Year-over-year increase caps five years of steady growth
TORONTO, Feb. 27 /CNW/ - Kinross Gold Corporation (TSX-K; NYSE-KGC)
("Kinross" or the "Company") is pleased to announce an increase in Proven and
Probable reserves to 24.7 million ounces of gold at December 31, 2005, from
19.4 million ounces in 2004. This marks the fifth consecutive year that
Kinross has increased reserves and represents year-over-year growth of
27 per cent.
"Kinross' reserve base and average mine life have grown steadily over the
past five years and are reaching new highs," said Tye Burt, Kinross President
and CEO. "Our 2005 exploration program has been successful in growing our
reserve base at year end 2005 to 24.7 million ounces compared with the
19.4 million ounces reported at year end 2004, including replacing depletion
from the gold produced in 2005."
Gold reserves and resources:
<<
Reconciliation of reserves at year end 2005 compared with year end 2004:
Reserves at Dec. 31, 2004 19.4
-------
Less: Assets sold/reclassified (2.0)
2005 depletion (1.8)
Add: New reserves in 2005 9.1
-------
Reserves at Dec. 31, 2005 24.7
-------
-------
Following is a discussion on the notable changes to reserves from 2004 to
2005:
- Further to the November 2005 reported increase of 4.8 million ounces
of gold to reserves at Paracatu in Brazil, a further 1.9 million
ounces was added at year end 2005. Taking full year 2005 depletion
into account, Paracatu reported reserves almost doubled year-over-
year.
- The 59 per cent increase in reserves at Round Mountain in Nevada
resulted primarily from the decision to proceed with a pit expansion.
- At Fort Knox in Alaska, Ryan Lode is no longer in reserves or
resources as we have elected not to make further option payments on
that property. The True North and Gil deposits, also in the Fort Knox
area, were reclassified to resources due to changes in cost
assumptions at Fort Knox.
- At the Porcupine Joint Venture in Timmins, Ontario reserves were
replaced on a net basis.
- Reserves at Refugio in Chile, increased primarily through the
difference in gold price assumption from 2004 to 2005.
- Kinross sold the Aquarius project in Timmins, Ontario for an equity
stake in St Andrew Goldfields Ltd., a company with a large land
position in Timmins.
- Reserves at La Coipa in Chile decreased through depletion and the
review of the mine plan following two pit slope events in 2005.
- The Lupin and New Britannia mines in Nunavut and Manitoba,
respectively, were both closed during 2005, as planned, and have been
removed from reserves and resources.
- We have discontinued reporting reserves for the Blanket mine in
Zimbabwe, consistent with our accounting treatment of no longer
consolidating its results in our financial statements.
Silver reserves at the end of 2005 are 24.4 million ounces estimated
using a price of $6 per ounce. Gold reserves were calculated using a $400 gold
price and resources were calculated using a $450 gold price 2005. Gold
reserves and resources for 2004 were calculated using a $350 and $400 gold
price, respectively.
About Kinross Gold Corporation
Kinross, a world-class gold company based in Canada, has since 1993
become the third largest primary gold producer in North America and the
seventh largest in the world. With nine mines in stable countries including
Canada, the United States, Brazil and Chile, Kinross employs more than 4,000
people worldwide.
Kinross' strong balance sheet and no-gold hedging policy allow us to take
full advantage of increasing cash flow, revenues and profit margins per ounce
of gold. Kinross is focused on a strategic objective to maximize net asset
value and cash flow per share through a four-point plan built on growth from
core operations; expanding capacity for the future; attracting and retaining
the best people in the industry; and driving new opportunities through
exploration and acquisition.
Kinross maintains listings on the New York Stock Exchange (symbol:KGC)
and on the Toronto Stock Exchange (symbol:K).
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This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding the
Kinross' financial statements for its fiscal year ended December 31, 2004,
potential mineralization and reserves, exploration results and future plans
and objectives of Kinross Gold Corporation, are forward-looking statements
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Any
restatement of historical financial statements is dependant on the outcome of
the independent valuation of the acquired assets, and Kinross does not know
what that outcome will be. Other important factors that could cause actual
results to differ materially from Kinross' expectations are disclosed under
the heading "Risk Factors" and elsewhere in Kinross' most recent Annual
Information Form and other Kinross documents filed from time to time with the
Ontario Securities Commission, the United States Securities and Exchange
Commission and other regulatory authorities. All dollar amounts are expressed
in US dollars.
