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Coeur Alaska Announces U.S. Forest Service Decision to Complete Environmental Assessment for Kensington Gold Mine Modified Plan of Operations
Fri May 9, 10:01 PM

http://ca.news.finance.yahoo.com/s/09052008/34/biz-finance-news-coeur-alaska-announces-u-s-forest-se...

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d’Alene Mines Corporation (NYSE: CDE) (TSX: CDM.TO) (ASX: CXC.AX) said today that the U.S. Forest Service has evaluated public and agency comments submitted on the Draft Supplemental Information Report for the Kensington Gold Mine in Alaska. Based on the responses and agency input, the Forest Service has announced that an Environmental Assessment (EA) is the preferred level of review, which could allow for a conclusion of permitting for an alternative tailings facility later this year. Construction of the mine and mill is essentially completed except for the tailings facility.

“We appreciate the timely review of the Modified Plan of Operations by the Forest Service. The EA process will provide a well-defined and timely permitting pathway for the paste tailings plan,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. “Coeur is now confident the environmental review process can be completed in 2008, allowing Kensington to be brought into production in 2009.”

The draft Supplemental Information Report (SIR) prepared by the Forest Service supported the technical soundness of the paste tailings plan. The site selected for constructing the paste tailings facility in the Modified Plan of Operation is the same site as was studied for locating the dry tailings facility earlier, but is smaller and involves less area disturbance. It also requires less energy than the dry tailings facility. A Supplemental Environmental Impact Statement was prepared for a dry tailings facility at the same site in 1997.

In a separate press release issued last week, the Southeast Alaska Conservation Council indicated their support for the paste tailings plan as a preferred alternative over the dry tailings facility. Coeur and SEACC collaborated in developing the new plan. The plan, supported by over 900 studies, includes an environmental monitoring component and extensive reclamation requirements.

Kensington is a major gold project located about 45 miles northwest of Juneau with an estimated annual production profile of approximately 140,000 ounces of gold. Construction of all surface facilities, except for the tailings facility, is essentially completed. In addition, the almost 3-mile horizontal access tunnel has been constructed. The tunnel connects the Jualin mine site, where the plant and mill are located, and the Kensington ore body. Proven and probable reserves measure approximately 1.4 million ounces of gold.