KL - Kirkland
December 12, 2016 17:13 ET
Kirkland Lake Gold Provides 2017 Guidance and Emerges as a New High Quality Mid-Tier Gold Producer
http://www.marketwired.com/press-re...high-quality-mid-tier-gold-tsx-kl-2182594.htm
TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - Kirkland Lake Gold Ltd. ("KL Gold" or the "Company") (TSX:KL) is pleased to report that the Company has emerged as a new high quality mid-tier gold producer following the completion of the business combination with Newmarket Gold Inc. Consolidated guidance for 2017 includes:
Gold production between 500,000 and 525,000 ounces
Total Operating Costs(1) per ounce sold between US$625 and US$675
Total Operating Costs between US$310 million to US$320 million
All-In Sustaining Costs(1) ("AISC") per ounce sold between US$950 and US$1,000
Growth exploration expenditure between US$45 and US$55 million
Transitioning of the Stawell and Holloway Gold Mines to care and maintenance
KL Gold is focused on growing shareholder value by maintaining a strong foundation of quality gold production, generating free cash flow and reinvesting in tier 1 district scale assets located in Canada and Australia. Extensive exploration potential, improved visibility to increase mine life, and excess milling capacity at each operation, positions KL Gold to organically grow production to increase value for its shareholders. The combination of the high-grade Macassa Mine Complex and the low-cost Fosterville Gold Mine, will form the production backbone of the Company. KL Gold has a strong balance sheet, providing financial flexibility to enhance its strategy and aggressively explore district scale opportunities, following the exciting high-grade discoveries made during 2016.
Tony Makuch, President and CEO of KL Gold stated: "Following the successful merger with Newmarket Gold, I am very pleased to provide guidance of 500,000 - 525,000 ounces of quality gold production from our high-grade gold mines located in tier 1 mining jurisdictions of Canada and Australia. Today, our market capitalization stands at a significant discount to our peers with a similar cost and production profile, representing a clear value opportunity. I firmly believe the quality of our assets, district scale exploration potential combined with a strong balance sheet will build investor confidence and drive value for our shareholders. With a strong operations team in Australia, I am confident in our ability to seamlessly integrate high quality gold production from our Australian operations and leverage intellectual capital to assist all operations to become more efficient with potential opportunities to reduce costs. Our renewed focus is to execute and organically grow production while generating free cash flow.
"As a multi-mine company, we have the ability to analyze our business and focus on the highest quality ounces. In doing this, we are applying our business acumen to create the best investment vehicle for our shareholders."
Care and Maintenance
Effective December 13, 2016 (AEST), KL Gold will commence transitioning the Stawell Gold Mine, located in Victoria, Australia to care and maintenance. The mine will be maintained in a state of operational readiness to possibly recommence operations with activities focused on exploration programs on the East Flank of the Magdala Basalt which hosts the Aurora B discovery. Aurora B results to date confirms the extension of mineralization along the Magdala East Basalt Flank, particularly within the Hampshire Lode, which remains open to the north and the south and at depth. More than 2.3 million ounces of historical production at Stawell has come from the West Flank of the Magdala Mineralization System with no recorded production from the East Basalt Flank.
The Company has also decided to transition the Holloway Mine, part of the Holt Mine Complex in Northeastern Ontario, Canada to care and maintenance due to limited economic viability. The majority of the workforce will be reassigned to the nearby Kirkland Lake operations, effectively replacing external contractors. The Company will continue to conduct aggressive surface exploration drill programs in 2017, which will progressively step further west of the Holloway shaft, an area which has historically remained under explored. Drilling will focus on testing the mafic volcanic / ultramafic volcanic contact to the north, and will also target the westerly strike extension of the Lightning and Middle zones (which were previously mined at Holloway). Further west of the Holloway deposit, drilling is underway at Lightval, and is planned for the Harker West target, as the Company continues to explore for another Lightning Zone style mineralization in the area. KL Gold will maintain the site in a production ready state with the intent of restarting the operation in the future with meaningful and enhanced economics.
Kirkland Lake Gold consolidated 2017 outlook is as follows:
Gold Production (ounces) 500,000 - 525,000
Total Operating Cost per ounce of gold sold US$625 - US$675
AISC per ounce of gold sold US$950 - US$1,000
Growth exploration expenditure US$45 - US$55 million
Guten Morgen! 
