Development

Kensington Gold Project Web Site

Kensington - Leading Coeur's Growth in Gold

The Kensington gold development project, consisting of the Kensington and adjacent Jualin properties, is located on the east side of the Lynn Canal about 45 miles north-northwest of Juneau, Alaska. The mine will be an underground gold mine accessed by a horizontal tunnel and will utilize conventional and mechanized underground mining methods. The ore will be processed in a flotation mill that produces a concentrate which will be sold to third party smelters. Waste material will be deposited in an impoundment facility on the property. Power is supplied to the site by on-site diesel generators. Access to the project is presently by helicopter, float plane or boat from Juneau.

The Kensington property, which contains the project’s reserves, consists of over 6,100 acres of patented and unpatented federal mining claims and state claims. The adjacent Jualin property to the south consists of 9,236 acres of patented and unpatented federal mining claims and state claims.

On July 7, 1995, we acquired a 50% ownership interest in the Kensington property from Echo Bay Exploration Inc. and Echo Bay Alaska, Inc. After this acquisition, we had a 100% ownership in the Kensington property.

Kensington’s mill, related surface facilities and the two-and-a-half mile tunnel connecting Kensington and the nearby Jualin properties are now complete. The remaining major item to be constructed is the tailings disposal facility, which has been the subject of ongoing litigation. As a result, we are investigating alternative tailings disposal sites and believe we have located one that is supported by government officials and environmental groups. We are in the process of obtaining modified permits for this alternative tailings site. If, as we expect, we obtain modified permits during 2008, we believe we could complete the tailings facility and commence commercial production in 2009.