Kirkland Lake Gold Buys 0.5-percent NSR Royalty on HM Claim

Kirkland Lake Gold Inc. (TSX:KGI,LSE:KGI) announced that it has exercised its right to buy a 0.5-percent net smelter return (NSR) royalty on the HM claim for $250,000.

As quoted in the press release:

The Royalty is part of a 1% NSR royalty on the HM claim, which was part of the Queenston Mining Joint Venture, and is located approximately 2,000 feet (610 metres) southeast of the #2 shaft at the Macassa Mine Complex.

George Ogilvie, president and CEO of Kirkland Lake, commented:

We are pleased to be able to purchase this royalty. This is another step in the right direction for the Company to protect future exploration discoveries on our property in the Kirkland Lake camp and to secure future value for our shareholders.

Click here to read the full Kirkland Lake Gold Inc. (TSX:KGI,LSE:KGI) press release.

Kirkland Lake Gold Inc.’s corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake gold camp, as well as to explore opportunities for growth in other safe mining jurisdictions. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow with a view to maximising value for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.

Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake gold camp while the current reserve and resource provides for potentially 14 years of mining with significant exploration upside.