The Paracatu Gold Mine An Evolving Brazilian Gold Giant

Transcription

1 The Paracatu Gold Mine An Evolving Brazilian Gold Giant Kinross Gold Corporation 40 King Street West, 52 nd Floor Scotia Plaza Toronto, ON M5H 3Y

2 D Certain statements set forth in this presentation constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of Such statements involve risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ from those expressed or implied by such forward looking statements. Such risks and uncertainties are described in periodic filings made by Kinross Gold Corporation with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. All dollar amounts used throughout this presentation are expressed in US dollars, unless otherwise noted.

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5 Two distinct seasons October to March is the rainy season April through to September is the dry season Temperatures average 20 C and range from highs of 35 C to lows of 15 C. Average annual rainfall totals between mm. Lots of interesting flora and fauna

6 750 Employees Systems approach integrating HS&E into culture; Long term vision Outstanding commitment to safety Community respect Outreach programs Educational programs Sense of pride

7 NOSA Five Star NOSCAR 2003 & Rio Tinto Chief Executive Safety Award ISO 14001

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9 Man hours worked Safety Training hours

10 Lost Time injury Frequency Frequency Paracatu Ontario Mines

11 Member of AMDA, an environmental NGO Minas Gerais State Ecology Award 2002 Achieved Child Friendly certification from ABRINQ, another NGO 2003 and rated as a Great Place to Work (American Institute in partnership with Exame Magazine) 2004 Selected as one of the best companies for developing management by Valor Carreira Magazine

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16 1722 Placer gold discovered at Rico Creek; 1800 s Garimpero mining in Rico Creek and Morro do Ouro (Hill of Gold) oxide cap; 1970 s Exploration for lead zinc deposits; 1984 Riofinex acquires Paracatu from Billition and begins surface exploration of Paracatu (pits and shallow drill holes). Riofinex estimates reserves of g/t Riofinex complete a positive Feasibilty Study and approve construction pending successful partnership with a Brazilian partner 1987 Rio Paracatu Mineração (RPM), a joint venture between Riofinex (51%) and Autram Mineração e Participações (49%) is formed and construction of a 6 Mtpa mining and milling complex is initiated. Autram later becomes TVX Gold s Throughput ramped up to 12 Mtpa 1997 Throughput increased to 16 Mtpa 1999 Throughput increased to 20 Mtpa 2003 Kinross acquires TVX s 49% interest 2004 Kinross acquires Rio Tinto s 51% interest to own 100% of the project

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18 295,000E 300,000E Geological Legend Fazenda Lavras 8,105,000N Paracatu Formation Serra da Anta Sequence Metasiltstones and quartzites Morro do Ouro Sequence Foliated pelites 1%py, rare quartz boudins Tailings Dam Carbonaceous pelites and arenites - foliated, quartz boudins, sulfides, and Au road Paracatu Property Tailings Pond 8,100,000N Finely laminated carbonaceous pelites and quartzites Serra do Landim Sequence, river $400 Scoping Pit Crest Calcareous phyllites Vazante Formation Serra da Lapa Sequence Town of Paracatu Arkose and laminated metasiltstones Serra do Velozinho Sequence Meta-arenites and argillaceous siltstones 8,095,000N Recifal Sequence Reef dolomites kilometres Thrust Fault Post mineralization faulting Paracatu An Evolving Brazilian Gold Giant Toronto Geological Discussion Group December 6, 2005

19 Conceptual Geological Section Looking NW Serra do Landim Foliated pellites Finely laminated carbonaceous phyllites +/- boudins High strain zone Morro do Ouro 500 m 2 km Rico Cr. 0 m 0 km 2 km Paracatu An Evolving Brazilian Gold Giant Toronto Geological Discussion Group November December 22, 6, 2005

20 15 m 0 m

21 2 m 0 m Paracatu An Evolving Brazilian Gold Giant Toronto Geological Discussion Group December 6, 2005

