Kirkland Lake Gold’s corporate goal is to create a self sustaining and long lived intermediate Gold Mining Company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. At the same time, the company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years for as long as practicable.
Kirkland Lake Gold Inc. is an operating and exploration gold company located in Kirkland Lake, ON in the Southern Abitibi gold belt. In 2001, the Company acquired 13,000 acres of five contiguous formerly producing gold mines, which had historically produced 21 million ounces of gold grading 15.1 grams per ton (0.44 ounces per ton) primarily from the Main/’04 Break system (see accompanying figure). The current focus is on expanding gold production from the Main/'04 Break, and a new discovery area, the South Mine Complex (SMC).
Gold production recommenced in 2005 from the Main/’04 Break via the existing #3 shaft at the Macassa Mine. The Company also launched a major exploration program that discovered additional gold structures to the south, the SMC. Discovered with a hole that intersected 90 feet of 2.3 ounces of gold, the SMC has since grown to (as at December 31, 2011) 1,273,000 tons containing 816,000 ounces in the P+P category grading 21.9 grams per tonne or 0.64 ounces per ton, 1,242,000 tons containing 780,000 ounces in the M+I category grading 21.6 grams per tonne or 0.63 ounces per ton, with another 1,000,000 tons containing 662,000 ounces in the inferred category grading 22.6 grams per tonne or 0.66 ounces per ton, (see accompanying figure). The SMC remains a focus for ongoing exploration programs, as it remains open in all directions and at depth. In FY 2012, the exploration budget was increased to $15.8 million, including some new exploration at the 5,300 foot level, two thousand feet to the west of the known limits of the SMC, where high grade drill intersection results were released in February 2011. Surface exploration programs were also expanded in FY2012. In fiscal year 2013, the exploration budget was increased to $18.5 million, and exploration programs will include drilling on the newly acquired joint venture properties from Queenston Mining, starting with the South Claims underground and on surface.
In January 2009, the Company initiated a series of three projects aimed at increasing the production capacity to 2,200 tons per day by January, 2014. The current production capacity is at 700-800 tons per day on a sustainable basis. The next milestone is a capacity of 1,400-1,600 tons per day, expected to be achieved in the second quarter of FY 2014. The 2,200 ton per day capacity milestone is currently targeted for completion between January and April of FY 2014.
The mine’s total reserve and resource base is 2,884,000 tons containing 1,473,000 ounces in the P + P category grading 17.5 grams per tonne or 0.51 ounces per ton, 3,434,000 tons containing 1,623,000 ounces grading 16.1 grams per tonne or 0.47 ounces per ton in the M+I category, with an additional 1,970,000 tons containing 1,004,000 ounces in the inferred category grading 17.5 grams per tonne or 0.51 ounces per ton. (see accompanying figure) representing an exceptional exploration target, which, if upgraded, would further support the ongoing mine and production expansions. As the Company expands its production, employment has grown from over 200 people to over 900 people Project to date, and employment is expected to be approximately 1,200 people once the Expansion Projects are completed.
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