Kirkland Lake Gold has added mineral reserves to its flagship Macassa Mine in Kirkland Lake.
In a 2016, year-end mineral resource report, the company said reserves at Macassa had increased by 37 per cent to 2,010,000 ounces of gold since its last report in 2014. The mineral reserve grade increased by 7 per cent to 20.8 grams per tonne gold, from the previous grade of 19.2 grams per tonne gold.
The company also reported an increase of 66 per cent in reserves at its Fosterville Mine in Australia.
Kirkland Lake Gold’s president and CEO, Tony Makuch, said the results of the new mineral reserves have more than offset depletion at the mine, because of an increase in both ounces and average reserve grade.
Though historically, mining has been concentrated north of the Main Break in the Kirkland Lake District, the company said it would focus its work south of the Main Break.
“South of the Main Break, Macassa currently has a large reserve base averaging over 20 g/t gold supported by a large resource base averaging over 16 g/t gold, which at current production rates supports well in excess of a 15-year mine life,” Makuch said in a release.
“Additionally, we have an aggressive multi-rig exploration program ongoing with significant potential to expand reserves and resources south of the Main Break and along the Amalgamated Break Corridor to the east."
The company said it is optimistic about expanding its mineral reserves and resources in the future.
“We remain focused on delivering superior shareholder value by targeting organic growth opportunities, supported by an aggressive 2017 exploration investment of US$45-55 million,” Makuch said.
“Ongoing drilling continues to enhance the geological understanding of our assets, providing confidence in the ability to delineate and expand our mineral reserves and resources. Looking to 2017, KL Gold is well positioned for future growth with an experienced management and operating team, increasing reserves and grade profiles at our flagship operations, and a strong financial position."
In addition to Macassa Mine, Kirkland Lake Gold operates the Taylor and Holt Mines in Matheson, near Timmins.