$bigone thanks; Kirkland Lake Gold Reports New Wide, High-Grade Intersections at Detour Lake May 04, 2021
$Results Highlight Significant Potential for Mineral Resource Growth Between the Existing Main Pit and Planned West Pit Location, at Depth and to the West
$New high-grade intersections near bottom of Mineral Resource pit shell in Saddle Zone highlight potential for growth in open-pit and underground Mineral Resources
Key intercepts(1): 1.13 gpt(2) over 155.1 metres (“m”); 9.02 gpt over 13.0 m; 1.56 gpt over 70.2 m, incl. 7.49 gpt over 5.3 m; 1.37 gpt over 43.1 m, incl. 12.17 gpt over 3.0 m; 31.91 gpt over 5.0 m; 2.21 gpt over 26.0 m, incl. 5.15 gpt over 8.0 m; 1.9 gpt over 32.7 m, incl. 15.07 gpt over 2.1 m; 1.01 gpt over 42.6 m Drilling in Central Saddle Zone continues to intersect exceptional grades and widths at shallow depths, further demonstrates continuity of mineralized corridor connecting Main Pit and planned West Pit location Key intercepts: 1.08 gpt over 56.0 m, incl.13.01 gpt over 2.0 m; 1.34 gpt over 40.0 m; 3.38 gpt over 10.0 m, incl. 14.76 gpt over 2.0 m; 0.94 gpt over 56.2 m; 1.42 gpt over 19.9 m; 1.01 gpt over 15.0 m Drilling in Eastern portion of Saddle Zone confirms continuity of mineralization to the west and below Main Pit Mineral Reserve pit shell Key intercepts: 0.81 gpt over 131.0 m; 1.49 gpt over 64.8 m, incl. 23.95 gpt over 2.0 m; 1.96 gpt over 64.0 m; incl. 4.83 gpt over 54.0 m; 2.96 gpt over 36.3 m, incl. 21.45 gpt over 2.2 m; 1.08 gpt over 75.0 m; 2.54 gpt over 35.1 m, incl. 27.77 gpt over 2.0 m; 3.91 gpt over 23.0, incl. 35.66 gpt over 2.0 m Drilling below West Pit Mineral Reserve intersects broad zones of mineralization extending to depth Key intercepts: 2.94 gpt over 51.9 m, incl. 29.37 gpt over 4.0 m; 31.97 gpt over 2.0 m; 1.41 gpt over 47.2 m; 2.37 gpt over 36.0 m; 1.04 gpt over 46.9 m, incl 15.46 gpt over 2.0 m; 2.26 gpt over 21.0 m Drilling west of planned West Pit intersects mineralization up to 425 m west of existing Mineral Reserves Key intercepts: 10.66 gpt over 13.0 m, including 34.51 gpt over 3.0; 23.92 gpt over 2.3 m; 1.14 gpt over 78.4 m; 0.75 gpt over 41.5 m
(1) True widths are unknown at this time and intervals are reported using core lengths intersected in the holes. (2) Grams per tonne (“gpt”); Metres (“m”); Including (“incl.”). TORONTO, May 04, 2021 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced results from 38 holes and two wedge holes (23,911 m) of drilling along the Detour Mine Trend (“DMT”) at the Detour Lake property. The new holes being reported are the fifth batch of results from the recently announced 270,000 m exploration program, which the Company is targeting for completion by the end of 2021. The program is being completed to collect information for an updated, and potentially expanded, Mineral Reserve and to support the completion of a new production plan, expected to be released in early 2022. Most of the new holes announced today are from drilling in the Saddle Zone, located between the existing Main Pit and planned West Pit locations, which has been underexplored and has no Mineral Reserves and only limited Mineral Resources. Several new holes are also being announced from the area west of the West Pit Mineral Reserves, which also contains limited past drilling.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “We continue to have a great deal of success drilling along the DMT. New wide, high-grade intersections continue to confirm the continuity of the mineralized corridor connecting the Main Pit and planned West Pit. We are also having success intersecting high-grade mineralization near the bottom of the Mineral Resource pit shell in the Saddle Zone, which highlights the potential to add significant new open-pit, and possibly underground, Mineral Resources. We also continue to expand mineralization to the west of the planned West Pit, indicating that we have yet to determine the full expanse of the deposit running along the DMT. We are continuing our extensive drill program at Detour Lake, following up on each of the key targets, with 12 drills currently working and plans to complete 270,000 m of drilling during 2021.
