Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced updated Mineral Reserve and Mineral Resource estimates as
at December 31, 2017. Comparisons to previous Mineral Reserves and
Mineral Resources are to estimates as at December 31, 2016, with
the exception of the Fosterville mine, where comparisons are also
made to the June 30, 2017 mid-year Mineral Reserve and Mineral
Resource estimate (see Company news release dated July 27, 2017 and
technical report dated September 11, 2017 and filed on SEDAR at
www.sedar.com).
Highlights of December 31, 2017 Mineral
Reserve and Mineral Resource estimates:
- Consolidated Mineral Reserves increase 36% to
4,640,000 ounces @ 11.1 grams per tonne (“g/t”) versus 3,420,000
ounces @ 9.0 g/t at December 31, 2016.
- Mineral Reserves at Fosterville increase 1,210,000
ounces or 247% from December 31, 2016 to 1,700,000 ounces
@ 23.1 g/t (65% increase in Mineral Reserve ounces from June 30,
2017 mid-year estimate); Measured and Indicated ("M&I") Mineral
Resources increase 59% from December 31, 2016 to 4,190,000 ounces @
8.4 g/t (inclusive of Mineral Reserves); Inferred Mineral Resources
more than double to 1,900,000 ounces @ 7.1 g/t.
- Fosterville Swan Zone Mineral Reserves more than
double from June 30, 2017, to 1,160,000 ounces @ 61.2 g/t.
M&I Mineral Resources total 171,000 ounces @ 116.0 g/t;
Inferred Mineral Resources total 671,000 ounces @ 36.6 g/t. Large
base of high-grade Mineral Resources highlights potential for
additional growth in Mineral Reserves in 2018.
- Mineral Reserves replaced at Macassa after
depletion of 190,000 ounces, with Mineral Reserves at December 31,
2017 totaling 2,030,000 ounces @ 21.0 g/t.
- 58% increase in M&I Mineral Resources at
Macassa to 2,090,000 ounces @ 17.1 g/t, with Inferred
Mineral Resources increasing 48%, to 1,370,000 ounces, @ 22.2
g/t.
- Taylor mine Mineral Reserves increase 29% to
167,000 ounces @ 4.8 g/t; exploration drilling continues to focus
on identifying new areas of gold mineralization near
infrastructure.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: "Our strategy is focused
on achieving year-over-year production growth and making Kirkland
Lake Gold a million ounce per year producer within the next five to
seven years. Achieving, and then maintaining, that level of output
requires large deposits with significant growth potential. Our
Mineral Reserve and Mineral Resource update for December 31, 2017
clearly demonstrates that our high-grade deposits are growing and
show every sign of continuing to grow in 2018. We are extremely
encouraged by the results at Fosterville, which continues to emerge
as one of our industry's most compelling growth stories. When we
acquired Fosterville in November 2016, the mine had Mineral
Reserves of 244,000 ounces at a grade of 7.0 g/t. In just over a
year, we have increased the Mineral Reserves to 1.7 million ounces
at 23.1 g/t, including the high-grade Swan Zone, which has over a
million ounces in Mineral Reserves at an average grade of 61.2 g/t.
We also have a large resource base at Fosterville, and substantial
exploration potential, both to grow existing deposits and to
discover new production opportunities at our many district targets.
We are also encouraged by recent exploration success in the
Northern Territory, which is supporting our efforts to establish a
five-year mine plan that generates attractive returns and warrants
a resumption of operations at the Cosmo mine and Union Reefs
mill.
"Turning to Canada, after identifying a
significant eastern extension of the South Mine Complex ("SMC") at
Macassa last year, we focused our drilling on establishing Mineral
Resources in this new area. We are encouraged by the growth that
has been achieved, with M&I and Inferred Mineral Resources
increasing 58% and 48%, respectively. We will now focus on
converting these ounces into Mineral Reserves. Our high level of
confidence in the growth potential of the high-grade SMC is a key
reason why we are sinking a new shaft at Macassa, and targeting
production growth to over 400,000 ounces per year. At Taylor, we
increased our Mineral Reserves and had significant success
identifying new areas of mineralization during 2017, which we
expect will ultimately lead to significant reserve growth down the
road. One area where we did not replace Mineral Reserves was at
Holt, where our plan is to mine out the existing reserves given
that the current cost structure, particularly related to royalties,
significantly constrains the economics of the operation."
Mineral Reserves and Mineral Resources as at
December 31, 2017 were estimated using a long-term gold price of
$1,280 per ounce (C$1,600 per ounce; A$1,600 per ounce). All
Mineral Resource estimates for the Canadian operations are
exclusive of Mineral Reserves. Effective with the June 30, 2017
Mineral Reserve and Mineral Resource estimate for Fosterville, the
Australian operations commenced reporting Mineral Resources
exclusive of Mineral Reserves. Prior to June 30, 2017, the
Australian operations had reported Mineral Resources inclusive of
Mineral Reserves. In the tables below, M&I Mineral Resources
are provided for Fosterville and the Northern Territory in
Australia as at December 31, 2017 both inclusive and exclusive of
reserves to provide for meaningful comparisons to prior
periods. All Inferred Mineral Resources are exclusive of
Mineral Reserves.
