Mining News: News Nuggets: Lower mill grades lead to less gold, higher production costs at Fort Knox

Kinross Gold Corp. July 27 reported that its Fort Knox Mine in Interior Alaska produced 97,221 ounces of gold in the second quarter, down 16 percent from output of 116,061 oz. during the same period in 2015. The company attributed the lower production primarily to lower mill grades and recoveries. The mill at Fort Knox processed 3.47 million metric tons of ore averaging 0.64 grams per metric ton gold during the second quarter of 2016, compared with 3.35 million metric tons at 0.87 g/t gold for the same three months a year ago. Another 4.91 million metric tons of ore averaging 0.28 g/t gold was stacked on the heap leach pad at Fort Knox, compared with 8.26 million metric tons at the same grade during the year-ago period. The production costs for Fort Knox was US$793/oz. of gold in the second quarter, up 31 percent from US$606/oz. a year earlier. Kinross said these higher costs are primarily due to higher costs associated with mined operating waste. Through the first half of 2016, Fort Knox has produced 185,021 oz. of gold at US$753/oz., compared with 198,734 oz. of gold at US$634/oz. during the first six months of 2015. In total, Kinross’ global operations produced 671,267 gold-equivalent oz., when factoring in the value of by-product metals, at US$731/ oz. in the second quarter, compared with 660,898 gold-equivalent oz. at US$724/oz. during the same period of 2015.

-Shane Lasley