page 10 Curt Freeman column inside www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of January 25, 2015 NORTHERN NEIGHBORS Compiled by Shane Lasley l PRODUCTION COPPER NORTH MINING CORP. Jan. 21 said recent test- ing demonstrates that an agitated tank leach is the optimal recovery process for copper, gold and silver from oxide mineral resources at the Carmacks Copper Project in central Yukon Territory. A new process plan consists of three-stage crushing and rod mill grinding prior to placing ore in an agitated tank for leaching of copper oxides with weak sulfuric acid. Testing indi- cates 84 percent copper recovery with leach times of 16 to 18 hours. Utilizing waste heat from the sulfuric acid plant may fur- ther reduce the leach times. Following copper leaching, the solids are rinsed and pumped into a second set of agitated tanks for the addition of lime and cyanide for gold and silver extrac- tion. Testing indicates a recovery of 80 percent for gold and 78 percent for silver over 48 hours at ambient temperatures. Higher leach temperatures provide potential for a significant reduction in leach time and further increases in recovery, and is under investigation. Residues from the cyanide circuit undergo cyanide destruction prior to deposition in a dry stacked waste facility, eliminating the need for a tailings pond. Beijing General Research Institute Mining and Metallurgy has begun design work for the new process plan as part of a prefeasibility study to be completed in mid-2015, before completing the fea- sibility study at year’s end. Copper North said improved recov- eries and bringing forward revenues from operations, as com- pared to a July 2014 preliminary economic assessment, shows an important improvement in project economics. KAMINAK GOLD CORP. Jan. 20 reported assay results from drilling at Double Double, the highest grade of four gold deposits being evaluated at the Coffee gold project about 130 kilometers (80 miles) south of Dawson City, Yukon Territory, as part of an ongoing feasibility study. The objective of 6,850 meters of infill drilling in 47 holes at Double Double was to verify and upgrade the open-pit resources defined in a 2014 preliminary economic assessment from inferred to the indicated category. In addition to confirming the existing geological inter- pretation, Kaminak said drilling completed in 2013 and 2014 has delineated a previously unknown parallel mineralized struc- ture – Double Double North – culminating in a 2014 intercept of 32.8 grams per metric ton gold over 6.1 meters from 39.6 meters depth. This high-grade intercept is located just outside the PEA pit shell, underscoring the potential for resource expansion. Additional highlights from 2014 drilling at Double Double include five meters grading 37.6 g/t gold in CFD093 and 33.53 meters of 5.07 g/t gold in CFR0713. Drilling is scheduled to resume at Coffee in February. COLORADO RESOURCES LTD. Jan. 19 reported the acqui- sition of 661 hectares (1,633 acres) of property internal to the KSP gold-copper property in northwestern British Columbia. Colorado has an option to earn up to 80 percent interest in KSP from SnipGold Corp. The additional ground includes the Snip 2 claim acquired from Teck Resources Ltd.; and the Snow Minfile and Lake Minfile occurrences from private vendors. Colorado said it met 2014 payment and work commitments for KSP and roughly 75 percent of its 2015 work commitments for the property. With no other property obligations, the company said its treasury is in good shape to weather difficult financial times. PRETIUM RESOURCES INC. Jan. 16 reported closing a C$80.87 million private placement with Zijin Mining Group Co. Ltd. of 12.84 million Pretium common shares at C$6.30 each. Pretium intends to use the proceeds to fund capital expen- ditures at its Brucejack gold project in northwestern British Columbia, including procurement of long-lead items and camp infrastructure. Shaoyang Shen of Zijin will be appointed to Pretium’s board of directors CHIEFTAIN METALS CORP. Jan. 15 said British Columbia Minister of Environment Mary Polak has determined that the Tulsequah Chief Mine project near the Alaska border in west- SE output soars Greens Creek, Kensington outperform silver, gold production predictions By ROSE RAGSDALE For Mining News T hanks to higher grades and improved recover- ies, Greens Creek and Kensington, the two producing mines located in the Alaska Panhandle, reported strong output in 2014 and outstanding results for the fourth quarter. Record output at Greens Creek At Greens Creek which is owned and operated by Idaho-based Hecla Mining Co., about 360 full- time workers carved some 7.83 million ounces of silver and 58,753 oz gold, as well as lead and zinc concentrates from the volcanogenic mas- sive sulphide mine in 2014, milling ore at an average rate of 2,236 tons per day. The output exceeded the compa- ny’s 2014 anticipated silver production of 6.5 to 7.0 mil- lion ounces and the mine’s 2013 output of 7.45 million oz silver by 5 percent; 57,457 oz gold by 2 percent; zinc by 11 percent and lead by 33 percent. In the fourth-quarter, Greens Creek produced 2.5 million ounces of silver and 15,289 ounces of gold, outpacing the mine’s comparable 2013 pro- duction of 1.8 million ounces of silver and 14,722 ounces of gold by 34 percent and 4 percent, respectively. The underground mine, which has operated for more than 22 years on Admiralty Island about 18 miles southwest of Juneau, is one of the world’s largest primary silver producers. It contributed a substantial share of Hecla’s overall production of precious metals in 2014, which totaled 11.1 mil- lion oz silver and 186,994 oz gold, up 24 percent and 56 percent, respectively, from comparable out- put in 2013. The company, which also operates the Lucky Friday mine in Idaho and Casa Berardi mine in Quebec, produced 34.44 million pounds zinc and 19.57 million lbs. lead, primarily at Greens Creek. Hecla’s silver-equivalent production for 2014 totaled 34.5 million oz, up 50 percent from 2013 and 142 percent from 2012. “Hecla’s silver-equivalent production is the most in Hecla’s history and higher than our guid- ance as all three mines are running well,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “The fourth-quarter performance of Greens Creek and Casa Berardi exceeded our normal pro- duction expectations as a result of higher grades and in addition, increased recoveries at Casa Berardi over the third quarter. Cash balances are essentially unchanged from the end of last year, PHILLIPS S. BAKER JR. see MINE OUTPUT page 12 “Hecla’s silver-equivalent production is the most in Hecla’s history and higher than our guidance as all three mines are running well.” —Phillips S. Baker Jr., president and CEO, Hecla Mining Co. see NORTHERN NEIGHBORS page 13 COEUR MINING INC. Coeur Mining Inc. plans to release a new mine plan for Kensington in early 2015 that is expected to reflect high- er grade, higher-margin production over the life of the Southeast Alaska gold mine.
