Kinross provides update on development projects and full-year 2019 exploration results Company adds 7.7 million gold ounces to estimated measured and indicated resources Mineral reserve addition of 828 koz. at Paracatu; Kupol and Chirano extend mine life by one year
Kinross provides update on development projects and full-year 2019
exploration results
Company adds 7.7 million gold ounces to estimated measured and indicated resources
Mineral reserve addition of 828 koz. at Paracatu; Kupol and Chirano extend mine life by one year
Company to proceed with La Coipa Restart project in Chile
TORONTO, Feb. 12, 2020 -- Kinross Gold Corporation (TSX:K; NYSE:KGC) today provided updates on its 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 Company. All mineral reserves and mineral resources, as well
as mine life disclosures, are estimates. All dollar amounts are expressed in U.S. dollars, unless otherwise noted)
Development projects:
• Tasiast 24k: Proceeding on schedule and on budget to increase throughput to 21,000 t/d by year-end 2021 and 24,000
t/d by mid-2023.
• Chulbatkan: Completed acquisition of a high-quality and prospective project, and commenced a substantial exploration
drilling program with the goal of adding to the current 3.9 million Au oz. indicated resource base by year-end.
• La Coipa Restart: Proceeding with the project that is expected to generate an internal rate of return 1 (IRR) of 28% and
net present value1, 2 (NPV) of $118 million based on a $1,200/oz. gold price and $17/oz. silver price.
• Fort Knox Gilmore : Proceeding on schedule and on budget, with stacking on the new heap leach pad expected to
commence in Q4 2020.
Exploration and Mineral Reserves and Resources 3 update:
• Company added 7.7 million ounces to measured and indicated mineral resources in 2019, a 28% year-over-year
increase, mainly due to the acquisition of Chulbatkan, and additions of 1.2 million Au oz. at Lobo-Marte, 1.1 million
Au oz. at Paracatu , 568 Au koz. at Bald Mountain and 553 Au koz. at Round Mountain.
• Paracatu added 828 Au koz. to mineral reserve estimates, more than offsetting depletion in 2019.
• Mineral reserve additions at Chirano, which more than offset depletion, and at Kupol, extended mine life by one year
to 2022 and 2024, respectively.
• In 2020, Kinross is prioritizing exploration drilling at several operations, including Kupol, Chulbatkan and Chirano, as the
Company continues to focus on opportunities for mineral resource and reserve additions.
____________
1 After tax and incremental to estimated reclamation costs, of which the majority will be deferred to the end of the
project. Corporate income tax expense is not expected to be payable at $1,200/oz. gold price in Chile as a result of the use of
existing tax losses and the Company expects to recover approximately $20 million existing VAT credits through the project’s
life.
2 Based on a 5% discount rate.
3 See also Kinross’ Annual Mineral Reserve and Mineral Resource Statement, estimated as at December 31, 2019, and
explanatory notes starting at page 16.
CEO commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to Kinross’ development projects:
“We achieved key project and exploration milestones in 2019 to strengthen our portfolio and future production profile.
Significant additions to mineral reserve and resource estimates at Paracatu improved the mine’s long-term production outlook
and offset depletion, while the mineral reserve additions from our exploration programs at Kupol and Chirano extended mine life
at both operations by one year. The Tasiast 24k project is proceeding on plan, while at the same time, the mine continues to
achieve record operational results due to the Phase One expansion. The Fort Knox Gilmore project is on schedule to start
stacking on the new heap leach pad in Q4 2020.
“We are excited about our newly acquired high-quality Chulbatkan project, which we expect to be a substantial open pit, heap
leach mine. The project has a strong base case and good upside potential, and we have a substantial drilling program planned
for 2020 with the goal of adding to its resource estimates by year-end. We are also proceeding with the La Coipa Restart
project, which has strong economics, adds to our production profile, and provides the option to continue studying opportunities
in the area.”
Development projects
Tasiast 24k project
The 24k project continues to advance well and remains on budget and on schedule to increase throughput capacity to 21,000
t/d by the end of 2021 and then to 24,000 t/d by mid-2023.
