Gold and Silver miners (Jr and Exploration)

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Kirkland Lake Gold Targets Higher Production, Improved Unit Costs in 2018 Guidance, Announces New Shaft Project for Macassa

TORONTO, Jan. 17, 2018 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (KL) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced the Company’s full-year guidance for 2018, which includes increased production, improved unit costs and higher levels of capital and exploration expenditures in support of the Company’s objective of growing annual gold production over the next five to seven years to approximately a million ounces. Included among planned investments in 2018, are initial capital expenditures for a new shaft at the Macassa mine (see section, Macassa Shaft Project). All dollar amounts are expressed in U.S. dollars unless otherwise noted.

Highlights of 2018 guidance include:

Production growth to over 620,000 ounces

Improved unit costs, with operating cash costs and all-in sustaining costs (“AISC”) per ounce sold expected to average $425 – $450 and $750 – $800, respectively1

Exploration expenditures estimated at $75 – $90 million in 2018, with $60 – $75 million targeted for Australia aimed at achieving continued growth of the Swan Zone and other high-potential areas at Fosterville, and in support of resuming operations at the Cosmo mine in the Northern Territory

Sustaining capital expenditures of $150 – $170 million, with higher sustaining capital expected at Fosterville related to elevated levels of development in support of mining to lower depths, establishing additional mining fronts and sustaining operations over multiple years

Growth capital expenditures of $85 – $95 million, with key capital requirements including expenditures for a new shaft (see section, Macassa Shaft Project) and tailings impoundment area at Macassa, as well as the bulk of growth capital required at Fosterville to achieve the mine’s target of over 400,000 ounces of annual production by 2020.
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold (KGLIF), commented: “Our 2018 business plan includes strong performances at each of our operating mines, leading to higher consolidated production and improved unit costs compared to 2017. It also outlines an important year of investment, both to ensure the long-term sustainability of current operations and for investing to achieve our longer-term objective of reaching a million ounces of annual gold production. Towards that objective, we see a clear path to reaching over 400,000 ounces per year from both Fosterville and Macassa. Fosterville is targeted to reach this level within three years as we achieve full production at the Swan Zone and commence production from additional mining fronts. Macassa’s path to over 400,000 ounces will take longer and will involve sinking a new shaft. The new shaft will benefit Macassa in many ways, including de-risking the operation, supporting more effective underground exploration, improving working conditions, in addition to increasing production and lowering unit costs. We also plan to increase production at our Taylor Mine and, with continued exploration success, are working towards resuming operations in the Northern Territory2 of Australia. With production from all sources, we are working to make Kirkland Lake Gold a million ounce per year gold producer within five to seven years.

“In support of our growth plans, we are increasing our commitment to exploration in 2018, with a focus on Australia. At Fosterville, we are planning extensive exploration programs aimed at continuing to grow the Swan Zone, expanding Harrier South, extending the Lower Phoenix and Robbin’s Hill mineralization and investigating a number of other regional targets. We will also be completing significant exploration work in the Northern Territory of Australia, where we will be developing into, and drilling, the Lantern Deposit at the Cosmo mine, and drilling several additional high-potential targets in the region. In Canada, exploration drilling will be mainly focused on continuing to extend the South Mine Complex at Macassa and expanding gold mineralization at Taylor.”

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https://seekingalpha.com/pr/17048512-kirkland-lake-gold-targets-higher-production-improved-unit-costs-2018-guidance-announces-new