“When we issued the new technical report for Detour Lake at the end of March, we described it as an important milestone for the project that included expanded production, low unit costs, a long mine life and attractive economics. We also indicated that it was very much an interim report, that we fully expect to improve upon when we factor the substantial exploration success we are achieving into a new technical report and life-of-mine plan next year. The drilling results we have announced today provide us with even greater confidence that the 2022 technical report will clearly establish Detour Lake as one of the world’s premier gold mines.”
Central Portion of the Saddle Zone
Drilling in the central portion of the Saddle Zone included nine holes and one wedge hole (6,445 m) and targeted the DMT approximately midway between the existing Main Pit and Mineral Reserves in the planned West Pit.
Significant results from the drilling include: 1.13 gpt over 155.1 m, 1.90 gpt over 32.7 m, incl. 15.07 gpt over 2.1 m, 3.98 gpt over 9.3 m, 1.0 gpt over 29.2 m, 18.87 gpt over 2.6 m and 2.0 gpt over 10.0 m from hole DLM-21-103; 9.02 gpt over 13.0 m, 2.21 gpt over 26.0 m, incl. 5.15 gpt over 8.0 m, 1.84 gpt over 11.0 m and 9.99 gpt over 2.0 m from hole DLM-20-079BW; 1.56 gpt over 70.2 m, 31.91 gpt over 5.0 m, 3.18 gpt over 10.0 m, 18.45 gpt over 2.3 m, 17.40 gpt over 3.2 m 15.10 gpt over 2.0 m and 3.35 gpt over 9.0 m from hole DLM-20-092; 1.37 gpt over 43.1 m, incl. 12.17 gpt over 3.0 m, 1.37 gpt over 19.2 m, 1.33 gpt over 11.0 m, 0.71 gpt 67.2 m and 9.28 gpt over 2.0 m from hole DLM-20-078 and 1.10gpt over 42.6 m from hole DM-21-144 which targeted the DMT between 200 and 400 m below surface as well as at depth.
Additional significant results include: 1.08 gpt over 56.0 m, incl. 13.01 gpt over 2.0 m and 3.38 gpt over 10.0 m, incl. 14.76 gpt over 2.0 m from hole DLM-20-79B, 1.34 gpt over 40.0 m, 0.71 gpt over 81.6 m and 0.86 gpt over 37.2 m from hole DLM-21-098A; 0.94 gpt over 56.2 m and 0.99 gpt 18.1 m from hole DLM-20-085A and 1.42 gpt over 19.9 mand 0.73 gpt over 15.0 m from hole DLM-21-106 which targeted the DMT between 100 and 200 m below surface.
Results from all new holes in this area are considered extremely encouraging as they continue to confirm the presence of a broad corridor of mineralization extending between the Main Pit and Mineral Reserve in the planned West Pit (a distance of over 800 m) with the overall style of mineralization and gold tenor being very similar to that found in existing Mineral Reserves. Particularly encouraging is the identification of wide, high-grade mineralization near the lower limits of the current Mineral Resource pit shell, which indicates that a potential exists to expand the pit shell to depth and to add significant new open-pit Mineral Resources as well as to define underground Mineral Resources below the pit.
East Portion of Saddle Zone
Drilling in the east portion of the Saddle Zone included fourteen holes (8,703 m) and targeted areas along the DMT directly below and to the west of the Main Pit Mineral Reserve shell.
Significant results from the drilling including: 1.96 gpt over 60.4 m and 2.12 gpt over 36.3 m, incl. 21.45 gpt over 2.0 m from hole DLM-21-111; 0.90 gpt over 103.0 m and 90.03 gpt over 2.5 m from hole DLM-20-099; 0.81 gpt over 131.0m from hole DLM-21-151; 1.49gpt over 64.8 m, including 23.95 gpt over 2.0 m and 2.54 gpt over 35.1 m, incl. 27.77 gpt over 2.0 m from hole DLM-21-126, 1.08 gpt over 75.0 and 1.04 gpt over 33.8 m from hole DLM-21-090 and 3.91 gpt over 23.0 m, including 35.66 gpt over 2.0 m from hole DLM-21-127.
All of these new holes were designed to intersect the DMT between 150 and 250 m below surface and continue to confirm the continuation of this structure to the west of the current Main Pit Mineral Reserve and Mineral Resource pit shells.