Stripping continues on plan, detailed engineering is largely complete, and procurement and contracting activities are well
underway. The construction team has mobilized to site and initial debottlenecking work in the processing plant has
commenced, along with construction activities related to the installation of a power plant.
The Company signed the $300 million project financing for Tasiast with the IFC (a member of the World Bank Group), Export
Development Canada, and two commercial banks on December 16, 2019. The first funding draw from the loan, which is non-
recourse to Kinross, is expected later in Q1 2020.
Chulbatkan
On January 16, 2020, the Company completed the acquisition of the high-quality Chulbatkan project in Russia. Chulbatkan
has upside potential and is expected to be a substantial, open pit gold mine with low costs. The project currently has a large,
near-surface, relatively high grade estimated mineral resource. The deposit is heap leachable and has potential for additional
high-grade structures. Mineralization is open along strike and at depth, and is highly continuous.
The Company’s initial mineral resource estimate does not include results from the confirmatory drilling program, which
includes one hole that has encountered a potential high-grade structure within the existing mineral resource. Infill drilling and
studies are planned this year to update the high-grade portion of the known resource with the goal of defining and further
extending the resource base at year-end 2020.
Kinross has also commenced a $10 million exploration drilling program within the under-explored, highly prospective 120 sq.
km license area, which has numerous untested potential targets and several structural environments analogous to the
Chulbatkan deposit. Multiple downstream placer gold occurrences also indicate additional hard rock source mineralization
may be found within the license area. As well, numerous surface rock samples with grades greater than 1 g/t have been
collected outside of the defined resource area.
Company to proceed with La Coipa Restart project
The Company is proceeding with the La Coipa Restart project in Chile based on a feasibility study (FS) that contemplates
leveraging existing infrastructure to mine the Phase 7 deposit.
The open pit project is expected to produce a total of approximately 690 Au eq. koz. from 2022 to 2024 at a cost of sales of
$575 per Au eq. oz. Initial capital costs are expected to be approximately $225 million, with pre-stripping scheduled to begin in
late 2020. Approximately $45 million of the initial capital costs are expected to be spent in 2020, with the remainder spent in
2021.
Production is expected to start in Q1 2022, strengthening Kinross’ portfolio and production profile and allowing the Company to
maintain optionality to continue studying potential upside opportunities in the area.
La Coipa project feasibility study highlights 4
Life of mine production (thousand Au eq. oz.) 690
Life of mine ore processed (million tonnes) 10.9
Average grade processed (Au eq. g/t) 2.9
Strip ratio (2020 - 2024) 5.0
Strip ratio (2022 - 2024) 2.8
Average production cost of sales (per Au eq. oz.) $575
Average all-in sustaining costs5 (per Au eq. oz.) $670
Average recovery rate Au 75%
Average recovery rate Ag 60%
Average processing cost (per tonne) $21.10
Average mining cost (per tonne mined) (2022 - 2024) $2.66*
Life of mine average G&A costs (per tonne processed) $6.47
Initial capital costs (million) (2020 - 2021) $225
Sustaining capital (million) (2022 - 2024) $25**
*excludes 2020 - 2021 pre-stripping costs which are included in initial capital costs
**excludes sustaining capitalized stripping
____________
4 Based on a $1,200 per ounce gold price and $17 per ounce silver price assumptions and $65/bbl oil price assumption and
725 Chilean peso to the U.S. dollar.
5 Throughout this news release, forecast site-level all-in sustaining cost excludes corporate overhead costs. This is a non-
GAAP measure and is not defined under IFRS. Refer to “Reconciliation of non-GAAP financial measures” section in the
Company’s MD&A as at December 31, 2019 and for the year then ended.
The project is expected to generate an IRR1 of 28% and NPV1,2 of $118 million based on a $1,200/oz. gold price and $17/oz.
silver price, and an IRR1 of 42% and NPV1, 2 of $194 million based on a $1,500/oz. gold price and $17.50/oz. silver price.
La Coipa gold and silver price sensitivity estimates
$1,200/oz. Au
$17/oz. Ag
$1,400/oz. Au
$18/oz. Ag
$1,600/oz. Au
$19/oz. Ag
$1,800/oz. Au
$20/oz. Ag
IRR1 28% 39% 50% 59%
NPV1, 2 $118 million $177 million $233 million $290 million
The project plan includes refurbishing the existing process plant, camp and other infrastructure, as well as the mine fleet from
the Maricunga operation that has recently been placed on care and maintenance. All major permits required to proceed with
La Coipa Phase 7 are in place.
