KINROSS Gold Corp. said an alternative, lower cost approach to the second phase development of its Tasiast project in West Africa’s Mauritania would be completed in the second half of its financial year.
Commenting in its first quarter production and financial numbers, in which net earnings fell to 5 US cents from 8 cents in the corresponding period of the previous financial year, CEO J Paul Rollinson said the options could be to increase the mine run rate to 30,000 tons per day or take an incremental approach of targeting 20,000 tons daily. The mine produced at a rate of 15,000 tons a day in the March quarter.
Tasiast nearly doubled gold equivalent gold production to 101,358 ounces (2018: 58,778 oz) in the quarter, a record number. Including Chirano, a mine in Ghana, production from Kinross’ West African portfolio totalled 153,680 oz (2018: 118,957 oz), an increase of 29%, and 25% of total group production for the period.
Discussions with lenders for the second phase expansion was underway, he said. Kinross was negotiating a $300m loan from Export Development Canada, the International Finance Corporation, and two commercial banks for the project, the company said. It hoped to conclude the discussion at the year-end.