Technical information contained in this press release regarding Kinross'
material mineral properties has been reviewed by Rod Cooper, Vice President,
Technical Services for Kinross, who is a "Qualified Person" under National
Instrument 43-101.
Definitions
A Mineral Reserve is the economically mineable part of a Measured or
Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility
Study. This Study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances for losses that may occur
when the material is mined.
A 'Probable Mineral Reserve' is the economically mineable part of an
Indicated and, in some circumstances, a Measured Mineral Resource demonstrated
by at least a Preliminary Feasibility Study. This Study must include adequate
information on mining, processing, metallurgical, economic, and other relevant
factors that demonstrate, at the time of reporting, that economic extraction
can be justified.
A 'Proven Mineral Reserve' is the economically mineable part of a
Measured Mineral Resource demonstrated by at least a Preliminary Feasibility
Study. This Study must include adequate information on mining, processing,
metallurgical, economic, and other relevant factors that demonstrate, at the
time of reporting, that economic extraction is justified.
A Mineral Resource is a concentration or occurrence of diamonds, natural
solid inorganic material, or natural solid fossilized organic material
including base and precious metals, coal, and industrial minerals in or on the
Earth's crust in such form and quantity and of such a grade or quality that it
has reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and
knowledge.
An 'Inferred Mineral Resource' is that part of a Mineral Resource for
which quantity and grade or quality can be estimated on the basis of
geological evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
An 'Indicated Mineral Resource' is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics, can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonably assumed.
A 'Measured Mineral Resource' is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.
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MINERAL RESERVE AND RESOURCE STATEMENT
PROVEN AND PROBABLE MINERAL RESERVES (1,3,5,6,7)
Kinross Gold Corporation's Share at December 31, 2005
-------------------------------------------------------------------------
Property Location Kinross Proven
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox USA 100.0% 43,902 0.63 890
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 42,649 0.77 1,056
-------------------------------------------------------------------------
Porcupine JV(12) Canada 49.0% 10,693 1.33 457
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 1,833 5.51 325
-------------------------------------------------------------------------
Kettle River USA 100.0% 39 11.43 14
-------------------------------------------------------------------------
SUBTOTAL 99,117 0.86 2,742
-------------------------------------------------------------------------
SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 1,103,677 0.40 14,194
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 5,549 1.57 280
-------------------------------------------------------------------------
Refugio Chile 50.0% 58,454 0.87 1,643
-------------------------------------------------------------------------
Crixas(10) Brazil 50.0% 632 4.72 96
-------------------------------------------------------------------------
SUBTOTAL 1,168,312 0.43 16,213
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% 79 3.42 9
-------------------------------------------------------------------------
SUBTOTAL 79 3.42 9
-------------------------------------------------------------------------
TOTAL GOLD 1,267,508 0.47 18,964
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Probable
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox USA 100.0% 38,270 0.86 1,063
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 82,364 0.48 1,282
-------------------------------------------------------------------------
Porcupine JV(12) Canada 49.0% 20,255 1.84 1,196
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 1,599 6.12 315
-------------------------------------------------------------------------
Kettle River USA 100.0% - - -
-------------------------------------------------------------------------
SUBTOTAL 142,488 0.84 3,855
-------------------------------------------------------------------------
SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 83,131 0.38 1,016
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 2,920 1.24 117
-------------------------------------------------------------------------
Refugio Chile 50.0% 20,752 0.77 515
-------------------------------------------------------------------------
Crixas(10) Brazil 50.0% 1,232 7.14 283
-------------------------------------------------------------------------
SUBTOTAL 108,035 0.56 1,930
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% - - -
-------------------------------------------------------------------------
SUBTOTAL - - -
-------------------------------------------------------------------------
TOTAL GOLD 250,522 0.72 5,785
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Proven and Probable
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox USA 100.0% 82,172 0.74 1,953
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 125,012 0.58 2,338
-------------------------------------------------------------------------
Porcupine JV(12) Canada 49.0% 30,949 1.66 1,653
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 3,433 5.79 639
-------------------------------------------------------------------------
Kettle River USA 100.0% 39 11.43 14
-------------------------------------------------------------------------
