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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.

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