Kinross Gold Corp. Nov. 6 reported that its Fort Knox Mine in Alaska produced 149,093 ounces of gold during the third quarter of 2024, which is more than double the 69,914 oz produced during the previous three-month period and the 71,611 oz produced during the third quarter of 2024.This significant jump in production at the iconic mine about 20 miles north of Fairbanks, Alaska, reflects the value of the high-grade ore being delivered to the operation from the Manh Choh satellite mine about 250 highway miles to the southeast. The first gold bar from Manh Choh ore was poured at Fort Knox on July 8, marking a major milestone for both Kinross and Contango Ore Inc., which is a 30% joint venture partner in the high-grade satellite mine delivering ore to the Kinross Alaska mill at Fort Knox.Throughout the third quarter, the Kinross Alaska mill processed 1.1 million metric tons of ore averaging 4.03 grams per metric ton gold. While the tonnage of ore fed through the mill during the quarter was roughly 45% lower than the 2 million metric tons in the previous three-month period and 1.9 million metric tons of the third quarter of 2023, the ore grades were nearly five times higher. Kinross Gold Corp. The Kinross Alaska mill has been modified to process much higher-grade ore being delivered from Manh Choh.As the mill began processing the first batches of high-grade ore from Manh Choh, along with some mill-grade ore mined from the Fort Knox property itself, crews continued to stack lower-grade ore mined from the Fort Knox property on the operation’s heap leach pad. During the quarter, 5.8 million metric tons of ore averaging 0.19 g/t gold was stacked on the heap leach pad, compared to 6 million metric tons averaging 0.21 g/t gold during the third quarter of 2023.The combined mill and heap leach operations resulted in banner quarterly gold production at Fort Knox.”In Alaska, production of 120,000 ounces was higher compared to the prior quarter, a record mill grade and recovery as production commenced from the higher grade Manh Choh during the quarter,” said Kinross Gold COO Claude Schimper.The 120,000 oz mentioned by Schimper reflects Kinross’ 70% share of the gold produced from Manh Choh ore. The remaining 30%, or 29,593 oz of gold, goes to Contango from the two batches of Manh Choh ore processed during the third quarter. A third batch is being processed this year, which is expected to contribute an additional roughly 20,000 oz of gold to Kinross Alaska and 8,500 oz to Contango during the third quarter.For Contango, the pouring of the first Manh Choh gold bar at the onset of the third quarter marked the transition from a mineral exploration and development company to a gold production company executing its “hybrid royalty” model, which involves identifying and advancing high-quality projects with the capacity to directly ship high-grade ore to existing mills for processing.This model minimizes the capital costs, environmental footprint, and permitting risks associated with developing a mill, tailing storage facilities, and other infrastructure associated with a full-scale operation.The Lucky Shot and Johnson Tract projects in Southcentral Alaska are slated to host the next mines that will directly ship ore to third-party mills for processing under Contango’s innovative business model.”With the Manh Choh feasibility study reflecting delivery of an average of 67,500 ounces of gold annually for Contango’s account in 2025 and beyond, and with gold at record highs, we remain committed to adding shareholder value by executing on our ‘Hybrid Royalty’ model focusing on efficiently advancing our development stage projects using our DSO approach,” said Contango Ore President and CEO Rick Van Nieuwenhuyse.This model matches up well with the “Kinross Alaska” strategy of identifying high-quality satellite gold projects that can deliver ore to the mill at Fort Knox for processing, extending the life and increasing the gold production profile at the aging Interior Alaska mine. Kinross Gold Corp. Kinross CEO Paul Rollinson addresses a crowd gathered to celebrate the pouring of the first gold bar from Manh Choh.During a celebration of the pouring of the first gold bar from Manh Choh, Kinross Gold President and CEO Paul Rollinson laid a subtle hint that at least some of the future feedstock for the Kinross Alaka mill could come from hybrid royalty assets advanced identified and advanced by Contango.”Hopefully, this is just the beginning of lots more that we can do together,” Rollinson said to Van Nieuwenhuyse during the Manh Choh gold pour celebration.For now, the Manh Choh ore has set the Fort Knox operation up for record annual gold production. While the annual output may not reach the nearly 600,000 oz indicated by third-quarter production due to the timing of the batches of high-grade Manh Choh ore processed, Kinross expects its Alaska operation to produce upwards of 500,000 oz of gold per year over the next four years of reserves at Manh Choh. A similar pace will likely continue with reserve expansion at the satellite mine and potentially other projects delivering high-grade ore to the Kinross Alaska mill.Author Bio
Shane Lasley, Publisher
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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