Decision Does Not Affect Current Mining Operations in Russia
TORONTO, Ontario - Kinross Gold Corporation (TSX-K;
NYSE- KGC) ("Kinross" or the "Company") informed employees and
local government officials that it would not proceed with the
development of the Tsokol vein located near the Kubaka mill. Tsokol
represented roughly 158,000 oz. of proven and probable reserves in
Kinross' December 31, 2003 reserve report. These reserves will be
reclassified as resources in 2004.
Omolon management is currently re-working their mine plan based
on this announcement. Should closure of the Kubaka operation become
the best alternative, this would take place only after completing
the mining and milling of the Birkachan open pit and Central Zone
Kubaka underground ore body, and the milling of the existing Kubaka
stockpiles. This would provide feed for the mill for approximately
12 months. Closure would take place over an additional 12- month
period. Development of the Birkachan underground deposit is still
being considered.
Contrary to recent reports in the Russian and Canadian press,
the decision reached was not due to deteriorating relations with
the Magadan Administration, but due to insufficient return on the
investment in the Tsokol project. The decision was influenced,
however, by what Kinross perceives to be an unpredictable tax
climate.
Cautionary Statement on Forward-Looking Information
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, 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 “Risk Factors” and elsewhere in Kinross’ documents filed from time to time with the Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities