Name of the Project
Udinsk gold project.

Location
Chulbatkan licence area, Russia.

Project Owner/s
Kinross Gold.

Project Description
The Udinsk prefeasibility study (PFS) has reaffirmed Kinross’ view of the asset as a low-cost and high-return project.

The mine is expected to produce about two-million ounces of gold during a seven-year mine life, which includes at least six years of mining and crushing activities, plus an additional year of leaching on the heap-leach pads.

The PFS proposes an openpit mine with a three-stage crush heap-leach process flow.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, based on a reserve prices of $1 200/oz, of $210-million and an internal rate of return of 11%.

Capital Expenditure
The initial capital cost for the project is estimated at $655-million, including $95-million in contingency.

Planned Start/End Date
Subject to a positive development decision and permitting, construction is expected to start with early work activities in late 2022. First production is planned for the fourth quarter of 2025.

Latest Developments
Kinross Gold is suspending all activities at its Udinsk development project and is halting operations at its Kupol mine.

No timeline has been given for suspending operations in Russia, which will have accounted for 13% of the company's global production this year.

Kinross had previously reported that its operations in Russia were operating according to plan and that it had not been affected by sanctions announced by the US and Europe.

The company said in a statement on March 2 that it was concerned about the loss of life and destruction in Ukraine. Kinross also expressed “its sympathy and support for the people who are suffering because of this tragic situation”, donating C$1-million to the Canadian Red Cross Ukraine Humanitarian Crisis Appeal to assist people in need.

“Kinross is hopeful for a peaceful and diplomatic solution in Ukraine,” Kinross said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Kinross Gold Corporation VP corporate communications Louie Diaz, tel +1 416 369 6469 or email louie.diaz@kinross.com.