Coeur doubles exploration to $158m to expand Mexican silver mines
Coeur Mining is doubling its exploration budget to a record $158 million to extend the life of its Mexican silver operations, a strategy designed to justify its recent $1.58 billion acquisition and capitalize on elevated metal prices.
Coeur Mining has set a 2026 exploration budget of $158 million, roughly double last year's spend and a record for the US-based precious-metals producer. The company is directing the bulk of this capital toward expanding existing silver and gold operations in Mexico rather than hunting for new deposits.
The spending is heavily concentrated on two underground mines in northern Mexico. Palmarejo in Chihuahua will receive $27 million for 83 kilometres of drilling, while Las Chispas in Sonora gets $24 million for 119 kilometres. Together, the two sites account for more than $50 million of the total budget.
This aggressive drilling serves a clear corporate purpose. Coeur acquired Las Chispas by taking over Canadian miner SilverCrest Metals in an all-stock deal worth over $1.58 billion, completed in February 2025. The purchase lifted Coeur's annual output toward roughly 21 million ounces of silver, and finding more metal beneath the newly acquired asset is the most direct way to justify that valuation to shareholders.
Early drilling at Palmarejo’s Eastern District supports the strategy. Holes at the San Miguel and La Unión targets have returned wide, high-grade intercepts of silver and gold. Coeur notes that these deposits remain "open in all directions," indicating significant potential to extend the life of assets that are already in production and generating cash.
By focusing on brownfield expansion, Coeur is taking a lower-risk approach to reserve growth. With gold and silver prices elevated, every additional ounce confirmed through drilling is worth significantly more than it was a year ago, making the heavy near-term outlay economically rational.
Operating in Mexico carries distinct political and security risks, including tighter government rules on concessions and water access. However, Coeur’s reliance on underground operations may insulate it from some of the political friction directed at open-pit projects.
For investors, the record budget is a leveraged bet on sustained high metal prices. If prices slip, the heavy spending will weigh on returns; if they hold, Coeur could secure years of low-cost reserve growth. Upcoming reserve reports will provide the first clear measure of whether the gamble is paying off.
