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Kirkland Lake Gold Announces Third Quarter Production Results
By: Marketwired .
Feb. 11, 2013 02:00 AM
KIRKLAND LAKE, ONTARIO -- (Marketwire) -- 02/11/13 -- Kirkland Lake Gold Inc. (the "Company") (TSX:KGI)(AIM:KGI), an operating and exploration gold mining company, announces production results for the third quarter of its fiscal year 2013 (November, December, January).
During the quarter, 73,678 tons of ore were produced at a head grade of 0.32 ounces per ton (opt) and a gold recovery rate of 95.66% to produce 22,261 ounces of gold. Ounces sold during the quarter were 17,389. The difference between ounces produced and ounces sold was due to road closures as a result of an ice storm that delayed the last pour of the quarter (4,271 ounces) from being delivered to the gold refinery where it was to be sold until February 1. These additional ounces will remain in inventory in Q3 and will be sold in Q4. For the year to date, 214,678 tons of ore have been produced at a head grade of 0.29 opt and a gold recovery rate of 95.58% to produce 60,015 ounces of gold. Sold ounces year to date are 59,648.
The overall production results are slightly ahead of the plan to meet the Company's guidance of 90,000 - 110,000 sold ounces for fiscal year 2013. The Company plans to increase production in Q4 as a result of the contribution to production of the newly operational service cage, and the beginning of the ramp up of production to the 1,400-1,600 ton per day milestone, targeted for Q2 of fiscal year 2014 (August to October, 2013).
Head grade during the month of January improved considerably to 0.39 opt as a result of the ratio of ore from high grade areas to ore from lower grade areas returning temporarily to a ratio of roughly 1:1. The company is not currently in a position to sustain that ratio, but is working on the development of additional high-grade ore mining areas in order to improve from the roughly 1:3 ratio experienced through most of this fiscal year. The availability of the service cage will greatly aid in those efforts, as most of the waste development rock from this development must be hoisted to surface. The service cage will free up the production hoist to do that waste hoisting.
About the Company
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.
Cautionary Note Regarding Forward-Looking Statements
This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2012 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.
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