Mine expansion and acquisition plans should give gold-silver producer Kinross Gold (TSE) annual output of 500,000 oz. gold-equivalent by the end of 1996.
At the annual meeting, President Robert Buchan discussed major capital expenditure programs under way at three operations Hoyle Pond in northeastern Ontario, QR in British Columbia and Blanket in Zimbabwe. Also, operating life has been extended at Candelaria in Nevada and expansion plans are in the works for DeLamar in Idaho.
Kinross has negotiated a deal with Barrick Gold to acquire the latter’s Macassa gold mine at Kirkland Lake, Ont. It will also increase to 49% its interest in the Denton-Rawhide mine in Nevada.
In 1994, Kinross produced 174,165 oz. gold and 5.2 million oz. silver.
Work by Kinross at the underground Hoyle Pond mine in Timmins has led to a significant increase in reserves. As of the end of 1994, the company was quoting a resource (all categories) of 578,000 oz. gold in the Main zone, and a drill-indicated resource of more than 1 million oz. in the 1060 zone.
During the first quarter of 1995, gold and silver output amounted to 42,347 oz. and 1.2 million oz., respectively, which marked an improvement over the same period in the previous year. The operating cost was US$259 per equivalent ounce of gold.
Net income during the quarter was US$3.3 million, compared with US$3.1 million for the same period in 1994.
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