Detailed footnotes related to the December 31,
2017 Mineral Reserve and Mineral Resource estimates are provided
near the end of this news release.
CONSOLIDATED MINERAL RESERVE ESTIMATE
(EFFECTIVE DECEMBER 31, 2017)
|
December 31, 2017 |
|
December 31, 2016 |
|
Tonnes |
Grade |
Gold Ozs |
Depleted Oz |
Tonnes |
Grade |
Gold Ozs |
|
(000's) |
(g/t) |
(000’s) |
2017 (000’s) |
(000's) |
(g/t) |
(000’s) |
Macassa |
3,010 |
21.0 |
2,030 |
190 |
3,000 |
20.8 |
2,010 |
Taylor |
1,090 |
4.8 |
167 |
55 |
743 |
5.4 |
129 |
Holt |
3,600 |
4.2 |
486 |
74 |
3,950 |
4.5 |
570 |
Hislop(1) |
176 |
5.8 |
33 |
- |
176 |
5.8 |
33 |
Holloway(1) |
54 |
5.8 |
10 |
- |
58 |
5.7 |
10 |
Total CDN Operations |
7,930 |
10.7 |
2,730 |
319 |
7,930 |
10.8 |
2,750 |
Fosterville |
2,290 |
23.1 |
1,700 |
278 |
1,560 |
9.8 |
490 |
Northern Territory(1) |
2,800 |
2.4 |
215 |
21 |
2,400 |
2.3 |
177 |
Total AUS Operations |
5,090 |
11.7 |
1,910 |
299 |
3,960 |
5.3 |
667 |
Total |
13,020 |
11.1 |
4,640 |
618 |
11,890 |
9.0 |
3,420 |
(1) The Hislop mine is a formerly producing open-pit mine
acquired as part of the St Andrew Goldfields acquisition in January
2016. Hislop has not been operated by the Company since the
acquisition. The Holloway mine was placed on care and maintenance
effective December 31, 2016. The Cosmo mine and Union Reefs mill
were placed on care and maintenance effective June 30, 2017.
The following table compares the Mineral Reserve estimate for
Fosterville mine as at December 31, 2017 to the June 30, 2017
mid-year estimate (see Company news release dated July 27,
2017).
|
December 31, 2017 |
|
June 30, 2017 |
|
Tonnes |
Grade |
Gold Ozs |
Depleted Oz |
Tonnes |
Grade |
Gold Ozs |
|
(000's) |
(g/t) |
(000’s) |
H2 2017 (000’s) |
(000's) |
(g/t) |
(000’s) |
Fosterville |
2,290 |
23.1 |
1,700 |
142 |
1,790 |
17.9 |
1,030 |
CONSOLIDATED MEASURED & INDICATED
MINERAL RESOURCES (EFFECTIVE DECEMBER 31, 2017)
Measured & Indicated |
December 31, 2017 |
December 31, 2016 |
|
Tonnes |
Grade |
Gold Ozs |
Tonnes |
Grade |
Gold Ozs |
|
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Macassa |
3,800 |
17.1 |
2,090 |
2,480 |
16.6 |
1,320 |
Taylor |
1,830 |
6.2 |
370 |
2,760 |
5.6 |
493 |
Holt |
6,510 |
4.1 |
860 |
6,970 |
4.2 |
947 |
Aquarius |
22,300 |
1.3 |
930 |
22,300 |
1.3 |
930 |
Holloway |
1,370 |
5.3 |
230 |
1,370 |
5.3 |
230 |
Hislop |
1,150 |
3.6 |
130 |
1,150 |
3.6 |
130 |
Ludgate |
520 |
4.1 |
70 |
522 |
4.1 |
68 |
Canamax |
240 |
5.1 |
40 |
240 |
5.1 |
39 |
Total CDN Operations |
37,720 |
3.9 |
4,720 |
37,790 |
3.4 |
4,160 |
|
December 31, 2017 |
December 31, 2016 |
|
Inclusive of Reserves |
Fosterville |
15,500 |
8.4 |
4,190 |
14,700 |
5.6 |
2,640 |
Northern Territory |
26,900 |
2.3 |
1,940 |
30,700 |
2.2 |
2,180 |
|
42,400 |
4.5 |
6,140 |
45,400 |
3.3 |
4,820 |
|
December 31, 2017 |
June 30, 2017 |
|
Exclusive of Reserves |
Fosterville |
13,900 |
4.8 |
2,150 |
13,700 |
4.4 |
1,940 |
Northern Territory |
24,100 |
2.3 |
1,810 |
Unavailable |
|
38,000 |
3.2 |
3,960 |
Unavailable |
CONSOLIDATED INFERRED MINERAL RESOURCES
(EFFECTIVE DECEMBER 31, 2017)
Inferred |
December 31, 2017 |
December 31, 2016 |
|
Tonnes |
Grade |
Gold Ozs |
Tonnes |
Grade |
Gold Ozs |
|
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Macassa |
1,920 |
22.2 |
1,370 |
1,420 |
20.2 |
924 |
Taylor |
2,570 |
5.2 |
430 |
1,810 |
5.4 |
313 |
Holt |
8,000 |
4.8 |
1,220 |
8,690 |
4.7 |
1,320 |
Holloway |
2,710 |
5.2 |
460 |
2,710 |
5.2 |
456 |
