Coeur Releases Updated Mine Plan and Preliminary Economic Assessment for Kensington Mine

Coeur Mining, Inc. (NYSE:CDE) announced an updated mine plan and a preliminary economic assessment for its Kensington gold mine in Southeast Alaska. The new mine plan reflects the recent discovery of the high-grade Jualin zone and increases overall production and higher cash flows due to the higher-grade material from three nearby zones.

As quoted in the press release:

The Jualin zone, located approximately 8,250 feet from current mining activities, continues to expand based on ongoing drilling and contains an average gold grade over three times the average reserve grade of 0.185 ounces per tonne. Annual gold production between 2015 and 2020 at Kensington is expected to average approximately 128,000 ounces and costs applicable to sales are expected to average $820 per gold ounce. Production in 2014 was 117,823 ounces at a costs applicable to sales of $951 per gold ounce.

Mitchell J. Krebs, president and CEO of Coeur Mining, commented:

Our recent success identifying high-grade mineralization near existing Kensington infrastructure has added higher-margin production to our mine plan and significantly improved the expected economics of the mine. Kensington’s new mine plan is expected to be a key component of the Company’s overall strategic repositioning that is expected to increase overall production levels by approximately 30 percent, reduce overall unit costs by approximately 25 percent, and boost the Company’s free cash flow to $190-$200 million in 2017.

Click here to read the full Coeur Mining, Inc. (NYSE:CDE) press release.