Transcript
page10
Curt Freeman column inside
www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of January 25, 2015
NORTHERN NEIGHBORSCompiled by Shane Lasley
l P R O D U C T I O N
COPPER NORTH MINING CORP. Jan. 21 said recent test-ing demonstrates that an agitated tank leach is the optimalrecovery process for copper, gold and silver from oxide mineralresources at the Carmacks Copper Project in central YukonTerritory. A new process plan consists of three-stage crushingand rod mill grinding prior to placing ore in an agitated tank forleaching of copper oxides with weak sulfuric acid. Testing indi-cates 84 percent copper recovery with leach times of 16 to 18hours. Utilizing waste heat from the sulfuric acid plant may fur-ther reduce the leach times. Following copper leaching, thesolids are rinsed and pumped into a second set of agitated tanksfor the addition of lime and cyanide for gold and silver extrac-tion. Testing indicates a recovery of 80 percent for gold and 78percent for silver over 48 hours at ambient temperatures.Higher leach temperatures provide potential for a significantreduction in leach time and further increases in recovery, and isunder investigation. Residues from the cyanide circuit undergocyanide destruction prior to deposition in a dry stacked wastefacility, eliminating the need for a tailings pond. BeijingGeneral Research Institute Mining and Metallurgy has begundesign work for the new process plan as part of a prefeasibilitystudy to be completed in mid-2015, before completing the fea-sibility study at year’s end. Copper North said improved recov-eries and bringing forward revenues from operations, as com-pared to a July 2014 preliminary economic assessment, showsan important improvement in project economics.
KAMINAK GOLD CORP. Jan. 20 reported assay resultsfrom drilling at Double Double, the highest grade of four golddeposits being evaluated at the Coffee gold project about 130kilometers (80 miles) south of Dawson City, Yukon Territory, aspart of an ongoing feasibility study. The objective of 6,850meters of infill drilling in 47 holes at Double Double was toverify and upgrade the open-pit resources defined in a 2014preliminary economic assessment from inferred to the indicatedcategory. In addition to confirming the existing geological inter-pretation, Kaminak said drilling completed in 2013 and 2014has delineated a previously unknown parallel mineralized struc-ture – Double Double North – culminating in a 2014 interceptof 32.8 grams per metric ton gold over 6.1 meters from 39.6meters depth. This high-grade intercept is located just outsidethe PEA pit shell, underscoring the potential for resourceexpansion. Additional highlights from 2014 drilling at DoubleDouble include five meters grading 37.6 g/t gold in CFD093and 33.53 meters of 5.07 g/t gold in CFR0713. Drilling isscheduled to resume at Coffee in February.
COLORADO RESOURCES LTD. Jan. 19 reported the acqui-sition of 661 hectares (1,633 acres) of property internal to theKSP gold-copper property in northwestern British Columbia.Colorado has an option to earn up to 80 percent interest in KSPfrom SnipGold Corp. The additional ground includes the Snip 2claim acquired from Teck Resources Ltd.; and the SnowMinfile and Lake Minfile occurrences from private vendors.Colorado said it met 2014 payment and work commitments forKSP and roughly 75 percent of its 2015 work commitments forthe property. With no other property obligations, the companysaid its treasury is in good shape to weather difficult financialtimes.
PRETIUM RESOURCES INC. Jan. 16 reported closing aC$80.87 million private placement with Zijin Mining GroupCo. Ltd. of 12.84 million Pretium common shares at C$6.30each. Pretium intends to use the proceeds to fund capital expen-ditures at its Brucejack gold project in northwestern BritishColumbia, including procurement of long-lead items and campinfrastructure. Shaoyang Shen of Zijin will be appointed toPretium’s board of directors
CHIEFTAIN METALS CORP. Jan. 15 said British ColumbiaMinister of Environment Mary Polak has determined that theTulsequah Chief Mine project near the Alaska border in west-
SE output soars Greens Creek, Kensington outperform silver, gold production predictions
By ROSE RAGSDALEFor Mining News
Thanks to higher grades and improved recover-ies, Greens Creek and Kensington, the two
producing mines located in the Alaska Panhandle,reported strong output in 2014 and outstandingresults for the fourth quarter.
Record output at Greens CreekAt Greens Creek which is owned and operated
by Idaho-based Hecla Mining Co., about 360 full-time workers carved some7.83 million ounces of silverand 58,753 oz gold, as wellas lead and zinc concentratesfrom the volcanogenic mas-sive sulphide mine in 2014,milling ore at an average rateof 2,236 tons per day. Theoutput exceeded the compa-ny’s 2014 anticipated silverproduction of 6.5 to 7.0 mil-lion ounces and the mine’s2013 output of 7.45 million oz silver by 5 percent;57,457 oz gold by 2 percent; zinc by 11 percentand lead by 33 percent.
In the fourth-quarter, Greens Creek produced2.5 million ounces of silver and 15,289 ounces ofgold, outpacing the mine’s comparable 2013 pro-duction of 1.8 million ounces of silver and 14,722ounces of gold by 34 percent and 4 percent,respectively.
