The mining newspaper for Alaska and Canada's North
North of 60 Mining News – January 24, 2020
Coeur Mining Inc. Jan. 16 reported a fourth quarter drop in metals production at both its Kensington gold mine in Southeast Alaska and the Silvertip silver-zinc-lead mine in northern British Columbia.
Kensington produced 29,736 ounces of gold during the final three months of 2019, a 13 percent drop from the 34,156 oz recovered at the Southeast Alaska mine during the third quarter.
Coeur said lower grades and lower recoveries both contributed to the decreased gold production during the fourth quarter. The mill processed 167,061 tons of ore averaging 0.20 oz per ton gold during the period, this is compared to 166,475 tons averaging 0.22 oz/t gold during the third quarter. Gold recoveries were 87.2 percent during fourth quarter compared to 93.2 percent during the third.
For full-year 2019, Kensington produced 127,914 oz of gold, which is a 12 percent increase over the 113,778 produced in 2018. This is also in the upper range of Coeur's guidance for 2019 gold production at Kensington, which was set at 117,000 and 130,000 oz for the year.
The higher 2019 gold production reflects the 11 percent increase in grades, compared to 2018.
Metals production also dropped at Coeur's Silvertip Mine, which is located just south of the Yukon border in northern B.C.
During the fourth quarter of 2019, Silvertip produced 279,000 oz of silver, a 7 percent drop from the 300,000 oz produced during the second quarter.
Silvertip also produced 3.9 million lb of zinc and 4 million lb of lead, down 8 percent and 10 percent, respectively.
Coeur said this drop in production during the final three months of 2019 was driven primarily by lower average recovery rates as a result of ongoing mill optimization initiatives.
The Silvertip mill processed 61,662 tons of ore during the fourth quarter, which is 16 percent higher than the third but below the company's target for the operation. Coeur attributes the lower mill throughput primarily to extended planned downtime, which was implemented to complete key projects targeting improved mill availability.
The Chicago-based mining company said mill stability initiatives throughout 2019 led to improved availability and more consistent operational performance late in the fourth quarter and year-to-date. The company said mill availability has averaged nearly 90 percent since mid-December.
"At our Silvertip operation, we continued to execute our plans to improve mill availability and further stabilize the operation during the fourth quarter," said Coeur Mining President and CEO Mitchell Krebs. "Although fourth quarter results were below expectations, we have begun to see tangible results from these efforts and remain confident in the long-term potential of this high-grade and highly prospective deposit."
For the full-year 2019, Silvertip produced 1.2 million oz of silver, 17.1 million lb of zinc and 16.6 million lead. All of these fell bellows Coeur's guidance of 1.5 million to 2.5 million oz of silver, 25 million to 40 million lb of zinc, and 20 million to 35 million lb lead for the year.
Coeur's five operations – Kensington, Silvertip, Palmarejo (Mexico), Rochester (Nevada) and Wharf (South Dakota) – produced 11.75 million oz of silver, 359,418 oz of gold, 17.1 million lb of zinc and 16.6 million lb of lead during 2019.
Gold production fell within the Coeur's guidance for 2019. Silver, zinc and lead, however, all fell below the range the company set for the year.
"Looking ahead to 2020, our key priorities are to advance our efforts to further expand Rochester, continue to stabilize and begin to optimize our Silvertip operation, invest in exploration at our most prospective sites including the Sterling and Crown projects in southern Nevada, and deliver consistent operating results that generate positive free cash flow and lower overall costs," said Krebs.
–SHANE LASLEY
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