The Alaska Contractor - Summer 2008
The Alaska Contractor - Summer 2008
The Alaska Contractor - Summer 2008
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Kensington were estimated by Coeur<br />
at $310 per ounce, according to a mid-<br />
2007 press release.<br />
Coeur has been working on plans<br />
to develop Kensington near the historic<br />
Jualin underground mine since 1990,<br />
initially with former partner Echo Bay<br />
Exploration. Coeur is now the sole operator<br />
and developer of Kensington.<br />
This new permit consideration will<br />
be the fourth time regulatory agencies<br />
have reviewed the Kensington project<br />
under the National Environmental Policy<br />
Act since the original plan of operations<br />
was submitted in 1990. While receiving<br />
past regulatory approval, no mine has<br />
ever been built at Kensington.<br />
Low gold prices in the late 1990s<br />
caused Coeur to look for ways to reduce<br />
capital costs and to accomplish<br />
that, the company modified its proposed<br />
development. Coeur submitted<br />
an amendment to its approved 1998<br />
Plan of Operations, changing the<br />
location for site access to the Jualin<br />
prospect, with a nearly three mile<br />
horizontal tunnel connecting to the<br />
Kensington ore body.<br />
In addition to changes in the tailings<br />
disposal plan, Coeur announced<br />
this April a new Memorandum of Un-<br />
<br />
derstanding with Goldbelt Inc., regarding<br />
transportation for mine workers.<br />
<strong>The</strong> new agreement between the<br />
mining company and Goldbelt, an<br />
<strong>Alaska</strong> Native village corporation, will<br />
focus on an alternative marine transportation<br />
center at Yankee Cove that<br />
will move workers to and from the<br />
Kensington mine, which is located<br />
about 45 miles north of Juneau.<br />
Workers will be bused from Juneau<br />
to Yankee Cove, then will be moved<br />
by boat from Yankee Cove to the mine<br />
site, according to Coeur.<br />
“This plan will put Goldbelt shareholders<br />
back to work,” said Gary Droubay,<br />
CEO at Goldbelt. “<strong>The</strong> delay caused<br />
by the lawsuit adversely impacted both<br />
jobs and services in which Goldbelt<br />
shareholders would have benefited. I<br />
know the recent developments to progress<br />
the project are good news for Juneau<br />
and all of Southeast <strong>Alaska</strong>.”<br />
Patricia Liles is a freelance writer<br />
living in Fairbanks.