Kinross boosts stake in Goldbanks

Toronto-based Kinross Gold (K-T) has completed its acquisition of the Goldbanks gold-silver project, 56 miles south of Winnemucca, Nev.

In June 1995, the company bought a half interest in the property from privately owned Restoration Minerals for US$11.4 million; it will now buy the remaining half by issuing either 4 million shares, or 3 million shares and US$7 million. The deal is valued at $40 million.

Kinross’s ownership is subject to a 3.5% net smelter return royalty (NSR) on precious metals production and a 2% NSR on base metal production, effective once output exceeds 1.3 million oz.

At the Main and KW zones, Kinross has outlined a total of 80 million tonnes grading 0.63 gram per tonne, equivalent to 1.6 million contained ounces. An additional, drill-indicated resource is estimated at 2.9 million oz.

Heap-leaching permits are expected by early 1998, with production slated for early 1999. Initial annual output is projected at 150,000 oz.

gold-equivalent, with cash operating costs pegged at less than US$260 per oz.