West Pit (Undeveloped)
Drilling below the planned west pit included nine holes and one wedge hole (6,294 m) which targeted the DMT in the central part of the planned West Pit between 350 and 400 m below surface.
Significant results from the drilling include: 2.94 gpt over 51.9 m, including 29.37 gpt over 4.0 m, 1.41 gpt over 47.2 m and 0.92 gpt over 46.2 from DLM-21-122; 2.37 gpt over 36.0 m, 2.58 gpt over 10.0m and 095 gpt over 30.7 m from hole DLMa-21-102A. The new results are located approximately 25 to 50 m below the current West Pit Mineral Resource pit shell where there is very limited past drilling.
Results from all four holes are considered very positive and continue to confirm the continuation of mineralization through the west portion of the Saddle Zone and into the area under the planned West Pit.
West Pit Extension
Drilling in the east portion of the Saddle Zone included six new holes (2,970 m) which targeted areas of the DMT west of the Mineral Reserve located in the planned West Pit up to between 200 and 300 m below surface.
Significant results from the drilling include: 0.75 gpt over 41.5m from hole DLM-21-135 which intersected the DMT approximately 100 m west of the current Mineral Reserve pit shell in the planned West Pit, as well as 10.66 gpt over 13.0 m, including 34.51 gpt over 3.0 m, 23.92 gpt over 2.3 m, 3.52 gpt over 5.0 m and 0.65 gpt over 47.8 m from hole DLM-21-119A and 1.14 gpt over 78.4 m from hole DLM-20-060 which intersected this structure between 200 to 400 m to the west.
Based on assay results and other observations obtained from the program to date, the outlook for the project continues to look encouraging with there being evidence of a broad and continuous corridor of mineralization extending from the Main Pit through the Saddle Zone to the planned West Pit and to a depth of at least 800 m below surface. The work also suggests that mineralization within the corridor is very similar to that found in existing Mineral Reserves and is hosted within broad zones containing variable amounts of quartz and pyrite, which are controlled mainly by east-west trending, moderately north dipping folds and shear structures which plunge at a shallow angle to the west. Given results to date, the potential to identify further extensions to mineralization as well as additions to Mineral Resources and Mineral Reserves through additional drilling is considered excellent.
Exploration work at Detour Lake is ongoing with twelve drills current working and on track to completing 270,000 m by the end of 2021.
Qualified Persons
The Company’s exploration programs at Detour Lake are conducted under the supervision of Eric Kallio, P.Geo., Senior Vice President, Exploration. Mr. Kallio, as well as Keith Green, P.Geo., Director, Exploration, Canada, and Steve Gray, P.Geo, Exploration Superintendent, Detour Lake Mine, are ‘qualified persons’ for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, and have reviewed and approved the scientific and technical information in this news release.
QA/QC Controls
The Company has implemented a quality assurance and control (“QA/QC”) program to ensure sampling and analysis of all exploration work is conducted in accordance with best practices. Samples are logged and sampled in a secure facility at the Detour mine site and under supervision of Qualified Geologists. NQ sized core is predominantly sawn in half with one half of the core prepared for shipment, the other half of core retained for future assay verification. Certified reference material (CRM) standards and coarse blank material are inserted every 20 samples. Core samples are shipped directly by courier, and tracked via a chain of custody from site to certified off-site analytical laboratories for preparation and assaying.
Kirkland Lake Gold utilizes four accredited external laboratories to manage the significant volume of sample submissions. Each lab is certified by the Standards Council of Canada (SCC) which conforms with ASB-RG Mineral Analysis Laboratory for the Accreditation of Mineral Analysis Testing Laboratories and CAN-P-4E ISO/IEC 17025: General Requirements for the Competence of Testing and Calibration Laboratories.
Sample preparation includes crushing drill core up to 80% passing 2 mm, riffle splitting 500 grams and pulverizing to 95% passing 105 µm followed by both scheduled and specifically requested silica sand cleaning. Gold Analysis involves Fire Assay – Atomic Absorption (AA) technique from a 50-gram pulp sample with grade ranges between 5 to 10,000 ppb. Samples greater than 10,000 ppb are analyzed with a gravimetric finish. Selected high grade samples are also analyzed using the screen metallics procedure.
Contracted laboratories for the Kirkland Lake Gold’s Detour Project include; ALS Global (sample preparation completed in Timmins, Ontario with pulps sent to Vancouver, BC for analysis), Activation Laboratories (sample preparation and analysis completed in Timmins, Ontario), SGS Laboratories (sample preparation and analysis completed in Cochrane, Ontario) and AGAT Laboratories (sample preparation in Timmins and analysis in Mississauga).