The underground mine, which has operated for
more than 22 years on Admiralty Island about 18miles southwest of Juneau, is one of the world’slargest primary silver producers. It contributed asubstantial share of Hecla’s overall production ofprecious metals in 2014, which totaled 11.1 mil-lion oz silver and 186,994 oz gold, up 24 percentand 56 percent, respectively, from comparable out-put in 2013. The company, which also operates theLucky Friday mine in Idaho and Casa Berardimine in Quebec, produced 34.44 million poundszinc and 19.57 million lbs. lead, primarily atGreens Creek.
Hecla’s silver-equivalent production for 2014totaled 34.5 million oz, up 50 percent from 2013and 142 percent from 2012.
“Hecla’s silver-equivalent production is themost in Hecla’s history and higher than our guid-ance as all three mines are running well,”said Phillips S. Baker, Jr., Hecla’s President andCEO. “The fourth-quarter performance of GreensCreek and Casa Berardi exceeded our normal pro-duction expectations as a result of higher gradesand in addition, increased recoveries at CasaBerardi over the third quarter. Cash balances areessentially unchanged from the end of last year,
PHILLIPS S. BAKER JR.
see MINE OUTPUT page 12
“Hecla’s silver-equivalent production isthe most in Hecla’s history and higher
than our guidance as all three mines arerunning well.” —Phillips S. Baker Jr.,president and CEO, Hecla Mining Co.
see NORTHERN NEIGHBORS page 13
CO
EUR
MIN
ING
IN
C.
Coeur Mining Inc. plans to release a new mine plan for Kensington in early 2015 that is expected to reflect high-er grade, higher-margin production over the life of the Southeast Alaska gold mine.
Several events have dramatically affect-ed Alaska’s mining industry in recent
weeks, underscoring critical links betweenAlaska and the global economy.
First came bad news for newly-electedGov. Bill Walker: The plunge in world oilprices pushed Alaska’s coming-year budg-et projections about $3.5 billion into thered. The ripple effect of this was a slashingof everything not required and one of thecuts, temporarily at least, was state fundingof the Ambler District Road. Deposits likeBornite, Arctic and Sun, among others, areadversely affected by this decision.
Just after the new year began, the SwissNational Bank cut its longstanding tie tothe Euro, sending Swiss Francs skyrocket-ing and the Euro into further troubledwaters. One result was a strengthening ofgold prices as investors looked for a safehaven for their funds.
In Alaska, the Fort Knox, Pogo,Kensington and Greens Creek mines allbenefited from rising gold prices. Silverfollowed gold’s upward move, also puttingsmiles on faces at Greens Creek. Lead andzinc, both significant contributors to rev-enue from Red Dog and Greens Creek, did
not share the upward ride of precious met-als. Zinc currently trades in the middle ofits one-year range and lead near the bot-tom of its one-year range. While copper isnot currently a big revenue source forAlaska’s mines, it has a potential to be soin the future and is a stong driver ofAlaska mineral exploration, so its plightalso is of interest. Unfortunately, coppertook a tremendous beating in 2014, plum-meting from the upper $3.30s per pound inJanuary 2014 to lows of about $2.60 inlate December. Copper has recovered
slightly in 2015, trading between $2.66and $2.87 per pound.
Finally, the Canadian dollar continuedto slide against the U.S. dollar, a drop ofsome 20 percent in just two years. Thismeans it takes more Canadian dollars tofund a dollar of exploration in Alaska. Andsince more than 75 percent of Alaska’smineral exploration is funded by Canadiancompanies, this is bad news for an industryfacing another year of limited explorationbudgets and lackluster investor sentiment.
So there you have it, the good, the badand the ugly – welcome to 2015!
Interior AlaskaFREEGOLD VENTURES LTD.
released an update on recently completedcolumn test work at its Golden Summitproject. Further bottle roll tests and columnleach tests on the oxide component of min-eralization at the 6.5-million-ounceDolphin-Cleary deposit indicated goldextractions exceeding 80 percent can beachieved within 14 days on coarse crushedmaterial (80 percent passing 25 millime-ters). The column test ran for 65 days andfinal extractions were 85 percent for gold.These tests suggest recovery on the oxidecomponent does not appear to be sensitiveto grind size. These results compare favor-ably with earlier bottle roll test results oncoarse crushed material. Sodium cyanideconsumption in the column test was rea-sonable at 0.69 kilograms per metric ton.Optimization of cyanide dosing in futuretest work programs will focus on potentialimprovement in both kinetics and cyanideconsumption. Head grades of the oxidematerial were 1.0 gram per metric ton goldand 10 g/t silver. Results of the tests willbe incorporated into the preliminary eco-nomic assessment currently underway.Freegold undertook additional columnleach work to provide more comprehen-sive data to examine potential for an initialheap leach operation on the oxide compo-nent of Dolphin-Cleary.
INTERNATIONAL TOWER HILLMINES LTD. reported progress towardoptimization of its Livengood gold project.In addition to reviewing mine productionscheduling and detailed metallurgical testwork, the company examined power sup-ply alternatives to determine how changingenergy supply dynamics might affect proj-ect assumptions regarding electrical gener-ation and scrutinized construction andoperations camp alternatives to better
define costs of supporting the project’smanpower requirements. The companyalso continued to advance environmentalbaseline work in support of future permit-ting to better position the project for a con-struction decision when warranted by mar-ket conditions. Revised production sched-ules were run at throughputs ranging from11,250 metric tons per day to 90,000 tpd.At the upper level of production, the minewould produce about 7.7 million oz ofgold over its 12-year mine life from oreranging from 0.50-0.92 g/t gold. Theimpact of just this scheduling changewould increase the net present value of theproject by $305 million (at 5 percent and$1,500 per ounce gold). Integrating 45-degree slopes into the mine plan for thefirst five years and then reverting to thedesign slopes used in a September 2013feasibility study would result in an addi-tional increase of $95 million (at 5 percentand $1,500/oz gold). Re-evaluation of met-allurgical tests determined that theobserved calculated head grades from the250- to-300 kilogram composite samplesof the five primary rock types of thedeposit met or exceeded the drill assaygrades used in the feasibility study by aratio of 1.00 to 1.43, depending on rocktype. Additional metallurgical recoverywork will be required but if a higher headgrade can be confirmed, its effect wouldbe a significant improvement on projecteconomics. Due to the potential impor-tance of the 2014 head grade evaluation tothe project, a significant multiphase metal-lurgical test-work program is alreadyunderway in an attempt to validate theobserved higher calculated head grades.The objectives of the 2015 metallurgicaltest program are to optimize the gravitycircuit, optimize the grind size and powerconsumption, optimize the re-agent con-sumption, optimize the leach retentiontime, confirm the overall recoveries byrock type and provide additional confirma-tion of the head grades. The company alsowill continue environmental baseline stud-ies and to evaluate alternatives for freshwater supply for potential cost savings.
