For more information, please see Kinross’ 2016 year-end Financial Statements, MD&A and results news release
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 Company. 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 expected 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 2017, 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.
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. These 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 Mountain, 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 complete 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 begin 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 are a result of the Company’s pre-feasibility work at the Vantage Complex project, and exploration and confirmatory drilling, geological modelling and metallurgical testing at the Vantage, Luxe and Saddle pits. The pre-feasibility study also contemplates construction 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 allows 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 resources1 were added to estimates at Bald Mountain as of December 31, 2016, mainly as a result of drilling, refinements to mineral resource models, and engineering optimization.
p. 2 Kinross provides update on organic development projects and exploration www.kinross.com
| Bald Mountain mineral reserve and mineral resource1 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 (Au koz.) | Depletion (Au koz.) | Exploration & | 2016 (Au koz.) | |||||||
| Engineering | ||||||||||
| (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 Two expansion is expected to transform Tasiast into the Company’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 Northeast, 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 limited 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.
p. 3 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 study. 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 2016, 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 yearend 2015. Copper reserves, which are exclusively at Cerro Casale, were estimated using a copper price assumption of $2.40 per pound.
p. 4 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 as 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 resources 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 at 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 resource1 | ||||||
|---|---|---|---|---|---|---|
| 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 out to support the ongoing 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
p. 5 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 mineralized 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 past 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, Luxe and Pentium, was drilled 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 RC drill holes did not intersect similar high grade mineralization. For full drill results and explanatory notes see Appendix B.
p. 6 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 Mountain 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 reinterpretation and modelling for the Phase W project, 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 splay 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 50 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 mineralization 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 Bend 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.
p. 7 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 & | 2016 (Au koz) | ||
| Engineering | |||||
| (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 polymetallic 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 & | 2016 (Au koz) | ||
| Engineering | |||||
| (Au koz) | |||||
| Proven and Probable Reserves | 815 | (326) | 130 | 619 | |
| Measured and Indicated Resources | 78 | - | (36) | 42 | |
| Inferred Resources | 25 | - | 83 | 108 |
p. 8 Kinross provides update on organic development projects and exploration www.kinross.com
Kettle River
The 2016 Curlew district drill program was a multi-phase effort focused around the historic K2 Mine (See Appendix A: Figure 9). Phase 1 of the Curlew program targeted a quartz veinlet stockwork proximal to the K2 Mine and the Lower Portal, and defined two NW-trending, stacked lenses of quartz veining, with a high grade NE trend plunging to the north. Phase 2 follow-up drilling tested the extensions of the Lower Portal mineralization. The program will continue in 2017 and combine the Lower Portal results with the previously identified K5 mineralized zone to determine the overall potential for the Curlew mine area (See Appendix A: Figure 10). A total of 8,937 metres of diamond drill core was completed in 2016, and significant intercepts are included in the table below. For full drill results and explanatory notes see Appendix B.
Curlew significant down-hole drill intercepts:
| Hole ID | From | To | Int. (m) | Au (g/t) |
|---|---|---|---|---|
| K2N16-38 | 52.7 | 56.7 | 4.0 | 10.5 |
| K5-16-14 | 642.5 | 677.9 | 35.4 | 3.3 |
| LEV16-01 | 386.9 | 399.2 | 12.3 | 6.9 |
| LEV16-01 | 392.4 | 399.2 | 6.8 | 9.1 |
| LP16-06 | 430.8 | 440.5 | 9.7 | 11.3 |
| LP16-07 | 408.7 | 427.2 | 18.5 | 3.8 |
| LP16-10 | 438 | 438.7 | 0.7 | 10.4 |
Tasiast
A new zone was intersected in Q3 2016 as part of the Tasiast Sud exploration drill program testing surface geochemical anomalies over 15 km along strike of the Tamaya-Kite shear zone. The Sadraya target is situated three kilometres to the south of Tamaya, and was defined by two phases of drilling in 2016 for a total of 2,480 metres. Quartz vein-hosted pyrrhotite and pyrite mineralization in an oxide-transitional zone was intersected along five drill fences over 850 metres (see table below). The mineralized zone occurs at approximately 30 metres depth along a moderate 20-45° east-dipping structure, which may be conducive to a potential satellite pit resource to the Tamaya deposit upon follow-up drilling and further definition in 2017 (See Appendix A: Figure 11). For full drill results and explanatory notes see Appendix B.
