Coeur D’Alene Mines Completes Echo Bay Deal
The Kensington gold mine project near Juneau, Alaska, Friday became a wholly owned and operated property of Coeur d’Alene Mines Corp.
The Coeur d’Alene-based company completed a previously announced purchase from Echo Bay Mines Ltd. of the half-interest in the project it did not already control.
Kensington reserves are estimated at 2 million ounces of gold.
Coeur d’Alene Mines paid Echo Bay $32.5 million for its share. A royalty based on production after development expenses will be added later.
The Environmental Protection Agency recommended last week that the U.S. Army Corps of Engineers issue a permit for construction of a water treatment facility at the Kensington.
“This action by the EPA takes the project a step closer to construction,” said Coeur Chairman Dennis E. Wheeler. “As full owner and operator, we look forward to working with all agencies and environmental groups to make Kensington a reality.”
The company said construction of a mine will take about two years, with production output of approximately 225,000 ounces of gold in its first full year.
Coeur is developing or producing gold and silver at properties in North America, Chile and New Zealand. It owns the Coeur and Galena mines in Idaho’s Silver Valley.
Echo Bay, which said it will use proceeds from the sale to continue development of another Alaskan property, has been a mine operator in Ferry County for several years.