Kinross to test depth of Goose (July 24, 2001)

Kinross Gold (K-T) has begun a summer drilling program on Wheaton River Minerals‘ (WRM-T) Goose Lake gold deposit, which is the largest of six deposits that constitute the George Lake project in Nunavut.

Kinross can earn a 70% interest in the project from Wheaton by spending $20 million over four years. More than $3 million has been spent so far.

The 3,000-metre program aims at testing the deposit down-plunge to depths of between 400 and 500 metres. To date, the deepest holes on the deposit cut mineralization at 320 metres, returning 13.3 metres grading 23.6 grams gold per tonne. Two other intercepts from the same hole ran 33.7 grams over 2 metres and 22.4 grams gold over and 2.8 metres.

Drilling will also test several outlying targets.

Earlier this summer, drilling by Kinross increased the size of the Goose Lake deposit. Twelve holes confirmed that the South Extension, discovered by Kinross last year, is part of the Main zone. The zone now measures 600 metres in strike length and extends for 300 metres below surface.

Hole 65 returned the widest interval — 17.45 metres (starting at a down-hole depth of 6.6 metres) grading 11.8 grams gold per tonne. The highest grade, 52.3 grams, came from a 2-metre interval (starting at 125.35 metres) in hole 67.

Several holes cut more than one intersection and contained visible gold.

Mineralization at Goose Lake occurs in several parallel zones surrounding a newly discovered fold nose that trends northeasterly and plunges moderately to the west. A close association with quartz veining in iron formation is apparent.

At the end of 2000, Kinross pegged Goose Lake with an inferred resource of 3.9 million tonnes grading 12.51 grams gold. Indicated resources in the other five deposits at George Lake combine to top 2.6 million tonnes grading 9.95 grams. Another 1.3 million tonnes grading 10.11 grams are classified as inferred.

In other news, all regulatory and shareholder approvals have been received by Pentland First Ventures (PFO-T) for a previously announced deal under which Kinross intends to buy Pentland’s assets in lieu of all debt owed to it.

The deal includes the issue by Pentland to Kinross of about 8.5 million shares at 10 per share.

Concurrently with the closing of the transaction, Pentland plans to issue 31.5 million shares to acquire all of the shares of Tesoro Energy.

Following the deal, Kinross will own 16.4%, or more than 10.6 million shares, of Pentland. The deal is expected to close by July 25.

Pentland holds 290 sq. km near Timmins, Ont. Several of the properties adjoin those already owned by Kinross.