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GOLD MINERS ROUNDUP
Development of the Cadia East panel cave remains on track with the hydro-frac- turing of panel cave ore successfully com- pleted and pre-conditioning blasting con- tinuing. The next phase of delivery for Cadia East remains the completion and commissioning of the underground convey- or, with undercut and draw bell develop- ment which will occur sequentially over calendar year 2012.
Kinross Rethinks Project Sequences
Kinross Gold expects 2012 to be a good year. Gold production should increase with the planned acceleration of Fort Knox heap leach capacity, expected full-year opera- tion of the third ball mill at Paracatu, and increased production at Tasiast. These expected gains are anticipated to be par- tially offset by a planned decline in grades, particularly at Kupol and Kettle River- Buckhorn. The company anticipates capi- tal expenditures in 2012 of approximately $1.3 billion related to growth projects, pri- marily for Tasiast. It will also spend $220 million on exploration.
In 2011, Kinross produced approxi- mately 2.6 million geo. The company's average 2011 production costs were approximately $600/geo. In 2012, the company expects to produce approximate- ly 2.6-2.8 million geo from its current operations. Production costs are expected to be in the range of $670/oz-$715/oz for 2012. Higher consumable and labor costs, and an expected decline in grades at cer- tain existing mines will increase costs. The company's three major growth pro-
jects at Tasiast, Fruta del Norte (FDN) and Lobo-Marte will require significant capital expenditures over the next several years. In light of cost escalation, and a better under- standing of the Tasiast orebody and poten- tial for alternative mining and processing rates and sequences, Kinross has elected to conduct a comprehensive optimization process with the aim of improving capital efficiency, project sequencing and invest- ment returns. As a result, previously dis- closed scoping and pre-feasibility level assumptions and forecasts could be revised, including those related to project sequencing and start-up dates. The com- pany expects the timetables for the Lobo- Marte, FDN and Tasiast feasibility studies will be extended. As far as original Tasiast scoping study, various ore processing options have emerged following a recent infill drilling program,
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A new autoclave building has been constructed at Lihir.
which provided a better understanding of the geology and distribution of the gold min- eralization. The drilling program identified a higher-grade core and significant amounts of lower-grade halo material which may be better suited to a heap leach. Some of the near-surface lower-grade material may be more profitably developed with less capital intensive heap leaching in combination with carbon-in-leach milling. Engineering analy- sis indicates that heap leaching may offer significant benefits if developed early in the Tasiast expansion sequence.
Goldcorp Starts to See the Full Potential at Peñasquito Goldcorp produced 2.5 million oz in 2011 and the company believes it will reach 2.6 million oz in 2012. Increased production at Peñasquito will be offset by lower pro- duction at Marlin as the mine transitions to 100% underground mining. As part owner, they will also reap the benefits from the launch of Pueblo Viejo.
Consistent production levels at other mines throughout the portfolio will create a stable foundation for the years ahead, explained Chuck Jeannes, president and CEO, Goldcorp. "Peñasquito met its pro- duction target and continued to emerge as the linchpin of our asset base in 2011, with strong operating cash flow in just its first full year of production," Jeannes said. Also in Mexico, the Los Filos mine achieved record production of 336,500 oz while continuing with its excellent safety performance. Red Lake in 2011 remained the anchor of Goldcorp's overall gold pro- duction at very low cash costs while
Porcupine and Musselwhite mines in Ontario provided stable production and exciting exploration results. In Guatemala, the last year of open-pit mining in the high- est grade portion of the pit at Marlin result- ed in record gold production of 382,400 oz. At the Red Lake mine in Canada, pro- duction is expected to benefit from an increase in tons mined from lower- grade zones consistent with a long-term initiative to use excess milling capacity. The focus in the year ahead will remain on enhancing the overall flexibility of the High Grade Zone through continued in- vestments in development.
Construction of the 5-km haulage drift to connect the Cochenour shaft with the Red Lake mine on the 5400 foot level is about one-third complete and targeted for two-thirds completion by year-end 2012. Upon completion, the drift will enable ore from the Cochenour/Bruce Channel deposit to be hauled directly to the Red Lake mine for processing at the existing mill facilities. Forecast life-of-mine gold production from Cochenour is approximately 250,000 to 275,000 oz/y at low cash costs commenc- ing near the end of 2014.
At Peñasquito, both 50,000 mt/d SAG lines are routinely operating at capacity. During the month of December throughput reached an average of 107,000 mt/d and reached a new record of 140,000 mt on December 26. The supplemental ore feed system to supply pebble feed to the 30,000 mt/d high pressure grinding roll circuit will be completed shortly and hauling of addi- tional material to the tailings dam walls is now complete. Ramp-up to full 130,000
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