Hislop |
800 |
3.7 |
100 |
797 |
3.7 |
95 |
Ludgate |
1,400 |
3.6 |
160 |
1,400 |
3.6 |
162 |
Card |
240 |
3.3 |
30 |
- |
- |
- |
Canamax |
170 |
4.3 |
20 |
170 |
4.3 |
23 |
Runway |
210 |
3.7 |
20 |
- |
- |
- |
Total CDN Operations |
18,020 |
6.6 |
3,810 |
17,000 |
6.0 |
3,290 |
Fosterville(1) |
8,280 |
7.1 |
1,900 |
5,400 |
4.6 |
792 |
Northern Territory |
16,300 |
2.5 |
1,280 |
15,100 |
2.3 |
1,110 |
Total AUS Operations |
24,580 |
4.0 |
3,180 |
20,500 |
2.9 |
1,900 |
(1) Inferred Mineral Resources at Fosterville as at June 30,
2017 included 5,560,000 tonnes at an average grade of 5.8 g/t for
1,040,000 ounces.
CANADIAN OPERATIONS MINERAL RESERVES AND MINERAL
RESOURCES AS AT DECEMBER 31, 2017
Macassa
Mineral Reserves at Macassa were replaced in
2017 after depletion of approximately 190,000 ounces, with total
Mineral Reserves at December 31, 2017 totaling 2,030,000 ounces at
an average grade of 21.0 g/t, which compared to Mineral Reserves of
2,010,000 ounces at an average grade of 20.8 g/t at December 31,
2016.
Following the identification of a 259-metre
extension of the high-grade SMC at Macassa in June 2017, drilling
during the remainder of the year largely focused on expanding the
Mineral Resource base of the mine. Significant success was achieved
growing Mineral Resources in 2017, with measured and indicated
Mineral Resources increasing 58%, to 2,090,000 ounces at an average
grade of 17.1 g/t, and Inferred Resources increasing 48%, to
1,370,000 ounces at 22.2 g/t.
During 2018, underground drilling at Macassa
will continue to focus on resource replacement and expansion with
the objective of supporting future growth in Mineral Reserves. Deep
surface drilling at Macassa is being discontinued while the Company
sinks a new shaft, which will support more effective and efficient
underground exploration programs going forward. The new shaft
project at Macassa reflects the Company’s confidence that
significant additions to Mineral Reserves can be achieved through
further exploration and delineation drilling of the SMC, as well as
other targets.
|
December 31, 2017 |
December 31, 2016 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Macassa |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
386 |
16.7 |
207 |
610 |
16.9 |
332 |
-1 |
% |
-38 |
% |
Probable |
2,620 |
21.7 |
1,830 |
2,390 |
21.8 |
1,670 |
0 |
% |
10 |
% |
Proven + Probable |
3,010 |
21.0 |
2,030 |
3,000 |
20.8 |
2,010 |
1 |
% |
1 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
1,570 |
17.8 |
900 |
907 |
16.2 |
474 |
10 |
% |
90 |
% |
Indicated |
2,230 |
16.6 |
1,190 |
1,570 |
16.8 |
849 |
-1 |
% |
40 |
% |
Measured + Indicated |
3,800 |
17.1 |
2,090 |
2,480 |
16.6 |
1,320 |
4 |
% |
58 |
% |
Inferred |
1,920 |
22.2 |
1,370 |
1,421 |
20.2 |
924 |
10 |
% |
48 |
% |
Taylor
Mineral Reserves at Taylor increased 29%, to
167,000 ounces at an average grade of 4.8 g/t at December 31, 2017,
from 129,000 ounces at an average of 5.4 g/t the previous year. The
increase in ounces reflected higher tonnes, which more than offset
reduction in the average Mineral Reserve grade. Measured and
Indicated Mineral Resources at Taylor at December 31, 2017 totaled
370,000 ounces at an average grade of 6.2 g/t versus 493,000 ounces
at and average grade of 5.6 g/t at December 31, 2016. Inferred
Mineral Resources increased 37%, to 430,000 ounces at and average
grade of 5.2 g/t compared to 313,000 ounces at and average grade of
5.4 g/t at December 31, 2016.
