after the prepared statements, management took some questions from callers. in particular, they addressed the russian strategic investment law that has caused so much heartburn. specifically, tye burt said it was expected that kupol would be declared a strategic mineral deposit by the russian government, and it is not an issue. kinross' status as 75% owner and operator of kupol are grandfathered, and the law is very explicit. article 16 of the strategic investment law states that it does not apply to any transactions that occurred before its enactment. this has been confirmed by their russian lawyers and the ministry.

if kinross were to sell some of its interest, or to buy more, the new law would apply. but since its enactment, other western companies have obtained the consent they needed from the government, so even that does not appear to be an issue. burt also mentioned there are targets to the west of kupol, and a hole to the north returned 12 meters of 6 1/2 g/ton and 100 g silver, so there could be some expansion at kupol.

as far as ecuador is concerned, they expect to start drilling at mid-year and already have two drills on site. they are still drafting the regulations needed to obtain drilling permits, but burt has had written confirmation facilitating going back to work, and expects to be drilling in 30-60 days. a 12,000 meter program is planned for infill drilling, but he did mention there are two interesting regional targets. unfortunately, the no-good so-and-so didn't mention which ones they are.

overall, he said correa has good relations with canada, a positive relationship with mining companies, and kinross has received enthusiastic support from the government. negotiating on the fiscal regime will be a 6-12 month process. if it has not already been mentioned, they expect to spend at least $35 million in ecuador this year, and to have some pre-feas work done by the end of the year.