GOLD MINING – Kupol production starts

RUSSIA - Toronto's KINROSS GOLD says production at its Kupol mine and mill in the Chukotka region has begun. First gold and silver production is expected by the end of May from stockpiled ore. Based on the current schedule, full production capacity of 3,000 t/d should be reached by October 2008.

Kinross obtained its 75% interest in the Kupol project when it took over Bema Gold in 2006. The Chukotka government holds the remaining 25%. The $705-million project included an open pit, underground mine and mill. Total annual output will be approximately 500,000 oz of gold equivalent. The cost of gold sales is pegged at US$235 to $245 per oz AuEq, but that should drop to US$210 to $220 in Q4 2008.

Kinross is also the operator of the Julietta underground gold mine in Russia. The company also has interests in the United States, Brazil and Chile. Kinross divested itself of its Canadian holdings in 2007. See www.Kinross.com.