Kinross provides update on organic development projects and full-year 2017 exploration results Five projects advancing on schedule and on budget; three development opportunities proceeding well Tasiast two-phased expansion on track, with Phase One production expected by end of June
Kinross provides update on organic development projects and full-year 2017
exploration results
Five projects advancing on schedule and on budget; three development opportunities proceeding well
Tasiast two-phased expansion on track, with Phase One production expected by end of June
TORONTO, Feb. 14, 2018 -- 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 Company.
All mineral reserves and mineral resources, as well as mine life disclosures, are estimates.)
Organic development projects:
• Tasiast Phase One: Proceeding on schedule and on budget and is expected to commence full commercial production
by the end of June. Plant construction is now 93% complete.
• Tasiast Phase Two: On schedule to commence construction as Phase One nears completion. Phase Two is
expected to begin commercial production in Q3 2020 and transform Tasiast into a large, world-class operation, with low
costs and a long mine life.
• Round Mountain Phase W : Stripping and initial construction commenced ahead of schedule in late 2017, with all
major permits now received. Initial low grade Phase W ore is expected to be encountered in mid-2019.
• Bald Mountain Vantage Complex : Proceeding on schedule with commissioning for the proposed heap leach pad and
processing facilities expected to commence in Q1 2019.
• Moroshka: Proceeding on schedule and on budget with mining of high-grade ore expected to begin in the second half
of the year for processing in the Kupol mill.
• Fort Knox Gilmore : Company expects to complete a feasibility study in mid-2018. Kinross added 2.1 million Au oz. in
estimated measured and indicated resources and 300 koz in estimated inferred resources1 after gaining mineral rights
to Gilmore land.
• Tasiast Sud: Pre-feasibility study on schedule to be completed in the second half of 2018. Kinross added 820 Au koz.
to estimated inferred resources after completing a 2017 drilling program at the project.
• La Coipa Restart: Company has agreed to acquire the 50% of the Phase 7 deposit it did not already own to gain full
ownership and related mining rights. In 2017, the Company added 844 koz. of gold and 34 million oz. of silver to mineral
reserve estimates from the Phase 7 and Puren deposits, which comprise the La Coipa Restart project.
Exploration and Mineral Reserves and Resources update 1:
• The Company added approximately 4.0 million oz. to its proven and probable mineral reserve estimates in 2017 to offset
depletion of 3.2 million Au oz., mainly due to additions of approximately 2.3 million Au oz. at Round Mountain, 844 koz.
at La Coipa, 273 koz. in Russia, 332 koz. at Paracatu and 254 koz. at Fort Knox.
• Additions to estimated mineral reserves are expected to extend mining at Round Mountain by five years, Fort Knox
mine life by one year, mill production at Kupol by one year and Paracatu mine life to 2032.
• Mineral reserve estimates at year-end 2017 were 25.9 million Au oz. compared with 31.0 million Au oz. at year-end
2016, as the sale of Cerro Casale and depletion was partially offset by mineral reserve additions.
• Measured and indicated mineral resource estimates were 29.6 million Au oz., and are largely in line with 30.3 million
Au oz. at year-end 2016. Net additions of 1.8 million oz. at Fort Knox and 461 koz. at Round Mountain largely offset the
net decrease, which was mainly as a result of the sale of Cerro Casale and White Gold.
• In 2018, Kinross is prioritizing exploration drilling at several operations, including Kupol, Tasiast Sud, and Bald
Mountain, as the Company continues to focus on promising brownfield opportunities for mineral resource and reserve
additions.
CEO commentary
J. Paul Rollinson, President and CEO, made the following comments in relation to Kinross’ organic development projects:
“Our five development projects and three development opportunities all made great progress in 2017 and are proceeding on
schedule and on budget. We achieved key project milestones during the year and are in a strong position to continue
executing according to our plan. These projects are expected to increase production or extend life of mine in our portfolio and
are the foundation of our future growth.