CONTANGO ORE INC. said it final-ized a joint venture with ROYALALASKA LLC, a wholly-owned sub-sidiary of ROYAL GOLD INC. to advanceexploration and development on the Tetlinproject near Tok. Royal Gold’s initialinvestment of $5 million will fund explo-
l C O L U M N
Good, bad and ugly hits Alaska miningLow oil, base metals prices and currency woes hurt 2015 exploration outlook, but improved gold, silver prices help producing mines
10NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 25, 2015
NORTH OF 60 MINING NEWS is a weekly supplement of Petroleum News,a weekly newspaper. To subscribe to North of 60 Mining News,
call (907) 522-9469 or sign-up online at www.miningnewsnorth.com.
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North of 60 Mining News is a weekly supplement of the weeklynewspaper, Petroleum News.
Contact North of 60 Mining News:Publisher: Shane Lasley • e-mail: [email protected]
Phone: 907.229.6289 • Fax: 907.522.9583
Alaska Mental Health Trust Land Office VacancyMinerals-Energy Section Chief – Anchorage, Alaska
The Alaska Mental Health Trust Land Office within the Alaska Department of Natural Resources is recruiting for a Minerals-Energy Section Chief. This is a fully exempt, professional position with a starting salary up to $121,000 annually. Final salary will be negotiated at the time of hire and will be based upon the successful candidates’ qualifications and experience. The position is located in Anchorage, Alaska and is offered with a complete State of Alaska benefit package.
As part of a dynamic team dedicated to the development and management of approximately one million acres of Alaska Mental Health Trust Land, the Minerals-Energy Section Chief will oversee and direct the marketing, analysis and administration of programs for the development of the Trust’s mineral and energy resources.
For a complete list of position requirements, responsibilities and how to apply, view the Trust Land Office website at www.mhtrustland.org.
The State of Alaska is an equal employment opportunity employer and supports workplace diver-sity. Individuals requiring accommodation should call 800-587-0430 V/800-770-8973 TTY/TDD (Relay Alaska).
TheauthorThe author
Curt Freeman,CPG #6901, is awell-known geol-ogist who lives inFairbanks. He pre-pared this column CURT FREEMANJan. 19. Freeman can be reached bymail at P.O. Box 80268, Fairbanks, AK99708. His work phone number atAvalon Development is (907) 457-5159and his fax is (907) 455-8069. His emailis [email protected] and his website iswww.avalonalaska.com.
ration activity, and Royal Gold will havethe option to earn up to a 40 percent eco-nomic interest in the joint venture byinvesting up to $30 million (inclusive ofthe initial $5 million investment) prior toOctober 2018. Royal Gold indicated thatplans were being formulated for an activeexploration program to be conducted in2015.
Alaska RangeCOVENTRY RESOURCES INC. said
new claims, covering roughly 11,040acres, have been staked immediately adja-cent to and along strike from the previousboundaries of the Caribou Dome copperproject in the Valdez Creek District.Sediment-hosted copper mineralizationhas been identified across the entire east-west strike of the previous 10,240-acreproject area. This includes delineation ofnine outcropping pods of very high-gradecopper mineralization over about 750meters of strike. The newly staked claimscover mapped extensions of highlyprospective stratigraphy that hosts knownmineralization and incorporates numeroushistoric copper (and other base and pre-cious metal) occurrences, including theunderexplored Aly’s Peak prospect wherelarge areas of moderate to strong propy-litic alteration have been mapped duringlimited previous exploration.Disseminated sulfides (pyrite, pyrrhotite+/- chalcopyrite) have been reported to becommon, and locally reach one by twometers in size. Analysis of very limitedrock chip sampling yielded up to 1.36 per-cent copper and assays of massive epi-dote-garnet-copper sulfide-copper oxideskarn in float near the top of Aly’s Peak
yielded 1.08 percent copper. KISKA METALS CORP. said it
restructured net smelter returns royaltyinterests for its 100 percent-ownedWhistler project pursuant to two royaltypurchase agreements entered into Dec. 16.Highlights of the transactions dictate thatnet smelter return royalties totaling 3.5percent on the core claims at Whistler willbe cancelled, and replaced with one 2.75percent NSR royalty over the entire prop-erty. Kiska will retain a buy-down provi-sion to 2 percent for $5 million, issue 2million warrants and receive net proceeds
of $1.1 million for the royalty transac-tions.
