NEVADA SPECIAL — Kinross to add Goldbanks to list of Nevada mines

No stranger to the Nevada mining scene, Kinross Gold (K-T) is looking to advance its Goldbanks gold project to full feasibility and thereby add another mine to its existing operations in the state.

The company owns 100% of the Candaleria silver-gold mine in the southwestern part of Nevada, and a 49% direct interest in the Denton-Rawhide gold mine 120 miles southeast of Reno.

Denton-Rawhide turned out 122,209 oz. gold and just over 1 million oz. silver last year. Kennecott owns 51% and is operator.

This year, Kinross’s share of production is expected to reach 48,300 oz. gold and 417,000 oz. silver at a cash cost of US$211 per equivalent ounce gold.

In 1995, Candaleria produced 2.8 million oz. silver and 10,649 oz. gold, down from 3.2 million and 12,646 oz., respectively, in the previous year.

Operating costs were over budget last year, reaching US$343 per oz.

gold-equivalent, compared with US$276 a year earlier.

Although Kinross has mines and exploration projects all over the world, the Goldbanks project is amongst those being worked most intensively.

The company acquired a half interest in the project last June and, under a joint-venture agreement, must undertake all work necessary to begin developing a large, open-pit producer of gold and silver in the next four years.

At last report, Goldbanks hosted 59.8 million tons averaging 0.03 oz. gold per ton, plus an additional 32 million tons of “lean ore” with an average grade of 0.008 oz.

The Main zone has an indicated stripping ratio of 2.4-to-1, and metallurgical test work indicates it will be amenable to conventional heap-leach processing. The 1995 exploration program also led to the discovery of a new zone, the KW, which hosts a resource of 20.4 million tons averaging 0.028 oz.

gold, plus silver values.

The potential for advancing this resource to the reserve status is considered excellent, as mineralization has been discovered along a 5-mile structural zone associated with a volcanic and diatreme maar system.

The Goldbanks joint venture has expanded the project’s land package to 28 from 15 sq. miles.

To start the permitting process, Kinross submitted a mining plan of operation to the U.S. Bureau of Land Management. Environmental base-line studies are described as “well-advanced”. If all goes as planned, construction could begin in late 1997 or early 1998.

Kinross reported net income of US$12.8 million on revenue of US$137.8 million for 1995, compared with US$18 million on US$95.9 million in the previous year.