Mining News: News Nuggets: Fort Knox gold production up; more in-pit aurum discovered

Kinross Gold Corp. Feb. 15 reported that Fort Knox Mine near Fairbanks produced 409,844 ounces of gold in 2015, a slight increase over the mine’s output of 401,553 oz in 2015. Some 13.22 million metric tons of ore averaging roughly 0.69 grams per metric ton gold was processed through the mill in 2016; and approximately 25.14 million metric tons of ore averaging about 0.27 g/t gold was stacked on the mine’s heap leach pad during the year. Production costs at the Interior Alaska mine totaled US$302.2 million last year, a nearly 20 percent increase over the US$252.8 million 2015. As a result, production cost per ounce for Fort Knox gold sold in 2015 was US$741, compared with US$629 the previous year. Fort Knox ended 2016 with 104.7 million metric tons of proven and probable reserves averaging 0.4 g/t (1.51 million oz) gold. The mine has an additional 95.02 million metric tons of measured and indicated resources (not included in the reserves) averaging 0.5 g/t (1.44 million oz) gold; and 13.04 million metric tons of inferred resources averaging 0.5 g/t (193,000 oz.) gold. Kinross said a 2016 drill program in the East and South Wall regions of the open pit at Fort Knox has encountered potentially mineable grade intercepts, including 35 meters averaging 0.9 g/t gold; 13.7 meters of 1.7 g/t gold; and 24.4 meters of 1.8 g/t gold. An updated resource for Fort Knox that includes the intercepts encountered in the pit is expected later this year.

-Shane Lasley