Vancouver – The U.S. Forest Service has cleared the path for all other federal and state permitting to be done on Coeur d’Alene Mines’ (CDE-N) Kensington gold project, by issuing the final supplemental Environmental Impact Statement (EIS) and record of decision.
Idaho-based Coeur d’Alene, the world’s largest silver producer, has been working for some three years towards the long awaited approval from the Forest Service. Kensington, is situated 45 miles north of Juneau in the Berners Bay district of Alaska.
Coeur expects to receive the necessary permitting for Kensington in the first quarter of 2005, and could see the beginning of construction as soon as March.
Probable reserves, based on a gold price of US$375 per oz., are pegged at 4.2 million tonnes grading 0.25 oz. per ton, equivalent to more than 1 million oz. The estimate was calculated using a cutoff of 0.16 oz. per ton.
Indicated reserves are estimated to be 617,000 tons grading 0.436 oz. gold per ton, or 269,000 oz., using a cutoff of 0.12 oz.
Inferred resources are estimated to be 2.5 million tons grading 0.234 oz. gold per ton, or 584,000 oz., using the same cutoff.
The technical and economic viability at Kensington was shown in a recent feasibility. The mine is estimated to cost US$91.5 million. Annual production is pegged at 100,000 oz. gold at a cost of US$220 per oz. over 10-15 years.
With initial production expected in 2006, Kensington will allow the company to achieve a 76% increase in its gold production over current levels.
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