Monday, 14th November 2005 (2708 views)

The world's largest silver mining outfit, Coeur d'Alene Mines, has revealed more details of its planned move into the Alaskan gold mining market.

Speaking at the Alaska Miner's Association, Coeur's chairman Dennis Wheeler said that the Kensington mine will produce 100,000 ounces of gold a year after it starts production in 2007.

This should net the Idaho-based outfit an extra $42 million in revenues a year, according to the Alaska Journal of Commerce.

Mr Wheeler said the move would help the company diversify from its historic focus on silver, which contributes the majority of its business.

The exploration outfit is now preparing to spend $125 million a year in construction costs to get the site up and running after a drilling programme earlier this year yielded encouraging results.

"We've encountered significant gold mineralisation in the first few holes," commented Mr Wheeler.

The mine will employ around 200 people.

Coeur earlier this month unveiled solid third-quarter results, as it turned a net loss of $18.1 million last year to a profit of $3.5 million.

 

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