Cautious call on energy and small caps: Strategist
Kinross Gold Corp. said Tuesday it is making progress at its Great Bear project in Ontario and expects to declare an initial mineral resource as part of its 2022 year-end results.
In an update on the project and others in the U.S., the gold miner said it expects the initial mineral estimate to be predominantly in the inferred resource category, with some indicated resources.
Kinross said it has drilled approximately 83,000 metres and is on track to complete about 200,000 metres of exploration and infill drilling in 2022 on the LP Fault zone.
It said results so far are consistent with findings from earlier in the year, which confirmed gold mineralization with good widths and high grades.
Kinross has also increased the number of diamond drills at Great Bear to 11 from eight since its last update in May.
Kinross said its latest results continue to support its view of a high-grade, world-class deposit that underpins the prospect of a large, long-life mining complex.
Kinross said it is continuing to work with the Wabauskang and Lac Seul First Nations on baseline studies, site planning, training, and potential socio-economic opportunities.
Kinross is targeting construction by 2027 and first production by 2029 as it works to secure permits, but said it does see a potential path to "schedule compression."
Kinross announced that it would acquire all of the issued and outstanding shares of Great Bear Resources and its flagship Dixie project located in the Red Lake mining district in northern Ontario last December.
The company also said feasibility study work is nearing completion at its 70 per cent-owned Manh Choh project in Alaska and results are expected to be disclosed ahead of schedule as part of its second quarter results.
Initial production is on schedule to begin in the fourth quarter of 2024, subject to permitting.
Kinross completed the sale earlier this month of its Russian assets to the Highland Gold Mining group of companies for US$340 million, half of what it had negotiated initially, after Russian authorities capped the price.
Kinross shares have fallen just over 33 per cent year over year and were down 19 cents or 3.6 per cent at $5.08 in late morning trading on the Toronto Stock Exchange.