KINROSS AND PLACER DOME TO FORM TIMMINS AREA JOINT VENTURE
April 11, 2002
Toronto, Canada
-
April 11, 2002
-
Kinross Gold Corporation (TSE-K; AMEX-KGC)
is pleased to
announce that it has signed a letter of understanding with a wholly owned subsidiary of
Placer Dome
Inc. (TSE-PDG; NYSE-PDG),
Placer Dome (CLA) Limited, to form a joint venture that will combine
the two companies’ respective gold mining operations in the Porcupine district in Ontario, Canada.
Placer will own a 51% interest and Kinross will own a 49% interest in the Porcupine Area Joint Venture,
which will be operated by a Placer affiliate. Placer will contribute the Dome mine and mill and Kinross
will contribute the Hoyle Pond, Pamour and Nighthawk Lake mines as well as the Bell Creek mill. Future
capital and operating costs will be shared in proportion to each party’s ownership interest.
According to Kinross Chairman and CEO, Robert Buchan “This will achieve the ultimate synergies for
our Timmins area assets that Kinross has been striving to attain over the past several years. These
include lower operating costs, an opportunity to economically process the Pamour “60 Pit” and
numerous other resources while allowing exploration and development of new projects in the Timmins
camp to proceed.”
As of December 31, 2001 Kinross’ reserves in the Porcupine district totaled 1.160 million ounces of
gold, using a $300 per ounce gold price assumption. Measured and indicated resources (excluding
reserves) totaled 3.045 million ounces of gold, with a further 2 million ounces in the inferred resource
category. The impact of this transaction is expected to result in a conversion of approximately 1.3
million ounces of gold from measured and indicated resources at the Pamour “60 Pit” to proven and
probable reserves using a gold price assumption of $300 per ounce. Consequently, Pamour “60 Pit”
reserves would be expected to total approximately 2.1 million ounces and are in addition to year-end
reserves of over 0.4 million ounces at the Hoyle Pond mine. For the first quarter of 2002, the Hoyle
Pond operation produced 53,476 ounces of gold equivalent at a total cash cost of $144 per ounce.
As of December 31, 2001 proven and probable reserves at the Dome mine were approximately 1.3
million ounces of gold, using a gold price assumption of $275 per ounce. Measured and indicated
resources totaled approximately 2.1 million ounces of gold.
The formation of the joint venture is subject to several conditions including due diligence, completion of
a definitive agreement, and the approval of the respective Placer Dome (CLA) Limited and Kinross
Boards of Directors.
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of
the United States Securities Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and objectives of Kinross Gold
Corporation (“Kinross”), are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from Kinross’ expectations are disclosed under the heading