Kirkland Lake Gold plans to increase production at the Fosterville gold mine in Victoria to more than 400,000 ounces (oz) within three years.
The Canadian company this week released its guidance for 2018, outlining increased production, improved unit costs and higher levels of expenditure to support its growth strategy towards one million ounces in the next five to seven years.
In 2018, Kirkland Lake has forecast its overall production to grow to 620,000oz, with operating cash costs and all-in sustaining costs of $425–$450 and $750–$800/oz, respectively.
Fosterville is again expected to be Kirkland Lake’s top producing mine, with the company targeting between 260,000–300,000oz at the Victorian operation in 2018.
Kirkland Lake president and chief executive Tony Makuch outlined the company’s plan at Fosterville, as well as its Canadian gold mines, beyond 2018.
“We see a clear path to reaching over 400,000oz per year from both Fosterville and Macassa. Fosterville is targeted to reach this level within three years as we achieve full production at the Swan Zone and commence production from additional mining fronts,” Makuch said.
Kirkland Lake is also working towards resuming operations at the Cosmo mine in the Northern Territory where it is advancing an exploration program, Makuch added.
“In support of our growth plans, we are increasing our commitment to exploration in 2018, with a focus on Australia,” Makuch said.
“At Fosterville, we are planning extensive exploration programs aimed at continuing to grow the Swan Zone, expanding Harrier South, extending the Lower Phoenix and Robbin’s Hill mineralisation and investigating a number of other regional targets.
“We will also be completing significant exploration work in the Northern Territory of Australia, where we will be developing into, and drilling, the Lantern deposit at the Cosmo mine, and drilling several additional high-potential targets in the region.”
Kirkland Lake has budgeted to spend between $75–$90 million on exploration in 2018, with $60–$75 million to be used at its Australian assets.