TORONTO, ONTARIO--(Marketwired - Feb 9, 2015) - Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the "Company") (KGI.TO)(KGI.L), an operating and exploration gold mining company, announces operational results for the third quarter of fiscal 2015 ("FQ3"), which include the months of November, December and January.
Highlights:
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91,148 tons milled at a head grade of 0.44 ounces per ton ("opt") or 15.1 grams per tonne ("g/t") and a recovery rate of 96.6%.
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39,722 ounces of gold sold during the quarter.
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Total of 116,600 ounces of gold sold year-to-date ("YTD") of fiscal 2015 ("F2015").
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On track to achieve the upper end of annual production guidance of between 140,000 - 155,000 ounces.
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The Company had cash and cash equivalents of $44.0 million as at January 31, 2015.
Development work during FQ3 progressed as planned with one jumbo advancing the main ramp development towards the 5600 level and the other jumbo focussed on stope development. In addition, a third stope on the 5400L within the South Mine Complex entered into production in early December. The Company is anticipating it will have a total of five stopes in production on the 5400 level by the end of this fiscal year (April 30, 2015), which will ensure more consistent ore production from the 5400 level as we move into fiscal 2016, where the average reserve grade is 0.57 opt (19.5 g/t).
The average production rate achieved for FQ3 was 1,030 tons per day ("tpd"), a 3% increase over the previous quarter. However, during the month of January there was a significant increase to 1,220 tpd with 37,800 ore tons delivered to the mill. This increase was due to better than anticipated worker productivity and higher stope availability throughout the mine due to improved transitioning in the mining cycle from ore production to paste filling back to ore production cycles.
The head grade achieved during the quarter of 0.44 opt (15.1 g/t), is an increase of 9% over the previous quarter with a milling recovery of 96.6%.
The cash balance as at January 31, 2015, does not include any proceeds of the announced bought deal financing (announced on January 27 and January 28, 2015) which is expected to close on or about February 18, 2015.
Mr. George Ogilvie, President & Chief Executive Officer commented, "The operation continues to make good progress and has performed well during the third quarter. Of particular note was the month of January where the daily production rate increased by 25% over the previous two months combined.
"The Company remains on track to achieve the upper end of its production guidance of between 140,000 - 155,000 ounces of gold. We are also pleased to report that our cash balance continued to strengthen quarter over quarter despite the fall in the average price of gold sold and the $4.4 million interest payment made on the convertible debentures in December.
"We are pleased with the progress the Company has made over the course of the last year and will look to build upon this as we begin our budgeting process for fiscal 2016."
FQ3 Earnings Results and Conference Call
The Company intends to release its FQ3 results on Wednesday March 11, 2015, at 2:00 am EDT (7:00 am BST) and will hold a conference call to discuss these results at 11:00am EDT (4:00pm BST), the same day. 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.
Qualified Person
Production at the Macassa Mine and processing at KL Gold's milling facility are under the supervision of Mr. Chris Stewart, P.Eng., the Company's Vice President of Operations. Mr. Stewart, the 'qualified person' (for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators), has reviewed and approved this news release.
About the Company
Kirkland Lake Gold Inc.'s corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake gold camp, as well as to explore opportunities for growth in other safe mining jurisdictions. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow with a view to maximising value for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.
Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake gold camp while the current reserve and resource provides for potentially 10 years of mining with significant exploration upside.
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements
This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company's business, its ability to increase its production capacity and achieve the higher end of its stated production guidance as well as being able to access higher grade ore on the 5400 level in fiscal 2016. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency
exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral reserves and resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company's Management's Discussion and Analysis for the interim period ended October 31, 2014 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
