NEWS RELEASE
KIRKLAND LAKE GOLD
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TORONTO - Kirkland Lake Gold Ltd. ("KL Gold" or the "Company") (TSX:KL) is pleased to announce operating results for the three and twelve months ended Dec. 31, 2016.
The company advises that it has changed its reporting currency from Canadian to U.S. dollars effective for the year ended Dec. 31, 2016 and accordingly all dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.
Fourth Quarter 2016 Highlights:
- Consolidated pro forma gold production of 152,636 ounces from Canadian and Australian operations.
- Record Fosterville gold production of 44,406 ounces based on record grade of 8.48 g/t and record recovery of 92.4 per cent.
- Record Macassa gold production of 52,318 ounces, including run of mine grade of 21.46 g/t and mill recovery of 97.6 per cent.
Tony Makuch, President and CEO of KL Gold stated: "I am pleased to report 2016 pro forma gold production of 542,751 oz, highlighting KL Gold as a new mid-tier gold producer. Both the Canadian and Australian operations exceeded 2016 consolidated guidance. Our pro forma operating results indicate a solid year, largely driven by our low cost, high grade, cornerstone gold mines of Fosterville, Macassa and Taylor which accounted for 68% of total 2016 production. During the fourth quarter, strong production results were driven by record performance from both the Macassa and Fosterville gold mines, due to increased grade and metallurgical recoveries at both sites."
"Despite placing two mines on care and maintenance in 2016, the company will maintain a production base of over 500,000 ounces of gold in 2017, focusing on high quality ounces. We begin the year with a strong balance sheet and a cash position of approximately $234 million, with a global operating platform from tier one mining jurisdictions. KL Gold is actively conducting extensive exploration, building from the exciting, high grade results announced in 2016 at the Fosterville and Macassa mines. KL Gold has extensive land packages within district scale gold camps, including the prolific Porcupine Destor Fault Zone in Canada, where numerous multi-million-ounce world class gold deposits exist. We believe our 2017 exploration program of $45-$55 million bodes well for resource growth and mine life extensions across key assets, providing future value for our shareholders."
Fourth Quarter 2016 Mine Operating Highlights (Canadian Operations)
Macassa Mine
The Macassa Mine continued to deliver solid operating results during Q4 2016 with a record quarter of gold production of 52,318 ounces, representing a 22 per cent increase from Q3 2016 of 42,866 ounces.
The increased production reflects a record run of mine average grade of 21.46 grams per tonne ("g/t") and record mill recovery of 97.6 per cent. The Macassa mill processed 102,289 tonnes at an average grade of 16.3 g/t (including processing of low grade ore from stockpiles).
Development of the 5400' Level, 5600' Level and 5700' Level in the lower South Mine Complex ("SMC") continues to be advanced. The main decline development is ongoing and is currently below the 5700' Level. The decline towards the LDN zone has now reached the 5700' Level and infrastructure is currently being developed in order to commence production in 2017.
The Macassa Mine delivered record production for the full year 2016 with 175,167 ounces produced, reflecting mill throughput of 396,633 tonnes, including ore from low grade stockpiles and record run of mine average grade of 16.52 g/t (or 14.1 g/t average milled grade).
Holt Mine Complex
During the fourth quarter, the Holt Mine Complex performed well. The Holt Mill processed 226,968 tonnes of ore at an average head grade of 5.26 g/t and recoveries of 92.8 per cent, producing a total of 35,634 ounces.
For the year ended 2016 pro forma production from the Holt Mine Complex totalled 127,8602 ounces of gold from the processing of 818,809 tonnes at an average grade of 5.2 g/t and average recovery of 93.8 per cent.
Holt Mine
During Q4 2016, the Holt Mine delivered 113,499 tonnes at a grade of 4.57 g/t to the process plant. After mill recoveries of 94.5 per cent, Holt's gold production was 15,761 ounces.
On a pro forma basis, full year production from the Holt Mine was 416,048 tonnes grading 4.52 g/t, yielding 57,086 ounces of gold after mill recoveries of 94.5 per cent.
Holloway Mine
During Q4 2016, the Holloway Mine delivered 65,215 tonnes at a grade of 5.37 g/t to the process plant. After mill recoveries of 87.3 per cent, Holloway's gold production was 9,825 ounces.
On a pro forma basis, full year production from Holloway was 203,130 tonnes grading 4.86 g/t, yielding 28,135 ounces of gold after mill recoveries of 88.7 per cent.
Taylor Gold Mine
During Q4 2016, the Taylor Mine delivered 48,254 tonnes at a grade of 6.74 g/t to the process plant, including 2,436 tonnes of low grade material at 2.12 g/t. After mill recoveries of 96.1 per cent, Taylor's gold production was 10,048 ounces.
On a pro forma basis, full year production from the Taylor mine was 199,231 tonnes grading 6.90 g/t, yielding 42,639 ounces of gold after mill recoveries of 96.5 per cent. This includes 9,770 tonnes of low grade material at 2.36 g/t.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a new mid-tier gold producer targeting +500,000 ounces in tier 1 mining jurisdictions of Canada and Australia.
The production profile of the company is anchored from two high-grade, low-cost operations including the Macassa Mine Complex located in northeastern Ontario and the Fosterville Gold Mine located in the state of Victoria, Australia.
KL Gold's solid base of quality assets is complemented by development and district scale exploration projects, supported by a strong financial position with extensive management and operational expertise. For further information, visit the website www.klgold.com.
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