Drilling at the Taylor mine in 2017 largely
focused on step-out exploration drilling aimed at identifying new
areas of gold mineralization, mainly along the Destor Porcupine
Fault. Significant exploration success was achieved, with
high-grade gold mineralization being intersected at multiple
locations up to 1.8 km east of the Shaft Deposit. In addition,
underground drilling identified a new gold zone located 350 metres
below the West Porphyry Deposit and intersected high-grade
mineralization in a target area between the Shaft and West Porphyry
deposits. Drilling in 2018 will continue to target additional
expansion of mineralization around existing deposits, with the goal
of further increasing the areas of mineralization at the mine in
support of future growth in Mineral Resources and Mineral
Reserves.
|
December 31, 2017 |
December 31, 2016 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Taylor |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
445 |
5.5 |
78 |
- |
- |
- |
100 |
% |
100 |
% |
Probable |
646 |
4.3 |
89 |
743 |
5.4 |
129 |
-20 |
% |
-31 |
% |
Proven + Probable |
1,090 |
4.8 |
167 |
743 |
5.4 |
129 |
-11 |
% |
29 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
590 |
8.1 |
150 |
399 |
6.0 |
77 |
35 |
% |
95 |
% |
Indicated |
1,240 |
5.3 |
210 |
2,360 |
5.5 |
416 |
-4 |
% |
-50 |
% |
Measured + Indicated |
1,830 |
6.2 |
370 |
2,760 |
5.6 |
493 |
11 |
% |
-25 |
% |
Inferred |
2,570 |
5.2 |
430 |
1,810 |
5.4 |
313 |
-4 |
% |
37 |
% |
Holt
Mineral Reserves at the Holt mine declined 15%
in 2017 and totaled 486,000 ounces at and average grade of 4.2 g/t
as at December 31, 2017, which compared to 570,000 ounces at an
average grade of 4.5 g/t at December 31, 2016. Measured and
indicated resources totaled 860,000 ounces at an average grade of
4.1 g/t, a 9% reduction in ounces from 947,000 ounces at an average
grade of 4.2 g/t as at December 31, 2016. Inferred Mineral
Resources declined 8%, to 1,220,000 ounces at an average grade of
4.8 g/t versus 1,320,000 ounces at an average grade of 4.7 g/t at
December 31, 2016.
During 2017, the Company did not undertake
extensive delineation and infill drilling in support of resource
conversion or exploration drilling to replace and expand Mineral
Resources. No exploration drilling is planned for 2018. The
cessation of drilling activities at Holt reflects the current cost
structures at the mine, primarily related to royalties, which
constrain the economics of the operation.
|
December 31, 2017 |
December 31, 2016 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Holt |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
1,770 |
4.0 |
229 |
1,450 |
4.2 |
194 |
-5 |
% |
18 |
% |
Probable |
1,830 |
4.4 |
257 |
2,500 |
4.7 |
376 |
-6 |
% |
-32 |
% |
Proven + Probable |
3,600 |
4.2 |
486 |
3,950 |
4.5 |
570 |
-7 |
% |
-15 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
3,730 |
4.1 |
500 |
3,956 |
4.3 |
549 |
-5 |
% |
-9 |
% |
Indicated |
2,780 |
4.1 |
370 |
3,020 |
4.1 |
398 |
- |
|
-7 |
% |
Measured + Indicated |
6,510 |
4.1 |
860 |
6,970 |
4.2 |
947 |
-2 |
% |
-9 |
% |
Inferred |
8,000 |
4.8 |
1,220 |
8,690 |
4.7 |
1,320 |
2 |
% |
-8 |
% |
AUSTRALIAN OPERATIONS MINERAL RESERVES
AND MINERAL RESOURCES AS AT DECEMBER 31, 2017
Fosterville
Fosterville had a transformational year in 2017,
with average grades at the mine improving substantially during the
year and the Swan Zone emerging as a significant exploration
achievement. Through successful drilling, as well as
refinements to resource estimation methods, the Company was able to
more than double underground Mineral Reserve ounces half way
through the year, with a mid-year Mineral Reserve and Mineral
Resource estimate being released on July 27, 2017 effective June
30, 2017 (see Company news release dated July 27, 2017). A
technical report supporting the mid-year Mineral Reserve and
Mineral Resource estimate was filed on SEDAR (www.sedar.com)
on September 11, 2017. Over the balance of the year, the Company’s
exploration programs continued to focus on extending known
mineralized zones at Swan, Lower Phoenix, Harrier and Robbin’s
Hill, as well as to test for new structures and to commence initial
work to test a number of regional targets in close proximity to the
mine. On November 7, 2017, the Company announced that underground
exploration drilling had extended the Swan Zone by 120 metres
down-plunge from the existing Inferred Mineral Resource and 210
metres from the existing mineral reserve. The results highlighted
the significant potential that exists to continue to grow the Swan
Zone with additional drilling at depth.
