For more information, please see Kinross’ 2016 year-end Financial Statements, MD&A and results news release
Kinross Gold Corporation
25 York Street, 17th Floor
Toronto, ON Canada M5J 2V5
www.kinross.com
For more information,
please see Kinross’ 2016 year-end
Financial Statements, MD&A
and results news release
at www.kinross.com
NEWS RELEASE
Kinross provides update on organic development projects and exploration
Bald Mountain doubles mineral reserves for potential significant mine life extension
Tasiast Phase One expansion on track, Phase Two feasibility study on schedule for Q3
Toronto, Ontario – February 15, 2017 – Kinross Gold Corporation (TSX:K; NYSE:KGC) provided today updates
to its organic development projects, exploration program and its estimated mineral reserves and resources.
(This news release contains forward -looking information about expected financial and operating performance of the Compa ny. All mineral reserves and mineral
resources, as well as mine life disclosures, are estimates.)
Organic development projects:
Bald Mountain: Company doubles proven and probable mineral reserves to 2.1 million gold ounces (Au oz.)
for a potential significant mine life extension1.
Tasiast Phase One : Development is on schedule and on budget. Engineering and procurement are
substantially concluded and major components for the SAG mill and primary crusher are now at site. Full
commercial production is exp ected in Q2 2018. Phase One is expected to almost double production to
approximately 400,000 Au eq. oz. per year at an all-in sustaining cost of $760 per Au oz.2
Tasiast Phase Two: Feasibility study progressing well and is expected to be completed in Q3 2 017, at which
time the Company expects to make a development decision. The Phase Two project is expected to produce
approximately 780,000 Au eq. oz. per year at an all-in sustaining cost of $665 per Au oz.2
Round Mountain Phase W : Company upgraded 1. 3 million Au oz. to measured and indicated mineral
resources and added 1.7 million Au oz. to inferred mineral resources1 through geologic modelling, drilling and
re-engineering of the Phase W project1. The Phase W feasibility study is expected to be completed in Q3 2017.
Russia projects: Stripping at September Northeast has commenced, and development at Moroshka is on
schedule for mining to begin in the first half of 2018.
Exploration update:
Exploration activities at Bald Mountain, Round Mountain, Kupol and Dvoinoye added a total of 1.06 million Au
oz. to the Company’s estimated proven and probable mineral reserves and a total of 0.43 million Au oz. to its
inferred mineral resources1.
Kinross is intensifying its exploration focus to extensions of known zones and mineralization at current mines ,
based on past successes extending mine life with this exploration strategy.
In 2017, Kinross is prioritizing exploration drilling at several operations, including Kupol, which is open at certain
zones, and Fort Knox, where drilling is targeting opportunities for mineral resource additions.
Bald Mountain, Tasiast and Kettle River will also be exploration priorities for the Company in 2017.
Mineral Reserves and Resources update1:
Proven and probable mineral reserve estimates at year-end 2016 were 31.0 million Au oz. compared with 33.2
million Au oz. at year -end 2015, with additions at Bald Mountain partially offsetting depletions over the year.
Measured and indicated mineral resources estimates were 30.3 million Au oz., a 7% increase compared with
year-end 2015.
1 See also Kinross’ Annual Mineral Reserve and Mineral Resource Statement, estimated as at December 31, 2016, and explanatory notes starting at page 12.
2 Forecast site-level all-in sustaining cost excludes corporate overhead costs. “All-in sustaining cost” is a non-GAAP financial measure.
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 2 Kinross provides update on organic development projects and exploration www.kinross.com
CEO commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to Kinross’ organic development projects:
“We have made excellent progress advancing the organic development projects that will shape the future of Kinross
and look forward to achieving key milestones in 2017. The se exciting projects span all three regions and are
expected to help Kinross extend mine life to maintain strong, consistent production and cash flow in the years
ahead.
“With the Tasiast Phase One expansion on track to reach full commercial production in Q2 2018 , the Company
expects to complete a feasibility study for Phase Two in Q3 2017 and make a development decision at that time.
