TORONTO (miningweekly.com) – Canada's Kinross Gold might look at some 'bolt-on', early-stage acquisitions, but the company's current pipeline of projects will provide more than enough opportunity to sustain and grow production over at least the next five or six years, CEO Tye Burt said on Thursday.

In the last 12 months, Kinross has been one of the more active of the large gold companies, as far as corporate activity is concerned – the firm bought junior Aurelian Resources for its Fruta del Norte (FDN) project last year and agreed in early 2009 to acquire the Lobo-Marte asset, in Chile, from Teck Resources and Anglo American.

But Burt indicated in his comments on Thursday that the immediate focus has now swing to internal growth prospects, which the company plans to move forward “aggressively”.

Last year, Kinross finished building two new mines, Kupol, in Russia, and Buckhorn, in the US.

The company also expanded capacity at the Paracatu mine, in Brazil, and is currently adding a heap-leach facility at Fort Knox, in Alaska, which will extend the operation's life to 2018 and double the life-of-mine production to 2,9-million gold ounces.

Both Paracatu and Fort Knox will produce at their new levels for the first full year in 2010, which will boost Kinross' overall production and offset declines from some of its more mature mines, Burt said.

Looking further ahead, by 2011 the company hopes to start benefiting from the next round of expansions currently being studied, both at the Maricunga mine, in Chile, as well as further increases at Paracatu.

After that, Lobo-Marte should start trucking ore to the company's La Coipa mill in 2012, followed by full start up in 2013; FDN, in Ecuador, could also start up in 2013; and Kinross and partner Barrick are hoping for first production from the huge Cerro Casale mine, in Chile, in 2014.

The Cerro Casale mine could contribute about 430 000 oz of gold and 118-million pounds of copper to Kinross' annual production, while a preliminary study estimated that Lobo Marte may produce around 350 000 oz/y.

“So, I would say it's flat to a gentle incline for a year or two, and then a very steep climb as the big projects come on...in 2014/2015,” Burt said.

Output levels could start to flatten or decline in around 2017, “but by that time we will have eight great big mines churning along,” he added.

That means that any merger and acquisition activity will likely focus on early-stage prospects that will add production well into the next decade.

For the remainder of the year, the focus will be on ramping up production and recoveries at Paracatu and completing the Fort Knox expansion.

Kinross also plans to completing a prefeasibility study by year-end on plant expansions and the potential to add a second crusher at Maricunga, continue prefeasibility work at Lobo-Marte and finalise a a scoping study on the next round of expansion at Paracatu, which could include the installation of a third ball mill.

Finally, Barrick and Kinross have committed to complete a final feasibility study on the Cerro Casale mine in the third quarter, which will likely be followed by a construction decision.

At FDN, the firm is waiting for final approval from the government to resume drilling, and expects to complete a prefeasibility study on the project six months after the go-ahead is received, Burt said.

Kinross, which produced 1,84-million gold-equivalent ounces last year, has revised its 2009 output forecast downwards by 100 000 oz, mainly because of a slower-than-expected ramp up at Paracatu.

The firm now expects to produce between 2,3-million and 2,4-million ounces this year.

Kinross shares rose 1,8% on Thursday, to C$21,48 apiece by 16:15 in Toronto.

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