Kinross Gold pleased with Lobo-Marte pre-feasibility study
Kinross Gold Corp. [K-TSX; KGC-NYSE] has released results of a prefeasibility study (PFS) for its Lobo-Marte Project in Chile. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.
Lobo-Marte offers the potential of a cornerstone asset with attractive all-in sustaining costs to enhance Kinross’s long-term production profile. The project adds a significant 6.4 million gold ounces, representing an approximately 25% increase, to the company’s 2019 year-end mineral reserve estimates in a favourable mining jurisdiction. The reserve addition also increases Kinross’s reserve life index by approximately 2.5 years.
The PFS estimate includes total life-of-mine production of approximately 4.5 million gold ounces, an average cost of sales of $545/oz and an average all-in sustaining cost of sales of $745/oz during a 15-year mine life, which includes 12 years of mining followed by three years of residual processing. The project has attractive grades and a low estimated strip ratio, in part due to historical stripping completed at the Marte pit.
Life-of-mine production would be 4.5 million ounces of gold at a strip rate of 2.2 (waster); 1 (ore).
The company plans to commence a feasibility study later this year, with scheduled completion in the fourth quarter of 2021. The feasibility study is expected to provide the detailed engineering and project description required for permitting and submission of an environmental impact assessment.”The Lobo-Marte Project provides Kinross with an excellent, organic development option that has attractive all-in sustaining costs and offers substantial upside leverage to the gold price, without increasing project cost requirements and risk,” said J. Paul Rollinson, President and CEO. “The project represents a potential synergistic, long-term mine life extension in a favourable mining jurisdiction and delivers a significant 6.4-million-ounce addition to our current gold reserve estimates, increasing the company’s overall reserve mine life. As we move forward with the feasibility study for this longer-term project, we will continue to prioritize balance sheet strength and disciplined capital allocation.”