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and Detour Lake Mine, both located in Northern Ontario, and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold’s solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management expertise.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
Cautionary Note Regarding Forward-Looking Information
Kirkland Lake Gold (TSX: KL; NYSE: KL; ASX: KLA) plans to transform its Detour Lake mine in northern Ontario into one of the world’s largest and most profitable good mines, says Tony Makuch, the company’s president and CEO.
There is a much larger and higher-grade deposit at Detour Lake than is reflected in the project’s current mineral resource, he said in an interview. “We see significant growth potential in the project’s mineral endowment, which, combined with a new mining plan, will lead to a significant increase in production and improved unit costs compared with the past operation of the mine.”
At the end of March, a technical report for Detour Lake outlined a new life-of-mine plan that envisages production increasing from 563,253 oz. of gold in 2020 to between 680,000 oz. and 720,000 oz. from 2021-2024, growing to 800,000 oz. in 2025, and reaching over 900,000 oz. in 2032 for an average annual production of 659,000 gold oz. over 22 years of mine life.
The life-of-mine 2021 study estimated operating costs per oz. of gold to average US$619 per oz. over the life of the mine, lower than the US$625 per oz. in 2020, with all-in sustaining costs averaging US$821 per oz., a significant improvement over 2020, which averaged US$1,171 per ounce.
Kirkland Lake Gold president and CEO Tony Makuch
Total capital expenditure runs to US$3.6 billion, which includes US$65 to US$75 million for a mill expansion capable of processing 28 million tonnes per year, up from 22.2 million tonnes last year, additional leach pads to improve metallurgical recovery, and a tailings facility expansion. The after-tax net present value is estimated at US$3.8 billion, based on a gold price of US$1,500 per oz. and using a 5% discount rate.
The new mine-of-life plan is based on a mineral resource estimate of 107.7 million measured and indicated tonnes grading 1.15 grams gold per tonne for 4 million gold oz. and 31.8 million inferred tonnes of 0.82 gram gold for 844,000 ounces.
The current life-of-mine plan does not include the exploration success the company has achieved since acquiring the project in early 2020. These will be incorporated into an updated mine plan slated for release next year.
“One of the key factors behind our decision to acquire the mine was the significant exploration upside we saw in the project, which should further increase production, lower unit costs, and transition it to a much larger pit design than presented in the March report,” said Makuch, who has over 35 years of management, operations, and technical experience in the mining industry. Immediately before taking up the reins at Kirkland Lake, he served as president and CEO of Lake Shore Gold from 2008 until Tahoe Resources acquired the company in 2016.
He added that the expected production growth would be driven by higher mill throughput and mining rates, lower strip ratios, better fragmentation, and improved mill productivity.
Kirkland Lake acquired the Detour Lake mine, about 300 km northeast of Timmins, in January 2020 through an all-share acquisition of Detour Gold Corp. in a deal valued at US$3.7 billion.
Detour Gold owned the mine between 2013 and 2020, producing 3.6 million oz. of gold from approximately 135.5 million tonnes of mineralized material at a grade of 0.9 gram gold per tonne. Before that, Placer Dome Inc. operated the mine as an open-pit and underground operation, producing a total of 1.8 million oz. of gold from 14.3 million tonnes of mineralized material grading 3.82 grams gold between 1983 and 1989.
Since acquiring the mine, Kirkland Lake has conducted an extensive drilling campaign to identify extensions to the mineralisation.
A key focus for the exploration program has been to drill around and near the Detour Lake Main pit.
Drilling in the central portion of the Saddle zone, an underexplored area between the Main pit and the West pit, about 1 km west of the Main pit, intersected broad zones of both shallow and deeper mineralisation. Highlights included drillhole DLM-20-006, which intersected 17 metres grading 1.56 grams gold per tonne from 56 metres downhole, and hole DLM-20-079BW, which cut 13 metres grading 9.02 grams starting from a depth of 509 metres.
Kirkland Lake Gold’s Detour Lake gold mine in Ontario. Credit: Kirkland Lake Gold.
The drill results “confirmed a large, continuous corridor of mineralization that extends from the Main Pit through the Saddle Zone and continues beyond the planned West Pit location,” said Makuch.