La Coipa initial capital costs (2020 – 2021) ($ millions)
Direct plant refurbishments 60
Mining fleet and infrastructure 20
EPCM, indirects, operational readiness, and other 50
Contingency 40
Pre-stripping 55
Total 225
The Puren6 deposit, which was included as part of the initial pre-feasibility study, was not incorporated into the project FS as a
joint venture agreement has not been finalized. The Company will continue to explore opportunities to incorporate adjacent
deposits with existing mineral reserves and resources, particularly Puren, Coipa Norte and Can Can, into the La Coipa mine
plan with the goal of extending mine life. This includes conducting further technical studies, assessing permitting
requirements, and continuing commercial discussions.
See Appendix A (Figure 1) for La Coipa cross section.
____________
6 Kinross has a 65% interest in Puren.
La Coipa Mineral Reserve and Resource estimates 3 – Gold
Tonnage
(Mt)
Grade
(Au g/t)
Ounces
(Au koz.)
Proven and Probable Reserves
Phase 7 10.9 1.5 539
Puren 3.9 1.8 229
Total 14.8 1.6 768*
Measured and Indicated Resources
Phase 7 2.4 1.6 124
Catalina 3.6 2.9 328
Coipa Norte 5.2 1.3 211
Can Can 2.2 2.1 142
Puren 1.6 1.4 73
Other 1.1 2.1 77
Total 16.0 1.9 955*
Inferred Resources 2.1 1.5 101
*Totals may not fully add up due to rounding.
La Coipa Mineral Reserve and Resource estimates 3 – Silver
Tonnage
(Mt)
Grade
(Ag g/t)
Ounces
(Ag koz.)
Proven and Probable Reserves
Phase 7 10.9 96.3 33,748
Puren 3.9 31.1 3,857
Total 14.8 79.2 37,605*
Measured and Indicated Resources
Phase 7 2.4 64.7 4,945
Catalina 3.6 68.7 7,885
Coipa Norte 5.2 33.5 5,586
Can Can 2.2 39.3 2,721
Puren 1.6 96.7 4,904
Other 1.1 26.3 960
Total 16.0 52.5 27,002*
Inferred Resources 2.1 43.1 2,890
*Totals may not fully add up due to rounding.
The pre-feasibility study (PFS) at Lobo-Marte is proceeding as planned and is scheduled to be completed mid-year. The PFS
is based on the concept of commencing Lobo-Marte production after the conclusion of mining at Phase 7 and other potential
opportunities at adjacent La Coipa deposits.
Fort Knox Gilmore
The Fort Knox Gilmore project continues to progress on schedule and on budget, with initial Gilmore ore encountered in Q4
2019 and stacked on the existing Walter Creek heap leach pad. Stripping advanced as planned during the quarter and is
expected to continue throughout 2020. Completion of the new Barnes Creek heap leach pad, where 95% of Gilmore ore is
expected to be stacked, and related pumping and piping infrastructure, remains on target for completion in Q4 2020.
Procurement for all planned 2020 activities is largely complete and the project is ready to recommence construction activities
in the spring.
Paracatu asset optimization program
The Paracatu asset optimization program that commenced in 2018 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 improvements in throughput and recovery. In addition, as
a result of a focus on continuous improvement programs, the site is benefiting from improved mining and processing costs and
increased overall productivity. Lastly, site water management activities, the addition of renewable power sources with the
acquisition of two hydroelectric power plants in 2018, and the continued successful tailings reprocessing project, have further
contributed to improved site performance. 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.
The Company intends to file a new Paracatu Technical Report in March 2020 that incorporates the above mentioned new
information.
