https://www.miningweekly.com
Exploration|Flow|Gold|Flow|Drilling|Operations
Exploration|Flow|Gold|Flow|Drilling|Operations
exploration|flow-company|gold|flow-industry-term|drilling|operations

Kirkland Lake's 1Moz/y target now in sight

The Fosterville mine, in Australia.

The Fosterville mine, in Australia.

12th December 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Australia- and Canada-focused gold miner Kirkland Lake is set to hit the one-million-ounce mark by 2021, the company said this week, announcing its three-year production guidance.

The miner is targeting consolidated production growth of 10% to 15% a year over the next three years, with production of 740 000 oz to 800 000 oz in 2019, to be followed by production of 850 000 oz to 910 000 oz in 2020 and 945 000 oz to one-million ounces in 2021.

Kirkland Lake is already on its way to exceed its consolidated target range of 655 000 oz to 670 000 oz this year, on the back of record quarterly production from the Fosterville mine, in Victoria, Australia.

Fosterville is set to produce more than half-a-million ounces in 2020 and will produce 570 000 oz by 2021, driven by higher grades and increased throughput in 2021.

The Macassa mine, in Ontario, will produce between 245 000 oz and 255 000 oz in 2021, with production to increase in 2022 with the start of production from the new #4 shaft. The Holt Complex, also in Ontario, will produce more than 120 000 oz in both 2019 and 2020, increasing to more than 130 000 oz in 2021.

“Not surprisingly, the key driver of our three-year growth is Fosterville, where we expect to achieve over half-a-million ounces of annual gold production by 2020 and close to 600 000 oz in 2021. As demonstrated from recent drilling and production results, the Swan zone is a truly unique, high-grade zone that we are continuing to grow. We continue to explore for more zones like Swan at Fosterville and are encouraged by the fact that similar mineralisation has been intersected in multiple locations,” said president and CEO Tony Makuch.

He added that, although achieving one-million ounces of production would be a significant milestone, the group’s focus was rather on ensuring that the growth continued to drive down unit costs, increased margins and positioned the firm to generate substantial amounts of free cash flow.

Kirkland Lake is forecasting an all-in sustaining cost (AISC) of $630/oz to $680/oz in 2019. This compares with the current 2018 guidance of $735/oz to $760/oz and year-to-date 2018 AISC of $738/oz.

The firm has budgeted between $100-million and $120-million for exploration next year. About $85-million to $100-million will be spent on the Australian operations and the balance at the Canadian mines.

In the first half of 2019, Kirkland will move forward with advanced exploration work to evaluate the potential of resuming operations in the Northern Territory of Australia. A decision is expected during the year.

Edited by Creamer Media Reporter

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.086 0.126s - 94pq - 2rq
Subscribe Now