“The two-phased Tasiast expansion is on schedule and on budget, with full commercial production at Phase One expected by
the end of June, and Phase Two development preparations well on their way to ensure continuity with the project management
teams. Our Nevada projects are proceeding as planned, with Round Mountain Phase W now in construction and the Bald
Mountain Vantage Complex scheduled for commissioning in Q1 2019. In 2018, we also expect to begin mining high-grade ore
at Moroshka, complete the Fort Knox Gilmore project feasibility study, complete the Tasiast Sud pre-feasibility study, and
receive the remaining sectoral permits for the La Coipa Restart project.
“Our exploration program delivered meaningful ounces to our operations, as we added more than 3.5 million ounces to
measured and indicated mineral resource estimates. We also added approximately four million ounces to mineral reserve
estimates to offset depletion, and expect to extend mine life at key operations across our portfolio.”
Organic development projects
Tasiast Phase One and Phase Two expansion
Tasiast Phase One project development is progressing well, and continues to be on time and on budget, with full commercial
production expected by the end of June. Plant construction is now 93% complete and the remaining work is now focused on
electrical, instrumentation and controls installations. Mechanical installation of the primary crusher, conveyor, stockpile and
CIL (carbon-in-leach) plant modifications, which includes the cyclones, three leach tanks and elution circuit, are now
substantially complete. Commissioning of the primary crusher and CIL plant is expected to begin in late February, and the
SAG mill in April.
The Tasiast Phase Two project is proceeding on schedule, as Phase One nears completion. Project and construction teams
are expected to transition from Phase One to Phase Two development to establish continuity between projects. Overall
engineering is now 33% complete and procurement is progressing well, with the power plant and EPCM contracts now
awarded. Early works for the ball mill and power plant are expected to commence in Q2 2018. Phase Two is expected to begin
commercial production in Q3 2020 and transform Tasiast into a large, world-class operation, with low costs and a long mine
life.
Round Mountain Phase W
At the Round Mountain Phase W project, stripping, initial construction and site preparation activities commenced ahead of
schedule in late 2017 after the receipt of the Decision Record and other approvals from the U.S. Bureau of Land Management.
The construction management team has been mobilized to site and earthworks have begun in the project area. Detailed
engineering is progressing on schedule, with heap leach engineering complete and mine infrastructure and processing facility
engineering approximately 50% complete. Procurement activities are underway for critical long lead items and tracking
according to plan. State permitting is proceeding as planned, with all major permits now received. The project remains on
schedule, with initial low grade Phase W ore expected to be encountered in mid-2019.
Bald Mountain Vantage Complex
The Bald Mountain Vantage Complex project is proceeding on schedule, with initial construction work now well underway
and engineering more than 80% complete. Permitting is proceeding as planned and contractors for more than half the scope of
the project work have been selected. Commissioning for the proposed heap leach pad and processing facilities is expected to
commence in Q1 2019.
Moroshka project
At the Moroshka satellite deposit in Russia, located approximately four kilometres east of Kupol, development of the twin
declines continues to proceed on schedule and on budget. Mining of high-grade ore at Moroshka is expected to commence in
the second half of 2018 for processing in the Kupol mill.
Fort Knox Gilmore
At the Fort Knox Gilmore project, permitting activities have commenced and feasibility study activities are ongoing. The
feasibility study, which is expected to be completed in mid-2018, is assessing a multi-phase layback of the Fort Knox pit and
the construction of a new heap leach pad. Kinross gained mineral rights to the Gilmore land, which is located immediately
west of the Fort Knox pit, on December 12, 2017. As a result, the Company added 2.1 million gold ounces in estimated
measured and indicated resources and 300 koz. in estimated inferred resources. This was offset by a conversion of 254 koz.
of mineral resources to mineral reserves, for a net addition of 1.8 million ounces to measured and indicated resource
estimates. An additional 199 koz. was added to estimated inferred resources from exploration and engineering for a total
increase of 499 koz. to inferred resource estimates.
Fort Knox Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Gilmore Addition
(Au koz)
Other
Exploration /
Engineering
Changes
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 1,506 (515) - 254 1,245
Measured and Indicated Resources 1,440 0 2,100 (311) 3,229
Inferred Resources 193 (3) 300 199 689
*Totals may not fully add up due to rounding.