Paracatu Mineral Reserve and Mineral Resource estimates 3
2018
(Au koz)
Depletion
(Au koz)
Engineering
(Au koz)
2019*
(Au koz)
Proven and Probable
Reserves 7,938 (705) 828 8,060
Measured and
Indicated Resources 3,013 0 1,061 4,073
Inferred Resources 350 0 18 368
* Totals may not fully add up due to rounding
2019 Mineral Reserves and Mineral Resources update
(See also the Company’s detailed Annual Mineral Reserve and Mineral Resource Statement estimated as at December 31, 2019 and explanatory notes starting at page 19.)
In preparing the Company’s 2019 year-end mineral reserve and mineral resource estimates as of December 31, 2019, Kinross
has maintained its conservative gold price assumptions of $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 Reserves 3
Kinross’ total proven and probable gold reserve estimate was 24.3 million Au oz. at year-end 2019 compared with 25.5 million
Au oz. at year-end 2018. The net year-over-year decrease was mainly due to depletion and was largely offset by additions at
Paracatu, Kupol and Chirano.
At Paracatu, approximately 828 Au koz. was added to estimated mineral reserves and more than offset depletion of 705 Au
koz. The reserve addition was primarily as a result of an enhanced understanding of the orebody and engineering changes to
the mine plan, as drilling data from the past two years was incorporated into the resource model.
The 327 Au koz. mineral reserve addition at Kupol largely offset depletion of 344 Au koz. and added one year of mine life to
2024. At Chirano, the 320 Au koz. mineral reserve addition from exploration more than offset depletion of 207 Au koz. and
added one year of mine life to 2022.
Measured and Indicated Mineral Resources 3
Kinross’ total estimated measured and indicated mineral resources at year-end 2019 increased by 7.7 million Au oz., or 28%,
to 35.5 million Au oz. compared with 27.8 million Au oz. at year-end 2018. The increase was mainly due to the acquisition of
the high-quality Chulbatkan deposit in Russia, which added 3.9 million Au oz. in estimated indicated resources. Exploration
and engineering changes also added to estimated measured and indicated mineral resources and include net additions of:
• 1.2 million Au oz. at Lobo-Marte
• 1.1 million Au oz. at Paracatu
• 568 Au koz. at Bald Mountain
• 553 Au koz. at Round Mountain
Inferred Mineral Resources 3
Kinross’ total estimated inferred gold resources at year-end 2019 were approximately 5.9 million Au oz., compared with 6.5
million ounces at year-end 2018. The net decrease was primarily a result of a conversion of estimated inferred ounces to
indicated resources at Round Mountain, partially offset by exploration additions at Chirano and gains at Lobo-Marte due to
engineering changes.
Kinross Gold Mineral Reserve and Mineral Resource estimates 3
2018
(Au koz)
Acquisitions
(Au koz)
Depletion
(Au koz)
Exploration
(Au koz)
Engineering
(Au koz)
2019*
(Au koz)
Proven and
Probable
Reserves
25,521 0 (2,511) 658 661 24,327
Measured and
Indicated
Resources
27,781 3,908 (152) 2,709 1,265 35,508
Inferred
Resources 6,540 79 (67) (488) (199) 5,866
*Totals may not fully add up due to rounding.
Exploration update
The Company’s exploration efforts continued to focus within the footprint of existing mines during 2019. A total of more than
280,000 metres of drilling was completed, of which more than 50% was drilled in Russia. Exploration success in 2019 has
resulted in one-year mine life extensions at Kupol to 2024 and Chirano to 2022.
Exploration efforts added approximately 658 Au koz. in estimated mineral reserves, before depletion, in 2019, and 2,709 Au
koz. in measured and indicated mineral resources. Most of the mineral reserve additions were at Kupol and Chirano, while the
mineral resource additions were at Bald Mountain, Fort Knox, Round Mountain, Kettle River, Chirano and Kupol. 2019
exploration highlights include:
• Kupol-Dvoinoye: A total of 327 Au koz. was added to estimated mineral reserves to largely offset depletion and 122
Au koz. from exploration was added to estimated measured and indicated resources at Kupol, as drilling that tested the
depth and north extensions of the Kupol main vein system yielded strong results. Drill intercepts continue to confirm
high-grade narrow-vein mineralization extending northwards and at depths below the Kupol mine workings. As a result
of continued exploration success at Kupol and engineering optimization work at Dvoinoye, scheduled mill production at
Kupol has been extended by another one year to 2024. During 2019, extensive regional exploration work within the
large land package around Kupol and Dvoinoye identified targets for drill testing for 2020.
