Rebirth of Coeur Rochester may again make Nevada ‘The Silver State'
The prospect of 200 new jobs and a $23 million annual payroll in one of Nevada's most economically hard-hit counties prompted state and federal officials to work cooperatively to speed the permitting of Coeur Rochester expansion.
Author: Dorothy Kosich
Posted: Tuesday , 06 Oct 2009
RENO, NV -
mineweb.com
Nevada may be once again living up to its nickname, "The Silver State", at least through 2017 as Coeur d'Alene Mines plans for the expansion of the Rochester silver mine.
Located outside of Lovelock, Nevada, Coeur Rochester was originally headed for closure in 2011 in the belief that the operation was coming to the end of its mine life.
Since the mine began operations in 1986, it has produced more than 125 million ounces of silver and 1.4 million ounces of gold. Rochester ceased mining in 2007 and is now in the residual leach stage with 30 employees. In fact, a resolution was once introduced in the U.S. House to convert Coeur Rochester to sustainable development uses once mining ceased.
However, a 2006 drilling program found significant mineralization to extend the mine pit. Further drilling and new processing and extraction strategies, coupled with higher silver prices, made the prospect of resuming mining and extending mine life more economically feasible.
It is now believed the resurrected silver mine will yield an average of 2.9 million ounces of silver and 30,000 ounces of gold annually through 2017. As of the end of last year, Rochester contained measured and indicated resources of 61.8 million ounces of silver and 531,000 ounces of gold.
Last month Coeur Rochester General Manager Cindy Jones asked the Humboldt County and Pershing County Commissions for their help in restarting mining operations. Unemployment in Pershing County is more than 11%.
The Bureau of Land Management originally wanted the expansion to undergo an environmental impact statement. The agency sought EIS because the all of the mine permitting had previously been conducted through environmental assessments.
However, Nevada Governor Jim Gibbons asked the BLM to allow Coeur to conduct an environmental assessment. In a letter to Gibbons, the BLM confirmed it will work within the boundaries of a Memorandum of Understanding that allows the agency to proceed with a scoping process to solicit public comments which will be used to prepare a draft EA. The BLM has agreed to a third-party prepared EA for the proposed expansion, the completion of which could lead to the re-initiation of mine production in 2011.
The company has completed an internal scoping study which shows the expansion to have a $34 million net value based on a $16 per ounce silver price, a $950 ounce gold price, and a 10% discount rate. The plan calls for construction of a new leach pad next year at a capex of $28 million, leading to annual average estimated net cash flows of $20 million, Coeur management estimated. |
