Shares in Kinross Gold (TSX:G) (NYSE:KGC) were up almost 2% Tuesday in pre-market trading as the Canadian miner announced is going ahead with an initial expansion of its Fort Knox mine, located in Alaska.
The project, to be carried out over an area known as Gilmore, immediately west of Fort Knox, is expected to initially extend the mine life of the operation by six years to 2027, and leaching to 2030. Kinross says it’ll spend an initial capital cost of only $100 million, increasing life-of-mine production by about 1.5 million gold equivalent ounces.
The first phase of the Gilmore expansion is expected to generate an internal rate of return (IRR) of 17% and net present value (NPV) of $130 million based on a $1,200/oz. gold price, and an IRR of 26% and NPV of $239 million based on a $1,300/oz. gold price.
More to come…
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From:: Mining.com