Kinross: technical report to mean 24% rise in Paracatu gold output
(Kitco News) - Production during the remaining mine life of Kinross Gold Corp.’s (TSX: K; NYSE: KGC) Paracatu operation in Brazil is expected to increase by approximately 24% from its prior technical report published in 2014, said the company on Tuesday after releasing a new report.
The company described Paracatu as “a cornerstone, long-life operation” that is expected to produce an average of approximately 540,000 gold ounces annually over 12 years from 2020 to 2031.
Officials said the new technical report is based on an asset-optimization program that was completed late last year, with a comprehensive grade-control program.
“The results of the program include better characterization of the ore body, an improved ability to predict and react to ore variability, and better mill efficiency with improvements in throughput and recovery,” Kinross said.
“The technical report also incorporates continuous improvement programs which have resulted in improved mining rates and increased overall productivity, the addition of renewable power sources with the investment in two hydroelectric power plants in 2018, and the continued successful tailings reprocessing project.”
The asset optimization and other improvements helped the mine achieve record annual production in 2019 while reducing cost of sales per ounce sold by approximately 20% over 2018, Kinross said.
As previously announced, an updated resource model resulted in the addition of approximately 828,000 gold ounces to estimated mineral reserves, more than offsetting 2019 depletion of 705,000 ounces, Kinross said. Measured and indicated resources increased by approximately 1.1 million gold ounces, or 35%, compared with 2018.