A nine-hole (2,796 metre) drill program on the 58 North zone, a satellite deposit 10 km south of the mine, was designed to infill the west portion of the current mineral resource area. Highlights included drillhole DLD-20-504, which returned 5 metres of 14.6 grams gold from 214 metres.
Drilling on an area about one km northwest of the Main Pit, called the North Pit, intersected significant open-pit grades, extending known mineralization to depth and along strike of the current mineral resource area, with hole DLM-20-003 returning 9 metres grading 1.1 grams gold from 274 metres and hole DLM20-001 cutting 3.4 metres of 147 grams gold from 394.6 metres.
Given the limited amount of drilling to date in the Saddle, 58 North, and North Pit areas, Makuch believes there is considerable potential to add new mineral resources through “aggressive drilling.”
“Our exploration has demonstrated that we’re yet to determine the full extent of the mineralisation at the project, which has the potential to support a 30-million-plus ounce mineral reserve base,” he said.
While acknowledging that the technical report released in March was an important milestone for the project, he noted that the company was confident that its drill campaign would add substantially more ounces to the project’s mineral endowment and “establish Detour Lake as one of the world’s top gold mines.”
Kirkland Lake plans to release an updated mine plan for the project in 2022 that incorporates drill results from the 2020 and 2021 drilling campaigns. The updated mine plan, said Makuch, will likely see the project transition to a much larger pit design as the mineral resource grows, leading to further increases in production and better unit costs.
This year, the company plans to complete 270,000 metres of drilling to expand mineralisation to the west of the West pit and follow up on key targets, including 58 North and North Pit. Twelve drill rigs are now turning on the project.
The open pit at Kirkland Lake Gold’s Detour Lake gold mine in Ontario. Credit: Kirkland Lake Gold.
It is also working with Rogers Communications, a Canadian telecommunications and media company, to erect several cell towers onsite to improve connectivity across the region. Powered by wind and solar energy and backup hydrogen generators, the towers will also include a first aid station as well as providing shelter.
Kirkland has around US$800 million in the treasury to fund these activities, said Makuch, adding that the company has no debt. “We have a strong balance sheet and are well funded to support our work program.”
The company’s other gold assets in Ontario include the Macassa underground mine, which, in 2020, produced 183,038 oz. of gold, and the Holt Complex, which comprises the Holt, Holloway, and Taylor mines. In April 2020, operations at the complex were suspended as part of Kirkland Lake’s Covid-19 protocols.
Outside Canada, it owns the Fosterville underground gold mine in Australia, one of the largest gold producers in the state of Victoria. In 2020, the mine produced 640,467 oz. of gold.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
$bigone thanks; Costerfield = Fosterville = BESIDE KIRKLAND LAKE GOLD MINE = WHY KL SHOULD BUY IT = at depth, where gold at depth is in high grade veins in quartz with stibnite largely absent -
It's a long way back UP :-)) it would be to KL advantage :-))
So in the coming weeks and months when you see MND going from its current price to over $10 USD per share, it will be because big money knows this is another FOSTERVILLE and they will reprice the stock after the last of the small retail investors are out.
IMHO the current yoyo trading action is a few market makers trying to pick off the last of the few remaining loose shares. by ganndolph1 (174) sth.
$Costerfield = Fosterville = BESIDE KIRKLAND LAKE GOLD MINE = WHY KL SHOULD BUY IT = at depth, where gold at depth is in high grade veins in quartz with stibnite largely absent.
$The following link shows the Mandalay Resources drilling addressed in the news release.
$This NR confirms that Costerfield = Fosterville at depth, where gold at depth is in high grade veins in quartz with stibnite largely absent.
This implies that the gold is all free gold recoverable at 90 percent plus recovery through the gravity circuit.
10,000 square meters times an average of 66.45 g/t over a 1.8 meter mining width based on 6 holes equates to about 115,000 ounces of free gold over the Eastern Vein, while
20,000 square meters times an average of 12.2 g/t over a 1.8 meter mining width based on 4 holes equates to another 42,000 ounces of free gold at the Western Vein.
Since these results are based on two drilling platforms confirming these high grade gold intercepts from two different angles, small wonder why the company has accelerated its exploration drilling program.
This reminds me of Crocodile Gold, except in the case of Mandalay Resources, 80 percent of the stock is in the hands of large institutional firms.
Yet their market makers are still capping this stock at $2.00 USD per share, and hoping that retail investors would cough up their shares at that bottom basement price.
