Each one in plain English, with the numbers worked through for a shareholder.
16 Feb 2011resource reserve update● Neutral
Kinross filed a new technical report on its wholly owned Fruta del Norte project in Ecuador, effective 31 December 2010 and written by its own Robert Henderson, with his consent. It updates the January 2010 report. It incorporates a pre-feasibility study by Hatch Ltd. envisaging a two-phase underground mine and plant over a 16-year life, 2,500 t/d rising to 5,000 t/d, with total production of 6.3Moz of gold and 6.8Moz of silver from reserves of 26.1 million tonnes. The reserve grades, costs and cash-flow tables are cut off, so those figures are not available. This continues the Fruta del Norte thread, which ended with its development abandoned in 2013.
Kinross filed a technical report on the Tasiast gold mine in Mauritania, written for Red Back Mining and dated 10 August 2010, a week after Kinross agreed to buy Red Back (2 Aug 2010). It says Red Back bought Tasiast from Lundin Mining in August 2007 and that the mine reached commercial production in January 2008. The text is cut off before the resource, reserve and cost tables, so no ounce or economic figures can be given. This is background on the asset Kinross is acquiring, not a Kinross estimate.
Kinross filed a technical report on Cerro Casale in northern Chile, effective 18 February 2010 and written by its own employee Robert D. Henderson (so not independent), with his certificate and consent. It follows the 2009 pre-feasibility report and is dated just after the 17 Feb 2010 agreement to sell 25% to Barrick, which closed on 31 March. Only the table of contents is visible, so no reserve, resource, cost or return figures can be given.
Kinross filed a new technical report on the wholly owned Fruta del Norte gold-silver deposit in Ecuador, written by Kinross's own Robert D. Henderson (so not independent), effective 31 December 2009. It follows the Aurelian takeover completed in 2008 and the earlier report that showed only inferred resources. The report says the project covers 39 concessions of about 95,000 hectares, which must be replaced under Ecuador's new mining regulations, and that about 80% of the needed surface rights had been obtained. The resource table is cut off, so no ounce figures can be given.
Kinross filed a technical report on the Cerro Casale gold-copper project in northern Chile, dated 6 April 2009 with a 31 December 2008 effective date, based on a pre-feasibility study finished in December 2008. It describes the project as a joint venture in which Barrick holds 51% and Kinross 49% (the Bema-acquired interest from Feb 2007). Only the table of contents and the opening summary are visible, so no resource, reserve, cost or return figures can be given.
Kinross filed a re-addressed technical report on the Fruta del Norte deposit in Ecuador (originally written for Aurelian by Micon in Nov 2007, amended 21 Oct 2008), with expert consents. The filing says Kinross had acquired all Aurelian shares as of 30 Sept 2008 under its friendly bid, which completes the bid launched in August. The report's contents are mostly an index; the visible tables list only inferred mineral resources, and no figures are visible. So the deposit was, per this report, at inferred-resource stage.
Kinross filed technical reports for the Maricunga gold mine in Chile (effective 31 Dec 2007) and for Fort Knox (dated 31 March 2008). Only the front of the Maricunga report is visible: it covers the Verde and Pancho pits and was prepared in-house by a Kinross director, Maryse Bélanger, so it is not independent. The reserve and resource tables are cut off, so no figures can be given. This updates the Dec 2006 Refugio/Maricunga report; the Fort Knox report follows the Feb 2008 board approval of the US$270m expansion, but its contents are not visible.
Kinross filed three technical reports: Refugio (effective 31 Dec 2006), Fort Knox (dated 30 Mar 2007) and Kupol (dated 30 Nov 2006); only the Refugio report is visible and it is cut off before the reserve tables. Refugio is a heap leach mine in Chile's Maricunga belt owned by Compania Minera Maricunga; the report says it was owned 50/50 by Kinross (operator, acquired through the 1998 Amax Gold merger) and Bema. It operated 1996 to 2001, producing over 920,000 oz of gold, and was put on care and maintenance in 2001. The report covers two Verde pits and the near-development Pancho project. No reserve figures can be given.
Kinross filed a Paracatu (Brazil) technical report dated 31 July 2006, stating the filing is made solely for that purpose, covering the mine as of December 2005, prepared by R.D. Henderson (Acting Vice President, Technical Services). The visible text is only the contents pages, which include a 'key methodology changes' section and an expansion plan, so no reserve, cost or capital figures can be given. It follows the Dec 2005 and Mar 2006 Paracatu reports, and Mr Henderson now appears in the technical services role previously held by Wesley Hanson.
Kinross filed a Fort Knox (Alaska) technical report dated 31 July 2006, stating the filing is made solely for that purpose, covering the mine as of December 2005. It shows proven and probable reserves of 82,172kt at 0.74 g/t at a US$400 gold price (including a 27,456kt stockpile at 0.46 g/t), plus measured and indicated resources of 48,862kt at 0.60 g/t at US$450. The mine plan supports about seven years of life, with mining from 2006 to 2010 and stockpile processing to 2012. Fort Knox is a wholly owned subsidiary operation and remains in the current portfolio.