Northern AlaskaGOLDRICH MINING CO. released a
year-end summary of development andpre-production activities at its Chandalargold project in the Brooks Range.GOLDRICH NYACAU PLACER LLC, a50-50 joint-venture between the companyand NYACAU LLC has invested morethan $17 million in equipment and infra-structure to prepare for commercial-scalegold mining on the Little Squaw placer
gold deposit. Major accomplishments dur-ing 2014 included relocating the plant to alower and broader part of the valley, build-ing new water ponds, and expanding theplant. A new grizzly feeder was mobilizedand installed on site as well as supportframes for additional gravel screens andgold recovery tables to be mounted thisspring. Full capacity of the feeder isexpected to be about 600 bank cubic yardsper hour and will be realized as additionalgravel screens and gold recovery tables
11NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JANUARY 25, 2015
Usibelli Coal Mine has an all-Alaskan workforce—and that’s one big reason why we’re committedto protecting our environment. You see, most of our employees and their family members livejust a few miles away from our coal mine in Healy. So when we talk about clean air and cleanwater—it’s personal. The mine is in our back yard, so protecting the air we breathe, the waterwe drink, and the land we recreate on is essential to our way of life.
12NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 25, 2015
despite the lower price environment andthe completion of Hecla’s second largestannual capital program that was designedto increase production, extend mine lifeand reduce operating risk. These resultsare testament to the strength of Hecla’sassets and the capability of our operatingteams.”
Hecla reported capital spending in2014 of about $132 million (excludingcapitalized interest), $18 million less thanguidance, and cash and cash equivalentsof roughly $209 million at year’s end, $3million less than the amount on hand ayear earlier.
Improvements at KensingtonProduction at the 318-employee
Kensington gold mine located 45 milesnorth-northwest of Juneau also exceededexpectations in 2014, totaling 117,823 ozgold.
“Operating consistency has improvedat Kensington in the past two years,which has allowed us to increase oureffort on exploration and long-term plan-ning,” said Frank Hanagarne, CoeurMining's senior vice president and chiefoperating officer.
Chicago-based Coeur had postedguidance for the mine’s anticipated out-put of 107,000 - 112,000 oz in 2014.
In the fourth quarter, Kensington pro-duced 33,533 oz gold, down 8 percentfrom 36,469 oz for the comparable quar-ter of 2013. Coeur milled 167,417 tons ofore grading 0.21 grams per metric tongold at an average recovery rate of 94.2percent during the fourth quarter.
Full-year 2014 production at Coeurtotaled 17.2 million oz silver and249,384 oz gold, down from full-year2013 production of 16.9 million oz silverand 259,980 oz gold. Full-year 2014 sil-ver-equivalent production totaled 32.2million ounces.
The performance was in-line withCoeur’s guidance of 17.0 million to 18.0million oz for silver, above guidance of229,000 to 244,000 oz for gold, and atthe high end of guidance of 30.0 millionto 32.7 million oz for silver-equivalent.
In 2014, Coeur encountered high-grade gold in drilling Kensington South(zones 10 and 20) immediately beneathcurrent production areas, 100 to 200 feetaway from current mine development.Several holes returned grades greaterthan 1.0 oz/ton gold, and grade andthickness of mineralization improves atdepth and to the southern portion of theore body. The zones are open in all direc-tions
In the Jualin area, drilling activity inJualin veins 4 and 5 encountered severalmulti-ounce gold intercepts; under-ground development at Jualin is plannedfor 2015 and production from Vein 4 isexpected to begin in 2017. Vein 4 is openin all directions.
“The renewed focus of our drillingprogram at Kensington has discoveredhigh-grade mineralization to enhance theeconomics of the mine, resulting in aconsiderable number of drill holes con-taining multi-ounce gold intercepts,”said Hans Rasmussen, Coeur’s vice pres-ident, exploration, when the drill resultswere reported in October.
Hanagarne said the discovery of high-grade gold at Jualin has the potential tosignificantly boost production grades,reduce unit costs, and increase free cashflow at the Kensington mine.
In 2015, Coeur said it expects to pro-duce 14.8 - 16.0 million oz silver and
continued from page 9
MINE OUTPUT
see MINE OUTPUT page 13
HEC
LA M
ININ
G C
O.
The Greens Creek mine, which has operated for more than 22 years on Admiralty Island about 18 miles southwest of Juneau, produced 7.8million ounces of silver during 2014.
284,000 - 313,000 oz gold, or 31.8 - 34.8million silver-equivalent oz, up to an 8percent increase over 2014 silver-equiv-alent production.
Coeur’s 2015 total silver and goldproduction guidance includes pro-rataproduction from its recent acquisition ofthe Wharf gold mine in South Dakotafrom Goldcorp Inc. based on an assumedtransaction closing date of March 31,2015. Wharf is expected to produce85,000 - 90,000 ounces of gold in 2015based on guidance provided by Goldcorpon Jan. 12.
For Kensington, the company posted2015 production guidance of 110,000 to115,000 oz gold and 6,600 to 6,900 ozsilver-equivalent.
Coeur also said it anticipates releasinga new mine plan at Kensington in early2015, which is expected to incorporate anew resource estimate it was to completeby the end of 2014 and reflect higher-grade, higher-margin production over thelife of the mine.
Analysts impressed With metals production, especially
silver and gold, exceeding the expecta-tions of the mines’ owners, industry ana-lysts and investors hailed the perform-ances of the silver and gold producers asgood news.
Industry analysts praised the 2014results from both Southeast Alaskamines, noting the operating improve-ments at Kensington and the impressivesilver output at Greens Creek.
It is Coeur’s acquisition of the Wharfmine from Goldcorp. for $105 million incash, however, that is really excitingindustry watchers, who anticipate thecompany enjoying a substantial boost innet cash flow and after-tax earnings fromthe South Dakota operation.
Coeur said Wharf will increase thecompany’s EBITDA by more than 30percent and contribute to free cash flowfrom the start. The primary gold minehas operated for 30 years and has a cur-rent mine life of seven years. It is pro-viding Coeur a 24 percent increase in thecompany’s total gold reserves.
