Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced the filing of technical reports (the “Reports”) for the
Company’s Macassa property entitled, “Macassa Property, Ontario,
Canada, Updated NI 43-101 Technical Report” (the “Macassa Report”)
and the Fosterville property entitled, “Updated NI 43-101 Technical
Report Fosterville Gold Mine In the State of Victoria, Australia”
(the “Fosterville Report”). The Reports are effective December 31,
2018, are dated April 1, 2019 and were prepared in compliance with
National Instrument 43-101 – Standards for Disclosure of Mineral
Projects (“NI 43-101”). The Reports are available under Kirkland
Lake Gold’s profile on SEDAR at www.sedar.com and on the Company’s
website at www.klgold.com. All dollar amounts in this News Release
are expressed in US dollars, unless otherwise indicated.
The Macassa Report was prepared by Mariana
Pinheiro Harvey, P. Eng., Robert Glover, P. Geo, William Tai, P.
Eng. and Ben Harwood, P. Geo, all of whom are “qualified persons”
as such term is defined in NI 43-101 and employees of the Company.
The Macassa Report supports the scientific and technical disclosure
in the updated Mineral Resource and Mineral Reserve estimates
contained in the Company’s News Release dated February 21,
2019.
The Macassa Report covers a nine-year period and
is based on completion of Phase 1 of the #4 Shaft project during
the second quarter of 2022 and completion of Phase 2 at the end of
2023. The report confirms the benefits of the #4 Shaft project,
including production increasing to well over 400,000 ounces per
year and significant improvement in unit costs, with operating cash
costs per ounce sold and all-in sustaining costs per ounce sold
improving to below $300 and $400, respectively, at the higher
production levels. Full project payback for the #4 Shaft is
expected early in 2024, shortly after completion of Phase 2. Other
benefits of the project outlined in the report include de-risking
the mine, significantly improving underground ventilation and
general working conditions, enhanced sustainability of production
through more effective exploration drilling and future reductions
in cut-off grades.
The Fosterville Report was prepared by Troy
Fuller, MAIG, and Ion Hann, FAusIMM, both of whom are “qualified
persons” as such term is defined in NI 43-101 and employees of the
Company. The Fosterville Report supports the scientific and
technical disclosure in the updated Mineral Resource and Mineral
Reserve estimates contained in the Company’s News Release dated
February 21, 2019.
The Fosterville Report findings support the
mine’s current production and unit-costs guidance, as well as the
attractiveness of project economics. Included in the report
is confirmation that Fosterville’s mining license has increased
substantially as a result of extensions granted by the Victorian
Government in March 2019. As a result of the extensions,
Fosterville’s mining license now covers approximately 28.5 km2
compared to approximately 17.2 km2 previously. The mining license
extensions were sought by Fosterville in support of planned
exploration work to fully evaluate the Mineral Resource growth
potential of the Harrier South and Robbin’s Hill targets. Drilling
of these targets, where high-grade, visible-gold bearing quartz
veins have been intersected similar to those found in the Swan Zone
in the Lower Phoenix system, is an important component of the
Fosterville’s 2019 exploration program.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 723,701
ounces in 2018 and is on track to achieve significant production
growth over the next three years, including target production of
920,000 – 1,000,000 ounces in 2019, 930,000 – 1,010,000 ounces in
2020 and 995,000 – 1,055,000 ounces in 2021. The production profile
of the Company is anchored by two high-grade, low-cost operations,
including the Macassa Mine 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 and operational
expertise.
Cautionary Note Regarding Forward-Looking
Information
This press release contains statements which
constitute “forward-looking information” within the meaning of
applicable securities laws, including statements regarding the
plans, intentions, beliefs and current expectations of Kirkland
Lake Gold with respect to future business activities and operating
performance. Forward-looking information is often identified by the
words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “expect” or similar
expressions and, in this press release, include information
regarding: the anticipated impact of the #4 Shaft with respect to
production and operating costs at the Macassa Mine; the anticipated
ability of the #4 Shaft to improve general working conditions and
future production sustainability as a result thereof; the impact of
the mining licence extension at the Fosterville Mine and future
growth potential at Harrier South and Robbin’s Hill.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
the Company's management's expectations, estimates or projections
concerning future results or events based on the opinions,
assumptions and estimates of management considered reasonable at
the date the statements are made. Although Kirkland Lake Gold
believes that the expectations reflected in such forward-looking
information are reasonable, such information involves risks and
uncertainties, and undue reliance should not be placed on such
information, as unknown or unpredictable factors could have
material adverse effects on future results, performance or
achievements of the Company. Among the key factors that could cause
actual results to differ materially from those projected in the
forward-looking information are the following: the future
development of the Canadian and Australian operations; the
potential anticipated annual increase in production; future
exploration activities; changes in general economic, business and
political conditions, including changes in the financial markets;
changes in applicable laws; and compliance with extensive
government regulation. This forward-looking information may be
affected by risks and uncertainties in the business of Kirkland
Lake Gold and market conditions. This information is qualified in
its entirety by cautionary statements and risk factor disclosure
contained in filings made by Kirkland Lake Gold, including Kirkland
Lake Gold's annual information form dated December 31, 2017 and the
annual consolidated financial statements and related MD&A for
the period ended December 31, 2018, which are 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 information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although Kirkland
Lake Gold 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. Kirkland Lake Gold does not intend, and do
not assume any obligation, to update this forward-looking
information except as otherwise required by applicable law.
This Press Release makes reference to certain
non-IFRS measures including all-in sustaining costs (“ASIC”) and
AISC per ounce sold and operating cash cost per ounce sold. These
measures are not recognized measures under IFRS, do not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers; however,
the Company believes that these measures are useful to assist
readers in evaluating the total costs of producing gold from
current operations. The Company’s definition of AISC conforms to
the definition of AISC as set out by the World Gold Council in its
guidance note dated June 27, 2013. For more information regarding
the non-IFRS measures used by the Company, see the information
under the headings “Non-IFRS Financial Measures”, “AISC and AISC
per Ounce Sold”, “Operating Cash Costs and Operating Cash Costs per
Ounce Sold” and “Total Cash Costs and AISC Reconciliation” in the
Company’s MD&A for the year ended December 31, 2018. The
financial statements and MD&A of the Company are available on
SEDAR at www.sedar.com.
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 more information, please
contact:
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice President, Investor
RelationsPhone: +1 416-840-7884E-mail: mutting@klgold.com Website:
www.klgold.com
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