06:57 AM EDT, 09/10/2024 (MT Newswires) -- Kinross Gold ( KGCRF ) on Tuesday provided an update on the Great Bear project, located in Red Lake, Ontario, Canada.

The company in a statement said it has completed a Preliminary Economic Assessment (PEA) for the Great Bear project "which supports its acquisition thesis of a top tier high-margin operation in a stable jurisdiction with strong infrastructure".

Based on mineral resources drilled to date, it added, the PEA outlines a high-grade combined open pit and underground mine with an initial planned mine life of approximately 12 years and production cost of sales of US$594 per ounce. The project is expected to produce over 500,000 ounces per year at an all-in sustaining cost (AISC) of approximately $800 per ounce during the first 8 years through a "conventional, modest" capital 10,000 tonne per day (tpd) mill.

Kinross has also released an updated mineral resource estimate increasing the inferred resource estimate by 568koz. to 3.884 Moz. which is in addition to the existing M&I resource estimate of 2.738 Moz4.

"This PEA marks an important milestone for Great Bear and reaffirms our view of it as a high-quality asset with robust economics and a clear path to become a world class operating mine," said Chief Executive Paul Rollinson. "The Project represents a strong combination of high-margin production and modest capital requirements, with the opportunity for significant resource growth in the future.

Rollinson added: "This PEA represents the first view of unlocking Great Bear's full potential. Based on surface drilling to date, the PEA provides an initial snapshot in time of the Project. The ongoing drilling to depth has already shown multiple wide, high-grade intercepts beyond the current resource used in the PEA. This deep drilling from surface demonstrates the continuation of mineralization at depth and the upside potential for further resource and mine life additions in the future as we progress exploration from depth.

Kinross closed Monday up $0.26, or 2.3%, at $11.56.