Overall, the Wharf acquisition willresult in gold production accounting forabout 60 percent of Coeur’s revenues.Up from the current share of around 50percent –perhaps changing the compa-ny’s status in the eyes of investors from asilver miner to a gold miner, analysts say.
By adding Wharf, Coeur is expectedto increase its 2015 gold production to260,000 oz, or in terms of silver-equiva-lent (if Coeur continues to be seen as asilver miner) to 34.14 million oz.
Wharf’s low-cost operation relative toKensington also will lower Coeur’s gold-related cash costs to below $1,000/oz,according to analysis by Cowen & Co.
At Greens Creek, Hecla is systemati-cally adding new resources and continu-ally converting them into reserves to fur-ther cope with lower metal prices, ana-lysts say. This will extend GreensCreek’s mine life despite lower metalprices.
Moreover, Hecla is delivering high-grade drill intersections at Green Creek,which is expected to add more resourcesalong the South West bench. In theupcoming quarter, the company isexpected to complete more explorationand definition drilling in these areas.This will not only boost production butalso add meaningfully to the company’stop line in the the upcoming quarters,analysts observe. l
For more than a century Foss has successfully navigated Alaska’s most extreme environments.
www.foss.com
Today, as new opportunities appear on the Arctic horizon, Foss is ready to grow with Alaska.
13NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF JANUARY 25, 2015
Our People Our Community
kinross.com
Janice Durfee first moved to Juneau, Alaska in 1996 with hopes of working at Fort Knox someday. She had been a truck driver at mines in the Lower 48 and had heard wonderful things about Alaska. In 2003, Janice and her husband, Larry, moved to Fairbanks and Janice began working at Fort Knox.
“Fairbanks has that small town feel that I grew up with in Montana. Plus, there are real seasons up here!” she says. Which was good news for the Durfee’s; they both enjoy camping, river fishing, and, Janice’s favorite, gardening.
“As a gardener, if you take care of the land, then the land will produce. That’s a value that I share with Fort Knox. They understand and take care of the land.”
Janice says that she loves her work and her crew of roughly 60 co-workers. “You get to be good friends with the bunch that you work with…I hope to be at Fort Knox until I retire.”
continued from page 12
MINE OUTPUT
ern British Columbia has been substan-tially started. As a result, the environ-mental assessment certificate remains ineffect for the life of the project, and thecompany can continue building the mine.Chieftain said it will proceed with theproject in accordance with a November2014 feasibility study.
SKEENA RESOURCES LTD. Jan. 14
reported results from the final four 2014holes drilled at its Spectrum property innorthwestern British Columbia.Highlights include: 43.8 grams per met-ric ton gold over two meters in hole 14-SP-006; 9.5 g/t gold over two meters inhole 14-SP-007; 4.6 g/t gold over ninemeters in hole 14-SP-008; and 13.7 g/tgold over four meters and 254.5 g/t overtwo meters in hole 14-SP-09. This lastintercept (from 285 meters) representsthe deepest intersection of significantmineralization obtained to date from an
apparent down-plunge extension of the500 Colour Zone. Skeena said its 2015exploration program will target expan-sion of the 500 Colour and Central zones,while other targets will be upgraded tothe drill stage.
KLONDIKE GOLD CORP. Jan. 14reported assay results for 212 prospectingsamples from the 2014 field program atits Lone Star property near Dawson City,Yukon Territory. The company says sam-
Kinross Fort Knox/Fairbanks Gold Mining Inc.Fairbanks, AK 99707Contact: Anna Atchison, Manager, Community and Government RelationsPhone: (907) 490-2218 Fax: (907) 490-2290E-mail: [email protected]: www.kinross.comLocated 25 miles northeast of Fairbanks, Fort Knox isAlaska’s largest producing gold mine; during 2011,Fort Knox achieved 5 million ounces of gold pro-duced, a modern record in Alaska mining.
Usibelli Coal MineFairbanks, AK 99701Contact: Bill Brophy, VP Customer RelationsPhone: (907) 452-2625 • Fax: (907) 451-6543Email: [email protected]: www.usibelli.comOther Office
PO Box 1000Healy, AK 99743Phone: (907) 683-2226Usibelli Coal Mine is headquartered in Healy, Alaskaand has 700 million tons of coal reserves. UCM pro-duces an average of 2 million tons of sub-bituminouscoal each year.
Service, Supply & Equipment
Alaska Air Cargo • Horizon Air CargoP.O. Box 68900 SEAFZSeattle, WA 98168Contact: Joe Sprague, Vice President of CargoPhone: (206) 392-2705 or 800-2ALASKAFax: (206) 392-2641E-mail: [email protected]: www.alaskacargo.comAward winning cargo services to more places, moreoften, with more lift to, from, and within the state ofAlaska.
Alaska Analytical Laboratory1956 Richardson HighwayNorth Pole, AK 99705Phone: (907) 488-1266 • Fax: (907) 488-077E-mail: [email protected] analytical soil testing for GRO, DRO,RRO, and UTEX. Field screening and phase 1 and 2site assessments also available.
Alaska Steel Co.6180 Electron DriveAnchorage, AK 99518Contact: Joe Pavlas, outside sales managerPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935E-mail: [email protected] Full-line steel and aluminum distributor. Completeprocessing capabilities, statewide service. Specializingin low temperature steel and wear plate.
Companies involved in Alaska andnorthwestern Canada’s mining industry
D I R E C T O R Y
The Red Dog mine in northwest Alaska.
Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Mark LamoureuxPhone: (907) 562-0707 • Fax: (907) 562-2426Email: [email protected]: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’s largest andmost complete rigging supply source. We specializein custom sling fabrication (wire rope, web, chain,and polyester round.) We offer radio-frequencyidentification services for all of our rigging products.We carry a large inventory of tire chains for trucksand heavy equipment.