The new estimate for Mineral Reserves at
Fosterville, as at December 31, 2017, totals 1,700,000 ounces at an
average grade of 23.1 g/t. The new estimate of Mineral Reserve
ounces is 247% higher, or more than triple, the previous year-end
estimate of 490,000 ounces at an average grade of 9.8 g/t as at
December 31, 2016 and represents growth of 65% from the mid-year
2017 estimate of 1,030,000 ounces at an average grade of 17.9 g/t
as at June 30, 2017. The key to the significant growth in Mineral
Reserves at Fosterville involves the increase in gold grades at
depth owing to the occurrence of high-grade, visible-gold
disseminated in quartz veining. The initial Mineral Reserve for the
Swan Zone, located at the base of the Lower Phoenix system, was
announced in June 30, 2017, and included 532,000 ounces at an
average grade of 58.8 g/t. The updated reserve estimate includes a
doubling of Mineral Reserve ounces, to 1,160,000 ounces at an
average grade of 61.2 g/t (close to two ounces of gold per
tonne).
Fosterville continues to have a large base of
Mineral Resources to support future growth in Mineral Reserves. At
December 31, 2017, M&I Mineral Resources, exclusive of Mineral
Reserves, totaled 2,150,000 ounces at an average grade of 4.8 g/t,
an 11% increase from the June 30, 2017 estimate of 1,940,000 ounces
at an average grade of 4.4 g/t. Prior to the June 30, 2017
estimate, the practice of the Australian operations was to
report M&I Mineral Resources inclusive of Mineral
Reserves. As a result, comparison to December 31, 2016 are
available on a “inclusive of Mineral Reserves” basis. On this
basis, M&I Mineral Resources at December 31, 2017 totaled
4,190,000 ounces at an average grade of 8.4 g/t, an increase of 59%
from 2,640,000 ounces at an average grade of 5.6 g/t as at December
31, 2016.
Inferred Mineral Resources at December 31, 2017,
reported exclusive of Mineral Reserves, increased substantially
from both prior periods. Inferred Mineral Resources totaled
1,900,000 ounces at an average grade of 7.1 g/t at the end of 2017,
82% higher than the June 30, 2017 estimate of 1,040,000 ounces at
an average grade of 5.8 g/t and an increase of 140% from the
December 31, 2016 estimate of 792,000 ounces at an average grade of
4.6 g/t.
During 2018, exploration work at Fosterville is
focusing on continuing to extend known mineralized zones,
particularly the Swan Zone, and also to test for new mineralized
structures. In addition, significant work is planned for the LODE
("Large Ore Deposit Exploration") program, which includes
greenfield drilling, surface soil sampling, gravity and 3-D seismic
geophysical surveys, and reconnaissance exploration on
newly-granted exploration licenses.
|
December 31, 2017 |
December 31, 2016 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Fosterville |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
236 |
14.8 |
112 |
280 |
8.4 |
76 |
76 |
% |
48 |
% |
Probable |
2,050 |
24.1 |
1,590 |
1,280 |
10.1 |
414 |
139 |
% |
284 |
% |
Proven + Probable |
2,290 |
23.1 |
1,700 |
1,560 |
9.8 |
490 |
136 |
% |
247 |
% |
Mineral Resources |
Inclusive of Mineral Reserves |
Inclusive of Mineral Reserves |
|
Measured |
2,080 |
4.5 |
302 |
2,140 |
4.0 |
274 |
14 |
% |
10 |
% |
Indicated |
13,400 |
9.0 |
3,890 |
12,600 |
5.8 |
2,360 |
54 |
% |
65 |
% |
Measured + Indicated |
15,500 |
8.4 |
4,190 |
14,700 |
5.6 |
2,640 |
51 |
% |
59 |
% |
Inferred |
8,280 |
7.1 |
1,900 |
5,400 |
4.6 |
792 |
57 |
% |
140 |
% |
|
December 31, 2017 |
June 30, 2017 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Fosterville |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
236 |
14.8 |
112 |
246 |
14.2 |
113 |
4 |
% |
-1 |
% |
Probable |
2,050 |
24.1 |
1,590 |
1,540 |
18.5 |
918 |
30 |
% |
73 |
% |
Proven + Probable |
2,290 |
23.1 |
1,700 |
1,790 |
17.9 |
1,030 |
29 |
% |
65 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
Measured |
1,940 |
2.9 |
181 |
1,920 |
2.7 |
168 |
7 |
% |
8 |
% |
Indicated |
11,900 |
5.1 |
1,970 |
11,800 |
4.7 |
1,770 |
9 |
% |
11 |
% |
Measured + Indicated |
13,900 |
4.8 |
2,150 |
13,700 |
4.4 |
1,940 |
10 |
% |
11 |
% |
Inferred |
8,280 |
7.1 |
1,900 |
5,560 |
5.8 |
1,040 |
22 |
% |
82 |
% |
|
December 31, 2017 |
June 30, 2017 |
% Change |
Swan(1) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000's) |
Tonnes (000's) |
Grade (g/t) |
Gold Ounces (000's) |
