Kirkland Lake's Macassa mine.
PERTH (miningweekly.com) – Dual-listed gold miner Kirkland Lake has announced record gold production for the fourth quarter ended December, as well as for the full 2019.
During the three months to December, the miner produced 279 742 oz of gold, up 21% from the 231 217 oz produced in the previous corresponding period, as the Fostervile mine, in Victoria, produced record gold.
For the full year, consolidated gold production reached 974 615 oz, up 35% on the 723 701 oz produced in 2018, with production at the Fosterville mine beating full year guidance to produce 619 366 oz.
The Macassa mine, in Ontario, also produced 241 297 oz in the full year, in line with the guidance of between 240 000 oz to 250 000 oz.
“Kirkland Lake Gold had its best year ever in 2019. We increased production 35%, more than doubled our cash position and continued to achieve significant exploration success,” said CEO and president Tony Makuch.
“Both Fosterville and Macassa had excellent years in 2019, with Fosterville easily beating full-year production guidance and Macassa producing over 240 000 oz, in line with target levels.
“Looking at exploration, recently released drill results at Fosterville and Macassa are very encouraging and support our view that these mines are not only among the world’s most profitable operations, they also represent two of the most exciting exploration projects in the gold industry today.
“Also contributing to our organic growth potential is our work in the Northern Territory of Australia, where advanced exploration work is progressing with a goal of resuming commercial operations as early as next month when we release our updated mineral reserve and mineral resource estimates.”
Makuch said that Kirkland Lake’s recent agreement to acquire Detour Gold also provided additional upside potential, with the company seeing opportunities for substantial value creation through investment in Detour Lake Mine’s considerable growth, expansion and exploration potential.
Kirkland Lake in November last year announced plans to acquire the TSX-listed Detour Gold in a $4.9-billion all-share transaction. The acquisition would add the 600 000 oz/y Detour Lake mine, in Ontario, to Kirkland’s portfolio, which already includes the Macassa and Holt Complex in Ontario, as well as the Fosterville mine.
AUSTRALIAN SUPPORT
Meanwhile, Kirkland on Friday announced a A$1-million donation to support relief and recovery efforts to support communities in Victoria and New South Wales affected by bushfires.
In addition, the company is also initiating a program with Country Fire Authority units to assist in funding new projects aimed at improving fire readiness.
“Our operations in Australia have not been affected by the fires, but clearly the impact in many areas has been severe and we are pleased to be contributing to the massive relief and recovery effort required in the aftermath of the fires,” said Makuch.