Sadraya significant down-hole drill intercepts:
| Hole ID | From | To | Interval | Au | ||
|---|---|---|---|---|---|---|
| (m) | (g/t) | |||||
| 18884RC | 68 | 92 | 24 | 1.1 | ||
| 18884RC - including | 70 | 86 | 16 | 1.6 | ||
| 18899RC | 63 | 73 | 10 | 2.7 | ||
| 18899RC - including | 69 | 73 | 4 | 6.1 | ||
| 14718RC | 11 | 58 | 47 | 1.2 | ||
| 14728RC | 110 | 116 | 6 | 4.3 | ||
| 14728RC - including | 112 | 115 | 3 | 8.1 |
Fort Knox
At Fort Knox, a total of 2,300 metres were drilled into the East and South Wall of the Fort Knox pit during 2016 (See Appendix A: Figure 12). The 15-hole drill program tested the existing “blue sky” geologic resource model for a potential mineral resource addition, and refined the granite-schist contact defining the ore horizon at Fort Knox. Positive intercepts were intersected in every hole drilled (see table below), and an updated mineral resource estimate is expected to be presented in 2017. For full drill results and explanatory notes see Appendix B.
p. 9 Kinross provides update on organic development projects and exploration www.kinross.com East and South Wall significant down-hole drill intercepts:
| Hole ID | From | To | Interval | Au | ||
|---|---|---|---|---|---|---|
| (m) | (g/t) | |||||
| FFC16-1483 | 36.6 | 65.5 | 29 | 0.9 | ||
| FFC16-1496 | 100.6 | 114.3 | 13.7 | 1.7 | ||
| FFC16-1504 | 62.5 | 99.1 | 36.6 | 0.6 | ||
| FFC16-1511 | 0 | 35.0 | 35.0 | 0.9 | ||
| FFC16-1519 | 54.9 | 79.2 | 24.4 | 1.8 |
Chirano
At Chirano, exploration programs over the past two years have been challenged by a combination of significant drilling depths and the complexity of ore shoot geometry. As a result, meaningful recent additions to mineral reserve estimates have been limited to the Akoti deposit adjacent to Paboase.
To address these challenges, and to take a new approach to generating targets, a camp-scale geologic and resource model for the entire Chirano trend was constructed in 2016 with the aim of identifying any additional zones that could be tested for economic potential. Current targets include the Obra open pit, Akoti South underground, a hanging wall breccia at Akwaaba beneath the current mined area, and depth extensions at Paboase. These areas will be drill tested in 2017 to evaluate the Chirano trend’s full potential along strike and down dip.
The Paboase orebody is open at depth, with existing mineral resource estimate sitting beneath the current life of mine mineral reserve estimates with grades above 10 g/t that are only partially drilled. Review in 2016 has identified the next 100 metres below the current reserve, which will be tested in 2017.
The Obra target was delineated and drilled in two phases for a total of 17,945 metres during 2016. The programs targeted a potential pushback of the pit wall to the south. An update to the existing mineral resource model is expected in 2017.
The Akoti South underground drill program was also initiated in 2016 with a total 5,048 metres of drilling completed. Select intercepts received to date are included in the table below. For full drill results and explanatory notes see Appendix B.