Kinross filed a Paracatu mine technical report dated 30 Mar 2006, supporting its 31 Dec 2005 reserve and resource disclosure, prepared by Wesley Hanson (now titled Vice President, Technical Services). The contents show it covers an expansion plan including a new 32 Mtpa mill, but the reserve and cost figures are truncated, so none are given. It updates the Dec 2005 report on the mine that remains in the portfolio.
Kinross filed a Round Mountain (Nevada) technical report dated 30 Mar 2006, supporting its 31 Dec 2005 reserve and resource disclosure. It states Round Mountain is run by a 50-50 joint venture between Kinross and Barrick, with Kinross as operator, and that reserves are stated at a US$400/oz gold price. The visible text shows proven reserves of 125,068 thousand tons at 0.018 oz/ton, but the table is cut off so the totals and ounces are not given. Round Mountain remains in the current portfolio.
Kinross filed a Paracatu mine technical report dated 11 Dec 2005, written by its own Director of Technical Services, Wesley Hanson, solely to provide that report. Its contents list reserve and resource tables as of 1 Nov 2005 and a section on 'key methodology changes' (drill spacing, ore hardness, metallurgical recovery, model optimisation), but the figures are truncated so none can be given. It follows the Dec 2004 and Mar 2005 Paracatu reports; by this point the Rio Tinto 51% purchase (letter of intent Nov 2004) is the backdrop, though this filing does not state Kinross's ownership percentage.
Kinross filed, in January 2005, a technical report on the Refugio gold project in Chile's Maricunga district, stating the filing is made solely for that purpose. The report is dated December 2003, was prepared by Kinross's own Technical Services staff for Compania Minera Maricunga, and so describes the position about a year earlier. The visible text is only the contents pages, so no reserve figures are given. This is the first appearance of the Chilean Maricunga operation in this record.
Kinross filed, in December 2004, a technical report dated 25 November 2004 on its 'Expansion Project III' at the Paracatu mine in Brazil, stating the filing is made solely for that purpose. It was written by Kinross's own Director of Technical Services, Wesley Hanson. The visible text is only the contents pages, so no reserve, cost or capital figures can be given. This follows the July 2004 report on Paracatu (49% owned, 20Mt a year with a 30Mt a year expansion under study) and updates the picture of the mine that remains in the portfolio.
Kinross filed, in July 2004, an independent technical report by SRK (dated April 2003, data as of December 2002) on the Porcupine Joint Venture in Ontario, stating the filing is made solely for that purpose. The visible text covers the Pamour, Hoyle Pond and Dome mines but the reserve and resource figures are truncated, so none are given here. The report is dated well before the filing, so it describes the position as of end-2002, not current.
Kinross filed, in July 2004, a technical report (dated 21 March 2003, data as of December 2002) on the Round Mountain gold mine in Nevada, stating the filing is made solely for that purpose. The report was written by Round Mountain's own staff, who state they are not independent of Kinross. The visible text carries no reserve figures (the text is truncated before the tables); Round Mountain remains in the current portfolio.
Kinross filed, in July 2004, an independent technical report (dated April 2003, data as of December 2002) on the Morro do Ouro mine near Paracatu, Brazil, stating the filing is made solely for that purpose. The report says Kinross owned 49% of the mine and shows proven and probable reserves of 369.1Mt at 0.43 g/t (5,102koz) at a US$300 gold price, with a possible expansion from 20Mt to 30Mt a year under study. This is the Paracatu mine that remains in Kinross's current portfolio.
Kinross filed, in July 2004, a technical report (dated April 2003, data as of December 2002) on the Fort Knox and True North mines in Alaska, stating the filing is made solely for that purpose. It shows Fort Knox proven and probable reserves of 90.7Mt at 0.81 g/t and True North 6.5Mt at 1.47 g/t, at a US$300 gold price, feeding one mill. Fort Knox remains in the current portfolio.
Kinross filed, in July 2004, a technical report (dated February/April 2003, data as of December 2002) on the Kubaka project in Russia, stating the filing is made solely for that purpose. It says Kinross owned 54.7% of the Omolon joint venture at end-2002 and was negotiating to buy the other 45.3%. The open pit was exhausted after six years, leaving stockpiles and three small underground projects, with reserves of 198koz of stockpiles plus about 44koz proven and 44koz probable underground, and a further 766koz of inferred resources at Birkichan and Tsokol.
Kinross filed, in July 2004, an independent technical report (dated April 2003, data as of December 2002) on the Crixas mine in Brazil, stating the filing is made solely to provide that report. It shows Kinross held 50% of Crixas via the TVX acquisition in early 2003 and reported reserves of 3,836kt at 7.76 g/t, about 957koz. This is the Crixas 50% that Kinross later sold to AngloGold Ashanti in 2012 for US$220m.