Tasiast Sud project
The Tasiast Sud pre-feasibility study (PFS) is proceeding as planned and is expected to be completed in the second half of
2018. The PFS is contemplating a potential dump leach operation that would combine materials from multiple deposits in the
area, and the trucking of high grade ore to the Tasiast mill, located approximately 10 kilometres north of the project. The
Company added approximately 820 koz. to inferred mineral resource estimates at Tasiast Sud in 2017.
La Coipa Restart project
On February 2, 2018, the Company agreed to acquire 50% of the Phase 7 deposit from its joint venture partner to consolidate
ownership. Upon completion of the transaction, the Company will have mining rights contemplated by the project pre-feasibility
study (PFS) completed in 2015 and will fully own the Phase 7 deposit. The transaction includes payments totalling $65 million
($35 million on closing and $30 million on or before January 31, 2019) and is subject to certain conditions. The transaction is
expected to close within 90 days.
In 2017, approximately 844 koz. of gold and 34 million oz. of silver at Phase 7 and Puren, which comprise the La Coipa
Restart project, was converted to estimated mineral reserves from estimated mineral resources. The scope of work
contemplated by the project PFS included modifications and enhancements to the existing plant and infrastructure in order to
allow blending and processing of higher grade material from the Phase 7 deposit with oxide/transition material from the
existing Puren deposit. The Company received approval on the project DIA (Declaration of Impact to Environment) permit in
2016 and expects to receive sectoral permits in the first half of 2018.
Paracatu optimization study update
Kinross has recently completed initial optimization and analysis work for Paracatu that has reaffirmed the Company’s view of
the operation’s value and its position as a long-life, large producing mine in Kinross’ portfolio.
The optimization and analysis work focused on determining the optimal mine plan after taking into account improvements
undertaken at Paracatu over the past few years. These improvements include the successful reprocessing of tailings, the
blending of ores to extend Plant 1 life, and several other continuous improvement initiatives. The optimization work also
assessed the impact of throughput variances in quartzite ‐impacted zones, lower realized recoveries in certain zones of the ore
body, water mitigation projects, local cost inflation, and changes to the fiscal regime in Brazil.
The initial technical work, which included geochemical and metallurgical studies, has advanced the Company’s understanding
of the operation’s large and varied orebody. The optimization analysis, combined with the implementation of an improved ore
control program, is expected to increase the consistency and predictability of Paracatu’s throughput and recovery over the life
of mine, partly due to the improved ability to identify ore zones for ideal blending. The technical work resulted in an increase of
332 koz. to the site’s mineral reserve estimates before 2017 depletion, and expects to extend Paracatu’s mine life to 2032.
The Company also announced today that its wholly-owned subsidiary, Kinross Brasil Mineraçao, has agreed to acquire two
hydroelectric power plants in Brazil from a subsidiary of Gerdau SA for $257 million 2. The two plants are expected to provide
70% of Paracatu’s power and reduce production cost of sales per ounce by approximately $80 over life of mine3. The Company
expects to further analyze the benefits of the acquisition of the two hydroelectric power plants on the optimal mine plan and
complete the optimization work, which will also include further ore characterization and throughput improvement projects, by
the end of 2018.
2017 Mineral Reserves and Mineral Resources update
(See also the Company’s detailed Annual Mineral Reserve and Mineral Resource Statement estimated as at December 31,
2017 and explanatory notes starting at page 14.)
In preparing the Company’s 2017 year-end mineral reserves and mineral resource estimates as of December 31, 2017, Kinross
has maintained gold price assumptions used since 2011 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 1
Kinross’ total proven and probable gold reserve estimate was 25.9 million ounces at year-end 2017 compared with 31.0 million
ounces at year-end 2016. The net year-over-year decrease was mainly the result of the sale of Cerro Casale, which accounted
for 5.8 million ounces in estimated mineral reserves. The Company added approximately 4.0 million Au oz. to its mineral
reserve estimates in 2017 to offset depletion of 3.2 million Au oz. during the year. The additions, before depletion, to estimated
mineral reserves include:
• 2.3 million oz. at Round Mountain
• 844 koz .at La Coipa
• 332 koz. at Paracatu
• 273 koz.at Kupol-Dvoinoye
• 254 koz. at Fort Knox (East Wall)
As a result of these mineral reserve additions and engineering and mine optimization work, the Company expects to extend
mining at Round Mountain by five years, mine life at Fort Knox by one year, mill production at Kupol by one year and Paracatu
mine life to 2032.