Austin Powder CompanyP.O. Box 8236Ketchikan, AK 99901Contact: Tony Barajas, Alaska managerPhone: (907) 225-8236 • Fax: (907) 225-8237E-mail: [email protected] site: www.austinpowder.comIn business since 1833, Austin Powder providesstatewide prepackaged and onsite manufacturedexplosives and drilling supplies with a commitment tosafety and unmatched customer service.
Calista Corp.301 Calista Court, Suite AAnchorage, AK 99518Phone: (907) 279-5516 • Fax: (907) 272-5060Web site: www.calistacorp.com
Construction Machinery Industrial, LLC5400 Homer DriveAnchorage, AK 99518Contact: Robert Fairbanks, Sales ManagerPhone: (907) 563-3822Fax: (907) 563-1381Email: [email protected]: www.cmiak.com
Delta P Pump & EquipmentPO Box 771452Eagle River, AK 99577Contact: Sue Ahrens, OwnerPhone: (907) 694-7583Fax: (907) 694-7584E-mail: [email protected]: www.deltappump.comDelta P Pumps and Equipment is a full line distribu-tor for pumps, pump parts, and related equipment.We also handle system design, complete fabrication,installation assistance, and some repairs. Delta PPump and Equipment is a woman owned Alaskanbusiness established in 2000.
GCI Industrial Telecom Anchorage:11260 Old Seward Highway Ste. 105Anchorage, AK 99515Phone: (907) 868-0400Fax: (907) 868-9528Toll free: (877) 411-1484Web site: www.gci.com/industrialtelecomRick Hansen, [email protected] Johnson, Business Development [email protected]:Aurora Hotel #205Deadhorse, Alaska 99734Phone: (907) 771-1090Mike Stanford, Senior Manager North [email protected], Texas:8588 Katy Freeway, Suite 226Houston, Texas 77024Phone: (713) 589-4456Hillary McIntosh, Account [email protected] Industrial Telecom provides innovative solutions tothe most complex communication issues facing indus-trial clientele. We deliver competitive services, rep-utable expertise and safely operate under the mostsevere working conditions for the oil, gas and naturalresource industries. GCI-your best choice for full lifecycle, expert, proven, industrial communications.
HDR Alaska Inc. 2525 C St., Ste 305Anchorage, AK 99503Contact: Jaci Mellott, Marketing CoordinatorPhone: (907) 644-2091Fax: (907) 644-2022Email: [email protected]: www.hdrinc.comHDR Alaska provides engineering, environmental, plan-ning, and consultation services for mining and mineralexploration clients. Services include: biological studies;cultural resources; project permitting; NEPA; stakehold-
er outreach; agency consultation; and environmental,civil, transportation, energy, and heavy structural engi-neering.
Judy Patrick Photography511 W. 41st Ave, Suite 101Anchorage, AK 99503Contact: Judy PatrickPhone: (907) 258-4704Fax: (907) 258-4706E-mail: [email protected]: www.judypatrickphotography.comCreative images for the resource development industry.
Keller Williams Commercial101 West Benson, Ste. 503Contact: Stewart Smith, Associate BrokerAnchorage, AK 99503Phone: (907) 865-6505Cell: (907) 727-8686Email: [email protected]: Mollie Smith, Commercial AssociateCell: (907) 229-1384Email: [email protected] site: www.stusell.com;www.AKMiningClaims.comMining Claims to buy, sell, or lease, call the Alaskaprofessionals. We provide real estate brokerage serv-ice to the mining industry, with over 35 years of com-mercial experience. Call for a list of our featuredproperties.
Last Frontier Air Ventures39901 N. Glenn Hwy. Sutton, AK 99674Contact: Dave King, ownerPhone: (907) 745-5701Fax: (907) 745-5711E-mail: [email protected] Base (907) 272-8300Web site: www.LFAV.comHelicopter support statewide for mineral exploration,survey research and development, slung cargo,video/film projects, telecom support, tours, crewtransport, heli skiing. Short and long term contracts.
LyndenAlaska Marine Lines • Alaska Railbelt MarineAlaska West Express • Lynden Air CargoLynden Air Freight • Lynden InternationalLynden Logistics • Lynden TransportAnchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544 • Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden companiesincludes truckload and less-than-truckload highwayconnections, scheduled barges, intermodal bulkchemical hauls, scheduled and chartered air
freighters, domestic and international air forwardingand international sea forwarding services.
Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Mark Liland, acct. mgr. Anch./Prudhoe BayPhone: (907) 249-5149 • Fax: (907) 249-5194Email: [email protected] • Website: www.nac.aeroServing the aviation needs of rural Alaska for almost 50years, NAC is the states largest all cargo carrier movingnearly 100 million pounds of cargo on scheduled flightsto 17 of Alaska’s busiest airports. NAC’s fleet of DC-6,B-727, and ATR-42 aircraft are available for charters toremote sites and flag stops to 44 additional communi-ties.
Pacific Rim Geological ConsultingFairbanks, AK 99708Contact: Thomas Bundtzen, presidentPhone: (907) 458-8951Fax: (907) 458-8511Email: [email protected] mapping, metallic minerals exploration andindustrial minerals analysis or assessment.
Pebble Partnership3201 C St., Suite 604Anchorage, AK 99503Phone: 907-339-2600www.pebblepartnership.com
PND Engineers Inc.1506 W. 36th Ave. Anchorage, AK 99503Phone: (907) 561-1011Fax: (907) 563-4220Website: www.pndengineers.comFull-service engineering firm providing civil, structur-al, and geotechnical engineering, including miningsupport, resource development, permitting, marineand coastal engineering, transportation engineering,hydrology, site remediation, and project manage-ment.
TTT Environmental LLC 4201 “B” St.Anchorage, AK 99503Contact: Tom Tompkins, general managerPhone: 907-770-9041 • Fax: 907-770-9046Email: [email protected]: www.tttenviro.comAlaska’s preferred source for instrument rentals, sales,service and supplies. We supply equipment for airmonitoring, water sampling, field screening, PPE andmore.
