Growing tired of its troubling situation in Russia making headlines, Kinross Gold (TSX: K) this morning provided an update on its plans for the Great Bear Resources assets it closed on earlier this year. The plans are said to include significant further drilling, as well as a mineral resource estimate later this year.
Despite Great Bear’s plans last year of publishing a maiden resource estimate, it appears that task has now been postponed yet again. Under Kinross’ management, it is now expected that investors will finally see a tally of how much gold is potential in the ground at some point in early 2023. At last tally, Great Bear had indicated it intended to release the maiden resource estimate in 1Q22.
Kinross intends to release an inferred estimate for the Dixie Lake project at the same time as its release of its 2022 year-end results, which translates roughly to February 2023. That estimate will then be followed by a pre-feasibility study that is to begin next year, although a rough timeline on its completion was not provided.
In terms of 2022, Kinross has reportedly earmarked US$60.0 million for the further development of the property this year, which includes additional drilling as well as field work required for the pre-feasibility study, which includes metallurgy and hydrology among other items. Drilling for the year is to focus on the LP Fault, with a total of ten drill rigs to be active as part of a 200,000 metre program.
The company this morning also released further drill results from the LP Fault zone, the highlights of which include:
- BR-481: 15.10 g/t gold over 10.1 metres, including 65.83 g/t gold over 1.0 metres
- BR-484: 6.11 g/t gold over 9.2 metres
- BR-503: 10.80 g/t gold over 11.2 metres, including 25.72 g/t gold over 3.6 metres
- BR-508: 13.23 g/t gold over 4.4 metres
The announcement follows the news from earlier this week, wherein the company announced the sale of its Russian assets. The firm received consideration of just $400 million for the Kupol mine, despite the mine generating topline revenue of $862.8 million and net operating earnings of $442.7 million in 2021. The Udinsk development project meanwhile garnered $280 million in consideration, however payments on that asset sale won’t begin until 2025, with final payments to be made by the end of 2027.
Kinross Gold last traded at $7.34 on the TSX.
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