Higher grades boost Fort Knox

Kinross Gold Corp. May 2 reported that its Fort Knox Mine near Fairbanks, Alaska, produced 93,038 ounces of gold during the first quarter, a nearly 6 percent increase over the 87,800 oz recovered there during the first three months of 2016. The company attributes the 5,238-oz increase to higher grade ore being fed through the mill.

The mill at Fort Knox processed 2.93 million metric tons of ore averaging 0.75 grams per metric ton gold during the first quarter, compared to 3.2 million metric tons averaging 0.66 g/t during the same period last year.

Additionally, 3.9 million metric tons of ore averaging 0.23 g/t was processed on the heap leap pad, compared to 7.5 million metric tons averaging 0.26 g/t during the first three months of 2016.

The per-ounce cost of Fort Knox gold sold during the quarter was US$617, compared with US$708 during the same period last year.

Kinross said this 13 percent cost reduction is primarily due to lower labor and contractor costs, and more ore mined relative to operating waste.

-SHANE LASLEY