Name and Location
Tasiast gold mine expansion, Mauritania.

Client
Kinross Gold Corporation.

Project Description
The Phase 1 feasibility study on the expansion project is based on increasing the current 8 000 t/d throughput capacity to 12 000 t/d.

The additional processing capacity is expected to be achieved with the addition of a gyratory crusher, an oversized semiautogenous mill and three leach tanks, as well as improvements to other components of the processing circuit.

The new mill is forecast to produce an average of 409 000 oz/y of gold during the first ten years (2018 to 2027, when mining will occur), with a forecast cumulative production of five-million gold ounces to 2033.

Milling of residual stockpiled ore will extend the estimated mine life to 2033.

The Phase 2 prefeasibility study envisages the installation of 18 000 t/d of additional mill throughput for a total combined capacity of 30 000 t/d.

The potential expansion will result in the two current ball mills being replaced with a new larger ball mill, and new leaching, thickening and refinery capacity. An additional 60 MW of capacity will be added to the existing power plant to power the 30 000 t/d mill, which is forecast to have an average production of about 777 000 oz/y of gold from
2020 to 2026, with a forecast cumulative gold production of 6.4-million ounces to 2030.

Net Present Value/Internal Rate of Return
Based on an assumed gold price of $1 200 and oil price of $45/bbl, the expansion has an estimated net present value of $635-million and an internal rate of return of 20%.

Value
Phase 1 is estimated at $300-million.

Phase 2 capital costs for the additional 18 000 t/d expansion are forecast at $620-million.

Duration
Phase 1 commissioning is expected to begin in the fourth quarter of 2017, with full production expected by the end of the first quarter of 2018.

Phase 2 construction is expected to start early in 2018, with full production expected early in 2020.

Latest Developments
Preparations for Phase 1 construction will begin immediately.

Engineering work is 35% complete and is expected to reach 80% by end of July 2016.

A significant amount of contractual commitments and site establishment work is expected to occur during the second quarter of 2016, with full field construction expected to start in the third quarter of 2016.

A feasibility study on Phase 2 of the expansion is expected to start in the second half of 2016, with potential approval for the project targeted for the end of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kinross Gold, tel +1 416 365 5123, fax +1 416 363 6622 or email info@kinross.com.