Kinross files new Paracatu technical report
March 10 2020 - 9:08AM
Kinross Gold Corporation (TSX:K; NYSE: KGC) (“Kinross”) today filed
a new technical report for its Paracatu operation in Brazil.
Paracatu is a cornerstone, long-life operation in Kinross’
portfolio that is expected to produce an average of approximately
540 Au koz. annually over 12 years from 2020 to 2031. Total
production over the remaining mine life is expected to increase
approximately 24% compared with the prior technical report that was
published in 2014.
The new technical report is based on an asset
optimization program that commenced in 2018 and was completed in
late 2019 with the successful implementation of a comprehensive
grade control program. The results of the program include better
characterization of the orebody, an improved ability to predict and
react to ore variability, and better mill efficiency with
improvements in throughput and recovery.
The technical report also incorporates
continuous improvement programs which have resulted in improved
mining rates and increased overall productivity, the addition of
renewable power sources with the investment in two hydroelectric
power plants in 2018, and the continued successful tailings
reprocessing project.
In 2019, Paracatu performance improved
significantly due to the benefits of the asset optimization and
continuous improvement programs, with the mine achieving record
annual production and reducing cost of sales per ounce sold by
approximately 20% over 2018. The new technical report forecasts
significant reductions to life of mine operating costs and improved
capital efficiency and recovery rates compared with the 2014
report.
As previously disclosed in the Company’s 2019
year-end mineral reserves and resources update, a newly updated
resource model has resulted in the addition of approximately 828 Au
koz. to estimated mineral reserves, more than offsetting 2019
depletion of 705 Au koz. Measured and indicated resources also
increased by approximately 1.1 million Au oz., or 35%, compared
with 2018. Inferred mineral resources includes an estimated 367 Au
koz. contained in the Santo Antonio tailings deposits. The Company
plans to continue mining the tailings deposits after 2020.
The new report also describes tailings
facilities at Paracatu, which meet or exceed regulatory and
international requirements and standards of best practice. The
facilities are constructed using a modified centerline design and
are engineered, compacted, zoned earthfill dams. Independent
assessment of the tailings facilities at site is conducted annually
and rigorous maintenance, monitoring, and emergency response
procedures and plans are in place, including daily inspections. For
more information about Paracatu’s tailings facilities, see video
here: https://bit.ly/2TKKzh6
The technical report has been prepared pursuant
to Canadian Securities Administrator's National Instrument 43-101,
and may be found at www.kinross.com or under the Company's profile
at www.sedar.com.
About Kinross Gold
Corporation
Kinross is a Canadian-based senior gold mining
company with mines and projects in the United States, Brazil,
Russia, Mauritania, Chile and Ghana. Kinross’ focus is on
delivering value based on the core principles of operational
excellence, balance sheet strength, disciplined growth and
responsible mining. Kinross maintains listings on the Toronto Stock
Exchange (symbol:K) and the New York Stock Exchange
(symbol:KGC).
Media Contact Louie DiazSenior
Director, Corporate Communicationsphone:
416-369-6469 louie.diaz@kinross.com
Investor Relations ContactTom
Elliott
Senior Vice-President, Investor Relations and Corporate
Development
phone:
416-365-3390
tom.elliott@kinross.com
Cautionary statement on forward-looking
information
All statements, other than statements of
historical fact, contained or incorporated by reference in this
news release, including any information as to the future
performance of Kinross, constitute "forward looking statements"
within the meaning of applicable securities laws, including the
provisions of the Securities Act (Ontario) and the provisions for
"safe harbor" under the United States Private Securities Litigation
Reform Act of 1995 and are based on expectations, estimates and
projections as of the date of this news release. Forward looking
statements include, without limitation, future events and
opportunities including but not limited to the operational updates
at Paracatu described in this news release. The words "estimate”,
“expected”, “forecast”, and “plan”, and variations of such words
identify forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by Kinross as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
estimates and assumptions referenced, contained or incorporated by
reference in this news release, which may prove to be incorrect,
include, but are not limited to the production, cost and life of
mine estimates in the technical report being consistent with our
expectations, the various assumptions set forth herein and in our
Annual Information Form dated March 31, 2019 ("2018 AIF") and full
year 2019 Management's Discussion and Analysis. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. In addition, there are
risks and hazards associated with the business of mining and
related project development, including financial, environmental
hazards, government and labour relations, unusual or unexpected
formations, pressures, cave-ins and flooding (and the risk of
inadequate insurance, or the inability to obtain insurance, to
cover such risks). Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, Kinross' actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, Kinross. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management's expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by these cautionary statements
and those made in our other news release dated February 12, 2020 as
well as other filings with the securities regulators of Canada and
the United States including, but not limited to, the cautionary
statements made in the "Risk Factors" section of our 2018 AIF.
These factors are not intended to represent a complete list of the
factors that could affect Kinross. Kinross disclaims any intention
or obligation to update or revise any forward-looking statements or
to explain any material difference between subsequent actual events
and such forward-looking statements, except to the extent required
by applicable law.
The technical information about the Company’s mineral properties
contained in this presentation has been prepared under the
supervision of Mr. John Sims, an officer of the Company who is a
“qualified person” within the meaning of National Instrument
43-101
Source: Kinross Gold Corporation
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