Fosterville took Kirkland Lake to new heights and allowed them to become one of the most dominant and respected gold companies in the world. But now the reality that "all good things must come to an end" is setting in for KL investors, as grade and reserves at Fosterville dwindle, and Kirkland can't find like-ounces to replace them with.
With $90 million earmarked for exploration in and around Fosterville this year, Kirkland is drilling with so much zeal, putting so many holes in the ground, it will turn Fosterville into Swiss cheese. And that's a good thing.
If it can discover another 1-2 million ounces of 30 g/t material (certainly not an easy feat, but also not out of the realm of possibility), that would result in a sharp re-rating higher in the stock. I believe the greatest chance for exploration success will come from Lower Phoenix, maybe even well down plunge from Lower Phoenix South.