$MAJOR PRODUCTION UPLIFT, STABLE OPERATIONS GROWING PRODUCTION from 81,568 oz gold equivalent in 2018 to 105-117,000 AuEq oz in 2021
$COSTERFIELD GOLD & ANTIMONY MINE IN AUSTRALIA -
Significant production growth expected via Youle vein Deep hole drilling below Youle and Cuffley
Testing shallow targets around old-workings
Target and generative testing focus in 2021
$BJÖRKDAL GOLD MINE, SWEDEN -
Step change in underground production. Increasing underground production with higher-grade ore from Aurora zone.
HIGH-POTENTIAL EXPLORATION UPSIDE
CONTINUING REGIONAL EXPLORATION
programs on known targets; seeking repetition of mineralization
BJÖRKDAL
Extensional drilling at aurora Defining mineralization and assessing the economics of the high-grade skarn deposit
FULLY-FUNDED
Cash position of $34.2M at 2020 year-end affords Mandalay with the financial flexibility to continue funding its exploration programs and sets the Company up for future profitability and growth
COSTERFIELD High-grade Youle vein the major growth catalyst
BJÖRKDAL Ramping up underground production, focusing on higher-cash margin ore
2021 GUIDANCE LATEST PRESENTATION Q4 2020 PRODUCTION REPORT Q4 AND YE2020 FINANCIAL 2020 RESERVES AND RESOURCES
$bigone thanks; Basel III to trigger 'liquidity squeeze,' gold price could be looking at $2,100 by year-end - Goldex CEO Anna Golubova Anna Golubova Tuesday June 22, 2021 15:53 Kitco NewsShare this article:
(Kitco News) The risk with Basel III is a major shift towards allocated gold, which could trigger a liquidity squeeze in the physical metal and lead to higher prices by the end of the year, according to Goldex CEO Sylvia Carrasco.
The impact of the Basel III agreement, which will come into force on June 28, 2021, for European banks and on January 1, 2022, for British banks, is being debated by many gold industry experts, with opinions ranging from "everything will change" to "no impact at all."
Carrasco is in the camp that sees many people underestimate the impact of Basel III on the gold market.
$"Basel III will affect the gold price more than many people believe. The spot price will definitely go up," Carrasco told Kitco News.
Basel III is an internationally agreed-upon set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. Many of the measures deal with bank capital adequacy, stress testing, and market liquidity.
One of the biggest changes for gold is that the precious metal is being reclassified from a Tier 3 asset, which is the riskiest asset class, to a Tier 1 asset, which is currently designated for cash and currencies. The change could make it more expensive to buy and sell unallocated gold.
This is because Basel III includes the new Net Stable Funding Ratio (NSFR) requirement, which specifies that an 85% Required Stable Funding (RSF) needs to be held by banks against the financing and clearing of precious metals transactions. This is a big change from the pre-Basel III level of 0%, and it makes holding unallocated gold more expensive by equating it to the same level of risk as holding equities.
"Basel III requires banks or dealers to collateralize 85% of the value of their unallocated gold with a Tier 1 asset, which is cash," Carrasco said.
For example, if a bank has $1 billion in gold positions, with $300 million in allocated gold and the other $700 million in unallocated gold. Before Basel III, the bank didn't have to put any collaterals for those positions. But with Basel III, the $300 million positions in allocated gold are fine. But the $700 million positions in unallocated gold are now considered risky as equities and are put in the same risk category.
"Under Basel III, the bank would have to show that 85% of this $700 million is actually sitting on their balance sheet, and the bank is not touching it," Carrasco explained. "That has a tremendous cost of finance. The bullion banks need to find 85% of the nominal value of their unallocated gold position and fund it."
The risk here is that trading unallocated gold would become a money- losing business.
"Banks cannot continue charging practically no fees on unallocated gold. Could they have to increase their price by 100 times? Will clients be interested in trading at those prices?" Carrasco asked. "The risk is going to be a lot of banks shutting down because suddenly it is a money-losing business. That is Basel III in a nutshell."
$bigone thanks; Richest gold mines in Canada in Q1 2021 - report Vladimir Basov Vladimir Basov Friday June 18, 2021 12:34 Kitco NewsShare this article:
Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions.
(Kitco News) - The grade or concentration of a mineral or metal in ore directly affects costs associated with mining as well as its subsequent beneficiation and extraction of precious components.
