Kinross Acquires Mining Rights To Land Adjacent Fort Know Mine
TORONTO, ON - Kinross Gold Corporation has gained mineral rights to a 287-hectare (709-acre) parcel of land known as Gilmore located immediately west of its Fort Knox mine in Alaska. As a result, Kinross added 2.1 million gold ounces in estimated measured and indicated resources and 300 koz in estimated inferred resources at Fort Knox. Kinross began an initial drilling program on Gilmore land, and Fort Knox land adjacent to Gilmore, in 2014. The Company targeted promising opportunities in the existing Fort Knox orebody, which continues west, and completed approximately 73,000 metres of core and reverse-circulation drilling in 205 holes.
The results of the drilling program, engineering work and the acquisition of the mineral rights resulted in the update of the Fort Knox mineral reserve and resource estimates, including additions to measured and indicated resource estimates and inferred resource estimates1. The Company also converted approximately 260 koz of mineral resources, which was mainly from the East wall of the Fort Knox pit, to proven and probable reserves. The conversion offset some of the reserve depletion in 2017 and resulted in an increase to Fort Knox's estimated mine life by approximately one year.
Kinross has commenced a Gilmore feasibility study that will analyze a layback of the current Fort Knox pit to access known mineralization on Fort Knox and Gilmore land to potentially extend mine life. Further drilling and engineering are planned at Gilmore to evaluate the potential of upgrading a significant portion of the site's estimated measured and indicated resources and adding to its inferred mineral resource estimate. The Company expects to provide an update on the feasibility study in mid-2018. The Company also expects to initiate the permitting process for mining at Gilmore by year end.
"Gilmore is a promising organic development opportunity that can potentially extend mine life at our Fort Knox mine in Alaska, one of our top producing and high performing operations," said J. Paul Rollinson, Kinross Gold President and CEO. "With the Gilmore project, we continue to deliver on our strategy of pursuing low-risk, high-potential brownfield projects that can contribute to the long-term future growth of our Company."
The Gilmore land was conveyed to the State of Alaska by the United States on December 11, 2017. Upon the conveyance, the Company's state mining claims at Gilmore came into effect. The conveyance resulted from the close cooperation and support of the U.S. National Oceanic and Atmospheric Administration, the U.S. Department of the Interior, the State of Alaska and the Alaska Congressional Delegation.