The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
CDE: NYSE
President and CEO: Mitchell Krebs
Chairman: Robert Mellor
VP, Exploration: Hans Rasmussen
Coeur Mining Inc. allocated roughly US$25 million for exploration in 2014, substantially lower than the US$40 million budgeted for 2013 and around 26 percent lower than the US$34 million actually spent on exploration last year.
Despite the overall cuts to exploration budgets, Coeur's Kensington gold mine in Southeast Alaska was allotted US$6.2 million, or about a quarter of the companywide budget.
Kensington's healthy share of exploration funding is the result of success-driven approach that rewards exploration success with a boost in funds.
At Kensington, this success came during drilling at the Jualin area, which hosts the historical Jualin Mine just south of the Kensington.
Highlights include: 1.7 feet of 7.3 oz/t gold in hole JU14-X012; 8.6 feet of 5.54 oz/t gold in JU14-X015; and 7.9 feet of 0.701 oz/t gold in JU14-X029.
In addition to surface drilling at Jualin, underground drills targeted zones 10 and 20, in the immediate Kensington mine area.
Highlights from drilling in this area include: 2.4 feet of 4.03 ounces per short ton gold in hole KX13-069; 15.2 feet of 0.969 oz/t gold in KX13-071; and 4.1 feet of 3.416 oz/t gold in hole K14-1560-270-X05.
Coeur said grade and thickness of mineralization is improving at depth and to the southern portion of the ore body.
Zones 10 and 20 are expected to be further drilled and developed over the next year and bring additional high-grade production into the mine plan beginning in 2016.
At the end of 2013, Coeur Mining reported 6.0 million tons of proven and probable reserves at Kensington averaging 0.15 oz/t (902,000) ounces of gold.
In addition, the property hosts 2.7 million tons of measured and indicated resources averaging 0.211 oz/t (566,000 ounces) gold and 1.0 million tons of inferred resource grading 0.259 oz/t (263,000 oz) gold at Kensington.
Coeur expects to complete a new resource estimate for Kensington by the end of 2014 and anticipates releasing a new mine plan in early 2015.
Based on the success of the program, in October Coeur increased 2014 exploration spending at Kensington to US$9.1 million, nearly a US$3 million increase over the already robust program.
Cash and short-term deposits: US$316.8 million (June 30, 2014)
Working capital: US$471.2 million (June 30, 2014)
Market capitalization: US$489.4 million (Oct. 6, 2014)
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Chicago, Illinois 60603
Tel: 312-489-5800
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