Chirano Mine Trend significant drill intercepts:
| Hole ID | From | To | Interval | True Width | Au | |||
|---|---|---|---|---|---|---|---|---|
| (m) | (m) | (g/t) | ||||||
| Obra OP | ||||||||
| CHRC2338 | 143 | 173 | 30.0 | 25.0 | 1.6 | |||
| CHRC2343 | 144 | 177 | 33.0 | 21.8 | 1.7 | |||
| CHRC2343 - including | 144 | 159 | 15.0 | 10.0 | 2.7 | |||
| CHRC2343 - including | 147 | 155 | 8.0 | 5.2 | 3.8 | |||
| CHRC2361 | 216 | 300 | 84.0 | 57.0 | 0.8 | |||
| CHRC2430D | 391 | 421.2 | 30.2 | 27.0 | 1.6 | |||
| CHRC2430D - including | 396 | 404 | 8.0 | 7.2 | 2.2 | |||
| CHRC2430D - including | 416.8 | 421.2 | 4.4 | 3.9 | 4.5 | |||
| Akoti UG | ||||||||
| CHRC2446D | 215 | 237.0 | 22.0 | 16.6 | 3.2 | |||
| CHRC2446D - including | 224 | 237.0 | 13.0 | 9.8 | 4.2 | |||
| CHRC2456D | 280.1 | 290 | 9.9 | 8.7 | 3.9 |
p. 10 Kinross provides update on organic development projects and exploration www.kinross.com
La Coipa
At La Coipa, the Phase 7 district drill program was completed in Q3 2016 for a total of 9,257 metres drilled. The program identified mineralized extensions to Pompeya and Catalina, and defined the new Belen mineralized zone. The target will undergo further review, although drilling in 2017 may focus on other target zones in the Company’s portfolio.
Conference call details
In connection with this release and the Company’s 2016 Q4/year-end results, Kinross will hold a conference call and audio webcast on Thursday, February 16, 2017 at 8 a.m. ET to present the results, followed by a question-andanswer session. To access the call, please dial:
Canada & US toll-free – 1-800-319-4610 Outside of Canada & US – 1-604-638-5340 UK toll-free: 0808-101-2791
Replay (available up to 14 days after the call):
Canada & US toll-free – 1-800-319-6413; Passcode – 00179 followed by #.
Outside of Canada & US – 1-604-638-9010; Passcode – 00179 followed by #.
You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on our website at www.kinross.com.
This release should be read in conjunction with Kinross’ 2016 Q4/year-end news release, 2016 year-end Financial Statements and Management’s Discussion and Analysis report at www.kinross.com. Kinross’ 2016 year-end Financial Statements and Management’s Discussion and Analysis have been filed with Canadian securities regulators (available at www.sedar.com) and furnished with the U.S. Securities and Exchange Commission (available at www.sec.gov). Kinross shareholders may obtain a copy of the financial statements free of charge upon request to the Company.
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. Our 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 Director, Corporate Communications phone: 416-369-6469 [email protected]
Investor Relations Contact
Tom Elliott Senior Vice-President, Investor Relations and Corporate Development phone: 416-365-3390 [email protected]
p. 11 Kinross provides update on organic development projects and exploration www.kinross.com
2016 Annual Mineral Reserve and Resource Statement
Proven and Probable Mineral Reserves
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT GOLD PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,8) Kinross Gold Corporation's Share at December 31, 2016 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Property | Location | Kinross Interest | Proven | Probable | Proven and Probable | ||||||
| Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | ||
| NORTH AMERICA | |||||||||||
| Bald Mountain | USA | 100.0% | 10,332 | 0.8 | 271 | 100,154 | 0.6 | 1,862 | 110,486 | 0.6 | 2,133 |
