If there is let US all know
KINROSS GOLD CORPORATION
TORONTO, April 28 /CNW/ - Kinross Gold Corporation (TSE - K, NYSE - KGC)
announces the acquisition of two groups of gold properties containing a
drill-indicated resource of over 1.2 million ounces of gold in the prolific
Eastern Goldfields mineral province of Western Australia for approximately US
$5 million (A $7.4 million). These properties have been acquired by a
wholly-owned subsidiary, Kinross Gold Australian Pty. Ltd., through the court
appointed administrator of a recently bankrupt junior gold company,
Australasian Gold Mines NL.
The largest (545 square kilometres) and most advanced of the two
properties is within and adjoining the Norseman mining district. The Mt. Henry
and Selene deposits have been partially delineated by almost 400 reverse
circulation and diamond drill holes resulting in a near-surface resource of
28,943,000 tonnes grading 1.30 grams of gold per tonne recalculated by Kinross
using a cut off grade of 0.77 grams per tonne. During the due diligence for
this transaction, Kinross exploration staff recognized that there is good
potential to increase the tonnage, and hence contained gold ounces, at both
the Mt. Henry and Selene deposits through additional drilling along strike and
down dip. The identified geologic resources are all located on granted Mining
Leases that are not subjected to any aboriginal title issues.
The remaining properties at Broad's Dam, which cover an area of 28.5
kilometres, are located approximately 45 kilometres northwest of Kalgoorlie,
the premier gold mining centre in Australia. These properties lie along a
major structural ''break'' analogous to those hosting many of the major gold
deposits of northern Ontario, Canada. The Mt. Pleasant mining operations of
Centaur Mining & Exploration, with a reported combined ore reserve and
geologic resource containing approximately 4 million ounces of gold, are in
close proximity to the Broad's Dam properties.
Both property groups at Norseman and Broad's Dam have considerable scope
for the discovery of significant new gold deposits that may be amenable to
open pit mining methods and conventional processing techniques. Additionally,
there is potential for the discovery of high grade vein type deposits which
could allow Kinross to use its underground mining skills as currently applied
at its mines in northern Ontario. This transaction provides Kinross with an
initial, low cost entry into the Australian gold sector, with an acquisition
cost of less than US $5 per resource ounce of gold, and provides a ''strategic
beach-head'' for future activities.
On May 28, 1998 Kinross shareholders will vote on the proposed merger of
Kinross with Amax Gold Inc. Assuming that the transaction is consummated,
Kinross will become the fifth largest North American based gold producer with
annualized production estimated at approximately 1.2 million ounces of gold.
This press release includes certain ''Forward-Looking Statements'' within
the meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of Kinross Gold Corporation (''Kinross''), are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from Kinross' expectations are disclosed under the heading ''Risk
Factors'' and elsewhere in Kinross' documents filed from time to time with the
Toronto Stock Exchange, the United States Securities and Exchange Commission
and other regulatory authorities.
%SEDAR: 00002968E
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For further information: Robert M. Buchan, Chairman and Chief Executive
Officer, Tel.: (416) 365-5650; Gordon A. McCreary, Vice President, Investor
Relations and Corporate Development, Tel.: (416) 365-5132 |
