Mining Explorers 2012: Coeur d’Alene Mines Corp.
Did you find this article interesting?
CDE: NYSE - CDM: TSX
Chairman: Robert Mellor
President and CEO: Mitchell Krebs
Senior Vice President, Exploration: Donald Birak
Coeur d’Alene Mines Corp., an Idaho-based miner with silver and gold operations in the United States, Mexico, Bolivia, Argentina and Australia, spent the first half of 2012 revamping its Kensington gold mine in Southeast Alaska. During 2011, the first full year of production at Kensington, the underground operation produced 88,420 ounces of gold at cash operating costs of US$1,088 per ounce. Late in 2011, Coeur cut processing rates in half to provide an opportunity to undertake several key initiatives aimed at improving the mine’s production profile. To accomplish this, Coeur completed construction of a backfill plant and related distribution system; upgraded several underground and surface facilities; and improved the overall safety of the operation. Due to the fall in production, Kensington produced 7,444 ounces of gold at cash operating costs of US$2,709 per ounce during the first quarter. Returning to full-scale production of about 1,500 tons per day in the second quarter, the Southeast Alaska operation recovered 21,572 ounces of gold at cash costs of US$1,348 per ounce. Operating costs per gold-ounce are expected to drop to roughly US$900 by year-end. Coeur anticipates full year gold production at Kensington to be around 85,000 ounces. In addition to improving operations, the Idaho-based miner spent some US$4 million on defining and expanding the current mineral reserves and resource at Kensington. During the first half of 2012, the company completed 7,548 meters of exploratory drilling primarily focused on the Raven deposit – a gold-bearing quartz vein system about 670 meters west of the current mining area. Kensington South was another target of the exploration program. Coeur said drilling here has encountered veining and alteration similar to that of the main Kensington mine with encouraging gold grades. A helicopter-borne geophysical (magnetics) survey was conducted to help identify future drill targets. Additionally, Coeur completed 10,187 meters of definition drilling at Zone 10, which is expected to constitute a major part of the mine plan for the next three years. The company said results from 85 new holes show multiple gold-mineralized intervals, ranging from 0.3 meters to 10.3 meters true widths and gold grades from a cutoff grade of 0.1 to over 6 ounces per ton. The company plans to use this data to update the mineral resources and reserves. At the end of 2011, Kensington’s proven and probable reserves were 1.3 million ounces of gold; measured and indicated resources totaled 587,320 ounces of gold; and inferred resources were at 169,680 ounces of gold.
Cash and short-term deposits: US$200.3 million (at June 30, 2012)
Working capital: US$201.6 million (at June 30, 2012)
Market capitalization: US$2.6 billion (at Sept. 20, 2012)
505 Front Avenue
Coeur d’Alene, Idaho 83815
Ph: 208-667-3511 • Fax: 208-667-2213
Print this story | Email it to an associate.
Tweet it||Digg it|
Click here to subscribe to Petroleum News for as low as $69 per year.