Proven and probable silver reserves at year-end 2017 were estimated at approximately 52.6 million ounces, compared with
37.4 million ounces at year-end 2016. The increase was mainly as a result of additions of approximately 34.0 million oz. of
silver at La Coipa, partially offset by the sale of Cerro Casale, which accounted for 14.7 million silver oz., and production
depletion. Silver reserves were estimated using a silver price assumption of $17.00 per ounce.
The Company no longer has any proven and probable copper reserves, which were exclusively at Cerro Casale.
Measured and Indicated Mineral Resources 1
Kinross’ total estimated measured and indicated mineral resources at year-end 2017 were 29.6 million Au oz. and in line with
mineral resource estimates of 30.3 million Au oz. at year-end 2016. Mineral resource additions of approximately 1.8 million oz.
at Fort Knox, 489 koz. at Round Mountain and 119 koz. at Kupol partially offset the decrease in mineral resource estimates
as a result of the sale of Cerro Casale and White Gold and the conversion of gold ounces to mineral reserves.
Measured and indicated silver resources were estimated to be 35.5 million ounces, assuming a $20.00 per ounce silver price,
compared with 70.9 million ounces at year-end 2016. The decrease was mainly as a result of the conversion of silver ounces
at La Coipa to estimated mineral reserves.
Inferred Mineral Resources 1
Kinross’ total estimated inferred gold resources at year-end 2017 were approximately 6.4 million ounces, compared with 6.5
million ounces at year-end 2016. The slight net decrease was primarily a result of the sale of Cerro Casale and conversions of
ounces to mineral reserves and measured and indicated resources. The decrease was largely offset by inferred mineral
resource additions, including:
• 898 koz. at Tasiast, which includes approximately 820 koz. at Tasiast Sud
• 499 koz. at Fort Knox
• 282 koz. at the Round Mountain Phase W project
Kinross Gold Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Divestiture
(Au koz)
Depletion
(Au koz)
Exploration
(Au koz)
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 30,965 (5,811) (3,212) 368 3,628 25,934
Measured and Indicated Resources 30,280 (1,683) (103) 3,570 (2,469) 29,594
Inferred Resources 6,473 (1,623) (51) (180) 1,761 6,382
*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 and their immediate surrounding
districts in 2017. A total of 368 koz was added to Kinross’ estimated mineral reserves and 3.57 million ounces was added to
measured and indicated mineral resource estimates due to exploration activities during the year. 2017 exploration highlights
include:
• Kupol-Dvoinoye: A total of 273 Au koz. was added to estimated mineral reserves and 113 Au koz. to estimated
measured and indicated resources, mainly from Kupol and Zone 1 and Zone 37 at Dvoinoye. At Kupol, the primary
objective of 2017 drilling in the North Extension area was to determine the extent of mineralization. Drill intercepts
continue to confirm high-grade narrow-vein mineralization extending northwards by up to two kilometres from the current
limit of 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 one year to 2022.
• Tasiast Sud: Drilling at Tasiast Sud mainly targeted the C6.13 and C6.15 deposits, which are located immediately
south of the Tasiast mine and west of the Tamaya deposit. Resource model updates for the two deposits added
approximately 670 Au koz. to inferred mineral resource estimates.
For 2018, the brownfields exploration program will follow up on the mineralized targets identified in 2017 with infill drilling and
geologic modelling, with the goal of converting the mineralization to estimated measured, indicated and inferred mineral
resources.
• Kupol: Kinross is expected to increase exploration spending to $14.5 million in 2018 to continue exploring and
delineating high potential targets in the Kupol land package, particularly the North Extension, where high-grade narrow-
vein targets have been identified. A tighter spacing drill program is expected to be undertaken to determine the potential
for additions to inferred resource estimates.
