Kirkland Lake eye on 800 K Oz Gold
Kirkland
Lake to grow production over
10%
in 2021 to reach over 1mn Oz in 2021
Kirkland
Lake Gold Ltd announced the Company’s full-year guidance for 2019, which
includes strong production growth, improved unit costs and a continued strong
commitment to exploration and growth. The Company also announced three-year
production guidance, which includes the Fosterville Mine achieving over 500,000
ounces of production by 2020 and demonstrates the potential for consolidated
production to reach one million ounces by 2021.
According
to the 2019 guidance, production growth to 740K to 800K ounces, driven largely
by significantly higher production at Fosterville, as well as increased
production at Macassa. Exploration expenditures estimated at $100 – $120
million, including capitalized exploration expenditures, with $85 – $100
million targeted for Fosterville and the Northern Territory in Australia.
For
three-year production guidance it says, Kirkland Lake Gold is targeting
consolidated production growth of 10 – 15% per year over the next three years,
with production of 740,000-800,000 ounces in 2019 to be followed by production
of 850,000 – 910,000 ounces in 2020 and 945,000 – 1,005,000 ounces in 2021.
Tony
Makuch, President and Chief Executive Officer, commented: “Kirkland Lake Gold
is poised to achieve substantial production growth and improved unit costs in
2019. We will also continue to invest in exploration and additional production
growth, with our plan being to reach one million ounces of annual gold
production as early as 2021.
While
achieving one million ounces of production will be a significant milestone, it
is more important that the growth we achieve continues to drive down unit
costs, increases margins and positions us to generate substantial amounts of
free cash flow going forward.”
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