Name of the Project
Gilmore expansion project.

Location
The project is located at Kinross Gold’s Fort Knox mine, in Alaska, in the US.

Client
Kinross Gold.

Project Description
The Gilmore project is expected to extend mining at the Fort Knox mine by six years until 2027, and leaching until 2030.

The project has proven and probable reserves estimated at 282.24-million tonnes grading 0.34 g/t gold.

Life-of-mine production is also expected to increase to about 1.51-million gold equivalent ounces.

The Gilmore feasibility study envisages the development of the first two phases of a potential multiphase layback of the existing Fort Knox pit and the construction of a new heap-leach pad.

The project plan requires minimal construction of new infrastructure and new equipment purchases, and has been optimised for lower initial capital costs. This includes continuing mining using Fort Knox’s current fleet and leveraging assets from the company’s other North American operations as replacement equipment is required.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value (NPV), at a 5% discount rate, of $130-million and an internal rate of return (IRR) of 17%, based on a $1 200/oz gold price.

Value
The project is estimated at $100-million. Kinross expects to finance the initial capital costs of the project using Fort Knox’s cash flow.

Duration
Early construction work on the new heap-leach pad and dewatering is expected to begin in the third quarter of 2018, with stripping starting in 2019.

Initial production from Gilmore is expected in early 2020, with about 5% of Gilmore ore expected to be stacked on the existing pad. About 95% of Gilmore ore is expected to be stacked on the new heap-leach pad, with stacking starting in late 2020. Currently, milling at Fort Knox is expected to end in late 2020.

Latest Developments
The project team has been established and contracting is under way.

Engineering is largely complete and the permitting process is proceeding as planned. Permits are now in place to start work on the new heap-leach pad.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kinross Gold investor relations and corporate development senior VP Tom Elliott, tel +1 416 365 3390 or email tom.elliott@kinross.com.