Gold Grade |
Gold Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
0 |
0.0 |
0 |
0 |
0.0 |
0 |
0 |
% |
0 |
% |
Probable |
588 |
61.2 |
1,160 |
282 |
58.8 |
532 |
4 |
% |
117 |
% |
Proven + Probable |
588 |
61.2 |
1,160 |
282 |
58.8 |
532 |
4 |
% |
118 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
0 |
0.0 |
0 |
0 |
0.0 |
0 |
0 |
% |
0 |
% |
Indicated |
46 |
116 |
171 |
8 |
86.7 |
23 |
34 |
% |
643 |
% |
Measured + Indicated |
46 |
116 |
171 |
8 |
86.7 |
23 |
34 |
% |
643 |
% |
Inferred |
570 |
36.6 |
671 |
145 |
56.0 |
260 |
-35 |
% |
158 |
% |
(1) The Swan Zone Mineral Reserve and
Mineral Resource estimates are components of the estimates for the
Fosterville mine.
Northern Territory (Cosmo Mine/Union
Reefs Mill)
On June 30, 2017, Kirkland Lake Gold suspended
operations at the Cosmo mine and Union Reefs mill with the
operations being placed on care and maintenance. Following the move
to care and maintenance, the Cosmo mine and Union Reef mill are
being maintained in a state of readiness to resume operation in the
event that new reserves are delineated which establish an economic
deposit or deposits in the Northern Territory. In December 2017,
the Company announced encouraging drill results from the Lantern
Deposit at the Cosmo mine, including the intersection of new
high-grade, visible-gold bearing gold mineralization approximately
250 metres north of the existing Lantern Mineral Resource. The
results significantly increased the size of the Lantern mineralized
envelope to over 500 metres along strike and 1,200 metres
down-plunge.
Mineral Reserves in the Northern Territory at
December 31, 2017 totaled 215,000 ounces at an average grade of 2.4
g/t, representing an increase of 22% from 177,000 ounces at an
average grade of 2.3 g/t at December 31, 2016. M&I Mineral
Resources, inclusive of reserves, totaled 1,940,000 ounces at an
average grade of 2.3 g/t versus 2,180,000 ounces at an average
grade of 2.2 g/t the previous year. Inferred Mineral Resources
increased 16% at December 31, 2017 to 1,280,000 ounces at an
average grade of 2.5 g/t from 1,110,000 ounces at an average grade
of 2.3 g/t at December 31, 2016.
In 2018, planned exploration programs at the
Cosmo mine involve underground development and drilling to improve
the understanding of the Lantern Deposit and support resource
definition and expansion. In addition, drill programs are also
planned at the formerly-producing Prospect open pit at Union Reefs,
Maud Creek and other targets on the Northern Territory land
position. Exploration expenditures in 2018 for the Northern
Territory are largely focused on supporting the establishment of a
five-year production plan for the Cosmo mine and Union Reefs mill
that is sufficiently attractive to support a resumption of
operations.
|
December 31, 2017 |
December 31, 2016 |
% Change |
|
Tonnes |
Grade |
Gold Ounces |
Tonnes |
Grade |
Gold Ounces |
Gold |
Gold |
Northern Territory |
(000's) |
(g/t) |
(000’s) |
(000's) |
(g/t) |
(000’s) |
Grade |
Ounces |
Mineral Reserves |
|
|
|
|
|
|
|
|
Proven |
92 |
3.5 |
11 |
98 |
3.0 |
9 |
20 |
% |
13 |
% |
Probable |
2,710 |
2.4 |
205 |
2,310 |
2.3 |
168 |
4 |
% |
22 |
% |
Proven + Probable |
2,800 |
2.4 |
215 |
2,400 |
2.3 |
177 |
5 |
% |
22 |
% |
Mineral Resources |
Inclusive of Mineral Resources |
Inclusive of Mineral Reserves |
|
|
Measured |
1,790 |
4.7 |
271 |
2,520 |
4.2 |
344 |
11 |
% |
-21 |
% |
Indicated |
25,100 |
2.1 |
1,670 |
28,200 |
2.0 |
1,840 |
2 |
% |
-9 |
% |
Measured + Indicated |
26,900 |
2.3 |
1,940 |
30,700 |
2.2 |
2,180 |
2 |
% |
-11 |
% |
Inferred |
16,300 |
2.5 |
1,280 |
15,100 |
2.3 |
1,110 |
8 |
% |
16 |
% |
Mineral Resources |
Exclusive of Mineral Reserves |
Exclusive of Mineral Reserves |
|
|
Measured |
1,750 |
4.7 |
264 |
|
|
|
|
|
Indicated |
22,400 |
2.1 |
1,540 |
|
|
|
|
|
Measured + Indicated |
24,100 |
2.3 |
1,810 |
Unavailable |
|
|
Inferred |
16,300 |
2.5 |
1,280 |
Unavailable |
|
|
Technical Reports
The National Instrument 43-101 ("NI 43-101)" 2016 Technical
Report for Fosterville dated March 30, 2017 and effective December
31, 2016 along with the mid-year 2017 Technical Report for
Fosterville dated September 11, 2017 and effective June 30, 2017
supports the Company's end-of-2017 Mineral Reserve and Mineral
Resource disclosure and was prepared by Troy Fuller, MAIG, and Ion
Hann, FAusIMM.
