RUSSIA – KINROSS GOLD of Toronto says the first gold was poured at the Kupol mine in the Chukotka region on May 30, 2008. The mine is owned 75% by Kinross. The balance belongs to a company created by the local government. Kinross’ share of Kupol’s 2008 production is expected to be approximately 365,000 to 390,000 oz of gold equivalent, at an average cost of sales of US$235 to $245/oz.
The Kupol mine is located north of the Arctic Circle, approximately 220 kilometres southeast of Bilibino, the nearest major city. The project consists of an open pit and underground mine and conventional mill, which is expected to reach its full production rate of 3,000 tonnes per day by October 2008. When Kupol becomes fully operational, it will employ approximately 1,200 people.
Kupol is the first of three major new development projects for Kinross expected to come into production in 2008. The Paracatu expansion project in Minas Gerais state in Brazil is expected to begin commissioning in July 2008, and the Buckhorn project in Washington State is expected to begin commissioning in October 2008. The three mines are expected to increase Kinross’ production to between 2.5 and 2.6 million oz of gold equivalent in 2009, while reducing the company’s average cost of sales per ounce.
Visit the company’s website at www.Kinross.com.