On July 15th, Kinross announced the results of a pre-feasibility study (PFS) for the Lobo-Marte project in Chile. Lobo Marte offers the potential of a cornerstone asset with attractive all-in sustaining costs to enhance Kinross’ long-term production profile.
The project adds 6.4 million gold ounces, representing an approximately 25% increase, to the Company’s 2019 year-end mineral reserve estimates in a favourable mining jurisdiction.
The PFS estimate includes total life of mine production of approximately 4.5 million gold ounces, an average cost of sales of $545 per gold ounce and average all-in sustaining cost of sales of $745 per gold ounce over a 15-year mine life.
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, President & CEO. “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. 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.”
Kinross plans to commence a feasibility study later this year that is scheduled for completion in Q4 2021. The feasibility study will provide the detailed engineering and project description required for permitting and submission of an Environmental Impact Assessment.
To learn more about the Lobo-Marte PFS, view the news release here.