Unformatted text preview: dules can significantly increase both the
time and capital required to build the project. The project development schedules are also dependent on
obtaining the governmental approvals necessary for the operation of a project. The timeline to obtain these
government approvals is often beyond the control of Kinross. It is not unusual in the mining industry for new
mining operations to experience unexpected problems during the start-up phase, resulting in delays and
requiring more capital than anticipated. Nature of Mineral Exploration and Mining
The exploration and development of mineral deposits involves significant financial and other risks over an
extended period of time which may not be eliminated even with careful evaluation, experience and
knowledge. While discovery of gold-bearing structures may result in substantial rewards, few properties
explored are ultimately developed into producing mines. Major expenditures are required to establish
reserves by drilling and to construct mining and processing facilities at a site. It is impossible to ensure that
the current or proposed exploration programs on properties in which Kinross has an interest will result in
profitable commercial mining operations.
The operations of Kinross are subject to the hazards and risks normally incident to exploration, development
and production of gold and silver, any of which could result in damage to life or property, environmental
damage and possible legal liability for such damage. The activities of Kinross may be subject to prolonged
disruptions due to weather conditions depending on the location of operations in which it has interests.
Hazards, such as unusual or unexpected formations, rock bursts, pressures, cave-ins, flooding, pit wall failures MDA48 KINROSS GOLD 2012 ANNUAL REPORT or other conditions, may be encountered in the drilling and removal of material. While Kinross may obtain
insurance against certain risks, potential claims could exceed policy limits or could be excluded from
coverage. There are also risks against which Kinross cannot or may elect not to insure. The potential costs
which could be associated with any liabiliti...
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- Spring '14