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TORONTO (miningweekly.com) – Canadian miner Kinross Gold on Monday announced the results of a feasibility study that examined the viability of significantly expanding output at its Tasiast mine, in Mauritania, saying that the expected capital cost would be less than what a prefeasibility study (PFS) estimated last year.
The TSX- and NYSE-listed miner said that the initial capital cost to expand the mine would be $1.6-billion, compared with its PFS estimate of $2.7-billion. A thorough review of project design, execution and scope produced about 230 cost-saving initiatives worth about $493-million.
Examples of the cost savings included pre-assembled plant modules, concrete precasting and greater reliance on in-house technical expertise for mine planning, engineering, geological modelling and overall project oversight.
The company also expected a decrease in Tasiast’s expected water demand owing to a planned reduction in dump-leach processing, more accurate mill modelling and greater-than-expected water availability from current sources, which had resulted in the company being able to defer the need to begin building a sea water pipeline from the coast to the mine until 2018.
RISING OUTPUT, LOWER COSTS
Kinross said that the feasibility study was based on replacing the existing 8 000 t/d mill at Tasiast with a new 38 000 t/d mill using heavy fuel oil for power generation at the site. The new mill would consist of a primary crusher, semi-autogenous grinding mill and a ball mill grinding circuit, with a conventional carbon-in-leach (CIL) circuit.
The existing dump-leach facilities would be phased out in 2019, but could be available for lower-grade ore in the future if it became economically viable, or if new ore was discovered in near-mine deposits. The new mill would have an average expected output of about 848 000 oz/y of gold for the first five years, with a forecast cumulative production of nine-million ounces to 2029.
Total cash costs were expected to average $501/oz for the first five years of production and $616/oz over the life of mine (LoM), with expected all-in costs of $792/oz for the first five years of production, which included construction of a sea water pipeline, and $878/oz over the LoM.
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