KENSINGTON - LEADING COEUR'S GROWTH IN GOLD
The Kensington gold mine in Southeast Alaska is not only the newest pure gold mine in the world, but represents a rebirth of the historic Juneau Gold Belt and the greater Juneau economy. Kensington began production ahead of schedule in July 2010, and produced 43,143 ounces of gold during its initial half-year of production. Planned annualized production at Kensington is expected to average 125,000 ounces of gold a year.
At current reserve levels of 1.4 million ounces of gold, the mine is looking ahead to a minimum 12 years of production life. Exploration is ongoing, with new vein systems discovered during 2010, and drill work continues around the additional 478,245 ounces of measured and indicated gold resources with the possibility of adding to future reserve levels. In addition, there are a total of 121,182 ounces of inferred gold resources at Kensington.
Completing Initial Year of Operations
• Throughput increased 15% in the second quarter compared to the prior quarter while the average gold grade declined 4%. Since the end of the second quarter, the mill has been processing approximately 1,400 tons of ore per day (tpd), above its 1,250 tpd design rate. Mining activities took place in lower-grade areas during the second quarter. As underground development accelerates, higher-grade areas are expected to be mined, resulting in slightly higher production levels during the second half of the year.
• Kensington's projected capital expenditures for the remainder of 2011 are expected to be higher by approximately $10 million - $20 million. This additional investment will complete additional surface facilities, accelerate underground development, purchase additional mining equipment, and complete the underground paste back fill plant.
• In April 2011, John M. Kinyon joined the Company as Vice President and General Manager of Coeur Alaska with overall responsibility for Kensington. He was most recently General Manager of the Wolverine Mine with Yukon Zinc and formerly held senior operational management positions with Oceana Gold and Barrick Gold’s Eskay Creek Mine.
• Second quarter metal sales were $26.0 million, operating cash flow was $11.4 million, and capital expenditures totaled $7.4 million.
• Throughput increased 15% in the second quarter compared to the prior quarter while the average gold grade declined 4%. Since the end of the second quarter, the mill has been processing approximately 1,400 tons of ore per day (tpd), above its 1,250 tpd design rate. Mining activities took place in lower-grade areas during the second quarter. As underground development accelerates, higher-grade areas are expected to be mined, resulting in slightly higher production levels during the second half of the year.
• Kensington's projected capital expenditures for the remainder of 2011 are expected to be higher by approximately $10 million - $20 million. This additional investment will complete additional surface facilities, accelerate underground development, purchase additional mining equipment, and complete the underground paste back fill plant.
• In April 2011, John M. Kinyon joined the Company as Vice President and General Manager of Coeur Alaska with overall responsibility for Kensington. He was most recently General Manager of the Wolverine Mine with Yukon Zinc and formerly held senior operational management positions with Oceana Gold and Barrick Gold’s Eskay Creek Mine.
• Second quarter metal sales were $26.0 million, operating cash flow was $11.4 million, and capital expenditures totaled $7.4 million.
2Q Exploration
Exploration consisted of just over 1,000 meters (3,300 feet) of core drilling to discover new mineralization and expand ore reserves. The main focus of this drilling was on the Comet exploration target which is located approximately 1,000 meters (3,300 feet) north of the ore processing facility. Comet is one of several gold-bearing vein structures, occurring within a 305 to 457 meter (1,000 to 1,500 feet) corridor, extending over 3,000 meters (9,800 feet) southward from the Raven zone at the north to the Jualin deposit, near the mill, to the south.
• Year-end 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.
Coeur Alaska will employ close to 200 workers during operations. The Company works closely with Berners Bay Consortium, made up of Klukwan, Inc., Kake Tribal and Goldbelt Native Corporations on job training and supporting local and Native hire at Kensington.
| Stage | Production |
| Location | Juneau, Alaska |
| Type | Underground |
| Metals Produced | Gold |
| Product | Gold concentrate |
Link to Kensingtongold.com and Kensington job opportunities.
