Kinross Gold Corporation, listed on the TSX and NYSE, has announced that it is proceeding with a project to incrementally increase throughput capacity at its Tasiast open-pit gold mine in Mauritania to 24 000 tonnes per day (t/d). Based on the results of the completed ‘Tasiast 24k’ feasibility study, the project is expected to increase production, reduce costs, and generate significant cash flow and attractive returns.
According to the feasibility study, average annual production from 2022 through to 2028 will be 563 000 oz at an AISC of US$560/oz. Annual production from 2029 to 2033 will be 281 000 oz at an AISC of US$940/oz.
The Tasiast processing plant.
“We are excited to be moving ahead with the value-enhancing Tasiast 24k project. The project allows us to further unlock Tasiast’s substantial value through a capital efficient, low-risk investment which maximises the mine’s potential through continuous improvement and leverages the knowledge we have gained from running the successful Tasiast Phase One expansion,” commented J Paul Rollinson, President and CEO of Kinross.
“We are well positioned to successfully execute the Tasiast 24k project. We have strong liquidity, the US$300 million project financing is proceeding as planned, the expanded Tasiast operation continues to consistently outperform initial expectations, and permits for the project are in place. The Tasiast 24k project further strengthens our development pipeline, adding to our high-quality projects in the US, Chile and Russia.”
The Tasiast 24k project takes a continuous improvement approach to increasing throughput, which is expected to ramp up to 21 000 t/d by the end of 2021, and then to 24 000 t/d by mid-2023. It is anticipated that the project will extend life of mine by four years to 2033.
Throughput increases are expected to be achieved through minor upgrades and de-bottlenecking initiatives in the plant. The project includes modifications to the existing grinding circuit, adding new leaching and thickening capacity, as well as incremental additions to on-site power generation and water supply.
With the go-ahead decision for Tasiast 24k, the project team has been established and work packages and initial contracts are to be awarded shortly. The company has permits in place for the 24k project and detailed engineering is now more than 50 % complete.
The initial project capital costs are expected to be approximately US$150 million, which is significantly less than the capital estimate for the original 30 000 t/d Phase Two expansion plan. The 24k project has reduced execution risk, requires less additional infrastructure, and leverages greater utilisation of the existing facilities.
According to Kinross, the design and engineering of the project benefitted significantly from the knowledge acquired operating the Phase One expansion, which helped identify many of the opportunities included in the 24k plan. For example, the project leverages the upside flexibility of the SAG mill, instead of requiring the addition of a new ball mill, resulting in substantial capital savings.
The project also incorporates operational efficiencies in maintenance, mining, supply chain and processing, which have contributed to Tasiast’s record operating performance over the past three quarters since the completion of the Phase One expansion.
Kinross is on schedule to complete the US$300 million in project financing for Tasiast from the International Finance Corporation (IFC), Export Development Canada (EDC), and two commercial banks later this year. The company has strong liquidity and is well positioned to fund the Tasiast 24k project.
Kinross also reports that it has been actively engaged with the Government of Mauritania since the presidential inauguration in August 2019. On September 11, 2019, Paul Rollinson held a productive meeting with the country’s newly-elected President, Mohamed Ould Cheikh El Ghazouani. Rollinson also held meetings with key members of the newly-appointed cabinet, including the Prime Minister and the Minister of Petroleum, Energy and Mines. During the meetings, both parties reaffirmed their shared commitment to working towards a positive future for Tasiast, which is a significant contributor to the Mauritanian economy.
Kinross recently signed an agreement in principle on the main terms and conditions of a new three-year collective labour agreement with unionised employees at Tasiast, which is expected to be finalised in the coming weeks. The previous labour agreement was set to expire in November 2019.
As a result of the Tasiast 24k feasibility study, estimated proven and probable mineral reserves at December 31, 2018 at Tasiast are approximately 7,2 Moz Au, compared with the previously disclosed 7,4 Moz, with grades remaining unchanged at 1,9 g/t. The estimated measured and indicated mineral resources are 2,7 Moz compared with the previously disclosed 2,9 Moz.
Photo courtesy of Kinross Gold