Name of the Project
Tasiast Phase 2 expansion.

Location
Mauritania.

Client
Kinross Gold Corporation.

Project Description
The Tasiast Phase 1 project is nearing completion.

The Phase 2 expansion of the Tasiast mine is expected to transform the mine into a large, world-class operation, with low costs and a long mine life.

The feasibility study on the Phase 2 expansion has reaffirmed the previous prefeasibility study results and has factored in recent improvements at Tasiast.

The feasibility study is assessing the installation of additional mill throughput of 18 000 t/d to the Phase 1 project’s 12 000 t/d capacity for a total combined capacity of 30 000 t/d. The expansion will replace the two current ball mills with a new larger ball mill, add new leaching, thickening and refinery capacity, and extend the mining fleet.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The combined two-phase expansion has an after-tax net present value, at a 5% discount rate, of $1.43-billion. The Phase 2 estimated incremental internal rate of return is estimated at 24%.

Value
Initial plant and infrastructure costs have been estimated at $590-million.

Duration
Initial construction on Phase 2 is expected to begin in early 2018, with commercial production expected to start in the third quarter of 2020.

Latest Developments
With the Phase 2 project approved, a project team has been established and advanced engineering has begun.

Procurement of critical work equipment packages is advancing, as the construction is expected to start in early 2018.

Meanwhile, the Tasiast Phase 1 project continues to progress well, being on time and within budget, with full commercial production expected in the second quarter of 2018. Plant construction is now two-thirds complete.

The semiautogenous mill is in place and work has begun on the installation of its gearless motor drive. Mechanical installations at the crusher, conveyor, stockpile and in the existing plant are proceeding well.

The oxygen plant has been commissioned and is supporting the mine’s current production, with the new tailings storage facility expected to be operational shortly.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Kinross Gold Corporation senior VP: investor relations and corporate development Tom Elliott, tel +1 416-365-3390
or email tom.elliott@kinross.com.