Kinross eyes first production from new Alaska mine in 2024

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Canadian bullion miner Kinross has unveiled the first results of the soon-to-be-released feasibility study on its 70%-owned Manh Choh project in Alaska, scheduled for the fourth quarter of 2024 as the first production date.

The feasibility study is nearing completion and will be disclosed as part of the company’s second quarter results.

The trend from the feasibility study is that Man Choh will require capital expenditure of $170-190 million (on a 100% basis), producing a total of 600,000-650,000 gold equivalent ounces (GEO) over a period of four years. – period of one year.

The results of the feasibility study would reflect recent inflationary pressures, Kinross said Wednesday, but added that it would yield higher ratings, thanks to an updated resource model, which would help offset those pressures.

Kinross plans to truck ore from Manh Choh to Fort Knox for batch processing, which will add high-quality feedstock to the Fort Knox mill. The Manh Choh ore is expected to be about ten times the current Fort Knox mill average grade.

Adding high-grade ore will reduce Fort Knox’s average life-of-mine sustaining costs (AISC) and increase cash flow.

Combined production from Fort Knox and Manh Choh will allow Kinross Alaska to produce an average of 350,000 to 400,000 GEO per year between 2025 and 2027, at an average grade of 0.45 g/t and an AISC of $1,100 /GEO at $1,200/ GEO.

Meanwhile, at the Great Bear project in Red Lake, Ontario, Kinross is on schedule to declare a first mineral resource as part of its 2022 year-end results. The initial mineral resource estimate will be primarily in the presumed category, with some indicated resources.

To date, the company has drilled approximately 83,000m and is on track to complete approximately 200,000m of exploration and fill drilling in 2022 on the LP fault zone, the largest discovery to date on the project. .

“The latest assay results continue to support Kinross’ vision of a world-class, high-grade deposit that underpins the prospect of a large, long-life mine complex. The results are consistent with discoveries from earlier in the year, which confirm gold mineralization with good widths and high grades and support the idea that the LP fault zone may host a long-lived open pit mine.” , said Kinross.

Recent results showing high grade mineralization at depths of over 500m also demonstrate the potential for a major underground mine.

In support of this, the miner is considering an advanced exploration program that would establish an underground decline. The advanced program will allow underground drilling for more efficient exploration of the deeper areas of the LP fault, as well as the nearby Hinge and Limb gold zones, as well as bulk sampling.

The advanced program could start as early as 2024. A pre-feasibility study for Great Bear will begin next year.

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