Name of the Project
Gilmore gold project.

Location
The project is located at the Fort Knox mine, in Alaska, in the US.

Client
Kinross Gold.

Project Description
The project has proven and probable reserves of 282.24-million tonnes grading 0.37 g/t gold.

The initial Gilmore project is expected to extend mining at Fort Knox by six years to 2027, and leaching to 2030, as well as increase life-of-mine production by about 1.5-million gold equivalent ounces.

The Gilmore feasibility study envisages the first two phases of a potential multiphase layback of the existing Fort Knox pit and 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 Kinross’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 an estimated net present value (NPV), at a 5% discount rate, of $130-million, based on a $1 200/oz gold price, and is expected to generate an internal rate of return (IRR) of 17%.

At a gold price of $1 300/oz, the NPV is estimated at $239-million and the IRR at 26%.

Value
The project has a low initial capital cost of about $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 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.

Latest Developments
Kinross announced in June that it would proceed with the initial Gilmore expansion project at its Fort Knox mine.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Kinross Gold corporate communications director Louie Diaz, tel +1416369 6469 or email louie.diaz@kinross.com.
Kinross Gold senior VP, investor relations and corporate development Tom Elliott, tel +1416 365 3390 or email tom.elliott@kinross.com.