Technical Report shows increase in proven and probable reserves at Kensington Mine (Alaska)

Highlights from Kensington’s technical report include:

• A 13% increase in expected average annual payable production to approximately 130 000 oz of gold from 2019 through 2021 compared to payable production in 2017.
• A 17% increase in anticipated life-of-mine head grade of 0.21 oz/t compared to the 2017 average head grade of 0.18 oz/t.
• Anticipated 8% reduction in average costs from US$920 in 2017 to US$855 per payable ounce.
• Average annual pre-tax cash flows of over US$30 million over the three-year period, up from US$1.4 million of pre-tax cash flow in 2017.
• An extension of mine life from 2020 to 2022 based on current reserves.
• Mining rates at the high-grade Jualin deposit expected to ramp up to 100 tpd in 2019 and average over 180 tpd in 2020.
• 84% increase in expected life-of-mine pre-tax cash flows to US$90 million compared to US$49 million in Kensington’s 2014 technical report.
• Addition of 713 000 oz of measured and indicated resources and 305 000 oz of inferred resources, conveying potential for further mine life extensions.

Coeur’s President and CEO, Mitchell J. Krebs, commented: “The results of Kensington’s technical report illustrate the significant impact a relatively small amount of high-grade mill feed can have on this mine’s prospects.”

“Once we complete dewatering efforts at Jualin, we plan to ramp up mining rates beginning in the fourth quarter. “This initial reserve declaration at Jualin represents an important milestone, and we continue to work towards defining Kensington’s greater potential. Our exploration team has identified numerous high-grade, historically-producing veins that are drill-ready, close to existing infrastructure, and we intend to explore their potential to serve as supplemental sources of high-margin production. Like Jualin and Raven, these targets have the potential to drive value at Kensington for many years to come.”

The Kensington district once hosted several past producing mines and prospects, illustrating a lengthy mineralisation corridor. Coeur intends to explore these historic vein structures over the next 18 months to determine their potential to provide high-grade mill feed, both supplementing feed from Raven and Jualin as well as succeeding them in the longer-term. Surface mapping and sampling of these historic veins have demonstrated encouraging results. Coeur’s exploration team onsite will endeavour to drill test several of these targets for continuity at depth.

Read the article online at: https://www.globalminingreview.com/exploration-development/26042018/technical-report-shows-an-increase-in-proven-and-probable-reserves-at-kensington-mine-alaska/