Kinross Reported Operational Updates At Bald Mountain

TORONTO, ON – Kinross Gold reported operational updates at its Bald Mountain mine in Nevada, Tasiast mine in Mauritania and Maricunga mine in Chile.

At Bald Mountain, the Company has received a record of decision from the U.S. Bureau of Land Management to allow for increased exploration activities and the mine’s potential expansion.

The decision allows the Company to expand existing mine facilities and provides significant flexibility for future growth, such as additional heap leach capacity and a carbon adsorption plant, beyond what is required in the current mine plan. The decision, among other exploration activities, will also allow the Company to complete modest infill and metallurgical drilling to potentially increase the mine’s mineral reserve estimate, and construct and operate new facilities in the North and South areas of the land package.

The Company is focused on developing two sets of deposits, the Vantage Complex and Yankee pits in the South area, and the Saga and Duke pits in the North area. Developing these deposits may substantially increase the current 1.1 million Au oz. mineral reserve estimate at Bald Mountain and extend life of mine.

At Tasiast, the Company resumed normal mining and processing operation in mid-August, following the temporary suspension caused by the expatriate work permit issue. Two major construction contracts regarding earthworks and concrete works have also been awarded for the Phase One expansion project.

In its Q2 2016 results news release, Kinross announced that the Company and the Government of Mauritania resolved the expatriate work permit issue as part of reaching a mutually acceptable "Mauritanization" plan to increase the number of local workers who have the necessary skills and experience to work at Tasiast, a requirement under Mauritanian law. As well, labour negotiations respecting the Company’s collective labour agreement at Tasiast are expected to recommence in the next  weeks.

At Maricunga, the Company has placed the mine into suspension. As previously disclosed, due to other capital priorities in its global portfolio, the Company decided to suspend mining at Maricunga in Q4 2016.

The suspension was implemented earlier than planned after a judicial decision in Chile concluded that the country’s environmental regulatory authority’s (SMA) revised June 24, 2016 sanction was enforceable. The sanction, among other things, substantially reduced water pumping at Maricunga, which caused the mine to suspend mining and crushing activities and curtail processing at the end of July 2016. The advanced timing of suspension at Maricunga is not expected to affect the Company’s 2016 production and cost guidance.

As a result of the suspension, the Company is reducing its mining and crushing workforce at Maricunga by approximately 300 employees. Kinross will continue to explore further permitting efforts and review the operation and its mineral resource model to consider possible options for re-starting mining. The Company continues to advance permitting efforts at the nearby La Coipa project with exploration work also continuing this year.