Kinross' Dvoinoye gold mine in Russia starts commercial output

Reuters

Oct 9 (Reuters) - Kinross Gold Corp said on Wednesdayits Dvoinoye gold mine in Russia, where the Canadian mineralready operates the Kupol mine, had started commercialproduction.

Kinross said Dvoinoye, which is located 100 km (62.5 miles)north of Kupol in Russia's eastern Chukotka region, is expectedto produce between 235,000 and 300,000 gold equivalent ounces ayear during its first three years of production.

The cost of sales for the combined Russian operationsbetween 2014 and 2016 is forecast to be $545-$600 per goldequivalent ounce. Ore from Dvoinoye will be processed at theexisting Kupol mill, helping to keep costs down.

Kinross said it will provide guidance for its 2014production, cost of sales and all-in sustaining costs for itscombined Russian operations and other regions in early 2014.

"Dvoinoye is the fourth mine Kinross has operated in Russia,which remains our lowest-cost jurisdiction and a core operatingregion for the company," Kinross' chief executive Paul Rollinsonsaid in a statement.

Dvoinoye had proven and probable gold reserves ofapproximately 1.1 million gold equivalent ounces, as of December31, 2012, with an average gold grade of 17.8 grams per tonne.

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