RUSSIA – Kinross Gold of Toronto has declared commercial production at its high grade Dvoinoye gold mine in the Chukotka region. The new mine is 100 km north of the company's Kupol gold mine, and the Dvoinoye ore will be treated at the Kupol mill.
At peak production 1,000 tonnes of Dvoinoye ore per day will be trucked to the Kupol mill that recently underwent an expansion to 4,500 t/d from 3,500 t/d. The new mine will produce between 235,000 and 300,000 oz AuEq annually during its first three full years of production. The cost of sales for the combined Russian operations between 2014 and 2016 is forecast to be $545-$600 per gold equivalent ounce, the company said in a news release.
Kinross acquired 100% of the Dvoinoye deposit in August 2010. When the feasibility study was complete early in 2012, the company's board gave the green light to construction, estimated to cost $370 million.
The deposit contains both recoverable gold and silver. Before mining began, proven and probable reserves were 1.95 million tonnes grading 17.80 g/t Au (1.12 million oz) and 21.8 g/t Ag (1.37 million oz). The measured and indicated resources are 243,000 tonnes at 17.79 g/t Au (containing 139,000 oz) and 12.3 g/t Ag (96,000 oz). There is also an inferred resource of 155,000 tonnes grading 12.82 g/t Au (64,000 oz) and 12.6 g/t Ag (63,000 oz).
A few photos of the Dvoinoye project (with lots of snow) are posted at Kinross.com.
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