• Chirano: Drilling continued to confirm the depth extensions at Akwaaba, Paboase and Tano. The high-grade portions of
Obra beneath the mined out pit was extended, allowing for testing for underground mineability. Engineering studies at
Suraw identified portions of the orebody for potential underground mining. During 2019, a total of 320 Au koz. was
added to estimated mineral reserves, 159 Au koz. to measured and indicated resources and 118 Au koz. to inferred
resources. The additions to mineral reserves increased mine life to 2022 and the Company continues to focus on
upgrading mineral resources to mineral reserves to further extend mine life.
• Bald Mountain: A total of 568 Au koz. was added to measured and indicated resources, primarily from the Top,
Winrock and Redbird drilling programs. During 2019, a number of targets were tested of which three produced solid
intercepts, including structurally controlled mineralization with intercepts up to 30.5 metres @ 1.18 g/t Au at 256
metres depth at the ZZ Top target.
For 2020, the brownfields exploration program will follow up on the mineralized targets identified in 2019 with infill drilling and
geologic modelling, with the goal of converting the mineralization to estimated measured, indicated and inferred mineral
resources.
• Kupol-Dvoinoye: Kinross expects to spend up to $22 million in 2020, with a focus on upgrading mineral resources to
reserves and exploring targets within the “Kupol Synergy Zone of Influence.” The Kupol Synergy Zone of Influence
project (KSP) is targeting exploration in an area that covers a radius of approximately 130 km around the Kupol plant
that would potentially be economic to mine given the close proximity to the existing mill. These targets are expected to
be tested to delineate mineralized geometry and to better understand mineralization.
• Chirano: The Company is increasing exploration spending at Chirano to $10 million in 2020, compared with $8 million
in 2019, to drill depth extensions at Akwaaba, Suraw and Tano. The program also includes the continued exploration of
the high-grade extensions at the Obra pit, with the goal of establishing underground mining. The north extensions of
Mamnao are being explored with the goal of extending the open pit mine life, which was re-started in 2019.
• Bald Mountain: Kinross expects to spend $7 million at Bald Mountain in 2020. The focus at Bald is shifting from the
near-mine infill drilling program to drill testing the generative targets that were identified in 2019. The aim is to explore
for both intrusive-related and sediment-hosted type deposits that can deliver near-surface higher grade and/or large
tonnage mineral resources similar to the size and grade of the Top or Vantage deposits.
• Round Mountain: A large portion of the $6 million exploration budget allocated for Round Mountain in 2020 will focus
on drilling the Phase X deposit, targeting high grade mineralization along the northwest trend. The trend is interpreted
as a continuation of Phase W mineralization. Exploration will also continue in the South Caldera Rim area for low-grade
bulk tonnage volcanic hosted mineralization.
• Fort Knox: Kinross will continue to explore the western extension of Gilmore in 2020 with the aim of adding to
estimated mineral resources. The East Wall, and brownfield targets around the Fort Knox site, including Gil-Sourdough
and the Fairbanks district targets, will also be explored and tested in 2020.
A more detailed summary of the 2019 highlights is presented below. Additional details may be found in the Appendices.
“Appendix A” provides illustrations and captions, and “Appendix B” provides drilling results and drill hole location data
corresponding to the values below.
Appendix A: https://www.kinross.com/files/doc_downloads/2020/02/Appendix-A-Q4-YE-Exploration-Figures.pdf
Appendix B: https://www.kinross.com/files/doc_downloads/2020/02/Appendix-B-Q4-YE-Exploration-Drill-Results.xlsx
Kupol - Dvoinoye
Exploration during 2019 at Kupol successfully added 327 Au koz. and 4.1 Ag Moz. to estimated mineral reserves to largely
offset depletion, and 122 Au koz. and 1.5 Ag Moz. to measured and indicated mineral resources. The reserve additions were
mainly from the NE Extension and North Extension where higher grades and wider thickness were encountered following
sublevel development. With the additional mineral reserves, Kupol has replaced a full year of depletion thereby extending the
mine life one year to 2024. See Appendix A (Figure 2) for a long section of Kupol.
