Kirkland Lake Gold has set a three-year production target across operations, including over 500,000 ounces of estimated output at the Fosterville mine in Victoria by 2020.
The gold producer is confident in growing its combined production by 10–15 per cent every year over the next three years to reach one million ounces by 2021.
Consolidated production is foreseen to reach 740,000–800,000 ounces in 2019, 850,000–910,000 ounces in 2020 and 945,000–1,005,000 ounces in 2021.
“Not surprisingly” the largest gold mine in Victoria, Fosterville continues to be Kirkland Lake’s star performer, reaching over 570,000 ounces of estimated output due to higher grades and increased throughput by 2021.
Three growth projects are in the pipeline at Fosterville, including new ventilation, a paste fill plant and water treatment plant – all of which will be completed next year.
Production in Macassa also continues to show incremental growth, with production to reach 245,000–255,000 ounces in 2021, and by 2022 output is anticipated to show a substantial increase due to the commencement of production from the new number four shaft.
Significant improvement is also expected on Kirkland’s all-in sustaining costs, reaching $US630–680 ($873–943) in 2019.
Kirkland Lake president and chief executive Tony Makuch said the company was poised to achieve substantial production growth and improved unit costs in 2019.
“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,” he said.
Kirkland Lake is also considering to resume operations at its Holloway mine and Northern Territory assets, Cosmo mine and Union Reefs, as they are both transitioned from care and maintenance to advanced exploration.