Kinross Reports Results of Pre-feasibility Study on Tasiast Expansion

Kinross Reports Results of Pre-feasibility Study on Tasiast Expansion 
Company proceeding to feasibility study for 38,000 tonne per day mill 
TORONTO, ONTARIO -- (Marketwired) -- 04/29/13 -- Kinross Gold
Corporation (TSX:K)(NYSE:KGC) today announced the results of its
pre-feasibility study (PFS) for its Tasiast expansion project. Based
on these results, the Company has decided to proceed with a
feasibility study on an expanded Tasiast operation with a 38,000
tonne per day (tpd) mill.  
The PFS was based on constructing a new 30,000 tonne tpd mill at
Tasiast utilizing heavy fuel oil as an energy source. It assumed a
$1,500 per ounce gold price for overall project economics and,
consistent with the Company's year-end mineral reserve estimates, a
$1,200 per ounce gold price for pit design purposes. The PFS
estimates are based on a pit design mineral resource estimate of
approximately 10 million recovered gold ounces, which does not
include additional known resources estimated using a gold price
assumption above $1,200 per ounce. In addition, the PFS estimates do
not include potential district exploration upside.  
The study found that during the first five years of production, a
30,000 tpd mill would be expected to have average gold production of
approximately 830,000 ounces per year, with average cash costs(1) of
approximately $500 per ounce, and average all-in sustaining costs(2)
of approximately $735 per ounce. The expected initial capital cost
would be approximately $2.7 billion(3). The PFS indicated an
estimated IRR for the project of approximately 11% and an estimated
NPV of approximately $1.1 billion.  
In addition, the PFS incorporated trade-off studies which considered
utilizing 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, the Company is
proceeding to a full feasibility study (FS) on an expanded Tasiast
operation with a 38,000 tpd mill. The FS work process will begin
immediately, and is now scheduled for expected completion in the
first quarter of 2014. Following completion of the FS, the Company
will make a decision on whether to complete engineering and proceed
with construction. The decision will depend on a range of factors,
including gold price assumptions and projections, expected economic
returns, and various technical and other considerations.  
"Although there is considerable work to be done at the feasibility
study level before we decide whether to proceed with construction,
the results of the PFS are encouraging," said CEO J. Paul Rollinson.
"As we continue to evaluate the project, we remain firmly focused on
preserving the strength of our balance sheet." 
The FS will assess construction of a standard carbon-in-leach (CIL)
circuit with a primary crusher and SAG mill, in addition to the
existing dump leach facilities. The FS will assume an open-pit mining
sequence based on developing a series of pushbacks that would allow
the mine to encounter expected higher grade ore early in the mine
life. A variable cut-off grade strategy is expected to be applied to
bring gold production forward and stockpile lower-grade material for
processing later in the mine life. 
The FS will explore a number of opportunities to optimize the project
and improve overall economics, including the potential for
implementing lower-cost natural gas power. Kinross is currently part
of a joint venture which is working to advance the commercialization
of power generated by natural gas supply located offshore of
Mauritania. 


 
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           Summary of PFS estimates for 30,000 tpd mill at Tasiast          
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Operational metric                       Estimate (weighted average)        
----------------------------------------------------------------------------
Mill throughput                          30,000 tonnes per day              
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Life of mine(4) (end of production)      2033                               
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Ounces recovered - life of mine          10.0 million(5) -- based on pit    
                                         design using assumed gold price of 
                                         $1,200/ounce                       
----------------------------------------------------------------------------
Estimated ore processed - life of mine   CIL: 196 million tonnes            
                                         Dump leach: 46 million tonnes      
----------------------------------------------------------------------------
Average annual production (ounces) -     755,000-855,000 (830,000)          
first five years                                                            
----------------------------------------------------------------------------
Average annual production (ounces) -     400,000-500,000 (475,000)          
life of mine                                                                
----------------------------------------------------------------------------
Cash cost per ounce - first five years   $475-575/ounce ($500)              
----------------------------------------------------------------------------
Cash cost per ounce - life of mine       $675-775 ($700)                    
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All-in sustaining cost per ounce - first $710-810 ($735)                    
five years                                                                  
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All-in sustaining cost per ounce - life  $890-990 ($910)                    
of mine                                                                     
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Average grade - first five years         2.08 g/t                           
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Average grade - life of mine             1.41 g/t                           
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Average CIL recovery - life of mine      93%                                
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Strip ratio - first five years           4.5                                
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Strip ratio - life of mine               4.6                                
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Peak mining rate per year                120 million tonnes                 
----------------------------------------------------------------------------
Initial capital expenditure (April 1,    $2.7 billion                       
2013 forward)                                                               
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IRR(6)                                   11%                                
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NPV(6)                                   $1.1 billion                       
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Key assumptions:                                                            
    Energy source                        Heavy fuel oil                     
    Gold price (pit design)              $1,200/ounce                       
    Gold price (economic evaluation)     $1,500/ounce                       
    Discount rate                        5%                                 
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Kinross will hold a conference call and audio webcast on Monday,
April 29, at 8 a.m. ET to discuss the results of the Tasiast PFS,
followed by a question-and-answer session. To access the call, please
dial: 
Canada & US toll-free - 1-800-319-4610 
Outside of Canada & US - 1-604-638-5340 
Replay (available up to 14 days after the call): 
Canada & US toll-free - 1-800-319-6413; Passcode - 4137 followed by
#. 
