Sunday, September 7, 2025

Kinross Purchases 70% Stake In Peak Gold Project For $93.7 Million

Kinross Gold Corp (TSX: L) (NYSE: KGC) is expanding its operations in Alaska. The company announced this morning that it is acquiring a 70% interest in the Peak Gold project in Alaska for total cash consideration of $93.7 million. As a result of its majority position, the company will act as the predominant operator of the mine.

Located 400 kilometres southeast of Kinross’ Fort Knox gold mine, the project is expected to be operated as a low cost open pit mine. The benefit to Kinross, is that it will be able to truck the crushed ore to its Fort Knox mill for processing, reducing the need to construct milling or tailings facilities at site.

Production at the pit is currently expected to begin in 2024, with it currently estimated that production will consist of 1 million ounces of a period of 4.5 years, with average milling grades of 6.0 g/t. Multiple additional exploration targets exist on the 675,000 acre property however for potential expansion of mine life. The property presently has an indicated resource of 1.2 million ounces of gold at an average grade of 4.1 g/t, along with a 116,000 ounce inferred resource at 2.7 g/t.

On a preliminary basis, all-in sustaining costs of the operation are expected to come in at $750 per gold equivalent ounce, while lowering the all in sustaining cost of the Fort Knox mine by $70 per ounce equivalent.

Initial project capital expenditures are estimated at $110 million, with the project expected to improve Kinross’ medium term production and cash flow. Capital expenditures are favourable to Kinross in particular due to the ability of the firm to avoid construction of addition facilities that would be required if not for the Fort Knox operation.

The blending of ore from Peak Gold with Fort Knox is also expected to extend the mine life of Knox while also increasing cash flow. Further, Kinross will also process the 30% allocation of the ore in which it does not own, which will be paid for via a management fee and toll mill fee.

Kinross is to acquire 70% of the Peak Gold project through two transactions. First, the company will acquire the 40% stake in the property owned by Royal Gold at a price of $49.2 million. The company will then purchase half of the 60% share that CORE Alaska, LLC owns in the property for total consideration of $44.5 million. CORE Alaska is a subsidiary of Contango ORE. Cash paid to Contango includes a $1.2 million prepayment reimbursement for a new royalty on silver revenues from Peak Gold.

The transaction is to close on or before October 1, 2020.

Kinross Gold last traded at $11.96 on the TSX.


Information for this briefing was found via Sedar and Kinross Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

New Found Gold To List Shares On NYSE By End Of Month

New Found Gold (TSXV: NFG) is finally moving to a US big board. While the...

Friday, September 24, 2021, 07:52:33 AM

Fiat Expansion Is Driving Money Into Hard Assets – The Daily Dive feat Florian Grummes

Today on the Daily Dive, host Cassandra Leah sits down with that of Florian Grummes,...

Tuesday, March 23, 2021, 01:30:00 PM

Osisko Gold Royalties Reports Prelim Q4 Revenues Of $50.7 Million

Osisko Gold Royalties (TSX: OR) last night after the bell revealed preliminary fourth quarter 2021...

Tuesday, January 11, 2022, 07:44:18 AM

i-80 Gold Assays 48.6 Metres Of 7.54 G/T Gold At Granite Creek

i-80 Gold Corp. (TSX: IAU) reported this morning the assay results for the first phase...

Wednesday, December 8, 2021, 09:24:00 AM

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

In this interview, Martino De Ciccio, CEO of Montage Gold (TSX: MAU), provides insights into...

Thursday, May 29, 2025, 01:32:00 PM