On September 10th, we announced the completion of the Preliminary EconomicAssessment (PEA), for the Great Bear project, located in Red Lake, Ontario, Canada, which supports the Company’s acquisition thesis of a top tier, high-margin operation in a stable jurisdiction with strong infrastructure.
The PEA outlines a high-grade combined open pit and underground mine with an initial planned mine life of approximately 12 years and production cost of sales of $594 per ounce. The project expects to produce over 500,000 ounce per year at in all-in sustaining cost of ~$800 per ounce during the first eight years through a conventional, modest capital 10,000 tonne per day mill.
Click here to view the PEA and click here to see a video update on the Great Bear project.
“This PEA marks an important milestone for Great Bear and reaffirms our view of it as a high-quality asset with robust economic and a clear path to become a world-class operating mine,” said J. Paul Rollinson, CEO. “We have both the financial and technical resources to advance the development of this exciting new Project in our portfolio.”
Key highlights from the PEA include the following:
- The Great Bear PEA demonstrates a top-tier high margin operation in a stable jurisdiction in Ontario, Canada. The Project is located within the prolific Red Lake Greenstone Belt 24 kilometres from Red Lake, a town with a long history of mining, significant infrastructure including a paved highway and provincial power lines, and access to experienced, skilled labour.
- The results from the PEA affirm that Great Bear has the potential to be a cornerstone asset with a top tier production profile, low costs, and significant value.
- The PEA mine plan demonstrates an excellent estimated internal rate of return (IRR) and after-tax net present value (NPV) at a range of gold prices.
A technical presentation to discuss the PEA with Kinross leadership and members of the Great Bear project team was held on September 10th, followed by a Q&A session. An archive of the presentation can be found here.
For more information on the Great Bear project, visit the acquisition page on our website here.