SUBTOTAL 241,605 0.85 6,598
-------------------------------------------------------------------------
SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 1,186,808 0.40 15,210
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 8,469 1.46 397
-------------------------------------------------------------------------
Refugio Chile 50.0% 79,206 0.85 2,158
-------------------------------------------------------------------------
Crixas(10) Brazil 50.0% 1,864 6.32 379
-------------------------------------------------------------------------
SUBTOTAL 1,276,346 0.44 18,143
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% 79 3.42 9
-------------------------------------------------------------------------
SUBTOTAL 79 3.42 9
-------------------------------------------------------------------------
TOTAL GOLD 1,518,030 0.51 24,749
-------------------------------------------------------------------------
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MINERAL RESERVE AND RESOURCE STATEMENT
PROVEN AND PROBABLE MINERAL RESERVES (1,3,5,6,7)
Kinross Gold Corporation's Share at December 31, 2005
-------------------------------------------------------------------------
Property Location Kinross Proven
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 5,549 78.8 14,056
-------------------------------------------------------------------------
SUBTOTAL 5,549 78.8 14,056
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% 79 6.4 16
-------------------------------------------------------------------------
SUBTOTAL 79 6.4 16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TOTAL SILVER 5,628 77.8 14,072
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Probable
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 2,920 110.1 10,334
-------------------------------------------------------------------------
SUBTOTAL 2,920 110.1 10,334
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% - - -
-------------------------------------------------------------------------
SUBTOTAL - - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TOTAL SILVER 2,920 110.1 10,334
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Proven and Probable
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 8,469 89.6 24,389
-------------------------------------------------------------------------
SUBTOTAL 8,469 89.6 24,389
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% 79 6.4 16
-------------------------------------------------------------------------
SUBTOTAL 79 6.4 16
-------------------------------------------------------------------------
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TOTAL SILVER 8,548 88.8 24,405
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Rounding differences may occur
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MINERAL RESERVE AND RESOURCE STATEMENT
MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND
PROBABLE RESERVES) (2,3,4,6,7,8)
Kinross Gold Corporation's Share at December 31, 2005
-------------------------------------------------------------------------
Property Location Kinross Measured
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox and area(13) USA 100.0% 4,582 0.75 110
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 5,992 0.64 124
-------------------------------------------------------------------------
Porcupine JV(12,15) Canada 49.0% 1,077 3.68 127
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 624 4.20 84
-------------------------------------------------------------------------
Kettle River USA 100.0% - - -
-------------------------------------------------------------------------
SUBTOTAL 12,274 1.13 445
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SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 89,784 0.27 771
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 6,788 0.88 192
-------------------------------------------------------------------------
Refugio Chile 50.0% 20,606 0.71 469
-------------------------------------------------------------------------
Crixas(10,18) Brazil 50.0% 222 8.96 64
-------------------------------------------------------------------------
Gurupi(9,20) Brazil 100.0% - - -
-------------------------------------------------------------------------
SUBTOTAL 117,400 0.40 1,496
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ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% - - -
-------------------------------------------------------------------------
SUBTOTAL - - -
-------------------------------------------------------------------------
TOTAL GOLD 129,674 0.47 1,941
-------------------------------------------------------------------------
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Property Location Kinross Indicated
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox and area(13) USA 100.0% 44,280 0.59 838
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 10,071 0.53 172
-------------------------------------------------------------------------
Porcupine JV(12,15) Canada 49.0% 8,238 2.51 666
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 285 5.91 54
-------------------------------------------------------------------------
Kettle River USA 100.0% - - -
-------------------------------------------------------------------------
SUBTOTAL 62,873 0.86 1,730
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SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 5,540 0.38 68
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 1,854 0.92 55
-------------------------------------------------------------------------
Refugio Chile 50.0% 20,644 0.70 465
-------------------------------------------------------------------------
Crixas(10,18) Brazil 50.0% 171 9.03 50
-------------------------------------------------------------------------
