Coeur Mining announced high-grade drill results from their Kensington gold mine in Alaska, including the nearby Jualin zone. A new resource estimate is pending Q4 2014; a new mine plan, forecast to reflect higher-grade production, lower costs, and higher cash flow, is pending Q1 2015.
“Operating consistency has allowed us to increase exploration and long-term planning,” said Coeur Mining Senior Vice President Frank Hanagarne. “The discovery at Jualin has potential to increase free cash flow.”
Kensington South beneath current production areas yielded the grades 100 to 200 ft from current development, said representatives. Certain grades returned more than 1 oz/ton of gold, they added; mineralization thickness improved deeper and south of the deposit, with all zones open in direction. In Jualin, Coeur announced multi-ounce intercepts where deep-pit development is pending 2015 with limited production expected by 2017.
By Q4, Kensington’s estimated proven and probable reserves totaled 6 million tons at an average 0.15 oz/ton grade containing 902,000 oz gold, added officials. Coeur forecasts spending $9.1 million for Kensington exploration in 2014, including $1.7 million in capitalized drilling, $3 million beyond the initial budget. Further development is expected at two Kensington South zones up to 200 ft away over the next year, bringing further high-grade production into the 2016 mine plan.
Jualin remains open at depth and north toward Kensington, within 300 ft beneath the Jualin portal, near current mine infrastructure. Permitting, Coeur noted, is under way for
underground development at Jualin to access drill stations. Drilling is expected to continue through 2016 with initial production slated for 2017; upon advancement of underground development, drilling will focus on further delineation of 5,500 ft.