• Tasiast Sud: A pre-feasibility study is expected to be completed in the second half of 2018. Exploration programs are
expected to focus on testing the extent of mineralization at depth in C6.13 and C6.15, as well as C6.14 and C6.16,
which are within the Tasiast Sud area. Exploration at Tasiast is expected to be focused on both the potential for near-
surface leachable oxide targets and deeper granodiorite-hosted targets.
• Bald Mountain: Kinross expects to spend [$10 million] at Bald Mountain in 2018 for infill drill programs with the goal of
upgrading estimated mineral resources to mineral reserves at Redbird, Winrock and Yankee. Exploration will also focus
on other target areas for mineral resource growth, including the Redbird extension, Winrock extensions and Top Gap.
• Kettle River - Curlew : Kinross plans to dewater and rehabilitate the historic K2 mine in order to conduct underground
exploration drilling to better target the extensions of mineralization identified at multiple targets in 2017.
• Chirano: Mineralization at depth is a key exploration focus for 2018, particularly at Akwaaba and Paboase. The
Company will assess its mineral reserve estimates at the conclusion of the 2018 exploration program.
A more detailed summary of the 2017 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/2018/02/Appendix-A_Q4-YE-2017-ExplorationFigures_February-
14.pdf
Appendix B: http://www.kinross.com/files/doc_news/2018/02/Appendix-B_Q4-YE-2017-Exploration-Drill-
Results_February-14.xlsx
Kupol - Dvoinoye
As a result of continued exploration success at Kupol and engineering optimization work at Dvoinoye, scheduled mill
production at Kupol has been extended by one year to 2022. As has been the case in previous years, the results of the
exploration program have successfully yielded additions to mineral reserve and resource estimates, including a total of
approximately 273 Au koz added to the Russia region’s estimated mineral reserves before depletion, mainly from Kupol’s
Southeast Extension and in Zone 1 and Zone 37 at Dvoinoye. At the Kupol Northeast Extension, a total of approximately 113
Au koz. was added to the site’s measured and indicated mineral resource estimates.
A total of 79,128 metres were drilled at Kupol during 2017, mainly at the North and South Extensions of the main Kupol vein
(see Appendix A: Figure 1). In Zone 650 Southeast Extension (See Appendix A: Figure 2) approximately 90 Au koz. was
added to Kupol’s estimated mineral reserves. Drill results in the Northeast and Northern Extension have demonstrated that
mineralization is similar to those previously documented at Big Bend and the Central Zone, although at narrower widths.
Drilling at the Northern Extension also identified a hanging wall mineralization approximately 150 metres east of the main
Kupol vein. These include extensional and fault-hosted veins with well-developed cataclastic breccias, which core axis angles
suggest dip steeply to the west. In the Northern extension, exploration work in 2018 is expected to focus on tighter-spaced
drilling with the intent of identifying an inferred mineral resource.
A total of 26,045 metres were drilled at Dvoinoye, with emphasis at Zone 1 and Zone 37, both proximal to site operations.
Infill drilling resulted in the conversion of 186 koz. Au to estimated mineral reserves in these two zones, while additional
mineralization was intersected north of Zone 1 along strike. Follow-up drilling in 2018 is expected to focus on the northern
extension of Zone 1 and Zone 37, as well as regional targets around the mining license.
Kinross is expected to increase exploration spending in Russia to approximately $18.5 million in 2018 to continue exploring
high potential targets in the Kupol and Dvoinoye land packages. For full drill results and explanatory notes see Appendix B.
Kupol Mining Licence and Kupol West Property significant down-hole drill intercepts:
Hole ID From To
Interval
(m)
True Width
(m)
Au
(g/t)
Ag
(g/t)
Northeast Extension
KP17-1324 409.4 413.3 3.9 3.5 70.37 740.16
KP17-1326 397.7 399.8 2.1 1.8 121.11 1197.63
KP17-1335 324.8 328.7 3.9 3.2 42.38 163.14
Including 327.6 328.2 0.6 0.6 244.0 758.0
Hanging Wall
KP17-1292 230.5 233.2 2.7 1.5 2.07 20.72
KP17-1290 379.5 380.2 0.7 0.4 12.68 12.68
Kupol Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 1,683 (335) 87 1,435
Measured and Indicated Resources 199 0 119 317
Inferred Resources 131 0 16 146
*Totals may not fully add up due to rounding.
