• Gold$: 1,162.50

Growth through Exploration

We continue to pursue an aggressive exploration strategy focused on five regions: the North and South Andean Cordilleras, Brazilian Craton, North American Cordillera, and far eastern Russia. To increase our exposure to quality projects, we have broadened our base of generative and Greenfields exploration activity, while using a disciplined review and prioritization process to narrow down opportunities to high-value, high-reward targets.

The total budgeted expensed exploration is forecasted to be approximately $79 million for 2010, with approximately 30% to be invested in Russia, 25% in the Andean Region of South America, 21% in North America, 10% in Ecuador, 10% in Brazil and 3% in Mexico. An additional $17 million will be spent for technical and environmental services.

Greenfields, near-mine and advanced-stage project expenditures will account for approximately 70% of 2010 exploration spending.

Kinross is also focused on establishing exploration and mutually-beneficial partnerships with promising junior exploration companies. A selection of these partnerships is featured below.

Partnerships

B2Gold Corporation

B2Gold Corporation (B2Gold) is a Canadian minerals production and exploration company with assets in Colombia, Nicaragua and northeastern Russia. In February 2007, Kinross and B2Gold entered into an agreement to explore the Kupol East and West licenses that surround and adjacent to Kinross' Kupol Mine in Chukotka, Russia. Under the agreement B2Gold has the right to acquire a 37.5% interest in the licenses from Kinross, with the companies incurring expected expenditure of US$10 million by December 31, 2009. Thereafter, further exploration obligations will be incurred in pro rata to their respective economic interests.

Brett Resources Incorporated

Brett Resources Incorporated (Brett) is a Canadian minerals exploration company whose mandate is the discovery, acquisition, and development of precious metals systems, with particular expertise in Canada and Latin America. In June 2006, Kinross and Brett reached an agreement whereby Kinross can acquire a 66.7% interest in the Santa Clara project in El Salvador by funding US$5 million over four years.

In March 2008, Kinross and Brett also announced an exploration alliance to review properties of interest in British Columbia and the Yukon. Under the alliance, Brett will spend US$2 million reviewing properties in which Kinross can elect to obtain a 50% interest upon acquisition by Brett.

Full Metal Minerals Corporation

Full Metal Minerals Corporation (Full Metal) is a Canadian minerals development-exploration company with a focus on mine development, exploration, and selective partnerships and acquisitions. In February 2008, Kinross and Full Metal entered into an exploration alliance to explore for gold deposits in Alaska. The alliance will utilize Kinross' extensive historical database to generate new targets and Full Metal's exploration expertise. Under revised terms of the alliance, Kinross will fund US$1.0 million and Full Metal funds US$0.5 million for participating interest of 60% and 40% respectively. The first $3 million in expenditures on any given property shall be funded on a 60/40 pro-rata basis.

Riverside Resources Incorporated

Riverside Resources Incorporated (Riverside) is a Canadian generative exploration company that joint-ventures and acquires early-stage projects with significant potential in Mexico and the USA. In January 2009, Kinross and Riverside announced an exploration alliance to explore for precious metal deposits in the Mesa Central of Mexico. The alliance will utilize Riverside's proprietary database to generate new targets. Kinross and Riverside will invest US$0.8 million and US$0.3 million, respectively, to fund exploration over two years to identify potential projects for joint venture. Kinross may elect to form a joint venture with Riverside on an initial 50/50 percentage basis in any of the projects identified or acquired as a result of the Alliance.

Laurentian Goldfields Corporation

Laurentian Goldfields Corporation (Laurentian) is a Canadian minerals exploration company with a strategy of generating gold targets in Canada's frontier exploration areas. In August 2009, Kinross and Laurentian commenced an exploration alliance to explore for economic deposits in the Uchi Subprovince of Canada. Under an initial one year term, Kinross and Laurentian will invest CDN$0.4 million and CDN$0.1 million, respectively, for early-stage exploration to identify new gold exploration projects. Kinross may elect to form a joint venture with Laurentian on an initial 50/50 percentage basis in any of the projects identified and acquired as a result of the Alliance.

Teryl Resources Corporation

Teryl Resources Corporation (Teryl) is a Canadian minerals exploration company with a focus in Alaska. Kinross and Teryl have an 80/20 percentage joint venture agreement to explore the Gil Mineral Claims that are located adjacent to Kinross' Fort Knox Mine. The joint venture commenced in October 1999 and to date has incurred exploration expenditures of US$7.5 million.

 

Focused Strategy

In 2010, our exploration efforts will support Kinross' strategy to rejuvenate its asset portfolio through organic growth. Specific objectives include continuing to upgrade the exploration pipeline with new projects, executing on existing exploration programs and growing reserves.