Engineering & Mining Journal

OCT 2017

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NEWS - CONTINUED 30 E&MJ; • OCTOBER 2017 www.e-mj.com Kinross to Proceed With Tasiast, Round Mountain Expansion Projects Kinross Gold is proceeding with the Phase Two expansion of its Tasiast mine in Mau- ritania, which is expected to transform Tasiast into a large, world-class operation, with low costs, and a long mine life that is expected to generate signifi cant cash fl ow. The company said it also intends to proceed with the Round Mountain Phase W project in Nevada, pending completing of the permitting process, which is pro- ceeding as planned. The Phase Two expansion at Tasiast mine is expected to increase mill capac- ity to 30,000 metric tons per day (mt/d) to produce an average of approximately 812,000 ounces per year (oz/y) of gold for the fi rst fi ve years, at an average pro- duction cost of sales of $440/oz and all- in sustaining cost of $655/oz. The pro- ject is expected to generate strong free cash fl ow of $2.2 billion over the life of mine. Initial construction for Phase Two is expected to begin in early 2018, with expected initial plant and infrastructure capital costs of approximately $590 mil- lion. Commercial production is expected to begin in the third quarter of 2020. Phase W at Round Mountain is ex- pected to extend mining by fi ve years and increase life-of-mine production by 1.5 million oz at one of Kinross' top perform- ing gold mines located in one of the best mining jurisdictions in the world. The improvement at Tasiast is expect- ed to impact the company's overall per- formance metrics, strengthen its produc- tion profi le and increase cash fl ow, Roll- inson said. The Phase Two Tasiast feasibility study contemplates installing additional mill throughput of 18,000 mt/d to the Phase One project's 12,000-mt/d capacity for a total combined capacity of 30,000 mt/d. The combined Phase One and Phase Two non-sustaining capitalized stripping is expected to be $370 million from 2018 through the fi rst half of 2020. The expansion would replace the two current ball mills with a new larger ball mill, and add new leaching, thickening and refi nery capacity and additions to the mining fl eet. A new power plant would be added to power the 30,000-mt/d mill, which is forecast to have an average pro- duction of approximately 812,000 oz/y for its fi rst fi ve years of mine life (2020- 2024), with a forecast cumulative gold production of 6.3 million Au oz from 2020 to 2029. The Round Mountain Phase W feasi- bility study contemplates a layback of the current pit, construction of a new Carbon in Column (CIC) plant and heap-leach pad, additions to the mining fl eet and equipment, and relocation of some exist- ing infrastructure. Stripping of Phase W ore is expected to begin in early 2018, pending the permitting process, which is proceeding on schedule. Construction and relocation of infrastructure is expect- ed to be completed by the second quarter of 2019, and initial low-grade Phase W ore to be encountered in mid-2019. Phase W is expected to add 1.5 million oz to the life of mine plan and generate an incremental IRR of 13% and incremental NPV of $135 million based on a $1,200/ oz gold price and $55/bbl oil price (after tax and unlevered, from January 1, 2018, forward). Phase W is expected to generate incremental cash fl ow of $265 million, extend mining by fi ve years from 2020 to 2024, and sustain the operation's annual production at an average of approximately 341,000 oz through 2024, at an average cost of sales of $765/oz. The initial capi- tal costs are forecast to be $230 million, plus incremental non-sustaining capital- ized stripping of $215 million (2018- 2020). Life of mine sustaining capital is expected to be $135 million. "We have applied the same fi nancial and technical rigor to the Phase W expan- sion at Round Mountain," Rollinson said. "Lower operating costs, combined with an optimized mine plan, have contributed to a further de-risking of the project and improved returns." After the company acquired the 50% of Round Mountain it did not already own, the project team completed approximately 115,000 ft of infi ll, metallurgical and ge- otechnical drilling and rebuilt the Phase W geology model based on drilling results and historical production. A larger mineral inventory, now approximately 2 million oz compared with 1.3 million oz in the 2016 scoping study, was included in the project. With the go-ahead decision for Phase W, procurement activities for long lead items and mining equipment have com- menced, along with advanced engineer- ing. Additional state and federal permit- ting for the project is required and is proceeding as planned. OCTOBER 23-28, 2017: XXXII Convención Internacional de Minería 2017, Guadalajara, Jalisco, Mexico. Contact: Web: www.expomineria.mx. DECEMBER 3-8, 2017: American Exploration & Mining Association's Annual Meeting and Exposition, Reno, Nevada, USA. Contact: Web: www.miningamerica.org. JANUARY 28-31, 2018: 44 th Annual Conference on Explosives and Blast- ing Technique, San Antonio, Texas, USA. Contact: Web: www.isee.org. FEBRUARY 2-5, 2018: Mining Indaba, Cape Town, South Africa. Contact: Web: www.miningindaba.com. FEBRUARY 25-28, 2018: 2018 Society for Mining, Metallurgy and Explo- ration (SME) Annual Conference & Expo, Minneapolis, Minnesota, USA. Contact: Web: www.smenet.org. MARCH 4-7, 2018: Prospectors & Developers Association of Canada's annual meeting, Metro Toronto Convention Centre, Toronto, Canada. Contact: Web: www.pdac.ca. APRIL 17-19, 2018: MiningWorld Russia, Crocus Expo, Moscow, Russia. Contact: Web: www.miningworld.run/en. APRIL 23-27, 2018: Expomin 2018 Espacio Riesco, Santiago, Chile. Contact: Web: www.expomin.cl. MAY 6-9, 2018: Canadian Institute of Mining (CIM 2018), Vancouver, British Columbia, Canada. Contact: Web: www.cim.org. MAY 29-31, 2018: Peru Gold & Silver Symposium, The Westin Lima Hotel and Convention Center, Lima, Peru. Contact: Web: www.snmpe.org.pe. JUNE 12-14, 2018: Euro Mine Expo, Skellefteå, Sweden. Contact: Web: www.euromineexpo.com; E-mail: jaana.tengman@euromineexpo.com. NEWS - CALENDAR OF EVENTS (News-Leading Developments - from p. 6)

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