Fosterville guides Kirkland Lake production spike

Victorian minerals

The high-grade Fosterville gold mine in Victoria. Image: Kirkland Lake Gold.

Kirkland Lake Gold is in position to reach its full-year production guidance at the Fosterville mine in Victoria after a strong first half of 2020.

Fosterville, which has a 590,000 to 610,000 ounce target in 2020, guided the Canadian company to a 54 per cent increase in output during the June quarter compared with the previous quarter.

The company produced 155,106 ounces at the Fosterville mine at an average grade of 39.5 grams per tonne of gold and average mill recoveries of 99 per cent.

“Once again, Fosterville was a key driver of our results, increasing production by 10 per cent year over year,” Kirkland Lake president and chief executive officer Tony Makuch said.

“With year-to-date production of 314,970 ounces, Fosterville entered the second half of the year well positioned to achieve full-year guidance.”

Kirkland Lake has continued exploration around Fosterville, drilling at the Robbin’s Hill, Cygnet and Harrier targets within the Swan Zone.

Recent infill drilling uncovered intersects with “higher than expected” grades of visible gold, with key intercepts including 976 grams per tonne of gold over 7.4 metres and 933 grams per tonne of gold over 6.4 metres.

“Drilling at Fosterville continues to demonstrate the significant size and scale of the mineralised structures,” Makuch said.

“At the Swan Zone, results from new infill drilling include higher than expected grades, which is encouraging as we work towards our next mineral reserve and mineral resource update.”

Kirkland Lake has also felt the new Victorian Government 2.75 per cent gold royalty, which came into effect in January, costing the company $US4.5 million ($6.25 million) of royalty expense from the Detour Lake mine in Canada.

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