Geologic and Business Overviews of Kinross Gold Corporation’s Mining Operations in Alaska and Far East Russia

By

R. Schafer (Kinross Gold Corp.)

Kinross Gold Corporation has been operating both Alaska and Russia’s largest gold mines since 1998 at its Fort Knox and Kubaka facilities, respectively. Each presents sets of challenges that range from geologic, climactic and environmental to social and political. The performance of the Fort Knox gold mine and mill complex, phased-in production from the True North satellite deposit, and a regional exploration strategy have built the Fairbanks mining district into a core asset for Kinross Gold. Currently the exploration group is directing its efforts toward the expansion of resources at True North (a tabular, shear-hosted Au-As-Sb deposit), resource definition at the nearby Gil exploration target (skarn and shear-hosted Au-Bi-W mineralization), and identifying other opportunities that may lie within economic transport distance for the mill complex. Dual successes in operations and exploration at the Kubaka gold mine in the Magadan Oblast illustrates that North American business practices can be employed successfully in Far East Russia. Remote operations run by an integrated North American and Russian management team with minimal, but key expatriate staff, and skilled Russian labor have consistently outperformed budget expectations at the high grade, open pit, fly-in/fly-out mining facility. Despite a difficult business environment for the gold business, management’s approach to the various geologic, operating and business challenges has optimized the asset.

AAPG Search and Discovery Article #90008©2002 AAPG Pacific Section/SPE Western Region Joint Conference of Geoscientists and Petroleum Engineers, Anchorage, Alaska, May 18–23, 2002.