Kirkland Lake Gold has increased 2019 production guidance to 920,000 – 1,000,000 Ounces. The Fosterville Mineral Reserves increase 60% to 2.7 Million Ounces at 31.0 g/ton has been announced. Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold said, “Since November
2016, Fosterville has been transformed into one of the world’s highest-grade, most profitable gold mines, which has greatly benefited Kirkland Lake Gold and its shareholders”. The completion of Fosterville’s December 31, 2018 Mineral Reserve and Mineral Resource estimates, with the related revisions to its life of mine plan and production profile, have taken that transformation to an even higher level, with the potential for much more to come. Largely driven by the 34% increase in the Fosterville Mineral Reserve grade, we are now on track to achieve significantly higher levels of production at Fosterville in 2019 than previously expected and could reach one million ounces of annual gold production as early as this year.
“Just as encouraging as the growth in ounces, is the fact that with a higher average grade at Fosterville, as well as at Macassa, our Mineral Reserve ounces are more valuable, which means improved unit costs and increased cash flow per ounce going forward based on current gold prices”, he indicated and also added that, “Looking at our Mineral Reserves in more detail, the 24% increase in consolidated Mineral Reserves is a testament to the effectiveness of the infill drilling programs at Fosterville and Macassa”.
At Fosterville, there is considerable potential for further Mineral Reserve growth at several areas, including the Swan Zone, other parts of the Lower Phoenix system, Harrier and several other targets, like Robbin’s Hill, where early exploration results demonstrate the potential for attractive economic orebodies. Tony went on to further highlight, “Turning to Macassa, we converted close to half a million ounces of Mineral Resources to Mineral Reserves in 2018 and have a number of high-potential areas in and around the South Mine Complex (“SMC”) that we are targeting for future growth in Mineral Reserves and Mineral Resources.”