of 51-53%; zinc concentrate grade of 48-50%; mining costs of US$68.77/tonne; processing costs of 32 US$58.20/tonne and US$46.49/tonne, where the NSR ($/tonne) = tonnes x grade x metal prices x metallurgical recoveries – royalties – TCRCs – transport costs over the life of the mine. (9) Open Pit Mineral Resource estimates are reported in-situ and are contained within a confining pit shell and use the following key input parameters: reported above a gold cutoff of 0.007 ounces per ton; gold recoveries of 75-80%; mining costs of US$2.16/ton; process costs of US$2.70/ton; G&A costs of $1.00/ton; variable pit slope angles of 39-52º over the life-of-mine. (10) Open Pit Mineral Resource estimate is reported using a net smelter return (“NSR”) cutoff of US$23/tonne and Underground Mineral Resources are reported using a NSR cut-off of $71/tonne. Mineral Resources are reported in-situ and contained within a conceptual measured, indicated and inferred optimized pit shell or conceptual underground mining shapes using the following assumptions: silver price of US$20/oz, gold price of US$1,400/oz. Average silver and gold recovery are 82% and 69%, respectively. Open pit mining cost is US$1.85/tonne, underground mining cost is US$47.96/tonne, processing cost is US$17.53/tonne and G&A cost is US$5.54/tonne. Mineral resources include hanging and footwall dilution, and typical mining recovery is estimated to be 95%. The technical and economic parameters are those that were used in the 2017 Resource Estimation. Based on the QPs review of the estimate, there would be no material change to the mineral resources if a gold price of US$1,700/oz, a silver price of US$22/oz or economic parameters were updated. Therefore the 2017 Mineral Resource report is considered current and is presented unchanged. (11) Open Pit Mineral Resource estimate is reported in-situ and are contained within a confining pit shell and use the following key input parameters: reported above an oxide gold equivalent cutoff of 0.15 ounces per ton and 0.20 oz ounces per ton assuming a silver to gold ratio of 60:1; gold recoveries of 64%; silver recoveries of 59%; mining costs of US$3.10/ton; process costs of US$3.60/ton; general and administrative costs of $1.50/ton processed; average pit slope angles of 45º over the life-of-mine. The technical and economic parameters are those that were used in the 2018 Resource Estimation. Based on the QPs review of the estimate, there would be no material change to the Mineral Resource if a gold price of US$1,700/oz, a silver price of US$22/oz or economic parameters were updated. Therefore the 2018 Mineral Resource is considered current and is presented unchanged. (12) Open Pit Mineral Resource estimates are reported using an equivalent gold cutoff of 0.20 ounces per ton assuming a silver to gold ratio of 60:1. Resources are reported in-situ and contained withed a conceptual measured, indicated and inferred optimized pit shell. Silver price of US$20/oz, gold price of US$1,400/oz. Average oxide and sulfide gold recovery is 70%, average carbonaceous gold recovery is 50%. Average oxide and sulfide gold recovery is 60%. Average carbonaceous silver recovery is 50%. Open pit mining cost is US$1.50/ton, processing and processing and G&A cost is US$5.46/ton; average pit slope angles of 50º. The technical and economic parameters are those that were used in the 2017 Resource Estimation. Based on the QPs review of the estimate, there would be no material change to the mineral resources if a gold price of US$1,700/oz, a silver price of US$22/oz or economic parameters were updated. Therefore the 2018 Mineral Resource report is considered current and is presented unchanged. (13) Rounding of short tons, grades, and troy ounces, as required by reporting guidelines, may result in apparent differences between tons, grades, and contained metal contents.