Dvoinoye Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 619 (228) 186 576
Measured and Indicated Resources 42 0 (36) 6
Inferred Resources 108 0 (103) 5
*Totals may not fully add up due to rounding.
Tasiast Sud
In 2017, all exploration drilling at Tasiast was conducted at Tasiast Sud, where 541 drill holes for 47,468 metres were
completed. The main target areas were the C6.13 and C6.15 deposits (see Appendix A: Figure 3), which are located
immediately south of the Tasiast mine and west of the Tamaya deposit.
Drilling to date has identified continuous mineralization along an 8 kilometre strike between C6.13 to C6.15, up to a depth of
200 metres, with an oxide transition boundary approximately 100 metres from surface. Resource model updates for the two
deposits have generated approximately 670 Au koz. for Tasiast’s inferred mineral resource estimates.
A refined model at Tamaya has also added approximately 150 Au koz to inferred mineral resource estimates, bringing total
inferred mineral resource estimates at Tasiast Sud to approximately 820 Au koz.
There is an application pending to convert an exploration license to an exploitation license, which is required in order to
maintain the Company’s rights to the Tasiast Sud land.
Exploration programs testing the extension of mineralization at depth in C6.13 and C6.15, as well as C6.14 and C6.16, which
are within the Tasiast Sud area, are expected to continue in 2018. For full drill results and explanatory notes see Appendix B.
Tasiast Sud significant down-hole drill intercepts:
Hole ID From To
Interval
(m)
Au
(g/t)
C6.13
TA13727RC 18 36 18 4.08
TA13732RC 10 21 11 7.15
TA14747RC 32 49 17 11.42
C6.15
TA14780RC 51 59 8 4.51
TA16607RC 66 78 12 2.96
TA16614RC 45 68 23 2.71
Tasiast Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 8,015 (106) (49) 7,861
Measured and Indicated Resources 3,144 (39) (146) 2,959
Inferred Resources 345 (7) 898 1,237
*Totals may not fully add up due to rounding.
Round Mountain
At Round Mountain, the exploration program focused on Phase W and completed 10,230 metres of infill drilling, concluding the
Phase W exploration program. Approximately 2.3 million Au oz. were converted to mineral reserve estimates. Measured and
indicated mineral resource estimates increased by 489 koz. and inferred mineral resources by 282 koz. Exploration drilling in
2018 is expected to target potential ounces in pit wall laybacks to the north and south of the pit, with the aim of upgrading and
adding to the site’s mineral resource estimates.
Round Mountain Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 1,267 (648) 2,266 2,884
Measured and Indicated Resources 1,932 (28) 489 2,393
Inferred Resources 1,863 (30) 282 2,115
*Totals may not fully add up due to rounding.
Bald Mountain
During 2017, exploration at Bald Mountain focused on near term opportunities that are expected to have a direct impact on
operational planning, as well as growing existing mineral resource estimates and defining future opportunities within the large
Bald Mountain land package (see Appendix A: Figure 4).
Approximately $10 million was spent on the 2017 Bald Mountain exploration program, which completed 52,295 metres of
drilling in 319 holes. Drilling was completed at the Redbird, Winrock, Top, Saga, Poker Flat, Duke, Rat and White Pine
deposits in the North Area, and at the Luxe and Yankee deposits in the South Area. Additional drill testing was completed on
early stage targets within the Joint Venture and the North Area.