Phase One is expected to almost double production and reduce operating costs by nearly half while Phase Two is
expected to once again significantly increase production to approximately 780,000 Au eq. oz., further reduce cost,
and extend mine life to 2030.
“At Bald Moun tain, we have doubled mineral reserve estimates ahead of schedule , confirming our vision for the
mine as a long -life asset with significant upside potential. At the Round Mountain Phase W project, we have
upgraded mineral resource estimates and expect to com plete a feasibility study in Q3 2017 to potentially extend
mine life.
“In Russia, stripping at September Northeast has begun, and mining at Moroshka is scheduled to be gin in the first
half of 2018, while 2017 exploration will follow up on encouraging targets in the existing Kupol mine footprint, which
is open at certain zones, to potentially extend mine life.”
Organic development projects
Bald Mountain update
The Company continues to develop the mine’s potential for a significant mine life extension and production
expansion. At year -end 2016, the Company doubled Bald Mountain’s proven and probable mineral reserve
estimates to 2.1 Au Moz., adding a total of 1.24 Au Moz., with approximately 0.68 Au Moz. from the North area, and
approximately 0.57 Au Moz. from the South area1.
The mineral reserve additions in the North area are primarily the result of continued exploration, definition drilling
and mine plan optimization at the Saga, Duke and Top pits.
The mineral reserve additions in the South area ar e a result of the Company’s pre -feasibility work at t he Vantage
Complex project, and e xploration and confirmatory drilling, geological modelling and metallurgical testing at the
Vantage, Luxe and Saddle pits . The pre-feasibility study also contemplates con struction of a new heap leach pad
with associated processing facilities and infrastructure. The preliminary capital estimate for the Vantage Complex
project is expected to be in the range of $90 - $120 million, with major works expected to begin in the first half of
2018. The proposed design of the facilities allow s for the full development of the Vantage, Luxe and Saddle pits,
which have a combined 28 million tonnes of ore at an average grade of 0.63 g/t, and makes accommodation for
future development of additional potential satellite pits in the South area, with forecast incremental capacity for 34
million tonnes, for a total capacity of 62 million tonnes.
A net addition, 0.27 Au Moz. of inferred mineral resources 1 were added to estimates at Bald Mounta in as of
December 31, 2016 , mainly as a result of drilling, refinements to mineral resource models, and engineering
optimization.
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 3 Kinross provides update on organic development projects and exploration www.kinross.com
Bald Mountain mineral reserve and mineral resource 1
2015
(Au koz.)
Depletion
(Au koz.)
Exploration &
Engineering
(Au koz.)
2016
(Au koz.)
Proven and Probable
Reserves
North area 1,117 (229) 677 1,565
South area - - 568 568
TOTAL 1,117 (229) 1,245 2,133
Measured and Indicated
Resources
North area 3,074 - - 3,074
South area 859 - (385) 474
TOTAL 3,933 - (385) 3,548
Inferred Resources
North area 246 - 362 608
South area 132 - (92) 40
TOTAL 378 - 270 648
With a substantial mineral reserve and resources base and an under -explored land package of approximately 600
km2 located in one of the best mining jurisdictions in the world, Kinross envisions Bald Mountain as a long-life asset
with significant upside potential and mineral resource growth.
Tasiast Phase One and Phase Two expansion
The Tasiast Phase One project continues to progress well and is on schedule and on budget, with full commercial
production expected in Q2 2018. Engineering and procurement of all equipment packages are substantially
concluded. Plant construction is about 20% complete, with significant progress made on earthworks, concrete, and
the tailings storage facility (TSF). The first level of the TSF dam core is complete and liner placement is now
underway. The foundations for the SAG mill and primary crusher are progressing, and installation contracts have
been awarded for most key elements. Major components for the SAG mill and primary crusher have arrived at site,
and the SAG mill installation is expected to begin later this month.
