Canadian miner Kinross Gold has announced a $150-million investment to incrementally expand the throughput capacity at its Tasiast mine, in Mauritania, to 24 000 t/d.

The Tasiast 24k project comes at a significantly lower capital cost than the original 30 000 t/d Phase 2 expansion and was announced about a month-and-a-half after the country inaugurated a new President.

The Phase 2 expansion was paused last year to allow for more engagement between Kinross and the government over the miner's activities in that country. That project contemplated installing additional mill throughput of 18 000 t/d to the Phase 1 project's 12 000 t/d capacity for a total capital outlay of $590-million.

The Tasiast 24k now takes a continuous improvement approach to increasing throughput, which is expected to ramp up to 21 000 t/d by the end of 2021, and to 24 000 t/d by mid-2023.

The project is expected to extend the life-of-mine (LoM) by four years to 2033.

Over the project’s 2020 to 2033 LoM, it will recover 6.2-million ounces, or an average of 445 000 oz/y at an all-in sustaining cost of $665/oz. In 2022 to 2028, the mine will deliver 563 000 oz/y.

The 24k project feasibility study highlights include a net present value of $1.7-billion and an incremental internal rate of return of 60%.

The company reported that it had all permits in place for the project and that detailed engineering was more than 50% complete.

“The project allows us to further unlock Tasiast’s substantial value through a capital efficient, low-risk investment which maximises the mine’s potential through continuous improvement and leverages the knowledge we have gained from running the successful Tasiast Phase 1 expansion.

“The 24k project is expected to increase production and lower costs while generating attractive returns and significant free cash flow,” commented CEO J Paul Rollinsson.

He added that Kinross was well positioned to fund the expansion, noting that the miner was proceeding with completing $300-million in financing from the International Finance Corporation, Export Development Canada and two commercial banks.

Meanwhile, commenting on Kinross’ relations with Mauritania, Rollinson said that he had held productive meetings with new President Mohamed Ould Cheikh El Ghazouani and key Cabinet members.

“During the meetings, both parties reaffirmed their shared commitment to working towards a positive future for Tasiast, which is a significant contributor to the Mauritanian economy.”

Kinross has also signed an in-principle agreement on the main terms and conditions for a new three-year collective labour agreement with unionised employees at Tasiast.

As a result of the Tasiast 24k feasibility study, estimated proven and probable mineral reserves at December 31, 2018 at Tasiast are about 7.2-million gold ounces, compared with the previously disclosed 7.4-million ounces, with grades remaining unchanged at 1.9 g/t. The estimated measured and indicated mineral resources are 2.7-million ounces, compared with the previously disclosed 2.9-million ounces.