Kirkland Lake on track for golden 2020 results

The Detour Lake mine. Image: Detour Gold

Kirkland Lake Gold has reached new levels of production at its operations, positioning the company to achieve its full year 2020 guidance.

The company delivered 339,584 ounces of gold in the third quarter, an increase of 37 per cent from 248,400 ounces in the prior corresponding period.

This was guided by a solid performance at Kirkland Lake’s newly-acquired Detour Lake mine in Canada.

Production at the mine totalled 140,067 ounces during the period, reflecting a 6 per cent increase on the previous quarter.

“We continued to generate solid results in (the third quarter of 2020) and have entered the final quarter of (the) year well positioned to achieve our full-year 2020 production guidance of 1.35–1.4 million ounces,” Kirkland Lake chief executive Tony Makuch said.

“Looking at (the third quarter) production, the key driver of year-over-year production growth was the contribution of 140,067 ounces from Detour Lake mine, which was obtained on January 31 2020 through the acquisition of Detour Gold Corporation.

“This was clearly the right acquisition at the right time, with Detour Lake already making a significant contribution to both our production as well as our cash flow and earnings.”

The Fosterville mine in Victoria continues to be a solid performer as it is expected to beat its guidance for the year of 590,000–610,000 ounces.

Makuch said the mine performance was driven by higher tonnage as the company invested in ventilation and paste fill to increase Fosterville’s mining rates and use the excess capacity in the mill.

This more than offset the impact of a reduced average grade.

Exploration at Fosterville has also returned higher than expected grades with visible gold from infill drilling in the Swan Zone.

Results also confirmed substantial scale of mineralised systems at Cygnet, Robbin’s Hill and Harrier.

Kirkland Lake is set to double its next quarterly dividend to $US0.1875 ($0.26) per share in the first quarter of this year.

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