Phase One is expected to increase plant throughput to 12,000 t/d, and almost double production to approximately
400,000 Au eq. oz. per year at an all-in sustaining cost of $760 per Au oz.2
The Tasiast Phase Two expansion feasibility study is also progressing well and is on schedule to be completed in
Q3 2017. The feasibility study contemplates installing an additional 18,000 t/d of throughput capacity (for a total
combined capacity of 30,000 t/d for both phases), an expanded power plant, upgraded water supply infrastructure,
and additions to the mining fleet. The Phase Two project is expected to produce approximately 780,000 Au eq. oz.
per year at an all-in sustaining cost of $665 per Au oz.2 The Company expects to make a development decision on
Phase Two once the feasibility study has been completed.
The combined Phase One and T wo expa nsion is expec ted to transform Tasiast into the C ompany’s largest
operation, with a long mine life and estimated costs amongst the lowest in its portfolio.
Russia projects update
Kinross' Russian development projects continue to advance as planned. At September Nor theast, located
approximately 15 kilometres from Dvoinoye, stripping has commenced, with the project completed on time and on
budget. At the Moroshka project, located approximately four kilometres from Kupol, decline development and the
installation of lim ited surface infrastructure is underway, with portal construction now 30% complete. Mining is on
schedule to commence in the first half of 2018. These two additional sources of ore are expected to add high-margin
ounces into the mine plan, contributing to a one-year mine life extension at Kupol-Dvoinoye to 2021.
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 4 Kinross provides update on organic development projects and exploration www.kinross.com
A dry-stack tailings filter cake plant has been constructed at Kupol and is currently being commissioned. The plant
allows for tailings storage for the current mineral reserve estimates, and flexibility to permit additional storage
capacity for potential mine life extensions.
Round Mountain Phase W
Infill, geostatistical, geotechnical, and metallurgical drilling on the Phase W project continued during Q4 2016 to
support the Phase W feasibility st udy. The drill program upgraded a total of 1. 3 million Au oz. to the Company’s
measured and indicated mineral resource estimates and added 1.7 million Au oz. to its inferred mineral resource
estimates as at December 31, 20161. Feasibility study activities are now fully underway, with a focus on mine plan
optimization, geologic modelling, metallurgical and geotechnical test work, and engineering of required
infrastructure. Permitting activities in support of the project are also ongoing. The feasibility study on Phase W is
expected to be completed in Q3 2017.
The Phase W expansion project could potentially extend life of mine at Round Mountain, one of the most consistent
mines in the Company’s portfolio.
Round Mountain mineral reserve and mineral resource1
2015
(Au koz.)
Depletion
(Au koz.)
Exploration &
Engineering
(Au koz.)
2016
(Au koz.)
Proven and Probable
Reserves 1,470 (315) 112 1,267
Measured and
Indicated Resources 683 (35) 1,284 1,932
Inferred Resources 233 (30) 1,660 1,863
2016 Mineral Reserves and Mineral Resources update
(See also the Company’s detailed Annual Mineral Reserve and Mineral Resource Statement estimated as at December 31, 2016 and explanatory notes starting at
page 12.)
In preparing the Company’s 2016 year-end mineral reserves and mineral resource estimates as of December 31,
2016, Kinross has maintained gold price assumptions used since 2011: $1,200 per ounce for mineral reserves and
$1,400 per ounce for mineral resources. Kinross continued to focus on estimated higher margin, lower cost ounces,
and maintained its fully-loaded costing methodology.
Proven and Probable Mineral Reserves1
Kinross’ total proven and probable gold reserve estimate of 31.0 million ounces at year -end 201 6, was largely
consistent compared with the previous year’s estimate of 33.2 million ounces. The slight net year -over-year
decrease was mainly the result of the 3.0 million Au oz. depletion across the Company’s portfolio and the
reclassification of 0.9 million Au oz. of mineral reserves at Maricunga to measured and indicated mineral resources,
partially offset by additions of 1.1 million Au oz. from exploration and 0.6 million Au oz. from engineering.
Proven and probable silver reserves at year -end 2016 were estimated at approximately 37.4 million ounces, a net
decrease of 3.6 million ounces from year -end 2015, primarily due to production depletion. Silver reserves were
estimated using a silver price assumption of $17.00 per ounce.
