Production issues have contributed to lower revenues for Kirkland Lake Gold, leading to a $10.3 million net loss for the second quarter of its fiscal 2010, ending Oct. 31, 2009.
This compares to a net income of $1.6 million in the previous quarter.
A borehole which delivered paste fill from surface collapsed on June 23, 2009 due to ground failure, meaning no paste fill could be delivered to the mine for three months. As such, gold production for the quarter was reduced by 77 per cent to 3,912 ounces. A replacement borehole was drilled and in service by Oct. 1, with a second backup hole due to be completed by January.
These issues reduced gold revenues to $6.9 million, down 69 per cent from the previous quarter, and down 22 per cent from the same quarter the previous year.
Operating costs for the quarter were $15.5 million, down 19 per cent from the previous quarter due to lower mining and milling costs.
The company's cash resources of $43 million are expected to be sufficient for exploration and development over the next 12 months.
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