Canadian Mining Journal

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GOLD: Tasiast expansion to cost Kinross $1.6B

MAURITANIA – Toronto-based Kinross Gold Corp. has completed the feasibility study for the expansion of its Tasiast gold mine. Building a new mill will cost $1.6 billion, but output would expand more than threefold, to 848,000 oz per year.



MAURITANIA – Toronto-based Kinross Gold Corp. has completed the feasibility study for the expansion of its Tasiast gold mine. Building a new mill will cost $1.6 billion, but output would expand more than threefold, to 848,000 oz per year.

The Tasiast project is an open pit mine, heap leach and 8,000-t/d carbon-in-leach mill that produced 247,818 oz of gold in 2013. With the construction of a new 38,000-t/d mill and the increased production rate, the expanded project would generate $2.2 billion in free cash flow during the first five years of operation. A net present value of $1.2 billion after taxes and an internal rate of return of 17% are estimated using a gold price of $1,350 per ounce.

Recently updated numbers show a 50% increase in contained gold in mineral reserves at Tasiast. Proven and probable reserves total 175.54 million tonnes grading 1.71 g/t Au or more than 9.6 million contained ounces. Measured and indicated resources total 174.61 tonnes at 0.84 g/t, and inferred resources are 14.15 million tonnes grading 1.46 g/t Au.

Start-up is planned for 2018. Kinross expects a larger Tasiast project will lower costs per ounce – All in at $792 and cash costs at $501. Detailed results of the feasibility study can be found in the Technical Report, available at Kinross.com.