Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the
“
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced additional business reductions in response to the
COVID-19 pandemic, including the temporary suspension of operations
at the Holt Complex in Northern Ontario, and a move to reduced
operations at the Macassa Mine in Kirkland Lake, Ontario. The new
measures, which are in effect until April 30, 2020, follow the
transition of the Detour Lake Mine to reduced operations effective
March 23, 2020 (see press release dated March 22, 2020 for more
information). The health and safety of employees is Kirkland Lake
Gold’s number one priority. Workers impacted by the reductions
being announced today will receive their base wages for the month
of April.
The latest business reductions are in response
to recent developments related to the COVID-19 virus, including
increased border restrictions between Ontario and Quebec, which is
making the movement of workers increasingly difficult. Both Macassa
and the Holt Complex have a significant number of employees and
contractors resident in Quebec who travel to Ontario for work.
Essential activities at both operations, that will continue, are
being completed entirely by a local, Ontario-based workforce.
The Company also announced today that, with the
transition of the Macassa and Detour Lake mines to reduced
operations and the temporary suspension of operations at the Holt
Complex, the Company is withdrawing its 2020 guidance until further
notice. The Company’s guidance for the year will be updated once
normal operations have resumed at both Macassa and Detour Lake. The
Company’s Fosterville Mine remains in operation with company-wide
COVID-19 health and safety protocols having been implemented.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “We are working very hard
to respond quickly and responsibly to new developments related to
the COVID-19 pandemic. In terms of the measures being announced
today, we do not make decisions to suspend or reduce operations
lightly, recognizing the impact such decisions can have on
employment as well as community investment and support. Having said
that, the recent developments related to COVID-19, such as new
limits on inter-provincial travel, has made it increasingly
difficult to maintain normal business activities at Macassa and
Holt Complex. We have, therefore, concluded that the best course of
action is to reduce operations at Macassa and temporarily suspend
operations at the Holt Complex until April 30, 2020. In cases where
workers are impacted by these new measures, we have committed to
providing their base wages for the month of April to help them get
through these very difficult times.”
The health and safety of employees is
Kirkland Lake Gold’s number one priority. A COVID-19 Management
Task Force meets daily to assess emerging developments and identify
new measures required to protect the Company’s people, their
families and communities.
Key measures introduced to date
include:
- Reduced operations
at Macassa and Detour Lake, with operations being suspended at Holt
Complex;
- Remote work for
all employees able to productively work from home;
- All non-essential
work suspended; all non-essential visits to site
prohibited until further notice;
- Medical screening
of all individuals prior to entry to worksites;
- Increased cleaning and
sanitizing of work areas and equipment at all locations,
including accommodations and the cafeteria at the Detour Lake
Mine;
- Medical procedures
enhanced for the testing, isolation, care and
transportation of employees showing symptoms;
- Mandatory social
distancing with work rosters
significantly reduced; start times and work
schedules staggered and the separation of workers using floor
markings and barriers in confined areas;
- Improved food
safety with removal of all self-service food options;
individual wrapping of meals and desserts and separation of workers
by removing chairs and moving tables;
- Job protection for
workers in quarantine or self-isolation due to COVID-19, or those
needing to miss work to care for children as a result of school or
daycare closures;
- Travel
restrictions with all international and inter-provincial
travel prohibited and mandatory self-quarantine for anyone
returning from international trips; and,
- Supply Chain
management group working to ensure availability of all critical
goods and services during period of reduced movement of goods and
services.
Macassa Mine
The Macassa Mine is operating at reduced levels
until April 30, 2020, with ongoing work focused on production as
well as water and environmental management. All non-essential
activities have been suspended, including exploration drilling,
work on a new surface ramp and mill upgrades. Work on the new #4
shaft project is continuing at reduced levels, with the project
remaining on schedule and budget. Employees off work during the
period of reduced operations will receive their base wages for the
month of April.
Detour Lake Mine
The Company transitioned Detour Lake Mine to
reduced operations effective March 23, 2020. Continuing activities
at the mine include mill processing of reduced feed from the open
pit and stockpiled ore, management of water levels during the
spring run-off and environmental management activities. All
personnel not essential for the performance of these activities are
off work until April 30, 2020 with base wages being provided to
impacted workers for a month after they stopped working.
