Kirkland Lake Gold has boosted its 2019 production guidance on the back of strengthening mineral reserves at its Fosterville gold mine.
Kirkland Lake Gold (ASX:KLA,TSX:KL,NYSE:KL) has revised and boosted its 2019 production guidance on the back of strengthening mineral reserves at its Fosterville gold mine.
The company says the potential to hit a million ounces in 2019 is there, with production guidance now being shifted to a range of 920,000 to 1 million ounces.
Three-year production guidance has also been revised, with 2020’s range growing to 930,000 to 1.01 million ounces, and 2021 sitting at 995,000 to 1.05 million ounces.
Mineral reserves have also increased, notably at Fosterville in Victoria, where reserves increased 60 percent, or 1.02 million ounces, hitting 2.72 million ounces at 31 grams per tonne (g/t).
This is up from the previous reserve level of 1.7 million ounces at 23.1 g/t. The average grade of Fosterville’s mineral reserves also blossomed by 34 percent.
Additionally, mineral reserves at the Macassa mine in Canada saw growth of 11 percent, to 2.25 million ounces at 21.9 g/t, from 2.03 million ounces at 21 g/t. Consolidated mineral reserves grew by 24 percent, or 1.1 million tonnes.
“Looking at our mineral reserves in more detail, the 24 percent increase in consolidated mineral reserves is a testament to the effectiveness of the infill drilling programs at Fosterville and Macassa,” Kirkland Lake President and CEO Tony Makuch said in a statement.
“At Fosterville, there is considerable potential for further mineral reserve growth at a number of areas, including the Swan Zone, other parts of the Lower Phoenix system, Harrier and a number of other targets, like Robbin’s Hill, where early exploration results demonstrate the potential for attractive economic orebodies,” he continued.
Also affected by the increase in target production were Kirkland Lake’s operating costs per ounce sold, which are now docketed at $300 to $320 per ounce vs. the previous $360 to $380 range.
All-in sustaining costs per ounce sold have also improved to a range of $520 to $560, as opposed to the prior range of $630 to $680.
Kirkland Lake’s share price had jumped 8.97 percent by the end of trading on Friday (February 22), closing on the ASX at AU$51.75.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.