Gurupi(9,20) Brazil 100.0% 47,050 1.08 1,632
-------------------------------------------------------------------------
SUBTOTAL 75,258 0.94 2,268
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ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% 376 13.10 158
-------------------------------------------------------------------------
SUBTOTAL 376 13.10 158
-------------------------------------------------------------------------
TOTAL GOLD 138,507 0.93 4,156
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Measured and Indicated
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
GOLD
NORTH AMERICA
-------------------------------------------------------------------------
Fort Knox and area(13) USA 100.0% 48,862 0.60 948
-------------------------------------------------------------------------
Round Mtn and area(14) USA 50.0% 16,062 0.57 295
-------------------------------------------------------------------------
Porcupine JV(12,15) Canada 49.0% 9,315 2.65 793
-------------------------------------------------------------------------
Musselwhite(11) Canada 31.9% 909 4.74 138
-------------------------------------------------------------------------
Kettle River USA 100.0% - - -
-------------------------------------------------------------------------
SUBTOTAL 75,147 0.90 2,175
-------------------------------------------------------------------------
SOUTH AMERICA
-------------------------------------------------------------------------
Paracatu Brazil 100.0% 95,324 0.27 839
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 8,642 0.89 247
-------------------------------------------------------------------------
Refugio Chile 50.0% 41,250 0.70 934
-------------------------------------------------------------------------
Crixas(10,18) Brazil 50.0% 392 8.99 113
-------------------------------------------------------------------------
Gurupi(9,20) Brazil 100.0% 47,050 1.08 1,632
-------------------------------------------------------------------------
SUBTOTAL 192,657 0.61 3,765
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ASIA
-------------------------------------------------------------------------
Kubaka and area(16,17) Russia 98.1% 376 13.10 158
-------------------------------------------------------------------------
SUBTOTAL 376 13.10 158
-------------------------------------------------------------------------
TOTAL GOLD 268,180 0.71 6,098
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MINERAL RESERVE AND RESOURCE STATEMENT
MEASURED AND INDICATED MINERAL RESOURCES (EXCLUDES PROVEN AND
PROBABLE RESERVES) (2,3,4,6,7,8)
Kinross Gold Corporation's Share at December 31, 2005
-------------------------------------------------------------------------
Property Location Kinross Measured
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 6,788 37.5 8,178
-------------------------------------------------------------------------
SUBTOTAL 6,788 37.5 8,178
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% - - -
-------------------------------------------------------------------------
SUBTOTAL - - -
-------------------------------------------------------------------------
TOTAL SILVER 6,788 37.5 8,178
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Indicated
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 1,854 61.0 3,635
-------------------------------------------------------------------------
SUBTOTAL 1,854 61.0 3,635
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% 376 14.3 173
-------------------------------------------------------------------------
SUBTOTAL 376 14.3 173
-------------------------------------------------------------------------
TOTAL SILVER 2,229 53.1 3,808
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Property Location Kinross Measured and Indicated
Interest Tonnes Grade Ounces
(%) (x 1,000) (g/t) (x 1,000)
-------------------------------------------------------------------------
SILVER
SOUTH AMERICA
-------------------------------------------------------------------------
La Coipa(12) Chile 50.0% 8,642 42.5 11,813
-------------------------------------------------------------------------
SUBTOTAL 8,642 42.5 11,813
-------------------------------------------------------------------------
ASIA
-------------------------------------------------------------------------
Kubaka and area
(16,17,19) Russia 98.1% 376 14.3 173
-------------------------------------------------------------------------
SUBTOTAL 376 14.3 173
-------------------------------------------------------------------------
TOTAL SILVER 9,017 41.3 11,986
-------------------------------------------------------------------------
Rounding differences may occur
Statement of Inferred Resources
In addition to the reported measured and indicated resources estimated at
a gold price of $450, inferred resources total 92,490,000 tonnes at an average
grade of 0.98 grams per tonne gold. Inferred silver resources total 491,000
tonnes at an average grade of 49.9 grams per tonne using a $7.00 silver price.
Blanket Mine - Zimbabwe
In light of the economic and political conditions and the negative impact
of inflationary cost pressures in Zimbabwe, the Blanket mine was written down
in 2001 and Kinross discontinued consolidation of the results of this
operation in 2002. However, the mine did report proven and probable reserves
at December 31, 2005, estimated at a gold price of $400 per ounce, of
3,223,000 tonnes at an average grade of 4.24 grams per tonne or 439,600 ounces
of gold. Measured and Indicated resources, estimated at a gold price of
$450 per ounce, totaled 431,000 tonnes at an average grade of 4.08 grams
per tonne or 56,500 ounces of gold. Blanket also had 2,064,000 tonnes of
Inferred resource at an average grade of 6.31 grams per tonne.
