Kinross Gold sees Lobo-Marte project increasing mineral reserve estimates by 25%
(Kitco News) - Kinross Gold Corp. (NYSE:KGC, TSX:K) is reporting a 25% increase from its 2019 year-end mineral reserve estimates after releasing a pre-feasibility study for its Lobo-Marte project in Chile.
In a press release Wednesday, the company said that Lobo-Marte has the potential to be a “cornerstone project” in its production pipeline.
The study estimate includes total life of mine production of approximately 4.5 million gold ounces, with an average all-in sustaining cost of sales of $745 per gold ounce within a 15-year mine life.
“The Lobo-Marte project provides Kinross with an excellent, organic development option that has attractive all-in sustaining costs and offers substantial upside leverage to the gold price, without increasing project cost requirements and risk,” said J. Paul Rollinson, Kinross president and CEO, in the press release.
“The project represents a potential synergistic, long-term mine life extension in a favourable mining jurisdiction and delivers a significant 6.4 million ounce addition to our current gold reserve estimates, increasing the Company’s overall reserve mine life,” he added. “As we move forward with the feasibility study for this longer-term project, we will continue to prioritize balance sheet strength and disciplined capital allocation.”
The study, anticipates an open pit, heap leach and SART (Sulphidization, Acidification, Recycling and Thickening) plant operation using rope conveyors and mining the Marte and Lobo deposits in succession, the company said.
It added that subject to a positive development decision, the study estimates Lobo-Marte project construction beginning in 2025, with first production expected in 2027. Production would commence after the conclusion of mining at the Company’s La Coipa project, Kinross said.