Echo Bay, Coeur d’Alene extend Kensington vein on Alaska gold

An underground adit has intersected a downward extension of the Kensington vein on Echo Bay Mines’ (TSE) and Coeur d’Alene Mines’ (Amex) gold property located 50 miles north of Juneau, Alaska.

The vein extension was intersected by a 5,200-ft-long adit driven at an elevation of 800 ft above sea level.

The adit, begun in May last year, intersected the Kensington vein in mid-December, 5,020 ft from the portal, and 650 ft below the deepest pr ior drill information. Drilling at higher levels indicates that grade and vein width are variable.

At the current intersection, the vein is 70 ft wide along the south wall of the adit, and 100 ft wide along the northwall. Systematic chip sampling indicated an average grade of 0.184 oz gold per ton in the south wall, and 0.250 oz gold in the north, using a cut-off grade of 0.05 oz.

The vein has now been exposed for 230 ft along strike by drifting north and south of the adit. Samples from the mined material in the two drifts graded an average of 0.269 oz.

Drilling is in progress to obtain further information on grade and vein width and to establish the total strike length of the mineralization. A 250-ton bulk sample has been collected from the new drifts and is being sent to Lakefield Research for metallurgical testing.

This year’s development work from the 800-ft-level adit will focus on addtional diamond drilling and drifting along the Kensington vein to further delineate the orebody, including its continuation below the 800-ft level, and to upgrade reserves.

Subject to the results of a feasibility study and the completion of permitting, Echo Bay (the operator) says a production decision could be made this year.