In the North Area, exploration drilling at Redbird focused on testing the south extent of mineralization and infill drilling (see
Appendix A: Figure 5). The extension drilling expanded the mineralization potential of the current estimated mineral resource,
with significant high grade upside up to 300 metres southeast of the current pit design. The Winrock drill program returned
positive intercepts, which has led to an addition of mineral resource ounces in the shallow oxide zones (see Appendix A:
Figure 6). The drill program completed at Saga extended mineralization and also confirmed gaps in mineralization within the
design pits and moderate step outs with significant grades to the east and at depth of the current mineral resource. Infill drilling
at the south wall of the Top 2 pit ( Top Gap) indicated continuity of mineralization along the Skarn Fault. Exploration drilling at
Top Hat, in the northwest area of the Top 2 pit, intersected mineralization outside of the current resource model. 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)
Redbird
RB17-001 213.4 259.1 45.7 4.15
RB17-015 102.1 167.6 65.5 2.74
RB17-016 166.1 243.8 77.7 2.54
Winrock
WR17-037 1.5 112.8 111.3 0.77
WR17-048 3.0 45.7 42.7 1.37
WR17-052 0.0 32.0 32.0 2.25
Top
TE17-040 318.5 332.2 13.7 9.91
TE17-057 105.2 134.1 29.0 3.20
TE17-066 48.8 137.2 88.4 7.06
Including 48.8 56.4 7.6 34.78
Also including 111.3 137.2 25.9 10.16
Saga
SG17-010 192.0 295.7 103.6 0.75
SG17-017 109.7 153.9 44.2 1.92
SG17-038 73.0 185.9 112.8 0.76
Drilling within the Bald Mountain Joint Venture Area has confirmed a large footprint of a mineralized system within the
Guilmette Limestone at Rattlesnake.
In 2018, Kinross expects to spend $10 million at Bald Mountain for infill drill programs with the goal of upgrading estimated
mineral resources to mineral reserves at Redbird, Winrock and Yankee and adding to the mineral resource estimates in the
Top 2 pit. In addition, 2018 exploration is expected to focus on early stage upside targets within the large Bald Mountain land
package, and other target areas for mineral resource growth, including the Redbird extension, Winrock extensions and Top
Gap.
Bald Mountain Mineral Reserve and Mineral Resource Estimates 1
2016
(Au koz)
Depletion
(Au koz)
Exploration &
Engineering
(Au koz)
2017*
(Au koz)
Proven and Probable Reserves 2,133 (525) 91 1,698
Measured and Indicated Resources 3,548 0 (200) 3,349
Inferred Resources 648 0 (51) 597
*Totals may not fully add up due to rounding.
Fort Knox
In December 2017, Kinross announced that it had gained mineral rights to the Gilmore property, which is located immediately
west of the Fort Knox pit. Kinross began an initial drilling program on Gilmore land, and Fort Knox land adjacent to Gilmore, in
2014, completing approximately 73,000 metres of core and reverse-circulation drilling in 205 holes (see Appendix A: Figure 7).
In addition to Gilmore, Kinross continued to explore the extent of mineralization to the east of the Fort Knox pit. During the
year, 2,717 metres were drilled in the East Wall of the pit. For full drill results and explanatory notes see Appendix B.
Gilmore Property significant down-hole drill intercepts:
Hole ID From To
Interval
(m)
Au
(g/t)
FFR16-1585 294.10 304.80 10.70 4.12
FFC17-1595 74.70 94.50 19.80 1.28
FFC17-1690 362.70 373.40 10.70 5.23
Kettle River - Curlew
The early stage Curlew district exploration program continued to focus in and around the historical K2 mine, which is 37 km
away from the Kettle River mill. A total of 11,929 metres of drilling was completed to define gaps in discreet mineralized zones
at K2 North, Z3, Emanuel Creek, Stealth, Lower East Vein, K5 and Lower Portal, and to extend mineralization along strike.
Significant intercepts were also intersected in quartz adularia veins north and east of the current K5 and Lower Portal zones
(see Appendix A: Figure 8).
Kinross expects to continue to explore these zones in 2018, and plans to dewater and rehabilitate the K2 mine in order to
conduct underground exploration drilling to better target the extensions of mineralization identified in 2017. For full drill results
and explanatory notes see Appendix B.
Curlew significant down-hole drill intercepts:
Hole ID From To
Interval
(m)
True Width
(m)
Au
(g/t)
Lower Portal
LP17-21 394.5 418.8 24.3 24.0 3.71
Including 400.8 403.7 2.9 0.6 11.43
LP17-24 277.4 284.7 7.3 7.3 3.84
LP17-25A 326.1 386.8 60.7 15.7 2.24
K5 Zone
K5-17-17B 654.4 663.5 9.1 7.4 7.51