A total of approximately 90,100 metres was drilled at Kupol, of which approximately 50% was to test the NE Extension, Big
Bend deeps and hanging wall mineralization. The drilling at the Southeast Extensions also increased mineral resources.
Drilling at the Kupol Deeps and hanging wall identified additional inferred mineral resources that will be drilled in 2020 with the
goal of converting to estimated measured and indicated mineral resources or reserves. Drilling at Moroshka added to mineral
reserves from the north and bottom south of the deposit. Sublevel development also encountered higher than expected grades
from grade control drill holes.
During the early part of 2019, work in the Kupol East Wedge area was discontinued due to lower grade results. Further work at
Star North indicates a promising target, and will be explored further in 2020.
Kupol Regional Exploration
One of the main exploration objectives within the Kupol main vein deposit is to extend mine life to potentially bridge the gap in
production between Kupol and the Chulbatkan project. The exploration group embarked on an extensive regional exploration
program called the KSP, which is targeting the 130 km radius around the Kupol mill. Grassroots exploration has commenced
in some of the identified target areas within the KSP and is planned to continue through 2020 to identify key areas that will be
drilled.
Kupol Mining Licence and Kupol West Property significant down-hole drill intercepts
Hole ID From To Interval
(m)
Au
(g/t)
Ag
(g/t)
KP19-1572 503.9 506.5 2.6 37.9 305.7
KW19-503 349.4 359.4 10.0 7.0 45.9
KW19-491 461.2 465.2 4.0 5.5 72.3
KW19-519 247.6 250.7 3.1 6.6 81.8
KP19-1560 373.3 375.4 2.1 7.5 47.2
KW19-519 195.4 198.0 2.6 5.3 96.2
KP19-1598 29.1 37.3 8.2 1.5 56.1
Dvoinoye
At Dvoinoye, a total of approximately 72,000 metres of drilling was completed during 2019. Most of the drilling was carried out
at Zone 37 West, Mine Dacite and the Pauk-September South trend. Results from the Mine Dacite area and the Pauk-
September trend were encouraging, and further drilling is expected to continue in 2020.
Dvoinoye significant down-hole drill intercepts
Hole ID From To Interval
(m)
True
Width (m)
Au
(g/t)
Ag
(g/t)
VO19-024 315.1 318.9 3.8 2.0 22.7 309.6
SP19-010 37.2 37.5 0.3 0.3 119.5 1611.6
VO19-037 340.4 342.6 2.2 1.0 29.4 64.0
PK19-015 271.9 287.5 15.6 15.6 1.5 1.1
VO19-026 355.0 364.0 9.0 4.5 4.2 20.6
VO19-028 350.2 352.8 2.6 1.3 14.4 47.4
VO19-022 343.4 350.6 7.2 3.5 4.9 7.9
VO19-056 306.4 307.3 0.9 0.9 17.7 15.3
VO19-034 327.9 331.5 3.6 1.5 7.9 48.6
VO19-034 357.9 358.5 0.6 0.3 33.1 36.7
Kinross is expected to spend approximately $22 million in Russia exploration in 2020. For full drill results and explanatory
notes, see Appendix B.
Kupol Mineral Reserve and Mineral Resource estimates 3 – Gold
2018
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2019*
(Au koz)
Proven and Probable
Reserves 1,370 (344) 327 1,353
Measured and
Indicated Resources 354 (9) 151 496
Inferred Resources 458 (3) 34 489
*Totals may not fully add up due to rounding.
Kupol Mineral Reserve and Mineral Resource estimates 3 – Silver
2018
(Ag koz)
Depletion
(Ag koz)
Exploration &
Engineering
(Ag koz)
2019*
(Ag koz)
Proven and Probable
Reserves 15,102 (3,353) 4,089 15,838
Measured and
Indicated Resources 4,923 (108) 1,845 6,661
Inferred Resources 5,770 (53) 898 6,615
*Totals may not fully add up due to rounding.
Chirano
In 2019, exploration activities continued to demonstrate the strong potential of the known lode horizon and other promising
west splay structures, and enhanced the prospectivity of the under-explored Bibiani style of mineralization to the north and
east. The additions to mineral reserves at Chirano in 2019 increased mine life to 2022.
