Kinross has entered into agreements to acquire 70% of the Peak Gold project, which is 40% owned by Royal Alaska, LLC (“Royal Alaska”), a subsidiary of Royal Gold, and 60% owned by CORE Alaska, LLC (“CORE Alaska”), a subsidiary of Contango, for total cash consideration of $93.7 million. “The project is also expected to add to our strong record of socio-economic contributions to our host communities in Alaska, one of the top mining jurisdictions in the world.” Paul Rollinson, Kinross Gold President and CEO. In today’s gold price environment, Peak Gold is an attractive, high-margin project that is expected to generate robust returns,” said J. “The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastructure at Fort Knox and strengthens our medium-term production and cash flow profile.
Project expected to contribute to the state economy and provide additional employment opportunities and benefits.P roject to benefit local communit ies, in particular the Upper Tanana Athabascan Village of Tetlin (“Village of Tetlin”).Leverages Fort Knox’s successful 27-year history in Alaska, one of the world’s top mining jurisdictions.Blending higher grade ore from the Peak Gold project with Fort Knox ore is expected to extend mill operation at Fort Knox, reduce overall costs and increase cash flow.Processing ore at Fort Knox avoids mill construction and is expected to decrease execution risk, lower capital expenditures, drive attractive returns, and reduce the project’s environmental footprint and permitting requirements.Low-risk project leverages Fort Knox mill, infrastructure and successful operating experience in Alaska.Numerous exploration targets within Peak Gold’s 675,000-acre (2,732 km 2) land package to potentially increase mine life.Expect to strengthen Kinross’ medium-term production and cash flow profile.and initial project capital expenditures in the range of $110 million. Preliminary all-in sustaining costs 2 estimated to be in the range of $750 per Au eq.over 4.5 years at average mining grades of approximately 6 g/t. Expect to commence production at the open pit project in 2024, with total production of approximately 1 million Au eq.Adds a nother high-grade, low- cost development project to Kinross’ portfolio 1.Kinross plans to process Peak Gold ore at Fort Knox and utilize the existing mill and infrastructure to benefit both the project and the mine. The project, which is located approximately 400 kilometres (250 miles) southeast of the Company’s Fort Knox mine, is a low-risk “tuck-in” to supplement Kinross’ existing Alaska operation. The Peak Gold project is a relatively high-grade deposit with a large estimated resource base that is expected to commence production in 2024 as a low-cost, open-pit mine. Kinross will have broad authority to construct and operate the Peak Gold project, with Contango retaining a 30% non-operating minority interest. (OTCQB: CTGO) (“Contango”) for total cash consideration of $93.7 million. 30, 2020 (GLOBE NEWSWIRE) - Kinross Gold Corporation (TSX:K NYSE: KGC) (“Kinross” or the “Company”) is pleased to announce that it has entered into agreements to acquire a 70% interest in the high-quality Peak Gold project in Alaska from Royal Gold, Inc. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located at the end of this release. (This news release contains forward-looking information about expected future events and performance of the Company. Project to leverage the Company’s Fort Knox mill and expected to add to production and cash flow profile in top-tier jurisdiction
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