Proven and probable copper reserves at year-end 2016 were estimated at 1.4 billion pounds, unchanged from year-
end 2015. Copper reserves, which are exclusively at Cerro Casale, were estimated using a copper price assumption
of $2.40 per pound.
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 5 Kinross provides update on organic development projects and exploration www.kinross.com
Measured and Indicated Mineral Resources1
Kinross’ total estimated measured and indicated mineral resources at year -end 2016 increased by approximately
2.0 million Au oz. to approximately 30.3 million Au oz. compared with year -end 2015 . The 7% net increase in
estimated measured and indicated mineral resources was mainly a s a result of 1.3 million Au oz. that were added
at Round Mountain and the reclassification of mineral reserve estimates at Maricunga.
Measured and indicated silver resource s were estimated to be 70.9 million ounces, assuming a $20.00 per ounce
silver price, compared with 73.2 million ounces at year -end 2015. This decrease was mainly as a result of mineral
resource estimate conversion to mineral reserves at Round Mountain.
Inferred Mineral Resources1
Kinross’ total estimated inferred gold resources a t year-end 2016 were approximately 6.5 million ounces, a net
increase of approximately 2.0 million ounces, or 45% compared with year-end 2015, primarily due to the additional
ounce estimates defined at Round Mountain’s Phase W project and exploration results at Dvoinoye.
Kinross Gold mineral reserve and mineral resource 1
2015
(Au koz)
Depletion
(Au koz)
Maricunga
Reclassification
(Au koz)
Exploration
(Au koz)
Engineering
(Au koz)
2016
(Au koz)
Proven and
Probable
Reserves
33,222 (2,983) (926) 1,074 578 30,965
Measured and
Indicated
Resources
28,335 (117) 1,154 109 799 30,280
Inferred
Resources 4,457 (147) 0 448 1,715 6,473
Exploration update
During 2016, the Company’s exploration efforts continued to focus within the footprint of existing mines and their
immediate surrounding districts. In 2017, Kinross is intensifying its exploration focus to extensions of known zones
and mineralization. 2016 exploration highlights include:
Bald Mountain: Approximately $9 million was spent in 2016 to achieve the conversion of a portion of the large
mineral resource base to mineral reserves by infill drilling and testing the extensions of known mineralization.
Round Mountain: Geologic modelling, drilling and re -engineering of the Phase W project was carried o ut to
support the ong oing Phase W feasibility study . Exploration drilling upgraded a portion of the site’s estimated
inferred mineral resources to measured and indicated mineral resources and added to its inferred mineral
resource.
Kupol: Underground development and drilling resulted in overall additions to mineral reserve estimates, with a
large portion coming from the North Extension.
Dvoinoye: Drilling upgraded a portion of high-grade measured and indicated resource to proven and probable
reserves and identified an inferred resource mostly within the Zone 1 area of the deposit.
Brownfields exploration drilling also identified several mineralized intercepts that will be followed up in 2017 with
the goal of converting the identified mineralization to measured, indicated and inferred mineral resources.
Kupol: Exploration work within the existing mine footprint identified targets that were drill tested in 2016. These
included Zone 650 splay in the south, the south zone hanging wall, Big Bend and the North East Extension, all
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 6 Kinross provides update on organic development projects and exploration www.kinross.com
of which had encouraging results. Drilling is planned in 2017 to evaluate the potential of additions to the
Company’s mineral reserve and mineral resource from the extension areas.
Kettle River: Drilling of the Lower Portal target at Curlew identified a high grade mineralized structure trending
northeast between the K2 and K5 deposits. The Company plans a 2017 infill drilling campaign to test the
extensions of the mineralized zones.
Tasiast: Auger drilling through sand cover at Tasiast Sud identified Sadraya, a new min eralized zone
approximately three kilometres south of the Tamaya deposit and along the same mineralization and structural
corridor. Work in 2017 will continue to probe the depth and strike extensions of this zone.
Fort Knox: Positive intercepts were intersected during drilling of the East and South Wall of the existing pit,
and additions to the site’s inferred resource are expected in 2017.
