Kirkland Lake Gold Ltd. [KL-TSX, NYSE; KLA-ASX] filed a NI-43-101 technical report for its 100%-owned Detour Lake mine, northern Ontario. All dollar amounts are expressed in U.S. dollars unless otherwise indicated.
Highlights of the 2021 life-of-mine plan (LOMP) include production of 680,000 to 720,000 ounces from 2021 to 2024, growing to 800,000 ounces in 2025 and reaching over 900,000 ounces in 2032. Low unit costs, including average operating cash costs would be $524/oz and all-in sustaining costs per ounce of $775 in first five years (2021 to 2025). The large mineral reserve provides 22-year production life with potential for further growth. Encouraging exploration results supports substantial growth in mineral reserves, higher production levels and further improvements to unit costs not included in
Under the 2021 LOMP, production is expected to average 680,000 to 720,000 ounces from 2021 to 2024, before increasing to 800,000 ounces in 2025. Production would then decline for three years during a period of increased stripping before reaching over 900,000 ounces beginning in 2032. As the company continues its exploration drilling and works to factor the significant drilling success it is achieving into the 2022 LOMP, an important objective will be to achieve growth in reserves and changes to the production profile such that there is not a drop-off in production after 2025, and to achieve 900,000 ounces of production, or higher, as early in the mine life as possible, leading to further improvements in unit costs and free cash flow.
Tony Makuch, President and CEO, commented: “The 2021 LOMP represents an important interim report on our progress advancing the Detour Lake mine, defining a highly profitable operation that is well positioned to benefit from our ongoing exploration success and other value creation opportunities. Based on the new mine plan, Detour Lake is poised to become Canada’s largest gold producer and, with the potential for substantial growth in mineral reserves as our drilling programs continue, could very well become one of the largest and most profitable gold mines in the world.
“The 2021 LOMP includes significant production growth and improved unit costs compared to past operating experience. Production growth is driven by higher levels of mill throughput, reflecting increased ore tonnes mined, lower stripping ratios, better ore fragmentation and improved productivity in the mill based on a number of key business improvement initiatives.