April 28, 1998
Toronto, Ontario (April 28, 1998)- Kinross Gold Corporation (TSE - K, NYSE - KGC) announces the
acquisition of two groups of gold properties containing a drill-indicated resource of over 1.2 million
ounces of gold in the prolific Eastern Goldfields mineral province of Western Australia for approximately
US $5 million (A $7.4 million). These properties have been acquired by a wholly-owned subsidiary,
Kinross Gold Australian Pty. Ltd., through the court appointed administrator of a recently bankrupt
junior gold company, Australasian Gold Mines NL.
The largest (545 square kilometres) and most advanced of the two properties is within and adjoining
the Norseman mining district. The Mt. Henry and Selene deposits have been partially delineated by
almost 400 reverse circulation and diamond drill holes resulting in a near-surface resource of
28,943,000 tonnes grading 1.30 grams of gold per tonne recalculated by Kinross using a cut off grade
of 0.77 grams per tonne. During the due diligence for this transaction, Kinross exploration staff
recognized that there is good potential to increase the tonnage, and hence contained gold ounces, at
both the Mt. Henry and Selene deposits through additional drilling along strike and down dip. The
identified geologic resources are all located on granted Mining Leases that are not subjected to any
aboriginal title issues.
The remaining properties at Broad’s Dam, which cover an area of 28.5 kilometres, are located
approximately 45 kilometres northwest of Kalgoorlie, the premier gold mining centre in Australia.
These properties lie along a major structural "break" analogous to those hosting many of the major
gold deposits of northern Ontario, Canada. The Mt. Pleasant mining operations of Centaur Mining &
Exploration, with a reported combined ore reserve and geologic resource containing approximately 4
million ounces of gold, are in close proximity to the Broad’s Dam properties.
Both property groups at Norseman and Broad’s Dam have considerable scope for the discovery of
significant new gold deposits that may be amenable to open pit mining methods and conventional
processing techniques. Additionally, there is potential for the discovery of high grade vein type deposits
which could allow Kinross to use its underground mining skills as currently applied at its mines in
northern Ontario. This transaction provides Kinross with an initial, low cost entry into the Australian
gold sector, with an acquisition cost of less than US $5 per resource ounce of gold, and provides a
"strategic beach-head" for future activities.
On May 28, 1998 Kinross shareholders will vote on the proposed merger of Kinross with Amax Gold
Inc. Assuming that the transaction is consumated, Kinross will become the fifth largest North American
based gold producer with annualized production estimated at approximately 1.2 million ounces of gold.
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