Nevada Operations Nearing Completion And Entering Commissioning Phases

TORONTO, ON - J. Paul Rollinson, President and CEO of Kinross Gold Corporation said, “The Company is on track to meet 2019 annual guidance for production, production cost of sales per ounce, all-in sustaining cost per ounce, and capital expenditures. During the quarter we advanced work on our development pipeline. The Nevada projects at Round Mountain Phase W and Bald Mountain Vantage Complex are nearing completion and entering their commissioning phases. The Fort Knox Gilmore project is on schedule and heap leach construction activities are ramping up.“

The Round Mountain Phase W project, in Nevada is near completion, and continues to be on schedule and on budget. Construction of the new heap leach pad is now complete, with Phase W ore currently being placed on the pads. Commissioning of the processing circuit has commenced ahead of schedule, with initial solution being applied to the pads to prepare for completion of the vertical carbon-in-column (VCIC) plant, which is approximately 80% complete. Construction of mine infrastructure, including the truck shop, warehouse, wash bay and fuel island, is now 60% complete. Also in Nevada, the Bald Mountain Vantage Complex project is well-advanced, as the VCIC plant is approximately 70% complete, and the heap leach pad is approximately 90% complete, with ore being placed on completed portions of the pad. While unusually severe winter weather has challenged the project budget and schedule, commissioning of the processing circuit commenced as scheduled at the end of Q1 2019 with solution now being applied on the heap to build solution grade. The project cost forecast is now expected to be approximately $130 million, mainly due to weather challenges, higher than anticipated construction contract rates, and issues with the supply of some of the fabricated components. Construction of support infrastructure, including the truck shop, warehouse and wash bay, is 60% complete. An operations readiness task force has been established to ensure a smooth transition of the project to Operations.

In Alaska, the Fort Knox Gilmore project is progressing on schedule and on budget, with initial ore expected in early 2020. Procurement and contracting for 2019 heap construction activities are proceeding well, with the majority of contracts issued and awarded, and contractors mobilizing to site. Stripping is on schedule to commence in Q3 2019, with expansion of the dewatering system continuing on plan.

“We had an excellent first quarter built on strong operational performance and disciplined cost management. We continue to maintain our financial strength and solid liquidity and are once again well positioned to deliver on our annual production and cost guidance for the year. Our three largest operations – Paracatu, Tasiast and Kupol – all exceeded expectations. At Paracatu in Brazil, improved grade control, mill efficiencies, high recoveries and lower power costs resulted in record quarterly production and the lowest production costs since 2010. Tasiast in West Africa, set another production record in the quarter and costs continued to decline. In Russia, Kupol continued its consistent high performance and delivered yet another strong quarter. We completed the scoping study for Lobo-Marte and the results highlight the potential for long-term production in Chile in conjunction with the La Coipa Restart project. At Tasiast, we are continuing to evaluate low-cost alternative approaches to increase throughput, which we are targeting for completion in the second half of 2019, said Rollinson”

The company’s address is 25 York Street 17th Floor, Toronto, ON M5J 2V5, (416) 365-5123, fax: (416) 363-6622, www.kinross.com.