The National Instrument 43-101 ("NI 43-101)" 2016 Technical
Report for Macassa dated March 30, 2017 and effective December 31,
2016 supports the Company's end-of-2017 Mineral Reserve and Mineral
Resource disclosure and was prepared by Pierre Rocque, P. Eng. and
Doug Cater P. Geo.
Qualified Persons
Pierre Rocque, P.Eng., Vice President, Canadian
operations is a "qualified person" as defined in National
Instrument 43-101 and has reviewed and approved disclosure of the
Mineral Reserves technical information and data for the Canadian
assets included in this news release.
Doug Cater, P. Geo Vice President, Exploration,
Canada is a "qualified person" as defined in National Instrument
43-101 and has reviewed and approved disclosure of the Mineral
Resources technical information and data for the Canadian Assets
included in this news release.
Simon Hitchman, FAusIMM (CP), MAIG, Principal
Geologist, is a "qualified person" as such term is defined in
National Instrument 43-101 and has reviewed and approved the
Mineral Reserves and Mineral Resources technical information and
data for the Australian Assets included in this news release.
Detailed footnotes related to Mineral
Reserve Estimates (dated December 31, 2017)
- CIM definitions (2014) were followed in the calculation of
Mineral Reserves.
- Mineral Reserves were estimated using a long-term gold price of
US$1,280/oz (C$1,600/oz; A$1,600/oz).
- Cut-off grades for Canadian Assets were calculated for each
stope, including the costs of: mining, milling, General and
Administration, royalties and capital expenditures and other
modifying factors (e.g. dilution, mining extraction, mill
recovery.
- Cut-off grades for Australian Assets from 0.4 g/t Au to 3.0 g/t
Au, depending upon width, mining method and ground conditions;
dilution and mining recovery factors varied by property.
- Mineral Reserves estimates for the Canadian Assets were
prepared under the supervision of P. Rocque, P. Eng.
- Mineral Reserves estimates for the Fosterville property were
prepared under the supervision of Ion Hann, FAusIMM.
- Mineral Reserves estimates for the Northern Territory property
were prepared under the supervision of Russell Cole, FAusIMM.
- Mineral Reserves for Fosterville relate to Underground Mineral
Reserves and do not include 649,000 tonnes at an average of 7.7 g/t
for 160,000 ounces of Carbon-In-Leach Residues – 25% recovery is
expected based on operating performances.
- Totals may not add exactly due to rounding.
Detailed footnotes related to Mineral
Resource Estimates for Canadian Assets (dated December 31,
2017)
- CIM definitions (2014) were followed in the calculation of
Mineral Resource.
- Mineral Resources are reported Exclusive of Mineral Reserves.
Mineral Resources were calculated according to KL Gold’s Mineral
Resource Estimation guidelines.
- Mineral Resource estimates were prepared under the supervision
of D. Cater, P. Geo. Vice President Exploration Canada.
- Mineral Resources are estimated using a long-term gold price of
US$1,280/oz (C$1,600/oz).
- Mineral Resources were estimated using a 8.6 g/t cut-off grade
for Macassa, a 2.9 g/t cut-off grade for Holt, and a 2.6 g/t
cut-off grade for Taylor, a 3.9 g/t cut-off grade (Holloway),
a 2.5 g/t cut-off grade for Canamax, Card, Runway and Ludgate, a
2.2 g/t cut-off grade for Hislop and 0 g/t cut-off grade for
Aquarius.
- Totals may not add up due to rounding.
Detailed footnotes related to Mineral
Resource Estimates for Australian Assets (dated December 31,
2017)
- CIM definitions (2014) were followed in the estimation of
Mineral Resource.
- Mineral Resources are estimated using a long-term gold price of
US$1,280/oz (A$1,600/oz)
- Mineral Resources for the Australian assets are reported
exclusive and inclusive of Mineral Reserves to allow for meaningful
comparison to prior periods.
