NEWS RELEASE
KIRKLAND LAKE GOLD
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TORONTO -- 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:
- Milled 248,824 tons of ore at a head grade of 0.42 ounces per ton ("opt") or 14.4 grams per tonne ("g/t") at a recovery rate of 97.1% and recovered 102,597 ounces of gold for SY15.
- Poured 101,315 ounces of gold and sold 101,092 ounces for SY15.
- Achieved the mid-range of stated production and grade guidance of between 90,000 - 110,000 ounces at an average grade of 0.42 opt or 14.4 g/t, slightly below the stated grade guidance of 0.43 opt (14.7 g/t).
- As at December 31, 2015, the Company had cash and cash equivalents of $93.8 million.
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 percent."
"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.
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 a.m. 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.
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.
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