The estimated cost of the project is $995m that includes initial capital cost of $765m, plus approximately $230m in contingency
Canada-based gold mining firm Kinross Gold has unveiled the results of a pre-feasibility study (PFS) conducted on its Lobo-Marte project in Chile.
Enhancing the Kinross’ long-term production profile, the project is estimated to add a significant 6.4 million gold ounces that represents about 25% increase to the company’s 2019 year-end mineral reserve estimates.
As per the PFS, the Lobo-Marte gold project located in northern Chile is expected to produce approximately 4.5 million gold ounces for more than 15-year mine life.
It is contemplated to feature an open pit mining, heap leach recovery and sulphidisation, acidification, recycling and thickening (SART) plant.
Kinross said that the PFS estimates that the Lobo-Marte project construction to commence in 2025, with first production predicted in 2027.
Kinross president and CEO J. Paul Rollinson said: “The Lobo-Marte project provides Kinross with an excellent, organic development option that has attractive all-in sustaining costs and offers substantial upside leverage to the gold price, without increasing project cost requirements and risk.
“The project represents a potential synergistic, long-term mine life extension in a favourable mining jurisdiction and delivers a significant 6.4 million ounce addition to our current gold reserve estimates, increasing the Company’s overall reserve mine life.
“As we move forward with the feasibility study for this longer-term project, we will continue to prioritize balance sheet strength and disciplined capital allocation.”
Estimated cost of the Lobo-Marte project is $995m
According to the study, the estimated cost of the project is $995m that includes initial capital cost of $765m, plus approximately $230m in contingency.
The estimated capital costs cover mine equipment, crushing and storage facilities, conveyors, and site utilities and infrastructure.
Additionally, the firm plans to start a feasibility study on Lobo-Marte later this year, and is planned to be completed in the fourth quarter of 2021.
Furthermore, the company expects that the feasibility study to provide the detailed engineering and project description which is required for submission of an Environmental Impact Assessment.
In January this year, Kinross Gold completed its previously announced acquisition of high-grade, open-pit, heap leachable project Chulbatkan, owned by Australian mining company N-Mining, for a total consideration of $283m.