Pre-feasibility study (“PFS”) results of Udinsk in Russia and feasibility study (“FS”) results of the Lobo-Marte project in Chile have been released.
J.Paul Rollinson, President and CEO of Kinross Gold Corporation said the studies confirmed their view of the Udinsk and Lobo-Marte projects as attractive, high-quality assets with the potential to significantly contribute to our future production at low costs. The results indicate that both projects could generate strong returns and would be excellent additions to global portfolio of mines
“Taken together, Udinsk and Lobo-Marte can potentially add 6.7 million ounces to our production profile over their life of mines and, with the addition of 3 million ounces of probable reserves at Udinsk, the projects represent 9.7 million gold ounces of our probable reserve estimates. The projects are in jurisdictions in which we have deep experience and where we have operated effectively for many years. Udinsk can build on our extensive track record of success in Russia, and Lobo-Marte has the potential to be a cornerstone asset in a country with a long and successful history of mining,” said the CEO.
The Udinsk PFS reaffirms Kinross’ view of the asset as a low-cost and high-return project, with estimated production increasing compared with initial scoping study forecasts. Udinsk, the Company’s first project on the large Chulbatkan license area, is expected to produce approximately 2 million Au oz. at an average all-in sustaining cost of $580 per Au oz. during a seven year mine life, which includes at least six years of mining and crushing activities plus an additional year of leaching on the heap leach pads.
The project has attractive grades, adds approximately 3 million Au oz. to Kinross’ probable mineral reserve estimates and is expected to build on the Company’s more than 25-year track record of operational and developmental success in Russia.
The PFS plans for an open pit mine with a three-stage crush heap leach process flow. Subject to a positive development decision and permitting, construction is expected to commence with early work activities in late 2022, and first production is planned for Q4 2025. A feasibility study is underway and is expected to be completed in Q3 2022.
The PFS has also incorporated environmental considerations as part of the project plan, including the completion of baseline studies and situating infrastructure to minimize environmental impacts and avoid disturbances. The Company also commenced community engagement activities, including meetings with local leaders and Khabarovsk Krai government bodies.