Technical Report for the Fort Knox Mine - Kinross Gold

Fort Knox Mine Technical Report4.0 PROPERTY DESCRIPTION AND LOCATIONThe Fort Knox mine is situated in the Fairbanks North Star Borough in the State ofAlaska, United States of America. Fort Knox is located 40 kilometres (25 miles) by roadnortheast of the city of Fairbanks, Alaska. Figure 4-1 is a general location map of theFort Knox property.The Company controls a large and diverse group of properties that comprise its mineralholdings in the Fairbanks mining district. These properties include patented andunpatented Federal lode and placer mining claims and State of Alaska mining claims.Some of the claims are owned outright, while others are controlled through leases and/orjoint venture agreements. Figure 4-1 presents FGMI’s land position within the FairbanksGold Mining District. The blue shaded areas represent the company’s holdings. TheFort Knox Uplands Mining Lease has been legally surveyed.4.1 Fort Knox Open PitAt the Fort Knox project, the Company controls 1,316 State of Alaska mining claimscovering an area of approximately 19,180 hectares (47,396 acres), an additional 502hectares (1,239.5 acres) of mineral rights comprised of an Upland Mineral Lease issuedby the State of Alaska, a Millsite Lease (issued by the State of Alaska), and oneunpatented (federal) lode mine claim. Cumulatively, these properties cover an area ofapproximately 19,682 hectares (48,636 acres). Mineral reserves at the Fort Knox mineare situated on 505 hectares (1,248 acres) of land that are covered by a State of AlaskaMillsite Lease. Although this lease expires in 2014, it may be renewed for a period not toexceed 55 years. The property package is located within the State of Alaska within UTMNAD 27 zone 6 coordinates of 474,950mE, 7,195,700mN and 495,700mE, 7,215,300mNas illustrated in Figure 4-1.The State of Alaska Millsite Lease carries a 3% production royalty, based on net incomeand recovery of the initial capital investment. Mineral production from State miningclaims is subject to a Mine License Tax, following a three-year grace period after15