With the Gilmore expansion, the Fort Knox gold mine will remain in production to 2030. (Image: Kinross Gold)
ALASKA – Kinross Gold of Toronto has decided to go forward with the Gilmore expansion at its Fort Knox gold mine about 40 km northeast of Fairbanks. The work is expected to extend the life of mine by six years to 2027 and the heap leach to 2030.
The Gilmore expansion will cost $100 million (all U.S. dollars) and recover about 1.5 million oz. of gold equivalent. The project is expected to generate an internal rate of return of 17% and net present value of $130 million based on a $1,200/oz. gold price, and an IRR of 26% and NPV of $239 million based on a $1,300/oz. gold price.
Kinross says the project includes a multi-phase layback of the existing Fort Knox pit and construction of a new leach pad. The company will use its cash flow to cover the initial capex. Construction is to begin in Q3 2018, followed by stripping in 2019, and production from Gilmore in early 2020. Ore will be stacked on the new leach pad beginning in late 2020. Milling will cease at that time.
Read the feasibility study at www.Kinross.com.