UPDATE 1-Kinross pegs Mauritania mine expansion at $2.7 bln

Mon Apr 29, 2013 8:19am EDT
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* Expects average cash costs of about $500 per ounce

* Sees mill throughput at 30,000 tonnes per day

* Pre-feasibility study shows 20-year mine life for Tasiast

* Says full feasibility study will begin immediately

* Full feasibility study likely to be completed in Q1 of 2014

April 29 (Reuters) - Kinross Gold Corp is pushing ahead with plans to expand its Tasiast project in Mauritania with a feasibility study for a 38,000-tonne-per-day mill and said it expected the initial capital cost for the project to be about $2.7 billion.

The Toronto-based miner, which announced the results of a prefeasibility study on a 30,000 tonne-per-day option on Monday, said the feasibility study will contemplate an additional 8,000 tonnes per day in order to wrap production from the existing mill into one facility.

Work on the feasibility is set to begin immediately, with completion slated for the first quarter of 2014.

"Although there is considerable work to be done at the feasibility study level before we decide whether to proceed with construction, the results of the prefeasibility study are encouraging," said Chief Executive J. Paul Rollinson in a statement.   Continued...