Kirkland Lake Gold Inc. is pleased to report gold production and provide preliminary costs for the three ("Q3/16") and nine ("YTD") months ended September 30, 2016. The Company produced 77,274 ounces in Q3/16, and 207,886 ounces YTD from the Macassa Mine Complex and the Holt Mine Complex (the Holt, Holloway and Taylor mines).
Anthony (Tony) Makuch, President and CEO of the Company, commented: "I am very pleased to announce a strong quarter with significantly increased production and lower operating costs in spite of a one week planned shutdown at our Macassa operation. Our year-to-date gold production of 207,886 ounces puts us on track to meet our production guidance for the year. We achieved a record quarter of production at our flagship Macassa Mine Complex, along with improved grades of 16.5 g/t Au. The Holt Mine Complex also performed well during the quarter with an overall head grade of 5.3 g/t driven by Taylor, which achieved a head grade of 7.3 g/t.
"We also realized record low operating costs during the quarter of US$540/oz, as well as AISC of US$966/oz. We continue to build the cash balance and increased our cash position from the previous quarter by C$61.1 million (including C$36 million from operations and additional changes in working capital, C$15 million in proceeds from the flow-through financing as well as C$10.3 million which was removed from restricted cash). The Company is focused on achieving its goals to provide profitable and sustainable production by focusing on cost controls and grade management at our operations."
All figures in the following tables are in C$ terms unless otherwise specified.
Notes: rows and columns may not add due to rounding
Macassa Mine Complex
The Macassa Mine Complex continued to deliver solid operating results during Q3/16 with a record quarter of gold production of 42,866 ounces (including 18,895 tonnes of low grade material from surface stockpiles) and a grade of 16.5 grams per tonne ("g/t"), before combining the low grade ore. The Macassa Mill processed 100,357 tonnes of ore (including the low grade material at 1.5 g/t) with a combined head grade of 13.7 g/t and recoveries of 96.9% producing 42,866 ounces of gold.
Development of the 5400' Level and 5600' Level in the lower South Mine Complex ("SMC") continues to be advanced and preparations are being made to convert the 5400' Level to track haulage in the fourth quarter of 2016. The main decline development is ongoing and is currently at the 5700' Level. The decline towards the LDN zone has now reached the 5600' Level and infrastructure is currently being developed in order to commence production in 2017. The ventilation reversal project (fresh air is delivered underground via the #3 Shaft) was completed in September on time and on budget.
YTD The Macassa Mine Complex produced 122,849 gold ounces.
Holt Mine Complex
The Holt Mine Complex performed well during the quarter. The Holt Mill processed 214,425 tonnes of ore (including 2,768 tonnes of low grade material from Taylor and 6,896 tonnes of low grade material from Hislop(6)) at a head grade of 5.3 g/t and recoveries of 93.5% producing a total of 34,408 ounces.
YTD the Holt Mine Complex has produced 85,037 ounces of gold.
Holt Mine ("Holt")
Holt produced 14,950 ounces of gold mainly derived from Zone 4 on the 925m Level and 1075m Level mining areas and from Zone 6 on the 775m Level and 925m Level. Head grades of 4.8 g/t were higher during the quarter due to stope sequencing in Zone 4. Mill recoveries were above plan at 95.1%.
Holloway Mine ("Holloway")
Holloway produced 7,829 ounces of gold derived mainly from the Blacktop Zone and from the Smoke Deep Zone. The head grade achieved during the quarter of 5.1 g/t was 20% higher than the previous quarter due to stope sequencing, with mill recoveries of 88.4%.
Taylor Mine ("Taylor")
Taylor produced 11,404 ounces (excluding low grade material) in Q3/16 at an average head grade of 7.3 g/t and mill recoveries of 97.2%. YTD Taylor has produced 143,642 tonnes at an average grade of 7.2 g/t for a total of 32,052 ounces at an average recovery rate of 96.6%. In November the mine will achieve its first year of commercial production, with an excellent track record to date.
Q3/16 Earnings Results and Conference Call
The Company intends to release its third quarter 2016 operating and financial results for the three and nine months ended September 30, 2016, after market close on Wednesday November 2, 2016, and will hold a conference call to discuss these results the following day, Thursday November 3, 2016 at 2:00pm ET. The Company invites you to participate via teleconference, the details of which will be posted on the Company's website (www.klgold.com) in due course.
Production at the Company's operations are under the supervision of Mr. Keyvan Salehi, P.Eng., the Company's Vice President of Corporate Development & Technical Services. Mr. Salehi is a non-independent 'qualified person' (for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators), and has reviewed and approved this news release.