Kinross development program at Hoyle Pond boosts reserves

It’s hard work, and it doesn’t excite speculators, but diligent underground development has rewarded Kinross Gold (TSE) with a large body of minable ore at its Hoyle Pond gold mine in Timmins, Ont.

Kinross has released new reserve figures calculated from the results of development work in the first half of 1995. On the 1060 zone, discovered in 1989, Kinross has advanced more than 2.4 km of drifts and raises. On the Main zone, which has been in production since 1985, there are new workings totalling more than 1.5 km. Twelve kilometres of core have been drilled.

The 1060 zone has been brought into the mine’s reserve, with 1.3 million tonnes of proven and probable ore, grading 12.98 grams gold per tonne, and another 1.3 million tonnes of possible ore grading 12 grams.

Proven and probable reserves in the Main zone have decreased fractionally to 305,000 tonnes from 306,000. The grade is slightly higher: 14.33 grams compared with 13.92. Possible reserves have increased from just under a million tonnes to nearly 1.5 million, with a grade of 14.98 grams.

Reserves in the 1060 zone are all above the 550-metre level, and those in the Main zone are above the 300-metre level. Potential resources exist below the cutoff levels in both zones.

Gold production proceeded at a fast pace. In the first half of 1995, Hoyle Pond sent 60,200 tonnes of Main zone ore and 23,500 tonnes of 1060 zone development ore to its mill on the adjacent Bell Creek property, producing 40,829 oz. gold. In comparison, Hoyle’s production for all of 1994 was 55,170 oz.

Sinking of a shaft to the 750-metre level is now at 120 metres and should be complete in another year.

Kinross will then carry out drilling in an attempt to define the Main zone below the 300-metre level. A second decline on the 1060 zone should be down to the 200-metre level by mid-October. Depth extensions of the 1060 zone will be tested in early 1997.

The Bell Creek mill is also being expanded, and should be ready by Oct. 1. Its capacity will increase to 1,000 from 450 tonnes per day to accommodate increased mine production scheduled for early 1996.

Kinross reported substantially improved gold production in the first half of 1995. Kinross mines produced 100,739 oz., compared with 84,624 oz. in the same period last year, led by increases of more than 17,000 oz. at Hoyle and almost 3,400 oz. at its recently expanded Golden Kopje mine in Zimbabwe.

The Macassa mine near Kirkland Lake, Ont., was acquired from Barrick Gold (TSE) after Barrick’s takeover of Lac Minerals in 1994. Macassa reopened last year and has added more than 12,000 oz. to the company’s production figures. At Kinross’s U.S. mines (DeLamar in Idaho, and Candelaria and Denton-Rawhide in Nevada), gold production decreased, but part of the decrease was offset by greater silver production.

Kinross reported revenue of US$53.9 million and earnings of US$7.2 million, or 6 cents per share, for the six months ended June 30. For the same period in 1994, revenue totalled US$43.6 million and earnings reached US$7.6 million, or 7 cents a share.