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Kinross Gold to acquire 70% interest in the high-quality Peak Gold project in Alaska
Project to leverage the Company’s Fort Knox mill and expected to add to production and cash flow profile in top-tier jurisdiction (This news release contains
About this update from Kinross Gold Corporation
[{"type":"text","content":" Project to leverage the Company’s Fort Knox mill and expected to add to production and cash flow profile in top-tier jurisdiction (This news release contains forward-looking information about expected future events and performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located at the end of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.) TORONTO, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX:K; NYSE: KGC) (“Kinross” or the “Company”) is pleased to announce that it has entered into agreements to acquire a 70% interest in the high-quality Peak Gold project in Alaska from Royal Gold, Inc. (“Royal Gold”) and Contango ORE, Inc. (OTCQB: CTGO) (“Contango”) for total cash consideration of $93.7 million. Kinross will have broad authority to construct and operate the Peak Gold project, with Contango retaining a 30% non-operating minority interest. The Peak Gold project is a relatively high-grade deposit with a large estimated resource base that is expected to commence production in 2024 as a low-cost, open-pit mine. The project, which is located approximately 400 kilometres (250 miles) southeast of the Company’s Fort Knox mine, is a low-risk “tuck-in” to supplement Kinross’ existing Alaska operation. Kinross plans to process Peak Gold ore at Fort Knox and utilize the existing mill and infrastructure to benefit both the project and the mine. Highlights of the acquisition: • Adds another high-grade, low-cost development project to Kinross’ portfolio1 Expect to commence production at the open pit project in 2024, with total production of approximately 1 million Au eq. oz. over 4.5 years at average mining grades of approximately 6 g/t. Preliminary all-in sustaining costs2 estimated to be in the range of $750 per Au eq. oz. and initial project capital expenditures in the range of $110 million. Expect to strengthen Kinross’ medium-term production and cash flow profile. Numerous exploration targets within Peak Gold’s 675,000-acre (2,732 km2) land package to potentially increase mine life. • Low-risk project leverages Fort Knox mill, infrastructure and successful operating experience in Alaska Processing ore at Fort Knox avoids mill construction and is expected to decrease execution r...