Approximately 300 workers are currently on site performing the
essential activities during reduced operations (approximately 30%
of the normal workforce during full operations). In addition to
company-wide health and safety protocols, a number of additional
measures applicable to a camp operation have been added to Detour
Lake’s efforts to protect workers, including processes for
assessment, isolation and ambulatory evacuation of employees
showing any kind of symptoms, increased food and hygiene safety and
a greater frequency of cleaning.
Holt Complex
The Company is suspending operations at the Holt
Complex until April 30, 2020, with the Holt and Taylor mines, and
Holt Mill, being placed on temporary care and maintenance. The
Holloway Mine, also part of the Holt Complex, was placed on
permanent care and maintenance in early March. Most of the 529
employees at the Holt Complex will be off work while operations
remain suspended, with the Company committing to provide basic
wages to all workers for the month of April. A small number of
employees will continue to work at the Holt and Taylor mines and
Holt Mill during this period.
Australia
Fosterville Mine continues to operate at full
levels of production. The Company’s COVID-19 health and safety
protocols, including the suspension of all non-essential work, have
been introduced at Fosterville on a precautionary basis. There have
been no reported cases of COVID-19 in the Bendigo area of Victoria,
Australia to date. A separate Australian Management Task Force,
which is in addition to the Company-wide Management Task Force,
meets daily to assess emerging developments specific to Australia
and the State of Victoria.
In the Northern Territory, the Company has
permanently suspended test mining at the Cosmo Mine and test
processing at the Union Reefs Mill. Test production commenced in
October 2019 as part of an advanced exploration program intended to
assess the potential for a resumption of commercial operations in
the Northern Territory assets. These assets were placed on care and
maintenance in June 2017. Based on results since last October, as
well as other priorities for capital investments and growth, the
Company determined that additional test mining and processing was
not warranted at the present time. The Company has also suspended
all exploration drilling. A small workforce remains in the Northern
Territory to complete ongoing rehabilitation programs.
Also in Australia, the Company announced that
Ian Holland has departed the role of Vice President, Australian
Operations for the Company. Mr. Holland will continue to support
the advancement of the Company’s business activities a consulting
basis. Duncan King, currently Vice President, Mining (Kirkland
Lake), is assuming the role of Vice President, Australian
Operations on an interim basis.
Mr. Makuch commented: “Ian’s leadership has been
instrumental in the success of Fosterville, and Kirkland Lake Gold
in general, over the last few years. We thank him for his
contribution and look forward to benefiting from his continued
involvement in the Company’s advancement and growth on a consulting
basis going forward. We have a strong and effective team in
Australia and expect continued success at Fosterville as Duncan
assumes his new role.”
About Kirkland Lake Gold
Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 974,615
ounces in 2019. The production profile of the Company is anchored
by three high-quality operations, including the Macassa Mine and
Detour Lake Mine, both 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 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 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 include information regarding the reduction of
operations at the Macassa and Detour Lake mines, and suspension of
operations at the Holt Complex, and anticipated effects thereof,
the ability of the Macassa and Detour Lake mines and Holt Complex
to fully resume operations effective April 30, 2020 and the
anticipated overall impact of the Company’s COVID 19 response
plan.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
Kirkland Lake Gold'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 combined 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 impacts of the COVID 19 pandemic and government response to
such pandemic, the ability of the Company to continue operations at
its mine sites in lieu of the pandemic and the risk of future shut
downs as a result thereof; future development and growth potential
of the Company’s projects; future exploration activities planned at
the Canadian and Australian properties; risks relating to equity
investments; risks relating to first nations and Aboriginal
heritage; the availability of infrastructure, energy and other
commodities; nature and climactic conditions; currency exchange
rates (such as the Canadian dollar and the Australian dollar versus
the United States dollar); risks associated with dilution; labour
and employment matters; risks in the event of a potential conflict
of interest; 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 its annual
information form for the year ended December 31, 2019 and financial
statements and related MD&A for the financial year ended
December 31, 2019 and 2018 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.
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
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