Kinross Gold unaffected by Russian sanctions
Kinross Gold Corp. (K-TSX, KGC-NYSE) said Wednesday its operations in Russia are operating according to plan and currently remain unaffected by U.S. sanctions announced on February, 22, 2022.
The company said it has successfully operated in Russia for more than 25 years and has previously managed through similar situations while complying with applicable laws.
The company currently operates the underground Kupol mine in the Chukotka region. Ore stockpiles from the Dvoinoye operation, where mining activities ceased in 2020, are processed at the Kupol mill. Russian production amounted to 511,000 ounces of gold equivalent in 2020.
The Udinsk project in Khabarovski Krai, is currently in the feasibility study stage.
The company has diversified procurement and logistics structures in Russia, with the majority of its procurement coming from within the country. “Approximately 98% of employees of Kinross’s Russian subsidiaries are Russian locals, and given the ice road supply season, its operations have a fully year of supplies on hand,” the company said in a press release.
Kinross said it refines gold production from its Russian mines in country and retains flexibility to sell its gold domestically and internationally. In 2022, Kinross expects approximately 13% of its global production to come from Russia. The company’s operations are located in the Russian Far East and are approximately 7,000 kilometres away from Ukraine.
Kinross was in in the news recently when it agreed to acquire Great Bear Resources Ltd. [GBR-TSXV] and its 100%-owned Dixie Project which is located in the Red Lake Mining District of northwestern Ontario.
Kinross said it is going ahead with the deal in the belief that Dixie has significant potential to become a top tier deposit that could support a long-life mine complex and bolster Kinross’ long-term production outlook.
“In addition to the prospect of developing a quality, high-grade open pit mine, we also believe that a significant portion of the asset’s value is its longer-term potential, which includes the view of a sizeable underground operation,” said Kinross President and CEO J. Paul Rollinson.
Great Bear is focused on the prolific Red Lake district, where the company controls over 190 square kilometres of prospective tenure across four projects, with Dixie being widely recognized as the largest new gold discovery in Canada.
The junior is currently in the process of completing a significant exploration drill program to define the mineralization within a large-scale, high-grade disseminated gold discovery made in 2019, the LP Fault.
It is also compiling all historical date together with incoming assay results, with the goal of publishing an initial multi-million-ounce mineral resource estimate.
On February, 22, 2022, Kinross Gold shares eased 5.1% or 38 cents to $7.04 on volume of almost 7.0 million and currently trades in a 52-week range of $10.05 and $6.35.