22 Bedding at Paracatu Graded bedding in drill core (arrow is down hole) Paracatu An Evolving Brazilian Gold Giant Toronto Geological Discussion Group December 6, 2005

23 2 cm Small scale folds 0

24 1 cm Verging Asymetric Folds 0 Foliation Boudin Shear Bands

25 1.0 m 0

26 0 cm 0

27 1 cm 0 Axial plane cleavage Bedding

28 Bedding 1 cm 0 Cleavage

29 Ductile Shear 2.0 cm 0

30 2.0 cm Aspy grain 0 Sulphide veinlets parallel to axial plane cleavage

31 Genesis Low grade gold deposited in the Proterozoic pelitic sediments (Morro do Ouro Sequence) E-W thrust faulting related to emplacement of Sao Francisco Craton (open fold axis and boudins elongated in N-S orientation) N-S compression produces E-W kinking (formation of high strain zone) Metamorphic alteration remobilizes gold-sulphide mineralization and localizes at or near the high strain zone Elongate boudin axes rotated parallel to axis of high strain zone (WSW) No indication of fault displacement No distinctive non-conformable gold distribution No cross-cutting relationships No structural channels noted

32 Conceptual Geological Section Looking NW Serra do Landim Foliated pellites Finely laminated carbonaceous phyllites +/- boudins High strain zone Morro do Ouro 500 m 2 km Rico Cr. 0 m 0 km 2 km Paracatu An Evolving Brazilian Gold Giant Toronto Geological Discussion Group November December 22, 6, 2005

33 Weathering Profile Looking NW C Horizon T Horizon High Strain Zone B1 Horizon B2 Horizon

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38 Existing Plant 18 Mtpa BENEFICIATION Open Pit Mine g/t Crushing Plant Blending Silos Milling (JIGs in CL) Classification Flotation HIDROMETALLURGY Concentrate +/- 30,0 g/t Grinding C.I.L. Dessorption Electrowinning Cyanide Sulphide Tailings pond Cyanide Recovery Smelter Tailings Dam 200,000 oz Au/Year Water to Tailings Dam

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41 SAG Expansion Feasibility Study In Pit Crusher Overland Conveyor 30 Mtpa 18 Mtpa Crushing 38 ft SAG Plant P80 = 250 μm Existing Ball Mills P80 = 75 μm To Flotation and Cyanidation

42 Resources and Reserves as at December 31, 2004 Classification Price Ore Contained Grade ($US) (tonnes x 1,000) Ounces g/t Proven and Probable $ ,411 8,463, Measured and Indicated $ 400 2,292 22, Inferred $ , Based on results from three step out holes 400 m west of last known mineralization

43 Historic drill hole Metasiltstone Laterite Reserve mineralization Potential mineralization Visible mineralization 10,200N West Rico Creek, Looking North Surface 7,500E 8,000E 8,500E WCR g/t Au / 111m 0.50g/t Au / 16m 600m Elev. 0.48g/t Au / 69m 400m Elev. open west 0.44g/t Au / 144m 100m South 0.60g/t Au / 80m 0.47g/t Au / 99m metres 43

44 Historic drill hole Metasiltstone Laterite Reserve mineralization Potential mineralization Visible mineralization 10,200N West Rico Creek, Looking North Surface 600m Elev. 7,500E 8,000E 8,500E $400 Scoping Pit Outline WCR g/t Au / 111m 0.50g/t Au / 16m 0.48g/t Au / 69m 400m Elev. open west 0.44g/t Au / 144m 100m South 0.60g/t Au / 80m 0.47g/t Au / 99m metres 44

45 Q Initiate Exploration Drilling W of Rico Creek; Q Initiate Plant Capacity Scoping Study; Q Initiate Optimum Drill Spacing Study Q Complete Plant Capacity Scoping Study; Q Cut off date exploration data (89 holes); Q Update Paracatu Resources and Reserves.