- Mineral Resources at Fosterville were estimated using cut-off
grades 0.7 g/t Au for oxide and 1.0 g/t Au for sulfide
mineralization to potentially open-pitable depths of approximately
100m, below which a cut-off grade of 3.0 g/t Au was used.
- Mineral Resources in the Northern Territory were estimated
using a cut-off grade of 0.5 g/t Au for potentially open pit
mineralization and cut-offs of 1.0 to 2.0g/t Au for underground
mineralization.
- Mineral Resource estimates for the Fosterville property were
prepared under the supervision of Troy Fuller, MAIG.
- Mineral Resource estimates for the Northern Territory
properties were prepared under the supervision of Mark Edwards,
FAusIMM (CP).
- Totals may not add up due to rounding.
About Kirkland Lake Gold
Ltd.
Kirkland Lake Gold Ltd. is a mid-tier gold
producer with 2018 production targeted at over 620,000 ounces of
gold from mines in Canada and Australia. The production profile of
the company is anchored from two high-grade, low-cost operations,
including the Macassa Mine located in Northeastern 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 and operational
expertise.
For further information on Kirkland Lake Gold and to receive
news releases by email, visit the website www.klgold.com.
Cautionary Note Regarding
Forward-Looking Information
This News Release includes certain
"forward-looking statements". All statements other than statements
of historical fact included in this release are forward-looking
statements that involve various risks and uncertainties. These
forward-looking statements include, but are not limited to,
statements with respect to planned exploration programs, costs and
expenditures, changes in Mineral Resources and conversion of
Mineral Resources to proven and probable reserves, and other
information that is based on forecasts of future operational or
financial results, estimates of amounts not yet determinable and
assumptions of management. These forward-looking statements
include, but are not limited to, statements with respect to future
exploration potential, project economics, timing and scope of
future exploration, anticipated costs and expenditures, changes in
Mineral Resources and conversion of Mineral Resources to proven and
probable reserves, and other information that is based on forecasts
of future operational or financial results, estimates of amounts
not yet determinable and assumptions of management.
Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans", "estimates" or "intends", or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties that could cause actual events or results
to differ from those reflected in the forward-looking statements.
Exploration results that include geophysics, sampling, and drill
results on wide spacings may not be indicative of the occurrence of
a mineral deposit. Such results do not provide assurance that
further work will establish sufficient grade, continuity,
metallurgical characteristics and economic potential to be classed
as a category of Mineral Resource. A Mineral Resource that is
classified as "Inferred" or "indicated" has a great amount of
uncertainty as to its existence and economic and legal feasibility.
It cannot be assumed that any or part of an "indicated Mineral
Resource" or "Inferred Mineral Resource" will ever be upgraded to a
higher category of resource. Investors are cautioned not to assume
that all or any part of mineral deposits in these categories will
ever be converted into proven and probable reserves.
There can be no assurance that forward-looking
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company’s expectations include, among
others, risks related to international operations, risks related to
obtaining the permits required to carry out planned exploration or
development work, the actual results of current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined as well as
future prices of gold, as well as those factors discussed in the
section entitled "Risk Factors" in the Company’s Annual Information
Form and other disclosures of "Risk Factors" by the Company and its
predecessors, available on SEDAR. Although Kirkland Lake Gold has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
Cautionary Note to U.S. Investors - Mineral
Reserve and Resource Estimates
All resource and reserve estimates included in
this news release or documents referenced in this news release have
been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Standards"). NI 43-101 is a rule developed by the Canadian
Securities Administrators, which established standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. The terms "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
are Canadian mining terms as defined in accordance with NI 43-101
and the CIM Standards. These definitions differ materially from the
definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under
the United States Securities Act of 1933, as amended, and the
Exchange Act.
In addition, the terms "Mineral Resource",
"measured Mineral Resource", "indicated Mineral Resource" and
"Inferred Mineral Resource" are defined in and required to be
disclosed by NI 43-101 and the CIM Standards; however, these terms
are not defined terms under SEC Industry Guide 7 and are normally
not permitted to be used in reports and registration statements
filed with the U.S. Securities and Exchange Commission (the "SEC").
Investors are cautioned not to assume that all or any part of
mineral deposits in these categories will ever be converted into
reserves. "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred Mineral Resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in very limited circumstances.
Investors are cautioned not to assume that all or any part of a
Mineral Resource exists, will ever be converted into a Mineral
Reserve or is or will ever be economically or legally mineable or
recovered.
FOR FURTHER INFORMATION PLEASE
CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice-President, Investor Relations Phone: +1
416-840-7884 E-mail: mutting@klgold.com
A photo accompanying this announcement is available
athttp://www.globenewswire.com/NewsRoom/AttachmentNg/30483a71-6061-492e-9319-97aea5b268a0
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