The PFS contemplates an openpit, heap leach and SART (sulphidisation, acidification, recycling and thickening) plant operation using rope conveyors and mining the Marte and Lobo deposits in succession. It details annual average production of 300,000 ounces for 15 years at an average all-in sustaining cost of US$745/oz, which includes 12 years of mining followed by three years of residual processing.
The study provides a range of net present value (NPV) and internal rate of return (IRR) estimates for Lobo-Marte using a $1,200/oz reserve price, $1,500/oz consensus long-term estimate, and $1,800/oz spot price. The NPVs are $150 million, $770 million and $1,355 million, while the IRRs are 7%, 14% and 21% following an initial capital cost of $995 million including a $230 million contingency.
"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," said president and CEO Paul Rollinson.
Project construction could begin in 2025 with first production in 2027 following the conclusion of mining at its La Coipa project, 50km away. The company plans to commence a feasibility study later this year, with scheduled completion towards the end of 2021.
Lobo-Marte hosts a June 2020 probable reserve of 146.8 million tonnes grading 1.36 grams per tonne for 6.4Moz. It also has indicated resources of 75.7Mt grading 0.74g/t for 1.8Moz.
Shares in Kinross Gold are trading at C$10.12, valuing the company at $13.2 billion.
