Kinross’ Nevada Operations Proceeding As Planned for 2018

 

TORONTO - Kinross Gold Corporation reported that the Nevada projects are proceeding as planned, with Round Mountain Phase W now in construction and the Bald Mountain Vantage Complex scheduled for commissioning in Q1 2019. In 2018, the company expects to complete the Fort Knox Gilmore project feasibility study in Alaska. The measured and indicated mineral resource estimates were 29.6 million Au oz., and are largely in line with 30.3 million Au oz. at year-end 2016. Net additions of 1.8 million oz. at Fort Knox and 461 koz. at Round Mountain largely offset the net decrease.

At Round Mountain Phase W project, stripping, initial construction and site preparation activities commenced ahead of schedule in late 2017 after the receipt of the Decision Record and other approvals from the U.S. Bureau of Land Management. The construction management team has been mobilized to site and earthworks have begun in the project area. Detailed engineering is progressing on schedule, with heap leach engineering complete and mine infrastructure and processing facility engineering approximately 50% complete. Procurement activities are underway for critical long lead items and tracking according to plan. State permitting is proceeding as planned, with all major permits now received. The project remains on schedule, with initial low grade Phase W ore expected to be encountered in mid-2019.

The Bald Mountain Vantage Complex project is proceeding on schedule, with initial construction work now well underway and engineering more than 80% complete. Permitting is proceeding as planned and contractors for more than half the scope of the project work have been selected. Commissioning for the proposed heap leach pad and processing facilities is expected to commence in Q1 2019. The Company expects to spend $10 million in 2018 for infill drill programs at Bald Mountain, with the goal of upgrading estimated mineral resources to mineral reserves at Redbird, Winrock and Yankee. Exploration will also focus on other target areas for mineral resource growth, including the Redbird extension, Winrock extensions and Top Gap. Also at Kettle River - Curlew, it plans to dewater and rehabilitate the historic K2 mine in order to conduct underground exploration drilling to better target the extensions of mineralization identified at multiple targets in 2017.

Fort Knox Gilmore project, permitting activities have commenced and feasibility study activities are ongoing. The feasibility study, which is expected to be completed in mid-2018, is assessing a multi-phase layback of the Fort Knox pit and the construction of a new heap leach pad. Kinross gained mineral rights to the Gilmore land, which is located immediately west of the Fort Knox pit, on December 12, 2017. As a result, the Company added 2.1 million gold ounces in estimated measured and indicated resources and 300 koz. in estimated inferred resources. This was offset by a conversion of 254 koz. of mineral resources to mineral reserves, for a net addition of 1.8 million ounces to measured and indicated resource estimates. An additional 199 koz. was added to estimated inferred resources from exploration and engineering for a total increase of 499 koz. to inferred resource estimates.

J. Paul Rollinson, President and CEO, said, That as a result of mineral reserve additions and engineering and mine optimization work, we expect to extend mining at Round Mountain by five years, mine life at Fort Knox by one year. Our five development projects and three development opportunities all made great progress in 2017 and are proceeding on schedule and on budget. We achieved key project milestones during the year and are in a strong position to continue executing according to our plan. These projects are expected to increase production or extend life of mine in our portfolio and are the foundation of our future growth.”