Kinross Gold Corporation
) recently said that it is moving ahead with a full feasibility
study (FS) for a possible expansion of its Tasiast mine in
Mauritania with a 38,000 ton per day (tpd) mill. The decision was
based on the encouraging pre-feasibility (PFS) study results for
the expansion project.
The PFS was based on constructing a new 30,000 tpd mill at
Tasiast using heavy fuel oil as an energy source. The PFS found
that during the first five years of production, a 30,000 tpd
operation would yield average annual gold production of 830,000
ounces, at an initial capital cost of $2.7 billion, and an all-in
sustaining cost of $735 per ounce.
Kinross is also looking to deploy the existing 8,000 tpd mill
capacity at Tasiast in addition to a new 30,000 tpd mill. These
studies concluded that a single new 38,000 tpd mill would be
expected to provide the optimum economics for an expanded
project. Based on these results, Kinross is proceeding with a
full FS on an expanded Tasiast operation with a 38,000 tpd mill.
The FS work process will begin immediately, and is expected to
complete in the first quarter of 2014. After the FS is complete,
Kinross will make a decision on whether to complete engineering
and proceed with construction. Kinross will base its decision on
a number of factors, including gold price assumptions and
projections, expected economic returns, and various technical and
Kinross, which is among the prominent gold miners along with
Barrick Gold Corporation
Newmont Mining Corporation
), is primarily involved in the exploration and operation of gold
mines and benefits from higher gold prices, exploration projects
Kinross currently carries a Zacks Rank #4 (Sell).
We have revised this article to correct a mistake. The
previous version, published yesterday, should not be relied
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