The Toronto-headquartered Kinross Gold Corporation, has allocated an eye-watering $8 million budget for operations at the Chirano gold mine, reflecting a US$1 million more than the budget allocation to its Alaska mine.
At Chirano, near-mine exploration activities undertaken in 2021 extended the company’s estimated mine life to 2026, which included 40,600 metres of drilling. This budgetary allocation is expected to further extend the mine life, as the company engages in drilling rounds this year and beyond.
Following this trend, the company will focus on upgrading the 2021 mineral resource estimates from the Obra, Tano, Suraw and Akwaaba underground, and also extend the Mamnao open pit.
In other major mines, such as those in Russia- Chulbatkan region and the Round Mountain mines, the company is allocating US$11 million and US$16 million respectively to operations, mainly to extend exploration activities in these regions.
A snapshot of the company’s exploration activities at Chirano showed that an exploration drift to drill the Obra underground resource was completed and 36 holes were drilled.
Additionally, drilling at Akwaaba, Tano and Suraw added approximately 400 Au koz to the mineral resource estimates, which is expected to be available for conversion to mineral reserves in subsequent years.
Drilling Results Show Upside Potential
Specifically, during the exploration work at the Obra underground mine in 2021, drilled holes returned encouraging results, “confirming the interpreted high-grade mineralized shoot plunging to the north (including grades higher than 3 g/t Au), which has further upside potential.”
At the Akwaaba mine, drilling focused on “shoot extensions” below the reserve base, with year-to-date results indicating defined moderate high-grade zones which demonstrate gold mineralization extension at depth below 1,300 metres.
For 2022, the exploration budget (brownfields and greenfields) increased to $130 million compared with $120 million in 2021. The company attributed the increase to programs that will follow up on 2021’s exploration success, including starting an underground exploration drift at Round Mountain.
Meanwhile, the exploration forecast excludes activities planned at the Dixie project in Red Lake, Ontario, pending the expected closing of the Great Bear Resources acquisition, the report highlighted.
J. Paul Rollinson, President and CEO of Kinross, commented in relation to Kinross’ development projects:
“In 2021, Kinross successfully added 2.7 million gold ounces to its mineral reserve estimates net of depletion, bringing our total to 32.6 million gold ounces, primarily as a result of advancing exploration programs and project studies at Udinsk, Lobo-Marte and Round Mountain.
“Our development projects also continued to advance well. At La Coipa, estimated life-of-mine production increased 45% to 1 million ounces, which also extended mine life to early 2026. Commissioning of the plant began in February 2022, on schedule and on budget, with the project expected to reach full operating capacity at mid-year.
“The Tasiast 24k project is also progressing well, and is expected to reach a sustained throughput of 21,000 tonnes per day by the end of this quarter. We also look forward to completing the feasibility study at Udinsk in the third quarter.”
J. Paul Rollinson, CEO
Considering the outlook of its operations worldwide, the company expects to ramp up global exploration program, with particular focus at Round Mountain and the Kayenmyvaam license near Kupol, aimed at adding to its mineral resource estimates. The company also looks to close the Great Bear acquisition and plans to initiate a comprehensive exploration program at the Dixie project in Red Lake, Ontario.
Kinross increased proven and probable mineral reserve estimates to 32.6 million Au oz in 2021, adding 2.7 million oz, net of depletion mainly due to additions of 3.0 million Au oz. at Udinsk and a net increase of 792 Au koz at Round Mountain.
This year, the company is upbeat about the upside potential of its Chirano mines to shoot extension of mine life further.
Recently, a truck carying explosives en route to Chirano exploded, claiming at least 13 lives and also wiped out a whole village (Appiatse) in the Western Region of Ghana, according to reports. Maxam, the company contracted for the delivery of the explosives was fined US$6 million by the Ministry of Lands and Natural Resources, having breached regulations governing the storage and transport of explosives.
READ ALSO: Ghana’s Current Account Deficit To Widen To 2.9% In 2022- Fitch Solutions