Greenfields exploration efforts in 2016 also focused on targets in Nevada, USA and the Abitibi region in Quebec
and Ontario, Canada in 2016. The Company also continues to pursue strategic investments and partnerships with
high quality junior exploration companies.
A summary of the 2016 highlights is presented below. Additional details may be found in the Appendices. “Appendix
A” provides illustrations, captions, and accompanying explanatory notes, and “Appendix B ” provides complete
drilling results and drill hole location data corresponding to the values below.
Appendix A: http://www.kinross.com/files/doc_news/2017/02/Appendix-A_Q4-YE-2016-Exploration-
Figures_February-15.pdf
Appendix B: http://www.kinross.com/files/doc_news/2017/02/Appendix-B_Q4-YE-2016-Exploration-Drill-
Results_February-15.xlsx
Bald Mountain
Exploration efforts during the p ast year focused on expanding the existing mineral resource estimates and
completing a comprehensive review of the site’s geological information to generate targets in the large land
holdings. (See Appendix A: Figure 1).
Exploration drilling was carried out at the Saga, Duke, Vantage, Luxe, Saddle, Gator, Redbird, and Top deposits.
Soil geochemical sampling and mapping was completed at Rattlesnake (located in the 50 -50 joint venture area)
and in the South area. The target delineation exercise generated a number of potential targets that are expected to
be further explored in 2017.
The 2016 drill program at Saga targeted a NW-trending structure that is interpreted to be controlling the high-grade
ore in the previously block -modeled deposit. Short reverse circulation (RC) drill holes (totalling 6,498 metres)
intersected mineralization with slightly higher grades than in the previous block model. (See Appendix A: Figure 2).
The Vantage Complex, encompassing Vantage, Gator, Saddle, Lux e and Pentium, was d rilled throughout 2016
with most of the activity carried out at Vantage and Gator. The program aimed to confirm the historical drill holes,
and was mostly completed by conventional RC drilling. A total of 31,748 metres were drilled during the year. (See
Appendix A: Figure 3).
Infill diamond and RC drilling at Redbird totalling 5,064 metres was carried out in 2016 to confirm higher grades in
the previously modelled open pit. The drilling also tested mineralization open at the south end of the Redbird pit .
Follow-up drilling was conducted in the Top Gap area when condemnation hole T16 -002 intersected high grade
mineralization in Q2 2016 (67.1 metres at 4.9 g/t Au including 16. 8 metres at 9.8 g/t Au , as set out in the table
below). However, the subsequent R C drill holes did not intersect similar high grade mineralization. For full drill
results and explanatory notes see Appendix B.
Kinross Gold Corporation
25 York Street 17th Floor
Toronto, ON, Canada M5J 2V5
p. 7 Kinross provides update on organic development projects and exploration www.kinross.com
Bald Mountain North significant down-hole drill intercepts:
Hole ID From To Interval
(m)
Au
(g/t)
Redbird
RBD16-001 299.6 387.9 88.2 1.6
RBD16-009 263.5 279.7 16.2 5.2
RBD16-011 266.9 320.8 53.9 1.3
Top
T16-001 451.1 492.3 41.1 1.3
T16-002 364.2 431.3 67.1 4.9
T16-002 - including 388.6 405.4 16.8 9.8
The Company plans to spend approximately $9 million in 2017 at Bald M ountain with the goal of upgrading
resources in the North area (including Redbird South, Top Gap, Rat, Big Saga, and Numbers) and at Yankee in the
South area. The 2016 identified targets are expected to be drill tested, including those from the 50-50 JV area.
Round Mountain
The Round Mountain mineral resource model was updated in the first half of 2016 with a total of 2.4 Au Moz. being
classified as inferred mineral resource estimates. Infill and geostatistical drilling, as well as geological re -
interpretation and modelling for the Phase W p roject, upgraded a total of 1 .3 Au Moz. from inferred mineral
resources into measured and indicated mineral resources and added 1.7 Au Moz. to inferred mineral resources1.
(See Appendix A: Figure 4).