Kitco ranked currently active gold operations in Canada based on gold grade in a tonne of processed ore reported for Q1 2021. Kitco looked at operations that are separate reporting units and which have gold grade figures disclosed by the owners/operators.
$Kirkland Lake’s Macassa mine, located in the Municipality of Kirkland Lake, within Teck Township, District of Timiskaming, in the northeast of the province of Ontario, is the richest gold mine in Canada and one of the richest gold operations worldwide. The company reported an average processed grade of 19.8 g/t gold for Macassa in Q1 2021, which was virtually unchanged compared to the corresponding period of 2020.
The second richest Alamos Gold’ Island Gold mine is a high grade, low-cost underground mining operation located just east of the town of Dubreuilville, Ontario, Canada, 83km northeast of Wawa. Underground grades processed averaged 13 g/t Au in the first quarter, an 11% increase over Q1 2020 and above the Mineral Reserve grade.
Wesdome Gold’s Eagle River mine is third richest gold operation in Canada with 12.8 g/t gold reported in Q1 2021, which is below budget and 9% lower compared to Q1 2020 due to stope sequencing.
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres southwest of Cambridge Bay, the Hope Bay mine, which is fourth richest gold mine in Canada, was acquired by Agnico Eagle in February 2021. Ore is currently being sourced from the high-grade BTD Zone, which shows potential for expansion.
SSR Mining’s Seabee is an underground gold mine located along the Trans-Hudson Corridor in east-central Saskatchewan, Canada. Seabee mill feed grade was 8.45 g/t gold during the first quarter of 2021, an 18% decrease compared to the first quarter of 2020, due to mining in lower productivity areas, as planned.
All richest gold mines in Canada are underground operations. The complete list is below.
Kirkland Lake Gold Declares Quarterly Dividend Payment TORONTO, June 17, 2021 (GLOBE NEWSWIRE) -
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “ Company ”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced that a quarterly dividend payment for the secon...
$bigone thanks; Kirkland Lake Gold Renews Normal Course Issuer Bid TORONTO, June 07, 2021 (GLOBE NEWSWIRE) -
$Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “ Company ”) (TSX:KL) (NYSE:KL) (ASX:KLA) is pleased to announce that it has received acceptance from the...
Kirkland Lake Gold (TSX: KL; NYSE: KL; ASX: KLA) plans to transform its Detour Lake mine in northern Ontario into one of the world’s largest and most profitable good mines, says Tony Makuch, the company’s president and CEO.
There is a much larger and higher-grade deposit at Detour Lake than is reflected in the project’s current mineral resource, he said in an interview. “We see significant growth potential in the project’s mineral endowment, which, combined with a new mining plan, will lead to a significant increase in production and improved unit costs compared with the past operation of the mine.”
At the end of March, a technical report for Detour Lake outlined a new life-of-mine plan that envisages production increasing from 563,253 oz. of gold in 2020 to between 680,000 oz. and 720,000 oz. from 2021-2024, growing to 800,000 oz. in 2025, and reaching over 900,000 oz. in 2032 for an average annual production of 659,000 gold oz. over 22 years of mine life.
The life-of-mine 2021 study estimated operating costs per oz. of gold to average US$619 per oz. over the life of the mine, lower than the US$625 per oz. in 2020, with all-in sustaining costs averaging US$821 per oz., a significant improvement over 2020, which averaged US$1,171 per ounce.
Kirkland Lake Gold president and CEO Tony Makuch
Total capital expenditure runs to US$3.6 billion, which includes US$65 to US$75 million for a mill expansion capable of processing 28 million tonnes per year, up from 22.2 million tonnes last year, additional leach pads to improve metallurgical recovery, and a tailings facility expansion. The after-tax net present value is estimated at US$3.8 billion, based on a gold price of US$1,500 per oz. and using a 5% discount rate.
The new mine-of-life plan is based on a mineral resource estimate of 107.7 million measured and indicated tonnes grading 1.15 grams gold per tonne for 4 million gold oz. and 31.8 million inferred tonnes of 0.82 gram gold for 844,000 ounces.
The current life-of-mine plan does not include the exploration success the company has achieved since acquiring the project in early 2020. These will be incorporated into an updated mine plan slated for release next year.
“One of the key factors behind our decision to acquire the mine was the significant exploration upside we saw in the project, which should further increase production, lower unit costs, and transition it to a much larger pit design than presented in the March report,” said Makuch, who has over 35 years of management, operations, and technical experience in the mining industry. Immediately before taking up the reins at Kirkland Lake, he served as president and CEO of Lake Shore Gold from 2008 until Tahoe Resources acquired the company in 2016.
