Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) is pleased to announce an initial mineral resource estimate for its 100% owned Great Bear project located in Ontario, Canada.
The initial mineral resource estimate consists of 2.737 Moz. of indicated resources and 2.290 Moz. of inferred resources. The Company’s initial open pit and underground mineral resource estimate is set out in the table below.
Table 1: Mineral resource estimate 1
|||Tonnes (000’s)||Grade (Au g/t)||Ounces (000’s)|
|Indicated||Open Pit ||33,110||2.57||2,737|
|Inferred||Open Pit ||8,400||2.24||606|
Additionally, the majority of the resource is contained in a high-grade core illustrated in the table below, which is a subset of the resource with cut-off grades increased to 0.9 g/t in the open pit and 3.5 g/t in the underground. Kinross plans to target this higher-grade mineralization in the early years of potential production.
Table 2: Sensitivity table with elevated cut-off grades (see technical report for detailed sensitivity tables) 2
|||Tonnes (000’s)||Grade (Au g/t)||Ounces (000’s)|
|Indicated||Open Pit ||21,686||3.57||2,491|
|Inferred||Open Pit ||5,076||3.28||536|
Kinross’ focus for 2022 was drilling the first ~500 metres at the LP Fault zone to increase confidence in the upper portion of the deposit and facilitate the delivery of the initial mineral resource. The Company drilled over 250 kilometres in 2022, including 225 kilometres of diamond exploration drilling. Combined with the drilling completed by Great Bear since 2018, a total of over 550 kilometres of drilling has now been completed on the property. The results continue to support Kinross’ view that the LP Fault zone is expected to host a long-life, high-grade, open-pit and underground mine.
Kinross completed comprehensive data analysis to build high quality lithology, alteration, and structural models which feed the Company’s mineral resource estimation domains. Kinross also completed a 35-kilometre confirmatory grade control program on a tighter spaced 8 by 10 metre grid with larger diameter holes as compared to the exploration drilling. This program, which covers approximately 1.5 million tonnes of the open pit resource, was used to verify the Great Bear resource model, providing a high level of confidence in our stated resource, which is important given the high amount of visible gold in the deposit.
“The Great Bear initial mineral resource estimate marks an exciting milestone for the Company’s future development,” said J. Paul Rollinson, President and CEO. “In just one year since acquiring the property, we have validated our belief for this to potentially become a world class asset. The initial mineral resource estimate and continuity of high grades and widths at depth reinforces our vision for a high-quality open pit and sizeable underground mine.
“We believe the resource we have defined today is just the beginning. The drill results below our resource support our hypothesis that the deposit remains open at depth with high grade and visible gold intercepted down to depths of one kilometre, as illustrated in the long section below.
“These results solidify our expectation that Great Bear will become a top quality, tier one asset in our portfolio, providing long-term upside for our shareholders.”
Figure 1: LP grade thickness long section demonstrating depth extension potential is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ef51480a-b489-4877-b013-687372ef980b
There are multiple zones of high-grade mineralization across the property as seen in the figure below, which will be the target of further drilling activities in 2023 and beyond.
Figure 2: Highly prospective Great Bear land package is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e9cc08fa-96ce-48b9-9003-d267dc71ca61
The Company has received additional assay results that are not included in the initial mineral resource. See Appendix B for a full list of recent significant, composited assay results.
Infrastructure in the Great Bear area is well developed with the project located 25 kilometres southeast of the town of Red Lake, Ontario. A paved highway, natural gas pipeline, and provincial power line runs parallel to the project, and the property hosts a network of well-maintained logging roads that facilitate access.
The Company initiated a comprehensive metallurgy testing program in 2022, which is indicating excellent recoveries from an industry standard Gravity + CIL process. Initial test work indicates a high gold recovery of ~95%, that includes a high proportion of gravity recovery. The metallurgy testing will continue in 2023 to obtain higher confidence on the initial recoveries. Additionally, initial geotechnical drilling and testwork is indicating excellent rock strength for the angle of the open pit slopes and integrity of the underground mine.
Kinross is voluntarily releasing a technical report focused on geology and metallurgy that supports this initial mineral resource estimate concurrently following this press release. The technical report has been prepared pursuant to Canadian Securities Administrator’s National Instrument 43-101, and may be found at www.kinross.com or under the Company’s profile at www.sedar.com.
Baseline environmental surveys, local community socio-economic studies and preliminary engineering activities required for the permitting process are progressing well. Kinross has opened a community office and is continuing its local stakeholder engagement program with local communities and with its partners, Wabauskang and Lac Seul First Nations, on whose traditional territories the project is located.
Kinross’ drilling and exploration focus for 2023 is to continue to add inferred resource ounces, define deep mineralization, continue exploration along strike, and identify new targets around the property.
The Company is also progressing studies and permitting for an advanced exploration program that would establish an underground decline to obtain a bulk sample and allow for more efficient exploration of deeper areas of the LP Fault, along with the nearby Hinge and Limb gold zones. Kinross is targeting a potential start of the advanced program as early as 2024.
Kinross continues to advance detailed studies and permitting activities, with plans to release the results of this work in the form of a preliminary economic assessment in 2024.
Conference call details
In connection with this news release, Kinross will hold a conference call and audio webcast on Monday, February 13, 2023, at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session. To access the call, please dial:
Canada & US toll-free – +1 (888) 330-2446; Passcode: 4915537
Outside of Canada & US – +1 (240) 789-2732; Passcode: 4915537
Replay (available up to 14 days after the call):
Replay Toll Free Number: +1 (800) 770-2030
Outside of Canada & US: +1 (647) 362-9199
Conference ID: 4915537
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).