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High-grade plan for Kensington gold mine

 

Last updated 4/19/2015 at Noon



Coeur Mining Inc. April 14 released a new high-grade mine plan for its Kensington gold mine in Southeast Alaska that forecasts higher gold production at lower costs.

From 2015 through 2020, the Kensington Mine is anticipated to average 128,000 ounces of gold at average costs applicable to sales of US$820 per ounce.

Production in 2014 was 117,823 ounces of gold at costs of US$951 per ounce.

This new plan reflects the recent discovery of the Jualin zone and indicates higher overall production and cash flows due to the contribution of higher-grade material from three nearby zones.

The Jualin zone, located approximately 8,250 feet from current mining activities, averages 0.619 ounces of gold per ton, which is more than three times the average reserve grade at Kensington.

Coeur says ongoing drilling continues to expand this deposit.

"Our recent success identifying high-grade mineralization near existing Kensington infrastructure has added higher-margin production to our mine plan and significantly improved the expected economics of the mine," said Coeur President and CEO Mitchell Krebs.

Expected capital expenditures include roughly US$3.5 million per year through 2018 for capitalized drilling, primarily to upgrade the inferred mineral resources at Kensington and Jualin.

Spending for underground mine development is expected to average US$16 million per year through 2018 when production from the inferred material is expected to be fully ramped up.

Development of a decline to Jualin is planned to begin in July with initial production expected in mid-2017.

 

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