In what is being heralded by Placer Dome Inc. and Kinross Gold Corp. as the biggest news in the Porcupine gold camp in years, the two mining companies are combining forces in a joint-venture mining project. The main attraction for Kinross is Placer's state-of-the-art mill, which can process 13,000 tonnes of ore daily. Kinross has plans to close its mill once the venture is operating in July. About 28 jobs at Kinross's processor will be affected, but those workers will be integrated into the workforce.
Meanwhile Placer gains access to Kinross's Porcupine properties, which have long-term gold potential. In the deal, the two companies will form a regionally based joint venture, with Placer holding a slight majority at 51 per cent. Both companies expect to realize substantial cost savings, though no dollars values were released. Kinross's reserves in the Porcupine area total 1.1 million ounces of gold while Placer's stand at 1.3 million ounces.
Officials with Kinross predict production will continue until 2019, and possibly longer, as a result of the merger.