He added that the expected production growth would be driven by higher mill throughput and mining rates, lower strip ratios, better fragmentation, and improved mill productivity.
Kirkland Lake acquired the Detour Lake mine, about 300 km northeast of Timmins, in January 2020 through an all-share acquisition of Detour Gold Corp. in a deal valued at US$3.7 billion.
Detour Gold owned the mine between 2013 and 2020, producing 3.6 million oz. of gold from approximately 135.5 million tonnes of mineralized material at a grade of 0.9 gram gold per tonne. Before that, Placer Dome Inc. operated the mine as an open-pit and underground operation, producing a total of 1.8 million oz. of gold from 14.3 million tonnes of mineralized material grading 3.82 grams gold between 1983 and 1989.
Since acquiring the mine, Kirkland Lake has conducted an extensive drilling campaign to identify extensions to the mineralisation.
A key focus for the exploration program has been to drill around and near the Detour Lake Main pit.
Drilling in the central portion of the Saddle zone, an underexplored area between the Main pit and the West pit, about 1 km west of the Main pit, intersected broad zones of both shallow and deeper mineralisation. Highlights included drillhole DLM-20-006, which intersected 17 metres grading 1.56 grams gold per tonne from 56 metres downhole, and hole DLM-20-079BW, which cut 13 metres grading 9.02 grams starting from a depth of 509 metres.
Kirkland Lake Gold’s Detour Lake gold mine in Ontario. Credit: Kirkland Lake Gold.
The drill results “confirmed a large, continuous corridor of mineralization that extends from the Main Pit through the Saddle Zone and continues beyond the planned West Pit location,” said Makuch.
A nine-hole (2,796 metre) drill program on the 58 North zone, a satellite deposit 10 km south of the mine, was designed to infill the west portion of the current mineral resource area. Highlights included drillhole DLD-20-504, which returned 5 metres of 14.6 grams gold from 214 metres.
Drilling on an area about one km northwest of the Main Pit, called the North Pit, intersected significant open-pit grades, extending known mineralization to depth and along strike of the current mineral resource area, with hole DLM-20-003 returning 9 metres grading 1.1 grams gold from 274 metres and hole DLM20-001 cutting 3.4 metres of 147 grams gold from 394.6 metres.
Given the limited amount of drilling to date in the Saddle, 58 North, and North Pit areas, Makuch believes there is considerable potential to add new mineral resources through “aggressive drilling.”
“Our exploration has demonstrated that we’re yet to determine the full extent of the mineralisation at the project, which has the potential to support a 30-million-plus ounce mineral reserve base,” he said.
While acknowledging that the technical report released in March was an important milestone for the project, he noted that the company was confident that its drill campaign would add substantially more ounces to the project’s mineral endowment and “establish Detour Lake as one of the world’s top gold mines.”
Kirkland Lake plans to release an updated mine plan for the project in 2022 that incorporates drill results from the 2020 and 2021 drilling campaigns. The updated mine plan, said Makuch, will likely see the project transition to a much larger pit design as the mineral resource grows, leading to further increases in production and better unit costs.
This year, the company plans to complete 270,000 metres of drilling to expand mineralisation to the west of the West pit and follow up on key targets, including 58 North and North Pit. Twelve drill rigs are now turning on the project.
The open pit at Kirkland Lake Gold’s Detour Lake gold mine in Ontario. Credit: Kirkland Lake Gold.
It is also working with Rogers Communications, a Canadian telecommunications and media company, to erect several cell towers onsite to improve connectivity across the region. Powered by wind and solar energy and backup hydrogen generators, the towers will also include a first aid station as well as providing shelter.
Kirkland has around US$800 million in the treasury to fund these activities, said Makuch, adding that the company has no debt. “We have a strong balance sheet and are well funded to support our work program.”
The company’s other gold assets in Ontario include the Macassa underground mine, which, in 2020, produced 183,038 oz. of gold, and the Holt Complex, which comprises the Holt, Holloway, and Taylor mines. In April 2020, operations at the complex were suspended as part of Kirkland Lake’s Covid-19 protocols.
Outside Canada, it owns the Fosterville underground gold mine in Australia, one of the largest gold producers in the state of Victoria. In 2020, the mine produced 640,467 oz. of gold.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website
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