U.S. REPORT Coeur d’Alene looks far afield

During the past decade, Coeur d’Alene Mines (NYSE) has taken on a number of new projects that have enabled the company to grow as a gold producer. The company has been and still is one of the largest primary silver producers in the U.S., with its roots in the historic Coeur d’Alene district in northern Idaho.

But in recent years the company has placed increased emphasis on two projects which it considers important to its future gold production; Kensington in Alaska, and Fachinal in Chile. Increased expenditures are planned for both in 1991.

Fachinal, one of seven Chilean exploration properties purchased in 1990, represents the first overseas development stage project in the company’s history.

Based on the US$1.5-million 1990 program, the project is reported to contain proven and probable reserves of 17.3 million tons grading 0.035 oz. gold and 1.42 oz. silver per ton.

Fachinal is known to contain at least 67 gold-silver-bearing veins, only three of which have been evaluated. The property also holds at least five mineralized zones, only one of which has been evaluated.

The gold-silver project is about 900 miles south of Santiago in a new mining region. Coeur d’Alene has full ownership of property which covers about 90 square miles.

The company plans to spend US$5 million on the property this year. The program will include the driving of two tunnels, the sinking of one shaft, reserve development and the gathering of other underground data in preparation for the commissioning of a feasibility study.

The past year also brought about a gold reserve increase at the Kensington project in Alaska, a joint venture with Echo Bay Mines (TSE).

Current proven and probable reserves now stand at 12.6 million tons averaging 0.148 oz. gold. A final feasibility study has been completed, and Coeur d’Alene estimates it will cost US$155.9 million to bring Kensington to production.

The study envisions an underground mine that would produce about 200,000 oz. gold per year. The decision to begin construction awaits final permitting and environmental approvals.