Kirkland Lake to Commence Two New Projects in Australia
Kirkland Lake announced that it is advancing three new potential mining operations – two in Australia and one in Canada.
Kirkland Lake Gold (ASX:KLA,TSX:KL,NYSE:KL) announced that it is continuing to invest in organic growth and is advancing three new potential mining operations – two in Australia and one in Canada.
As quoted in the press release:
The company announced full-year guidance for 2020, which includes continued strong operating and financial results, with consolidated production targeted at 950,000 – 1,000,000 ounces and operating cash costs per ounce sold and all-in sustaining costs per ounce sold expected to average US$300 – US$330 and US$570 – US$630, respectively. The company will also continue to invest aggressively in growth, including commencing work on development ramps aimed at establishing two new mining operations, Robbin’s Hill at Fosterville and previously identified high-grade zones near surface along the Amalgamated Break at Macassa. The company will also continue advanced exploration work in the Northern Territory, a potential third new source of future production. The company expects to produce 100,000 – 120,000 ounces in the Northern Territory in 2020, which is not included in the company’s 2020 guidance pending the resumption of commercial operations.
The company also announced today three-year production guidance for the Macassa and Fosterville mines. Production at Macassa is targeted to increase to over 320,000 ounces by 2022 reflecting initial production from the number 4 Shaft and potential production from the planned Macassa surface ramp. Production at Macassa is expected to grow to well over 400,000 ounces beginning in 2023. Production at Fosterville is expected to maintain the strong growth achieved in 2019 over the next three years as mining continues to advance in the high-grade Swan zone, with the potential for production to commence from Robbin’s Hill in 2023.
Tony Makuch, President and CEO, commented:
Looking at growth, we will continue to invest in organic growth in 2020 with the aim of advancing three new potential mining operations, Robbin’s Hill at Fosterville, previously identified high-grade zones near surface along the amalgamated break at Macassa, and our Northern Territory assets in Australia. The advanced exploration work in the Northern Territory is continuing into 2020 and has the potential to add to our production profile, with 100,000 to 120,000 ounces expected to be produced at the Union Reefs mill during the coming year, which we are not including in our guidance until we reach a decision to resume commercial operations.
This decision could come as early as February 2020 following release of our December 31, 2019 mineral reserve and mineral resource estimates. At Fosterville, we are commencing work on a twin 4.8 kilometers underground ramp to connect Robbin’s Hill to the existing mine infrastructure, while at Macassa we will begin driving a ramp to access and explore near-surface, high-grade zones along the Amalgamated Break. Robbin’s Hill and the amalgamated break are key exploration targets for our company, and we believe are two of the most compelling exploration stories in our industry today. Gaining access to these areas underground will allow us to accelerate efforts to fully evaluate their potential and will provide valuable infrastructure to support moving them into production.