UPDATE 2-Kinross pegs Mauritania mine expansion at $2.7 bln
* Moving ahead with 38,000 tpd mill study at Tasiast
* Pre-feasibility shows 20-year mine life
* Output of 830,000 ounces annually in first five years
* Full feasibility to begin immediately, due Q1 2014
* Shares down 2.7 percent to C$5.41 in Toronto
By Julie Gordon
TORONTO, April 29 (Reuters) - Kinross Gold Corp on Monday estimated the cost of a scaled-back expansion of its struggling Tasiast mine in West Africa at $2.7 billion, more than some analysts had expected, sending its shares 3 percent lower.
The company said it was pushing ahead with a feasibility study for a new 38,000 tonne-per-day mill at the project, located in remote Mauritania, despite plunging gold prices and investor pressure in the mining sector to cut back on spending.
Kinross said it would make a final decision on the expansion after the study is completed in the first quarter of 2014. Still, it is already spending some $624 million on infrastructure and other aspects of the project this year. Continued...