United States Exploration
USA - Kensington gold mine (Alaska)
Exploration at Kensington in the first quarter 2011 consisted of 1,430 meters (4,691 feet) of core drilling to discover new mineralization and expand mineral reserves. The main focus of this drilling was on the Raven structure, a prominent gold-bearing quartz vein and vein splay system situated about 650 meters (2,100 feet) west of the current Kensington mining area. Several high-grade intercepts were encountered in this drilling. At the end of the quarter, new drilling commenced on a similar, quartz vein target, Comet, located south of Raven.
At Jan. 1, 2011, proven and probable reserves totaled 1.4 million gold ounces, measured and indicated gold resources were 478,245 ounces, and inferred gold resources were 121,182 ounces.
USA - Rochester gold/silver mine (Nevada)
At Jan. 1, 2011, proven and probable reserves totaled 27.6 million silver ounces and 247,400 gold ounces, measured and indicated resources were 94.4 million silver ounces and 708,800 gold ounces, and inferred resources were 14.3 million silver ounces and 68,700 gold ounces.
Drilling on new areas of mineralization is set to commence during the second quarter.
Year-end measured and indicated silver resources increased 72% while measured and indicated gold resources increased 73%, which the Company believes bodes well for further expansion opportunities at this historic silver and gold mine that commenced operations in 1986 and has produced over 127 million silver ounces and 1.5 million gold ounces.
Nearly 14,000 feet of new drilling at Nevada Packard at Rochester to test extensions of the main mineralized trends located between Nevada Packard and Rochester. Results indicate strong potential to expand mineral resources at depth and to the north.