Kinross Gold shows that heap leaching is scalable
With its Bald Mountain mine, Kinross Gold provides proof of how the heap leaching concept scales up industrially in Nevada. The company is currently investing USD 490 million in the Redbird 2 project, which comprises the second expansion phase of the Redbird pit and five satellite pits. Kinross benefits from massive economies of scale in this expansion and expects incremental all-in sustaining costs (AISC) of just USD 1,466 per ounce. The group uses existing leach pads and infrastructure geared towards bulk mining to produce an additional average of around 155,000 ounces of gold per year from 2028. This cost structure sets the benchmark for heap leaching projects in Nevada.
Barrick Mining realigns its North American business
As a dominant player, Barrick Mining operates the Nevada Gold Mines joint venture together with Newmont. The group’s all-in sustaining costs stood at USD 1,866 per ounce in the second quarter of 2026. Barrick plans to spin off its North American gold business, including its stake in Nevada Gold Mines, into a separate company and float around 10% of it by the end of 2026. This strategic move, accompanied by a compensation payment of USD 1.95 billion from Newmont, significantly increases competitive pressure in the state. At the same time, this restructuring could become a catalyst for future acquisitions in the market.
Lahontan Gold Accelerates the Start of Production at Santa Fe
In direct contrast to the established producers, Lahontan Gold is preparing to restart the historic Santa Fe mine. In mid-October, the company published an updated preliminary economic assessment (PEA) outlining an 11-year mining phase with average annual production of around 91,900 ounces of gold equivalent (AuEq). The calculation assumes a gold price of USD 3,600 per ounce and puts the project’s after-tax net present value at USD 820 million. The study is based partly on inferred resources; Lahontan has not reported any reserves to date. Lahontan is relying on the heap leaching process established in Nevada. Sulphide ore from the Santa Fe pit is to be pre-oxidised on a separate leach pad beforehand. Management sees additional potential in the four historic heap leach pads. Drilling on heap leach pad two returned, among other results, 2.72 g/t Au over 16.5 m in September. This material has not yet been included in the new PEA. For the restart, management estimates an initial investment of USD 172 million, including a 20% contingency, while all-in sustaining costs (AISC) stand at USD 2,250 per ounce.
Lahontan Gold optimises its financing structure
Alongside operational planning, Lahontan Gold is advancing the consolidation of its project portfolio. Through the acquisition of Emergent Metals agreed in September, the company aims to secure full ownership of the neighbouring West Santa Fe project. The agreement would eliminate the 1% royalties on West Santa Fe and on 27 York claims within the Santa Fe project, as well as future option payments of approximately CAD 2.4 million. Even including the contingency, the study shows a base-case payback period of 3.7 years, which could help facilitate negotiations with potential financing partners.
Conclusion and industry outlook
Macroeconomic conditions offer gold producers a lucrative environment. While Kinross Gold and Barrick Mining are scaling and restructuring their existing operations thanks to enormous capital resources, Lahontan Gold has yet to finance the capital-intensive leap into production. Even under the study’s most conservative scenario, based on a gold price of USD 3,000 per ounce, the project would retain a net present value of approximately USD 476 million; the economics would come under pressure only at prices approaching the estimated all-in sustaining costs (AISC) of USD 2,250 per ounce. Until the USD 172 million in construction financing has been fully secured, Lahontan Gold remains a speculative investment. The project’s economics could be particularly sensitive to a rise in the gold price toward the USD 5,400 per ounce level that Goldman Sachs expects by the end of 2027.
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