Coeur advances Kensington

The best news of the period for U.S.-based miners was Coeur d’Alene Mines‘s signing of a memorandum of understanding with Alaska and U.S. agencies to grant environmental permits for the company’s promising Kensington gold project situated in southeastern Alaska, 45 miles north of Juneau.

Coeur hopes to have all necessary permits in hand before February, and be able to make a final production next year. The project hosts 1.8 million oz. of reserves and 1.4 million oz. of resources and, at a capital cost of US$150 million, annual gold production is projected at 175,000 oz. at a cash operating cost of US$200 per oz. Furthermore, Coeur believes the area has significant exploration potential. Coeur soared 43 over the week to close at US$1.95.

Ashanti Goldfields reported that its total gold production in the second quarter was 370,978 oz., 8% lower than the 403,734 oz. mined a year ago but in line with previous warnings. Cash operating costs jumped from US$192 to US$222 per oz. mainly due to the lower output but also because of increased wages and fuel prices, higher costs of other inputs and increased costs associated with the Nyankanga pit cut back at Geita in Tanzania. Second-quarter earnings totalled US$14.8 million on US$128.3 million in revenue, up from the US$3.7 million lost on US$141 million in revenue a year earlier. Ashanti is still subject to a US$1.1-billion all-scrip takeover bid from South African giant AngloGold, which is offering 26 AngloGold shares for every 100 Ashanti shares held.

Ashanti ended the week up 67 to $8.27 while AngloGold jumped $1.13 to $33.21.

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