Gold production at the Kensington Mine increased 25 percent in three months, according to third quarter results released by Coeur Mining on Wednesday. Kensington produced 29,049 ounces of gold in the third quarter.
Cash operating costs at the mine declined 11 percent to $988 per ounce due to mining of higher-grade stopes. Coeur says in the report that costs were also reduced because of lower backfill material costs.
Sales increased 26 percent from the second quarter to $38.9 million.
Coeur began exploratory drilling at the Jualin area located south of the Kensington mine. “The Jualin area has potential to provide high-grade feed to the Kensington mill,” according to the report. The company will continue drilling in the area, weather permitting.
Underground drilling at the Ann zone about 200 feet east of the main Kensington deposit gave encouraging results, the report says. Drilling will continue in the area.
The Kensington Mine has produced 77,417 ounces of gold in the first three quarters. The mine is projected to produce 108,000 to 110,000 ounces of gold by the end of the fourth quarter.