| Fort Knox Area | USA | 100.0% | 26,981 | 0.5 | 406 | 77,708 | 0.4 | 1,100 | 104,689 | 0.4 | 1,506 |
| Kettle River | USA | 100.0% | 18 | 8.6 | 5 | 72 | 8.4 | 20 | 90 | 8.4 | 25 |
| Round Mountain Area | USA | 100.0% | 33,551 | 0.7 | 727 | 23,554 | 0.7 | 540 | 57,105 | 0.7 | 1,267 |
| SUBTOTAL | 70,882 0.6 1,409 | 201,488 0.5 3,522 | 272,370 0.6 4,931 | ||||||||
| SOUTH AMERICA | |||||||||||
| Cerro Casale 8 | Chile | 25.0% | 57,425 | 0.6 | 1,195 | 241,975 | 0.6 | 4,616 | 299,400 | 0.6 | 5,811 |
| Paracatu | Brazil | 100.0% | 383,487 | 0.4 | 5,044 | 260,159 | 0.5 | 3,990 | 643,646 | 0.4 | 9,034 |
| SUBTOTAL | 440,912 0.4 6,239 | 502,134 0.5 8,606 | 943,046 0.5 14,845 | ||||||||
| AFRICA | |||||||||||
| Chirano | Ghana | 90.0% | 5,017 | 1.1 | 180 | 6,176 | 3.5 | 692 | 11,193 | 2.4 | 872 |
| Tasiast | Mauritania | 100.0% | 28,858 | 1.3 | 1,238 | 100,639 | 2.1 | 6,777 | 129,497 | 1.9 | 8,015 |
| SUBTOTAL | 33,875 1.3 1,418 | 106,815 2.2 7,469 | 140,690 2.0 8,887 | ||||||||
| RUSSIA | |||||||||||
| Dvoinoye | Russia | 100.0% | 1,039 | 6.6 | 220 | 1,251 | 9.9 | 399 | 2,290 | 8.4 | 619 |
| Kupol | Russia | 100.0% | 978 | 7.2 | 228 | 5,323 | 8.5 | 1,455 | 6,301 | 8.3 | 1,683 |
| SUBTOTAL | 2,017 6.9 448 | 6,574 8.8 1,854 | 8,591 | 8.3 | 2,302 | ||||||
| TOTAL GOLD | 547,686 0.5 9,514 | 817,011 0.8 21,451 | 1,364,697 0.7 30,965 |
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT SILVER PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,8) Kinross Gold Corporation's Share at December 31, 2016 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Property | Location | Kinross Interest | Proven | Probable | Proven and Probable | ||||||
| Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | |||
| (%) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | ||
| NORTH AMERICA | |||||||||||
| Round Mountain Area | USA | 100.0% | 679 | 10.2 | 222 | 3,770 | 8.3 | 1,010 | 4,449 | 8.6 | 1,232 |
| SUBTOTAL | 679 10.2 222 | 3,770 8.3 1,010 | 4,449 8.6 1,232 | ||||||||
| SOUTH AMERICA | |||||||||||
| Cerro Casale 8 | Chile | 25.0% | 57,425 | 1.9 | 3,522 | 241,975 | 1.4 | 11,150 | 299,400 | 1.5 | 14,672 |
| SUBTOTAL | 57,425 1.9 3,522 | 241,975 1.4 11,150 | 299,400 1.5 14,672 | ||||||||
| RUSSIA | |||||||||||
| Dvoinoye | Russia | 100.0% | 1,039 | 11.5 | 386 | 1,251 | 16.1 | 646 | 2,290 | 14.0 | 1,032 |
| Kupol | Russia | 100.0% | 978 | 95.6 | 3,006 | 5,323 | 102.2 | 17,483 | 6,301 | 101.1 | 20,489 |
| SUBTOTAL | 2,017 52.3 3,392 | 6,574 | 85.8 | 18,129 | 8,591 77.9 21,521 | ||||||
| TOTAL SILVER | 60,121 3.7 7,136 | 252,319 3.7 30,289 | 312,440 3.7 37,425 |
| MINERAL RESERVE AND MINERAL RESOURCE STATEMENT COPPER PROVEN AND PROBABLE MINERAL RESERVES (1,3,4,5,6,8) Kinross Gold Corporation's Share at December 31, 2016 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Property | Location | Kinross Interest | Proven | Probable | Proven and Probable | ||||||
| Tonnes | Grade | Pounds | Tonnes | Grade | Pounds | Tonnes | Grade | Pounds | |||
| (%) | (kt) | (%) | (Mlb) | (kt) | (%) | (Mlb) | (kt) | (%) | (Mlb) | ||
| SOUTH AMERICA | |||||||||||
| Cerro Casale 8 | Chile | 25.0% | 57,425 | 0.19 | 240 | 241,975 | 0.23 | 1,204 | 299,400 | 0.22 | 1,444 |
| SUBTOTAL | 57,425 | 0.19 | 240 | 241,975 | 0.23 | 1,204 | 299,400 | 0.22 | 1,444 | ||
| TOTAL COPPER | 57,425 | 0.19 | 240 | 241,975 | 0.23 | 1,204 | 299,400 | 0.22 | 1,444 |
p. 12 Kinross provides update on organic development projects and exploration www.kinross.com