Outside of Canada & US - 1-604-638-9010; Passcode - 4137 followed by
#. 
You may also access the conference call on a listen-only basis via
webcast at our website www.kinross.com. The audio webcast will be
archived on our website at www.kinross.com. 


 
(1) Cash costs include operating costs and royalties.                       
(2) All-in sustaining cost includes operating costs, royalties, sustaining  
    capital, and capitalized stripping, and does not include any allocation 
    of regional or corporate overhead costs.                                
(3) Includes estimated capital expenditures from April 1, 2013 forward, and 
    a contingency of $290 million.                                          
(4) Defined as April 1, 2013 forward                                        
(5) The $1,200 pit design in the PFS for purposes of economic evaluation    
    does not include inferred mineral resources and certain measured and    
    indicated mineral resources. The PFS does not result in any change to   
    Kinross' existing mineral reserve and mineral resource estimates for the
    Tasiast project. Please refer to our most recent Annual Information Form
    for Tasiast annual mineral reserve and mineral resource estimates as at 
    December 31, 2012.                                                      
(6) Does not include potential for improved economics related to potential  
    district exploration upside, potential implementation of lower-cost     
    natural gas generated power, or additional known mineral resource       
    estimates using a gold price above $1,200.                              

 
About Kinross Gold Corporation  
Kinross is a Canadian-based gold mining company with mines and
projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia
and the United States, employing approximately 9,000 people
worldwide. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).  
Cautionary statement on forward-looking information  
All statements, other than statements of historical fact, contained
or incorporated by reference in this news release, but not limited
to, any information as to the future financial or operating
performance of Kinross, constitute "forward-looking information" or
"forward-looking statements" within the meaning of certain securities
laws, including the provisions of the Securities Act (Ontario) and
the provisions for "safe harbour" under the United States Private
Securities Litigation Reform Act of 1995 and are based on
expectations, estimates and projections as of the date of this news
release. Forward-looking statements include, without limitation,
statements with respect to: possible events, the future price of gold
and silver, the estimation of mineral reserves and mineral resources,
the realization of mineral reserve and mineral resource estimates,
the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the development
of projects and new deposits, success of exploration, development and
mining activities, permitting timelines, currency fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage. The
words "aim", "anticipates", "plans", "expects", "indicative",
"intend", "scheduled", "timeline", "estimates", "forecasts",
"guidance", "opportunity", "outlook", "potential", "projected",
"schedule", "seek", "strategy", "study" (including, without
limitation, as may be qualified by "feasibility" and
"pre-feasibility"), "targets", "models", or "believes", or variations
of or similar such words and phrases or statements that certain
actions, events or results "may", "could", "would", or "should",
"might", or "will be taken", "occur" or "be achieved" and similar
expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by Kinross as of the
date of such statements, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.  
The estimates, models and assumptions of Kinross referenced,
contained or incorporated by reference in this news release, which
may prove to be incorrect, include, but are not limited to, the
various assumptions set forth herein and in our most recently filed
Annual Information Form and our full-year 2012 Management's
Discussion and Analysis as well as: (1) there being no significant
disruptions affecting the operations of the Company or any entity in
which it now or hereafter directly or indirectly holds an investment,
whether due to labour disruptions, supply disruptions, power
disruptions, damage to equipment or otherwise; (2) political and
legal developments in Mauritania being consistent with the Company's
current expectations; (3) the exchange rate between the Canadian
dollar, Mauritanian ouguiya and the U.S. dollar being approximately
consistent with current levels; (4) certain price assumptions for
gold and silver; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) production and cost of sales forecasts for
the Company, and entities in which it now or hereafter directly or
indirectly holds an investment, meeting expectations; (7) the
accuracy of the current mineral reserve and mineral resource
estimates of the Company (including but not limited to ore tonnage
and ore grade estimates) and any entity in which it now or hereafter
directly or indirectly holds an investment; (8) labour and materials
costs increasing on a basis consistent with Kinross' current
expectations; (9) the viability of the Tasiast mine (including but
not limited to the impact of ore tonnage and grade variability
reconciliation analysis) as well as permitting, development and
expansion (including but not limited to, the results of the
feasibility study) being consistent with Kinross' current
expectations; (10) the terms and conditions of the Tasiast legal and
fiscal stability agreement being interpreted and applied in a manner
consistent with their intent and Kinross' expectations; and (11)
access to capital markets, including but not limited to maintaining
an investment grade debt rating and securing partial project
financing the Tasiast expansion projects, being consistent with the
Company's current expectations.  
Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements.
Such factors include, but are not limited to: fluctuations in the
currency markets; fluctuations in the spot and forward price of gold
or certain other commodities (such as diesel fuel and electricity);
increases in the discount rates applied to present value net future
cash flows based on country-specific real weighted average cost of
capital; declines in the market valuations of peer group gold
producers and the Company, and the resulting impact on market price
to net asset value multiples; changes in interest rates or gold or
silver lease rates that could impact the mark-to-market value of
outstanding derivative instruments and ongoing payments/receipts
under any interest rate swaps and variable rate debt obligations;
risks arising from holding derivative instruments (such as credit
risk, market liquidity risk and mark-to-market risk); changes in
national and local government legislation, taxation (including but
not limited to income tax, advance income tax, stamp tax, withholding
tax, capital tax, tariffs, value-added or sales tax, capital outflow
tax, capital gains tax, windfall or windfall profits tax, royalty,
excise tax, customs/import or export taxes/duties, asset taxes, asset
transfer tax, property use or other real estate tax, together with
any related fine, penalty, surcharge, or interest imposed in
connection with such taxes), controls, policies and regulations; the
security of personnel and assets; political or economic developments
in Mauritania or other countries in which Kinross does business or
may carry on business; business opportunities that may be presented
to, or pursued by, us; operating or technical difficulties in
connection with mining or development activities; employee relations;
the speculative nature of gold exploration and development including,
but not limited to, the risks of obtaining necessary licenses and
permits; diminishing quantities or grades of reserves; adverse
changes in our credit rating; and contests over title to properties,
particularly title to undeveloped properties. In addition, there are
risks and hazards associated with the business of gold exploration,
development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate
insurance, or the inability to obtain insurance, to cover these
risks).  
Many of these uncertainties and contingencies can directly or
indirectly affect, and could cause, Kinross' actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, Kinross, including but not
limited to resulting in an impairment charge on goodwill and/or
assets. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of providing
information about management's expectations and plans relating to the
future. All of the forward-looking statements made in this news
release are qualified by these cautionary statements and those made
in our other filings with the securities regulators of Canada and the
United States including, but not limited to, the cautionary
statements made in the "Risk Factors" section of our most recently
filed Annual Information Form and full-year 2012 Management
Discussion and Analysis. These factors are not intended to represent
a complete list of the factors that could affect Kinross. Kinross
disclaims any intention or obligation to update or revise any
forward-looking statements or to explain any material difference
between subsequent actual events and such forward-looking statements,
except to the extent required by applicable law. 
Other information 
Where we say "we", "us", "our", the "Company", or "Kinross" in this
news release, we mean Kinross Gold Corporation and/or one or more or
all of its subsidiaries, as may be applicable. 
For impairment assessment purposes, the Company considers the PFS
results as well as other factors including, but not limited to,
estimated pit shell mineral resources using a gold price assumption
of $1,400 (vs. $1,200) per ounce, expected throughput of 38,000 tpd,
consensus gold prices, additional exploration potential and NAV
multiples and project optimization. As a result, the values
determined under the Company's impairment analysis at December 31,
2012 may differ from the NPV values resulting from the 30,000 tpd
PFS. 
The technical information about Tasiast contained in this news
release has been prepared under the supervision of, and verified by,
Mr. James K. Fowler, an officer with the Company who is a "qualified
person" within the meaning of National Instrument 43-101. 
This news release contains forward-looking information subject to the
risks and assumptions set out in our Cautionary Statement on
Forward-Looking Information located on page three of this release.
All dollar amounts in this release are expressed in U.S. dollars,
unless otherwise noted. 
Contacts:
Media Contact
Kinross Gold Corporation
Steve Mitchell
Vice-President, Corporate Communications
416-365-2726
steve.mitchell@kinross.com 
Investor Relations Contact
Kinross Gold Corporation
Tom Elliott
Vice-President, Investor Relations
416-365-3390
tom.elliott@kinross.com