Taiga Ventures2700 S. CushmanFairbanks, AK 99701Mike Tolbert - presidentPhone: 907-452-6631 • Fax: 907-451-8632Other offices:Airport Business Park2000 W. International Airport Rd, #D-2Anchorage, AK 99502Phone: 907-245-3123Email: [email protected] site: www.taigaventures.comRemote site logistics firm specializing in turnkeyportable shelter camps – all seasons.
Total Safety U.S. Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Tyler Zollinger, District Manager.Phone: (907) 743-9871Fax: (907) 743-9872E-mail: [email protected]: www.totalsafety.comA full service safety company specializing in RemoteMedical Services, H2S Services, Industrial Hygiene, andSafety Consultants. Total Safety provides Service,Rental, or Sales of Safe Breathing Air, Gas Detection,and Technical Safety Equipment.
URS Corp.700 G Street, Suite 500Anchorage, AK 99501Contact: Joe Hegna, Alaska Vice President/AlaskaOperations ManagerPhone: (907) 562-3366 • Fax: (907) 562-1297E-mail: [email protected]: www.urscorp.comProvide engineering, construction and technical serv-ices with capabilities to support all stages of projectlife cycle. We offer a full range of program manage-ment; planning, design and engineering; constructionand construction management; operations and main-tenance; and decommissioning and closure services.
THE CALISTA CORPORATION FAMILY OF COMPANIESAulukista, LLC Brice Companies STG Incorporated
Tunista Services, LLC Tunista, Inc. Tunista Construction, LLC
Yukon Equipment, Inc. Brice Environmental E3 Environmental
Futaris Chiulista Services, Inc. Yulista Management Services, Inc.
Y-Tech Services, Inc. Yulista Aviation, Inc. Yulista Tactical Services, LLC
Solstice Advertising Calista Real Estate Calista Education and Culture, Inc
SURPRISINGLY DIVERSE
ALWAYS DEPENDABLE
buildingAlaska’s
INFRASTRUCTURE
SHIPPING
freight internationally
satellite COMMUNICATIONS
in the Arctic
16NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JANUARY 25, 2015
are added in stages through 2016. Becauseof the substantial increase in plant capaci-ty, the partners plan to transport sevenadditional 40-ton rock trucks over thewinter trail, beginning in February, to themine site, bringing their fleet to 13 trucks.Goldrich also completed an airborneradiometric and magnetic survey in 2014.Results of the airborne study demonstratea broad northwest-trending belt of elevat-ed potassium values with a centrally locat-ed, kilometer-scale feature where thoriumvalues are elevated relative to potassium.The potassium/thorium anomaly is closelyassociated with magnetic anomalies toform a circular kilometer-scale feature inthe highlands above and adjacent to theLittle Squaw placer gold deposit and isconsistent with an intrusive body at depth.
Southeast AlaskaHECLA MINING CO. announced pre-
liminary fourth-quarter production resultsfrom its Greens Creek mine on AdmiraltyIsland. During the fourth quarter the mineproduced 2.5 million oz of silver and15,289 oz of gold, constituting 34 percentand four percent increases, respectivelyover production levels during the sameperiod a year earlier. Annual production ofabout 7.8 million oz of silver exceeded theprevious year’s production by nearly400,000 oz. The mill operated at an aver-age rate of 2,236 tons per day during2014.
COEUR MINING INC. announced
preliminary year-end production resultsfrom its Kensington mine. The mine out-performed its previously announced pro-duction target of 107,000-112,000 oz byproducing 117,823 oz of gold. The mineproduced 33,533 oz of gold in the fourthquarter, down from the 36,469 oz gold ayear earlier. Kensington also processed167,417 tons of ore in the fourth quarter atan average grade of 0.21 oz per ton.Average recovery was 94.2 percent. Themine is expected to produce 110,000-115,000 oz of gold in 2015. Coeur expectsto release a new mine plan for Kensingtonin early 2015, which is expected to reflecthigher-grade, higher-margin productionover the life of the mine.
UCORE RARE METALS INC. said ithas contracted with AUSENCOENGINEERING CANADA INC. to com-plete a feasibility study on its Bokan-Dotson Ridge project. The feasibilitystudy will make use of new studies com-pleted after a preliminary feasibility studywas published in early 2013. These stud-ies include results from bulk sampling andXRT tests. The resultant upgraded materi-al is being used for final laboratory testingand as feedstock to the pilot plant; engi-neering for recently completed permittingnow being incorporated in the plan ofoperations for the proposed mine site;revised resource drilling exceeding 4,000meters that will be incorporated into aresource model; continued testing of themetallurgical process flow sheet, andfinalization of the rare earth oxide separa-tion process. l
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ples from a newly found quartz vein atBoulder Lode, a prospect related to thehistorical Lone Star Mine, returnedassays of 1,766 grams per metric tongold, 1,007 g/t gold, and 831 g/t gold,all with corresponding high-grade silver.Prospecting samples of bedrock quartzveins from the Nugget to Bucklandprospect areas assayed between 1.0 g/tgold and 19.4 g/t gold, including sixsamples with visible gold identified inoutcrop. All told, 2014 prospecting iden-
tified 19 geographically diverse and pre-viously undocumented sites of visiblegold in outcropping bedrock quartzveins., Klondike Gold also reportedresults from 89 prospecting samples col-lected from Dominion, a claim groupabout 2,000 meters east of Lone Star.Samples collected from old trenches atthe Hunker Dome prospect returnedbetween 1 g/t and 37.1 g/t gold and 8 g/tto 930 g/t silver. The assays also includ-ed results from Dominion Adit andGolden Rod, two other prospects on theproperty. l
