MINING NEWS: Feds extend Kensington comment period

The U.S. Forest Service, lead regulatory agency overseeing the environmental assessment for the Kensington gold project near Juneau, Alaska, has extended the public comment period by 30 days.

The move to close public comment submissions sought by the draft supplemental environmental impact statement on April 7, rather than March 8, came on requests from the Environmental Protection Agency and also from a Juneau-based environmental group.EPA requested additional time to evaluate recently received information about the project’s tailings and their potential effect on aquatic life in the proposed tailings impoundment, according to Ed Fogels, project manager for the Alaska Department of Natural Resources.

“EPA also felt they did not receive a complete NPDES application,” Fogels told Mining News on March 9, referring to the National Pollutant Discharge Elimination System permit required by the project.

A number of comments have already been submitted, include a “swamp” of email messages from environmental groups that oppose mining development.

Project developer Coeur Alaska Inc., a subsidiary of Coeur d’Alene Mines Corp., the world’s largest silver producer, wants to build mine and mill facilities at Kensington that would produce approximately 2,000 tons of gold-rich ore per day, requiring a year-round workforce of about 225 people.

According to the company’s fourth-quarter and 2003 year-end report, Coeur estimates capital costs necessary to put Kensington into production at approximately $75 million, significantly less that prior estimates of up to $150 million.

The company completed a final pre-feasibility study in late 2003, which identified significant capital and operating cost savings, according to a Coeur press release that came out shortly after draft SEIS was released on Jan. 23.

Coeur estimates production averaging 100,000 ounces of gold per year, at an average cash cost of approximately $195 per ounce.

Based on past exploration work, Kensington contains an estimated 1.8 million ounces of gold in the proven and probable gold reserves and 1.4 million ounces in resources. Average grade at Kensington is .12 ounces of gold per ton of rock.

“Coeur believes that significant exploration potential exists at Kensington that could materially increase the project’s total resources,” the press release said.

Additional exploration work is planned following the start up of mine production, the company said.The company expects to receive all major permits by June 2004, according to Coeur’s statement, and a company construction decision will follow. Mine construction, which would require from 135 to 179 workers, will take an estimated 18 months. Potential production could start as soon as 2006, the company said.

Kensington is 45 miles north of Juneau and a few miles inland from Comet Beach on Lynn Canal.