NORTHERN ONTARIO - Toronto-based KINROSS GOLD and ST ANDREW GOLDFIELDS have agreed to trade Kinross' Aquarius exploration project near Timmins for 100 million common shares of St Andrew plus 25 million two-year share warrants. The deal is expected to close in the first half of 2006, giving Kinross a 14% undiluted stake in St Andrew.
The Aquarius property will be integrated into St Andrew's Stock Gold Complex. The complex includes the Stock gold mine and mill plus the Taylor, Clavos and Hislop deposits. Together the properties contain 521,000 oz of gold in indicated resources and 353,000 oz in inferred resources. St Andrew will significantly increase its resource position with the acquisition of the Aquarius probable gold reserve containing over 1.0 million oz in 15.0 million tonnes grading 2.16 g/t Au.
St Andrew's conceptual plan for its Stock Gold Complex is based on a combined underground and open pit mining and milling operation of 9,000 tonnes/day, which consists of the existing St Andrew Stock gold mill capacity of 1,500 tonnes/day of underground ore from the Clavos and Taylor deposits combined with the Aquarius open pit production of 7,500 tonnes/day. Kinross completed a feasibility study on the Aquarius property in 2003 that indicated an average annual production of 180,000 oz at a 7,500 tonnes/day mining rate.
The Aquarius technical report is posted at www.Kinross.com.
Comments