Kirkland Lake Gold announces third quarter production results
Monday, Feb 11, 2013
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.