Kinross Advancing the Great Bear Project: Aiming to Build Northwestern Ontario’s Next World-Class Gold Mine

Kinross Gold is on the fast track to develop Northwestern Ontario’s next world-class gold mine, as Site Manager Ian Russell shared in a recent update on the Great Bear Project. Russell was a guest speaker for the Projects In The Pipeline Conference held in Thunder Bay. The project, located between Red Lake and Ear Falls, is shaping up to be one of the region’s most significant gold discoveries in years, with a robust production profile and the potential for continued expansion. “This project has been a personal journey for me since 2017, when I first got involved with Great Bear’s initial drillings,” said Russell. “Now, with Kinross at the helm, we’re proving out the thesis of a high-margin mine, one with the potential to become a top-tier operation.”

Strong Numbers from the Preliminary Economic Assessment (PEA)

The recently released Preliminary Economic Assessment (PEA) underscores the project’s high-margin potential.  The PEA demonstrates an initial life-of-mine (LOM) of approximately 12 years with total production of approximately 5.3 Moz. of gold. However this represents a point in time estimate of the mine plan and is only a window into the long-term potential of the asset given the limitations of drilling at depth from surface. Exploration drilling at depths up to 1,600 metres has already demonstrated continuation of high-grade mineralization with strong widths well below the current PEA inventory, highlighting the upside potential of the asset.

The high-grade open pit will be mined with a dual fleet strategy to provide selective mining of the high-grade material and lower cost mining of the waste, mining a peak of 26 million tonnes of material, and providing a peak of 9,000 tpd of mineralized material.

For the underground, the primary mining method is long hole open stoping with paste backfill and cemented rock fill. First stope production is expected to begin in 2029, subject to permitting, and to continue for 12 years with a peak production rate of 6,000 tpd, with potential to expand beyond this run rate as extensions to the underground resource are targeted. At peak, the underground will have a mining rate of 6,000 tpd between 2035 and 2038, producing an average of 327koz. per annum.

The combination of the open pit and underground production in the years 1 to 8 will allow for processing of higher-grade material and stockpiling of the remaining feed to supplement underground production in the latter years of the mine life. This strategy drives a milled grade of 4.6 g/t in years 1 to 8 and an average production of 518koz. per annum over these years.

Great Bear’s processing plant is designed as a conventional circuit with a proposed flowsheet including semi-autogenous grinding (SAG) and ball milling, pebble crushing, gravity concentration, leaching followed by carbon-in-pulp adsorption (CIP), elution, electrowinning, and smelting to produce gold doré.

Kinross has invested substantial effort into early technical studies and design for tailings processing and management facilities at Great Bear leveraging the best available technologies to ensure the highest environmental standards and as a result, the PEA design includes the addition of a desulphurization flotation circuit to remove sulphides and render the tailings non-acid generating, and a rigorous design criteria for all tailings storage facilities at the site.

As well, the LP Viggo Pit has been pulled forward to be mined during project construction in order to provide a robust in-pit tailings storage facility for the sulphide concentrate from the desulphurization flotation circuit, eliminating the need for a dam to impound the sulphide concentrate.

The total initial construction capital is forecasted at $1.2 billion. Capitalized mine development prior to commercial production is expected to be approximately $250 million, comprised of $105 million related to open pit mining and $143 million related to underground capital development which will support higher production in the early years. The majority of the capitalized open pit mining is driven by the strategic decision to pull forward mining of the Viggo pit during construction to provide low-cost construction rock, early mill feed and a robust in-pit solution for the tailings concentrate.

Within the construction capital, the site development, water treatment and infrastructure area includes the truck shop, admin facilities, and camp. It also includes state of the art water treatment including ultra-filtration and a robust site-wide water management strategy to ensure the highest environmental standards. “This is a project with strong economics, and we see plenty of room for growth,” Russell noted, pointing out that the company’s drilling program has yet to define the full extent of the resource at depth.

A New Chapter for Red Lake’s Gold Legacy

The Great Bear Project is set to become the first gold-focused open-pit mine in the Red Lake area. With combined open-pit and underground operations, the mine will produce from a unique geological system distinct from the historically high-grade gold veins that have made Red Lake famous. The project’s host rocks, known for their combination of high-grade zones and continuous lower-grade mineralization, allow for large-scale mining that remains profitable even at modest grades. “This is different from what we’ve seen in Red Lake’s past,” said Russell. “The LP system we’re targeting is hosted by felsic rocks and offers both exceptional high-grade sections and significant low-grade zones that can be mined profitably.”

A Major Investment in Infrastructure

Kinross has invested heavily in the project, drilling over 420 kilometers of core to date and continuing to grow the resource base. Current measured and indicated resources stand at 2.7 million ounces, with an additional 3.9 million ounces in the inferred category. Ongoing exploration suggests these numbers could climb even higher, especially as drilling at depth continues to yield promising results.

The project is well-located near key infrastructure, including Highway 105, the main power transmission line, and a nearby natural gas pipeline. However, additional power capacity will be needed to support the mine’s development. “We’ve been in talks with Hydro One for years now, and we’re confident the necessary infrastructure will be in place when the time comes,” said Russell.

Path to Production

Kinross is moving forward with an aggressive timeline, aiming for initial production by 2029. The company is already in the process of securing permits for an advanced exploration program, which includes plans for a 60,000-ton bulk sample and the construction of a decline for underground drilling and future mining.

The project’s proposed processing plant will handle 10,000 tons of ore per day, utilizing a straightforward crushing, grinding, and gold recovery process.

“The metallurgy here is clean, and the process is simple,” Russell explained. “It’s a huge advantage when it comes to reducing risk and ensuring efficient operations.”

Growth Potential & Community Impact

Kinross is committed to working closely with local Indigenous communities, including Wabauskang First Nation, Lac Seul First Nation, and Grassy Narrows First Nation, as well as the Northwestern Ontario Métis Community.  This commitment reflects our dedication to fostering strong, respectful partnerships that support local economic development, cultural preservation, and environmental stewardship across all communities involved.

With its significant resource potential, manageable capital expenditures, and a focus on community partnerships, the Great Bear Project is set to become a cornerstone of Kinross’ global portfolio and a major economic driver for Northwestern Ontario. “This is just the beginning,” Russell concluded. “We’re confident that the Great Bear Project will be a world-class mine with significant upside potential for years to come.”

 

 

To read the Northern Mining Report for 2024, click on this link for your 128 page digital copy. https://issuu.com/canadiantradex/docs/ml_fall_2024

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