Kinross' Dvoinoye gold mine in Russia starts commercial output

Wed Oct 9, 2013 5:46pm EDT
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Oct 9 (Reuters) - Kinross Gold Corp said on Wednesday its Dvoinoye gold mine in Russia, where the Canadian miner already operates the Kupol mine, had started commercial production.

Kinross said Dvoinoye, which is located 100 km (62.5 miles) north of Kupol in Russia's eastern Chukotka region, is expected to produce between 235,000 and 300,000 gold equivalent ounces a year during its first three years of production.

The cost of sales for the combined Russian operations between 2014 and 2016 is forecast to be $545-$600 per gold equivalent ounce. Ore from Dvoinoye will be processed at the existing Kupol mill, helping to keep costs down.

Kinross said it will provide guidance for its 2014 production, cost of sales and all-in sustaining costs for its combined Russian operations and other regions in early 2014.

"Dvoinoye is the fourth mine Kinross has operated in Russia, which remains our lowest-cost jurisdiction and a core operating region for the company," Kinross' chief executive Paul Rollinson said in a statement.

Dvoinoye had proven and probable gold reserves of approximately 1.1 million gold equivalent ounces, as of December 31, 2012, with an average gold grade of 17.8 grams per tonne.