NOTES TO THE 2005 MINERAL RESERVE AND RESOURCE STATEMENT
(1) Unless otherwise noted, the Company's reserves are estimated using
appropriate cut-off grades derived from an assumed gold price of
US$ 400 per oz, and a silver price of US$ 6.00 per oz. Reserves are
estimated using current and/or projected process recoveries,
operating costs and mine plans that are unique to each property and
include estimated allowances for dilution and mining recovery.
Reserves are estimated based on the following foreign exchange
rates:
CAD$ to US$ - 1.25
Rubles to US$ - 29.00
Chilean Peso to US$ - 575.00
Brazilian Reais to US$ - 2.65
(2) Unless otherwise noted, the Company's resources are estimated using
appropriate cut-off grades derived at a gold price of
US$ 450 per oz, a silver price of US$ 7.00 per oz and the following
foreign exchange rates:
CAD$ to US$ - 1.25
Rubles to US$ - 29.00
Chilean Peso to US$ - 575.00
Brazilian Reais to US$ - 2.65
(3) The Company's reserves and resources as at December 31, 2005 are
classified in accordance with the Canadian Institute of Mining
Metallurgy and Petroleum's "CIM Standards on Mineral Resources and
Reserves, Definition and Guidelines" as per Canadian Securities
Administrator's National Instrument 43-101 ("the Instrument")
requirements.
(4) Cautionary note to US Investors concerning estimates of measured,
indicated and inferred resources.
US Investors are advised that use of the terms "measured resource",
"indicated resource" and "inferred resource" are recognized and
required by Canadian Securities regulations. These terms are not
recognized by the U.S. Securities and Exchange Commission. U.S.
investors are cautioned not to assume that all or any part of
mineral deposits in these categories will ever be converted into
reserves.
(5) The mineral reserves presented herein comply with the reserve
categories of Industry Guide 7 applied in the United States by the
Securities and Exchange Commission.
(6) Mineral resource and reserve estimates were prepared under the
supervision of Mr. Rod Cooper, P. Eng, an officer of Kinross, who is
a qualified person as defined by Canada's National Instrument
43-101.
(7) The Company's normal data verification procedures have been used in
collecting, compiling, interpreting and processing the data used to
estimate reserves and resources. Independent data verification has
not been performed.
(8) Resources, unlike reserves, do not have demonstrated economic
viability.
(9) Undeveloped property, development assumes successful permitting
allowing mining operations to be conducted.
(10) Operated by AngloGold Ltd and assumes the following foreign exchange
rate:
Reserves and Resources:
Brazilian Reais to US$ - 2.50
(11) Operated by Placer Dome Inc. and assumes the following foreign
exchange rate:
CAD$ to US$ - 1.25
(12) Operated by Placer Dome Inc. and assumes the following foreign
exchange rates:
Reserves:
CAD$ to US$ - 1.30; Chilean Peso to US$ - 600.00
Resources:
CAD$ to US$ - 1.22; Chilean Peso to US$ - 600.00
(13) Includes mineral resources from the undeveloped Gil deposit in which
the Company holds an 80% interest.
(14) Includes mineral reserves and resources from the undeveloped Gold
Hill deposit, exploitation of which is dependent on successful
permitting.
(15) Includes mineral resources from undeveloped properties, exploitation
of which is dependent on successful permitting.
(16) Includes mineral reserves and mineral resources from the Birkachan
deposit. Open pit and underground mining at Birkachan will require
successful permitting.
(17) Includes mineral resources from the undeveloped Tsokol deposit,
exploitation of which is dependent on successful permitting.
(18) Mineral resources reported at a gold price of US$475 per ounce.
(19) Mineral reserves reported at a silver price of US$6.50 per ounce,
mineral resources reported at a silver price of US$7.50 per ounce.
(20) Mineral resources estimated assuming a foreign exchange rate of
3.00 Brazilian Reais per US$1.00.
>>
%SEDAR: 00002968E