Approximately 34,000 metres were drilled at Paboase, Akwaaba, Tano, Obra and Mamnao North in 2019. A total of 320 Au
koz. were added to mineral reserves, with a large portion of the addition obtained from Akwaaba. The other areas that added to
mineral reserves were Paboase, Akoti, Suraw and Tano. See Appendix A for long section of Chirano (Figure 3), and
illustrations of Akwaaba and Obra pits (Figures 4 and 5).
In addition, 159 Au koz. were added to measured and indicated resources and 118 Au koz. to inferred resources. These
ounces were added mostly from Obra, where drilling under the mined-out pit in 2019 returned high grade zones with good
widths. The Company will continue to explore this area in 2020, both along strike and down dip.
Chirano Mineral Reserve and Mineral Resource estimates 3
2018
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2019*
(Au koz)
Proven and Probable
Reserves 415 (207) 320 528
Measured and
Indicated Resources 765 0 159 924
Inferred Resources 325 0 118 443
* Totals may not fully add up due to rounding
Drilling continued at Mamnao North on the main mineralized lode trending north and to the west of the main lode. A moderate
width higher-grade western splay shoot intersected one of the holes returning 24.8 metres @ 1.63 g/t Au, (True width),
including 13.9 metres @ 2.15g/t Au. This structure bends westward and coincides with local networks of shears, which dilates
and pinches. Due to these results, drill testing over a strike length of 250 metres is planned for 2020. For full drill results and
explanatory notes, see Appendix B.
The 2020 exploration budget at Chirano was increased to $10.0 million to explore the potential to further extend mine life.
Chirano significant down-hole drill intercepts
Hole ID From To Interval
(m)
True
Width (m)
Au
(g/t)
CHDD2712UG 198.0 231.7 33.7 25.4 3.5
including 198 206 8.0 6.0 5.7
CHDD2713UG 221 237.95 16.95 11.8 7.1
CHDD2793UG 278.9 312.3 33.4 23.0 3.5
including 295.8 306.15 10.35 7.12 6.8
CHRC2751D 598.0 648.7 50.7 36.0 5.4
including 631.0 642.4 11.4 8.1 8.8
CHRC2759D 543.4 602.9 59.5 51.5 1.6
including 598.5 602.85 4.4 3.8 4.3
CHRC2773D 491.0 539.0 48.0 45.0 1.8
CHDD2705UG 208.7 235.4 26.7 18.3 4.7
including 222.0 234.3 12.3 8.4 9.1
CHDD2724UG 197.0 217.0 20.0 15.5 6.6
including 198.0 208.5 10.5 8.1 9.1
Bald Mountain
Exploration at Bald Mountain focused on two primary initiatives in 2019: generative exploration work and near-mine resource
additions. A total of approximately 50,000 metres was drilled in 2019. Near-mine exploration target areas included the Redbird,
Top, Winrock, Duke, Galaxy and Gator resource areas through which a total of 568 Au koz. was added to estimated mineral
resources. See Appendix A for map of Bald Mountain (Figure 6).
During 2019 there was an increased focus on generative exploration for which a total of 13 target areas were tested and
significant field work was completed on 11 additional pipeline targets. Three of the drill target areas produced encouraging
intercepts. The ZZ Top target continued to define structural controlled mineralization with intercepts up to 30.5 metres @ 1.18
g/t Au at 256 metres depth. This target is deep and mineralization is constrained to a small structural volume. A target north of
the Galaxy resource provided the most encouraging results, with mineralization up to 59.4 metres @ 1.08 g/t Au and 13.7
metres @ 1.17 g/t Au along an open trend. This is a northeast steep structure controlling mineralized dike and breccia. For full
drill results and explanatory notes, see Appendix B.
Bald Mountain significant down-hole drill intercepts
Hole ID From To Interval
(m)
Au
(g/t)
WRD19-018 157.6 167.2 9.7 15.8
WP19-026 102.1 161.5 59.4 1.1
WR19-013 150.9 163.1 12.2 2.6
WR19-014 149.4 160.0 10.7 3.4
WR19-014 164.6 184.4 19.8 1.8