Kinross files new Paracatu technical report Mine expected to produce average of approximately 540 koz. over 12 years, at lower costs Adds 828 koz. in mineral reserves to offset 2019 depletion, and 1.1 million oz. in measured and indicated resources
Kinross files new Paracatu technical report
Mine expected to produce average of approximately 540 koz. over 12 years, at lower costs
Adds 828 koz. in mineral reserves to offset 2019 depletion, and 1.1 million oz. in measured and indicated resources
TORONTO, March 10, 2020 -- Kinross Gold Corporation (TSX:K; NYSE: KGC) (“Kinross”) today filed a new technical report for
its Paracatu operation in Brazil. Paracatu is a cornerstone, long-life operation in Kinross’ portfolio that is expected to produce
an average of approximately 540 Au koz. annually over 12 years from 2020 to 2031. Total production over the remaining mine
life is expected to increase approximately 24% compared with the prior technical report that was published in 2014.
The new technical report is based on an asset optimization program that commenced in 2018 and was completed in late 2019
with the successful implementation of a comprehensive grade control program. The results of the program include better
characterization of the orebody, an improved ability to predict and react to ore variability, and better mill efficiency with
improvements in throughput and recovery.
The technical report also incorporates continuous improvement programs which have resulted in improved mining rates and
increased overall productivity, the addition of renewable power sources with the investment in two hydroelectric power plants in
2018, and the continued successful tailings reprocessing project.
In 2019, Paracatu performance improved significantly due to the benefits of the asset optimization and continuous
improvement programs, with the mine achieving record annual production and reducing cost of sales per ounce sold by
approximately 20% over 2018. The new technical report forecasts significant reductions to life of mine operating costs and
improved capital efficiency and recovery rates compared with the 2014 report.
As previously disclosed in the Company’s 2019 year-end mineral reserves and resources update, a newly updated resource
model has resulted in the addition of approximately 828 Au koz. to estimated mineral reserves, more than offsetting 2019
depletion of 705 Au koz. Measured and indicated resources also increased by approximately 1.1 million Au oz., or 35%,
compared with 2018. Inferred mineral resources includes an estimated 367 Au koz. contained in the Santo Antonio tailings
deposits. The Company plans to continue mining the tailings deposits after 2020.
The new report also describes tailings facilities at Paracatu, which meet or exceed regulatory and international requirements
and standards of best practice. The facilities are constructed using a modified centerline design and are engineered,
compacted, zoned earthfill dams. Independent assessment of the tailings facilities at site is conducted annually and rigorous
maintenance, monitoring, and emergency response procedures and plans are in place, including daily inspections. For more
information about Paracatu’s tailings facilities, see video here: https://bit.ly/2TKKzh6
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.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia,
Mauritania, Chile and Ghana. Kinross’ focus is on delivering value based on the core principles of operational excellence,
balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Senior Director, Corporate Communications
phone: 416-369-6469
Investor Relations Contact
Tom Elliott
Senior Vice-President, Investor Relations and Corporate Development
phone: 416-365-3390
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including
any information as to the future performance of Kinross, constitute "forward looking statements" within the meaning of
applicable securities laws, including the provisions of the Securities Act (Ontario) and the provisions for "safe harbor" under
the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections
as of the date of this news release. Forward looking statements include, without limitation, future events and opportunities
including but not limited to the operational updates at Paracatu described in this news release. The words "estimate”,
“expected”, “forecast”, and “plan”, and variations of such words identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross
as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and
contingencies. The estimates and assumptions referenced, contained or incorporated by reference in this news release, which
may prove to be incorrect, include, but are not limited to the production , cost and life of mine estimates in the technical report
being consistent with our expectations, the various assumptions set forth herein and in our Annual Information Form dated
March 31, 2019 ("2018 AIF") and full year 2019 Management's Discussion and Analysis. Known and unknown factors could
cause actual results to differ materially from those projected in the forward-looking statements. In addition, there are risks and
hazards associated with the business of mining and related project development, including financial, environmental hazards,
government and labour relations, unusual or unexpected formations, pressures, cave-ins and flooding (and the risk of
inadequate insurance, or the inability to obtain insurance, to cover such risks). Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, Kinross' actual results to differ materially from those expressed or implied in
any forward-looking statements made by, or on behalf of, Kinross. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Forward-looking statements are provided for the purpose of providing information about management's
expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by
these cautionary statements and those made in our other news release dated February 12, 2020 as well as other filings with
the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the
"Risk Factors" section of our 2018 AIF. These factors are not intended to represent a complete list of the factors that could
affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain
any material difference between subsequent actual events and such forward-looking statements, except to the extent required
by applicable law.
The technical information about the Company’s mineral properties contained in this presentation has been prepared under the
supervision of Mr. John Sims, an officer of the Company who is a “qualified person” within the meaning of National Instrument
43-101
Source: Kinross Gold Corporation