Kinross ups reserves at Candelaria project

Toronto-based Kinross Gold (TSE) has delineated more underground and open-pit reserves at its Candelaria gold-silver mine near Hawthorne, Nev.

At the Northern Belle pit, drilling confirmed minable reserves of 10.5 million tons grading 1.41 oz. soluble silver and 0.004 oz. soluble gold per ton. These new open-pit, heap-leach reserves should allow a yearly production level of 3.6 million oz. silver and 10,300 oz. gold through to mid-1998. Cash operating costs are expected to be $US4.23 per oz. silver over the life of the reserve.

A second reverse circulation drill program has identified underground reserves of 6.6 million tons grading 6.78 oz. silver and 0.007 oz. gold. This reserve would support a 2,000-ton-per-day operation for 10 years and could be developed at a cost of US$19 million.

Recoveries indicated from metallurgical testing, together with a capital and operating analysis, indicate that these reserves are economic at current silver prices, although not as profitable as the Northern Belle pit. For the balance of the year, the company plans to continue metallurgical testing to improve metal recovery from the underground ores. It will then seek permits to ensure an early startup.