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TORONTO, ONTARIO--(Marketwired - Jan 11, 2016) - Kirkland Lake Gold Inc. (TSX:KGI) ("Kirkland Lake Gold" or the "Company"), announces gold production of 27,604 ounces for the third quarter reporting period of Stub Year 2015 (November 1 to December 31, 2015, "SY15_Q3. For the full eight month period of Stub Year 2015, (May 1 to December 31, 2015, "SY15"), the Company produced 102,597 ounces of gold, meeting the mid-range of its production guidance for the year.
SY15 Production Highlights:
Mr. George Ogilvie, President & Chief Executive Officer commented, "We are very pleased to have ended the year on a positive note, slightly above the mid-range of our stated guidance on ounces with a head grade of 0.42 opt, and a mill recovery of 97.1%.
"Throughout the year we have continued to grow our cash balance and enter 2016 with $93.8 million cash on hand. As well, we have achieved one million man hours without a lost time injury, a tremendous accomplishment for our employees and a testament to our commitment to operating safely. Our positive achievements to date are the result of our team's relentless efforts over the past two years.
"As we look ahead, we are excited about the proposed transaction with St Andrew Goldfields Ltd., which is expected to close before the end of this month. Combining these assets will contribute significantly to future growth and future success of Kirkland Lake Gold and we recommend that all shareholders vote in favour of the transaction."
SY15_Q3 Operating Results
During November the underground operations caught up on the muck haulage that had been delayed due to operational issues in the previous quarter. For the final two months of SY15 the mining rate averaged 1,123 tons per day ("tpd"), with an average of 1,016 tpd for the full year.
The second new battery operated haulage truck arrived on site at the end of December. It will be shipped underground in January and should be up and running as part of the fleet by the end of January. This brings the total battery operated haulage truck fleet in the SMC to five units.
SY15 Earnings Results and Conference Call
The Company intends to release its third quarter and Stub Year 2015 results on Monday March 14, 2016, at 7:00 am EST and will hold a conference call to discuss these results at 11:00am EST, the same day. The Company invites you to participate via teleconference, the details of which will be posted on the Company's website (www.klgold.com) in due course.
Transaction with St Andrew Goldfields Ltd.
As previously announced on November 16, 2015, Kirkland Lake and St Andrew Goldfields Ltd., entered into a binding definitive agreement (the "Agreement") whereby Kirkland Lake will acquire all of the outstanding common shares of St Andrew Goldfields Ltd. ("St Andrew") pursuant to a plan of arrangement (the "Transaction") to create a multi-asset, Ontario-focused, intermediate gold producer.
The Company will hold a special meeting of shareholders to approve this Transaction on Tuesday January 19, 2016, at 11:00am EST at the offices of Stikeman Elliott LLP, Suite 5300 Commerce Court West, 199 Bay Street, Toronto ON M5L 1B9. Meeting material has been mailed to all shareholders, copies of which are available on the corporate website at www.klgold.com, or under the Company profile on www.sedar.com.
Production at the Macassa Mine and processing at KL Gold's milling facility are under the supervision of Mr. Chris Stewart, P.Eng., the Company's Vice President of Operations. Mr. Stewart is a non-independent 'qualified person' (for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators), and has reviewed and approved this news release.
About the Company
Kirkland Lake Gold Inc. is a gold producer with assets in Kirkland Lake, Northeastern Ontario. Current gold production is in excess of 150,000 ounces per year and is expected to grow to over 180,000 ounces per year in the next three years as exploration and development work continue. The exploration program is aimed at maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years, with the current mine life estimated at between ten to fourteen years of production in a high grade gold camp.
The Company is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer. Kirkland Lake Gold plans to evolve into an intermediate gold mining company centered in the historically robust Kirkland Lake gold camp, while evaluating opportunities for growth in other safe mining jurisdictions.
The Toronto Stock Exchange has neither reviewed nor accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements
This Press Release contains statements which constitute "forward-looking statements" within the meaning of applicable securities laws, 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", "should", "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 such as, without limitation, opinion, assumptions and estimates of management regarding the Company's business, including but not limited to; ability to complete the proposed Transaction as proposed or at all and the timing thereof. Such opinions, assumptions and estimates, 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 reserves and resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, 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, 2015, and the Company's Management's Discussion and Analysis for the interim period ended October 31, 2015, 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 to 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.
Kirkland Lake Gold Inc.
Toll Free: 1-866-384-2924
Kirkland Lake Gold Inc.
George Ogilvie, P.Eng
Chief Executive Officer
Phone: +1 416-840-7884
Kirkland Lake Gold Inc.
Suzette N. Ramcharan, CPIR
Director of Investor Relations
Direct: +1 647-361-0200; Mobile: +1 647-284-5315