Kirkland Lake Gold Ltd. T.KGI

Kirkland Lake Gold continues to shine

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NorthernNews

KIRKLAND LAKE - Kirkland Lake Gold reports its third consecutive quarter of positive cash flow.
During the company's third fiscal quarter 2015 it generated $11.6 million free cash flow and year to date $22.8 million. As of Jan.31, 2015, the end of Kirkland Gold's third fiscal quarter it had $44 million in cash.
“We have made tremendous progress following the turnaround a year and a half ago and we are committed to strive for continuous improvements to strengthen the company and create a return on investment for our shareholders. During the quarter, we announced the appointment of Eric Sprott as Chairman of the Board of Directors, and entered into a $35 million financing. I believe the success of the financing and Mr. Sprott's joining the board are key signs that there is renewed faith in our abilities to execute and succeed,” said George Ogilvie, CEO.
During the quarter Kirkland Lake Gold had a head grade of 0.44 ounces gold per ton, and 0.43 for the first nine months of fiscal 2015. The company sold 39,772 ounces of gold during the quarter at an average realized price of $1,371 Canadian per ounce and year to date the company has sold 116,600 ounces at an average price of $1,389 Canadian.
Kirkland Lake Gold had a cash cost per ounce during its third quarter of $776 and year to date $813. The all in cash cost per ounce during the quarter was $1,249 compared with $1,289 for year to date.
Based on progress to date Kirkland Lake Gold has increased it planned production during fiscal 2015 to 153,000 to 157,000 ounces from the original projection of 140,000 to 155,000 ounces of gold.
Kirkland Lake Gold has one jumbo drill advancing the main ramp development toward the 5,600 foot level. A third stope on the 5,400 foot level in the South Mine Complex was put into production in early December. The company expects to have five stopes in production on the 5,400 by april 30.
The average production rate during the quarter of 1,030 tons per day represents a three percent increase of the previous quarter. During January Kirkland Lake Gold reports a significant increase to 1,220 tons per day with 37,800 tons being delivered to the mill.
During the quarter Kirkland Lake Gold's exploration extended the New South Zone 180 feet down dip from previous intersections and intersected a new high grade parallel footwall zone. The company plans on updating it company-wide resource and reserve estimates by April 30.