Fort Knox Realized Record Grade And Recovery Due To Commencement Of Production At Manh Choh

TORONTO - Kinross Gold Corporation Chief Executive Officer, J. Paul Rollinson, said, “We remain heavily focused on consistent operational performance, cost control, capital discipline and delivering on planned grades to generate value for our shareholders. Our ability to hold costs in this strong gold price environment continues to benefit our margins. We also delivered record free cash flow, which increased by 20% compared with the previous quarter. During the quarter, we released the PEA at Great Bear, located in Ontario, which reaffirms our view of a high-quality, high-margin asset with robust economics, modest capital requirements and clear opportunity for resource growth. Following an invitation from the Ontario Ministry of Mines, we are pleased to have submitted our final AEX Closure Plan for approval, which is an important permitting milestone. We also completed the commissioning of our Manh Choh project resulting in a significant increase in cash flow from Fort Knox located in Alaska, and advanced Phase X at Round Mountain in Nevada.”

Kinross produced 564,106 Au eq. oz. in Q3 2024, compared with 585,449 Au eq. oz. in Q3 2023. The 4% year-over-year decrease was primarily a result of planned lower production at Paracatu, in Brazil, due to mine sequencing and fewer ounces recovered from the heap leach pads at Round Mountain, partially offset by the commencement of production from Manh Choh.

Tasiast, located in Mauritania, delivered another strong quarter, with production increasing compared with Q2 2024 mainly due to record mill throughput, and cost of sales per ounce sold increased due to higher royalty costs relating to higher gold prices. Production decreased compared with Q3 2023 mainly as a result of a decrease in mill grades, and cost of sales per ounce sold was slightly higher due to the lower production and higher royalty costs.

At Paracatu production increased quarter-over-quarter mainly due to higher grades and recoveries as a result of the addition of Knelson gravity concentrators to the processing circuit, and cost of sales per ounce sold decreased mainly due to the higher production. Production was lower compared with Q3 2023 mainly due to the timing of ounces processed through the mill and lower grades according to the planned mine sequence. Cost of sales per ounce sold was higher mainly due to the planned decrease in grades and production compared with Q3 2023.

In Northern Chile, La Coipa production was lower quarter-over-quarter mainly due to lower mill throughput and recoveries. Cost of sales per ounce sold was higher quarter-over-quarter mainly due to the lower production. Year-over-year, production decreased as a result of lower mill throughput, and cost of sales per ounce sold increased primarily due to the lower production and higher mill maintenance costs. Mill throughput is being managed while optimization initiatives are implemented. Full-year production guidance at La Coipa remains on track.

Significant production increase was reported at Fort Knox quarter-over-quarter and year-over-year due to the commencement of production from higher-grade Manh Choh ore. Fort Knox realized record grade and recovery, resulting in a significant increase in cash flow. Cost of sales per ounce sold decreased in both comparable periods mainly due to the increase in production. Construction and commissioning of the Fort Knox mill modifications have been completed.

Production decreased at Round Mountain quarter-over-quarter and year-over-year mainly due to fewer ounces recovered from the heap leach pads. Cost of sales per ounce sold was in line quarter-over-quarter and was higher year-over-year mainly due to the decrease in production and higher cost ounces produced from the heap leach pads. Phase S mining remains on track, and construction of the heap leach pad expansion is complete, on schedule and under budget, with solution application permits received.

At Bald Mountain, in Nevada, production was lower quarter-over-quarter due to the timing of ounces produced from the heap leach pads. Production increased year-over-year due to higher grades, partially offset by the timing of ounces recovered from the heap leach pads. Cost of sales per ounce sold was higher in both comparable periods as a result of higher cost ounces produced from the heap leach pads.

The PEA for Great provided visibility into the potential production scale, construction capital, all-in sustaining cost and margins for both the open pit and the underground. The PEA represents a point in time estimate and is only a window into the long-term potential of the asset given the indications of continued mineralization at depth. The PEA supports the Company’s acquisition thesis of a top-tier, high-margin operation in a stable jurisdiction with strong infrastructure. Based on mineral resources drilled to date, the PEA outlines a high-grade combined open pit and underground mine with an initial planned mine life of approximately 12 years and production cost of sales of $594 per ounce. The Project is expected to produce over 500,000 ounces per year at an all-in sustaining cost of approximately $800 per ounce during the first eight years through a conventional, modest capital 10,000 tonne per day mill. Also released a updated mineral resource estimate for the project, increasing the Inferred resource estimate by 568 koz. to 3.9 Moz., which is in addition to the Measured & Indicated resource estimate of 2.7 Moz.

For the AEX program, permitting, detailed engineering, execution planning, and procurement continue to advance. Kinross has submitted its final Closure Plan to the Ontario Ministry of Mines and approval is expected shortly. This is an important permit milestone that is required for all AEX construction activities. The Closure Plan will allow for the immediate commencement of early works construction on the site including laydown areas, temporary offices, and earthworks. The Company is focused on progressing the AEX program to begin drilling underground to continue unlocking the full potential of the asset, with construction of the underground decline planned to commence in 2025. For the Main Project, Kinross expects to advance engineering definition and execution planning following the selection of design partners later this year. Following the receipt of the Tailored Impact Statement Guidelines earlier this year, the Company continues to work with the Impact Assessment Agency of Canada on advancing its Impact Statement, which is planned to be submitted later in 2025. Kinross will also be working closely with the Ontario authorities on obtaining provincial permits, similar to the AEX permits, for the Main Project. In 2025, Kinross intends to conduct regional exploration with the goal of identifying new open pit and underground deposits.

Round Mountain Phase X infill drilling continued on the lower zone of the primary Phase X exploration target commenced in Q3, as planned, alongside continued opportunity drilling outside the primary Phase X exploration target. The drilling in Q3 has demonstrated strong grades and widths from within the primary Phase X target. Drilling outside of the primary exploration target also continues to indicate strong grades and widths. These results continue to support the Company’s hypothesis of potential for higher-margin mining from a bulk underground operation.

In Washington State, the Curlew drilling progressed in the third quarter with three drill rigs active underground testing the Stealth (ST) and EVP Zones.  Drilling this year expanded mineralization in zones with favourable grade and width to support higher-margin production.

The Company is progressing baseline studies at Lobo-Marte in Chile, and continues to engage and build relationships with communities and government stakeholders. Lobo-Marte continues to be a potential large, low-cost mine upon the conclusion of mining at La Coipa where Kinross remains focused on potential opportunities to extend mine life.