46 298,000E 300,000E 302,000E Mineral Rights and Surface Access Area $400 Scoping Pit Crest RPM Plant 8,100,000N Brazil Toe Active Mining Lease Section 10200N 8,098,000N Dec.04 Pit Outline Mine grade ore Low grade ore Old drill hole 2004 drill hole Brasilia 210km Town Limits roads metres 8,096,000N Phase A planned drill hole 5,000m, 48 holes Phase B planned drill hole 5,000m, 23 holes Phase C planned drill hole 20,000m, 83 holes Total Drilling 30,000m, 154 holes 46

47 50 Mtpa Plant Capacity Scoping Study 38 ft SAG P80 = 1000 μm 32 Mtpa 2 New Ball Mills 24 x 34 ft 18 Mtpa P80 = 1000 μm P80 = 75 μm New Flotation Plant P80 = 75 μm Existing Ball Mills To Existing Flotation Upgraded Existing Hydromet Plant

48 800m Elev. Surface 600m Elev. $400 Pit Limit K-807 K-607 K-407 K g/t Au / 111m 0.50g/t Au / 16m 400m Elev. open west 0.45g/t / 136m 0.41g/t Au / 133m 0.46g/t Au / 119m 0.46g/t Au / 148m 0.48g/t Au / 69m 0.47g/t Au / 99m metres Saprolite Paracatu Formation Trace Aspy 0.10 to 0.20 g/t B2 ( 0.2 to 0.4 g/t ) B2 ( > 0.4 g/t )

49 800m Elev. Surface 600m Elev. KTS $400 Pit Limit 0.41g/t Au / 147m 0.48g/t Au / 141m 0.57g/t Au / 152m K-805 WCR K-605 K-405 K105 K-205 Rico Creek 0.53g/t Au / 128m 0.52g/t Au / 127m 0.55g/t Au /124m 0.71g/t Au / 88m 0.67g/t Au / 75m 400m Elev. 0.67g/t Au / 85m open west 0.58g/t Au / 70m metres Saprolite Sulfide leached Paracatu Formation Trace Aspy 0.10 to 0.20 g/t B2 ( 0.2 to 0.4 g/t ) B2 ( > 0.4 g/t )

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51 Resources and Reserves as at October 31, 2005 Classification Price tonnes Grade Gold (US$/oz) (x 1,000) (Au g/t) (ounces) Proven $ , ,212,000 Probable $ , ,068,000 Proven & Probable $ , ,280,000 Measured $ , ,530,000 Indicated $ , ,000 Measured and Indicated $ , ,677,000 Inferred $ , Resources reported exclusive of reserves FEX 2.65 Brazilian R per US$

52 Tonnage (M tonnes Reserves Production * Year * denotes production data to October 31, 2005

53 Ounces Mined (Million Reserves Production * Year * denotes production data to October 31, 2005

54 Section 21N Section 20N

55 W Paracatu Mine, Cross Section 20N Moro do Ouro, Northeast Pit Sector, Looking North, as of October 17, 2005 K2020 E 800m Elev. 0.34g/t Au / 94m Surface K m Elev. 600m Elev. Delineation target areas 0.47g/t Au / 44m metres Previously interpreted B2 footwall 0.38g/t Au / 81m 0.41g/t Au / 49m Paracatu Formation B2 (> 0.2 g/t Au) B1 (> 0.2 g/t Au)

56 W Paracatu Mine, Cross Section 21N Morro do Ouro, Northeast Pit Sector, Looking North, as of October 17, 2005 E 800m Elev. 0.44g/t Au / 47m K g/t Au / 62m Surface 0.40g/t Au / 32m K m Elev. 0.34g/t Au / 81m 600m Elev metres Previously interpreted B2 footwall Delineation target areas Paracatu Formation B2 (> 0.2 g/t Au) B1 (> 0.2 g/t Au)

57 Exploration drilling of targets east of Rico Creek ongoing; Year end resource and reserve estimate will benefit from an additional 100+ holes; SNC-Lavalin and MinerConsult awarded Basic Engineering; Continue building on success;

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