TORONTO (miningweekly.com) – Toronto-based Kinross Gold has trimmed its production guidance for 2009, to about 2,2-million ounces of gold-equivalent, compared with a previous forecast of between 2,3-million and 2,4-million ounces.

It has also hiked its cost guidance to between $435/oz and $450/oz for the full year.

When it started the year, Kinross had forecast production of as much as 2,5-million ounces of gold equivalent (includes silver).

The company said its Paracatu expansion project, in Brazil, continues to face challenges in achieving concurrent recovery and throughput at plant design levels.

The mine is expected to produce between 340 000 oz and 360 000 oz by year-end, at an average cost of sales per ounce of $700/oz to $735/oz.

Some progress has been made in improving availability, efficiency and recovery, and the grinding circuit has achieved throughput of 70% of design capacity so far in October, Kinross said.

Recovery is at 74%, compared with a design target of 80% gold recovery.

“Increasing throughput beyond these levels results in a coarser grind size from the mill, reducing gold recoveries,” the firm said.

To achieve grind size and recovery at plant design levels, more energy and grinding time is required than was previously estimated, which has limited plant throughput and lowered gold production.

As commissioning continues, work is ongoing to improve mill performance including by improving flotation, and blending mill feed with softer ore sourced from other areas in the pit.

The company is also evaluating options to add additional grinding capacity, and a scoping analysis is expected to be completed by year-end, Kinross said.

Kinross owns mines in the US, Brazil, Chile and Russia.

Shares in the company slid 3,94% on Tuesday morning, to C$20,80 apiece by 9:55 in Toronto.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.