Kinross to Move Forward with Phase I of Tasiast Expansion

Kinross Gold Corp. (TSX:K,NYSE:KGC) announced that it’s moving forward with the Phase I expansion of its Mauritania-based Tasiast mine. This first phase is expected to boost mill throughput capacity from 8,000 tonnes per day to 12,000 tonnes per day.
As quoted in the press release:

Preparations for Phase One construction to install incremental crushing and grinding capacity to the existing carbon-in-leach (CIL) circuit, which includes an oversized semi-autogenous grinding (SAG) mill and gyratory crusher, will begin immediately. Phase One is expected to reach full production by the end of Q1 2018 with estimated capital expenditures of approximately $300 million.

J. Paul Rollinson, president and CEO of Kinross, commented:

This phased approach allows Kinross to transform Tasiast into a lower cost, cash flow positive operation in the near term while preserving the operation’s significant growth potential. Phase One, which is expected to reach full production by the end of Q1 2018, will require an estimated initial capital investment of approximately $300 million, to be self-financed by the Company. The expansion is forecast to reduce Tasiast’s production cost of sales per ounce by an estimated 48% while increasing annual production by an estimated 87% compared with 2015. The Phase One expansion has robust standalone economics, including a positive 20% expected internal rate of return.

Click here to read the full Kinross Gold Corp. (TSX:K,NYSE:KGC) press release.