Kupol
A recent comprehensive exploration review at Kupol generated a series of extension targets that were drilled during
the second half of 2016. Mineralization remains open in all directions in certain zones, with the greatest potential
for near-term extensions to the north and south. Current mining at Kupol is taking place in the northern, southern
and at-depth extremities of the known ore body. A total of 13,918 metres of drilling was completed at a number of
these targets, including the 650 zone in the south, Big Bend Deep, and North Extension (Star), which have all been
targeted for potential additions to the Kupol resource model in 2017. (See Appendix A: Figure 5).
In the south, the 650 zone is an extension of the main Kupol ore body. From there, the 650 zone spl ay is manifest
as a quartz vein developed over widths of up to 10 metres for a strike length of approximately 300 metres.
At the northern end of the Kupol main ore body, Q3 2016 drilling at the North Extension (Star) identified a large
mineralized zone 5 0 metres north of the current mineral resource. Follow-up exploration drilling during Q4 2016
extended mineralization a further 400 metres along strike and 200 metres down dip. Geochemical surface sampling
over the same area shows an indication of minerali zation extending up to 1.8 km from the current resource. (See
Appendix A: Figure 6).
The depth extension of the Kupol zone was tested at the Big Ben d area. Drilling has identified a mineralized
structure with modest grades (up to 5g/t Au). Interpretation of structural controls and drilling will continue through
2017 to identify the down dip economic potential.
In addition to the aforementioned extensions to the main zone, a separate mineralized zone was intersected
approximately 400 metres to the east. A total of 12,614 metres of drilling defined narrow, high-grade quartz veining
in splays off a west-dipping fault, opposite to the structure controlling the Kupol main vein.
Continued drilling, geological interpretation and resource estimation for all four of these target areas will be a major
focus for 2017.
Drill intercepts from the 2016 Kupol extensions and Hanging Wall programs are included below. For full drill results
and explanatory notes see Appendix B.
Kinross Gold Corporation
25 York Street 17th Floor
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p. 8 Kinross provides update on organic development projects and exploration www.kinross.com
Kupol Mining Licence significant down-hole drill intercepts:
Hole ID From To Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Minex
KP16-1211 209.0 218.8 9.8 5.9 11.89 17.41
KP16-1215 200.3 225.5 25.2 14.6 4.37 42.41
KP16-1220 173.4 184.9 11.5 5.8 28.02 102.40
KP16-1220 - including 173.4 174.4 1.0 74.48 201.72
KP16-1227 243.4 258.5 15.1 8.7 49.06 78.70
KP16-1227 - including 243.4 244.9 1.5 456.80 339.40
KP16-1198 270.2 279.4 9.2 4.7 11.57 77.56
KP16-1198 - including 273.8 278.4 4.6 22.48 148.84
Hanging Wall
KP16-1173 329.2 330.5 1.3 85.96 84.80
KP16-1173 - including 329.2 329.5 0.3 346.48 348.12
KP16-1194 213.0 215.0 2.0 43.45 22.55
KP16-1194 - including 213.0 214.0 1 80.2 41.8
KP16-1197 341.9 348.8 6.9 7.27 10.41
KP16-1197 - including 342.8 343.3 0.5 52.68 27.32
Kupol mineral reserve and mineral resource1
2015
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2016
(Au koz)
Proven and Probable
Reserves 1,899 (326) 110 1,683
Measured and
Indicated Resources 271 - (72) 199
Inferred Resources 108 - 23 131
Dvoinoye
The Dvoinoye Zone 1 mineral resource confirmation program was completed in Q3 2016, for a total of 1,318 metres
of shallow infill drilling (See Appendix A: Figure 7) . The drill holes intersected high -grade quartz-hematite veining
with pyrite and p olymetallic mineralization and lower -grade quartz-breccia veins with pyrite, which resulted in an
increase to the existing block model grade below the current pit surface. (See Appendix A: Figure 8).
Dvoinoye mineral reserve and mineral resource1
2015
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2016
(Au koz)
Proven and Probable
Reserves 815 (326) 130 619
Measured and
Indicated Resources 78 - (36) 42
Inferred Resources 25 - 83 108