Canada-based Kinross Gold Corp. announced the results of a prefeasibility study (PFS) for its Lobo-Marte project in Chile. Lobo-Marte has the potential of being a cornerstone asset with attractive all-in sustaining costs, according to Kinross. The project adds 6.4 million gold ounces (oz), representing an approximately 25% increase, to the company’s 2019 year-end mineral reserve estimates. The reserve addition also increases Kinross’ reserve life index by approximately 2.5 years.
The PFS estimate includes total life of mine production of approximately 4.5 million Au oz, average cost of sales of $545 per Au oz and average all-in sustaining cost of sales of $745 per Au oz during a 15-year mine life, which includes 12 years of mining followed by three years of residual processing. The project has attractive grades and a low estimated strip ratio, in part due to historical stripping completed at the Marte pit, the company said.
The PFS contemplates 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 PFS 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, which is located approximately 50 kilometers northwest of Lobo-Marte, and where the company is continuing to explore opportunities to extend 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,” Kinross President and CEO J. Paul Rollinson said.
The company will commence a feasibility study later this year, with scheduled completion in Q4 2021. The feasibility study is expected to provide the detailed engineering and project description required for permitting and submission of an Environmental Impact Assessment.
The initial estimated capital cost for the project is $765 million, plus approximately $230 million in contingency. The estimated capital costs include mine equipment, crushing and storage facilities, conveyors, and site utilities and infrastructure.
