Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced that the suspension of operations at the Company’s Holt
Complex, in effect since April 2, 2020, will be extended until
further notice. The Company suspended business activities at the
Complex as part of its COVID-19 protocols, and at the same time
continued with a strategic review to assess a potential restart of
the operations.
The Holt Complex, including the Holt, Taylor and
Holloway mines and Holt Mill, was designated as non-core by the
Company on February 19, 2020 with the Company planning to consider
all options to maximize the value of the assets. The Complex’s high
cost structures, low grades, diminishing reserves and requirements
for new investments have resulted in significant negative cash
flows from these operations, and are key drivers of our decision to
extend the suspension of business activities.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “When we transitioned
Holt Complex to suspended operations in early April, our first step
was to provide base wages to all affected workers for the first
month. We also began working to identify opportunities to re-assign
as many employees as possible from the Complex to new roles at
other sites within our Canadian Operations. I am pleased to report
that, to date, more than 220 employees at Holt Complex, from a
total workforce of 475 people, have been re-assigned to new
positions, or have recently been offered new roles within the
organization. In cases where it is not possible to find alternative
employment arrangements, and where employees have been on an
extended temporary layoff, we now believe that the best course of
action is to provide severance packages.
“Extending the suspension of operations at Holt
Complex was a difficult decision. I want to personally thank
everyone at the Complex for their efforts and contribution to our
company. Going forward, we will continue to review strategic
options for the Holt Complex properties, including the potential
for additional exploration activities in the area.”
About Kirkland Lake Gold
Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 974,615
ounces in 2019. The production profile of the Company is anchored
by three high-quality operations, including the Macassa Mine and
Detour Lake Mine, both located in Northern Ontario, and the
Fosterville Mine located in the state of Victoria, Australia.
Kirkland Lake Gold's solid base of quality assets is complemented
by district scale exploration potential, supported by a strong
financial position with extensive management expertise.
For further information on Kirkland Lake Gold
and to receive news releases by email, visit the website at
www.kl.gold.
Cautionary Note Regarding
Forward-Looking Information
This press release contains statements which
constitute "forward-looking information" within the meaning of
applicable securities laws, including statements regarding the
plans, intentions, beliefs and current expectations of Kirkland
Lake Gold with respect to future business activities and operating
performance. Forward-looking information is often identified by the
words "may", "would", "could", "should", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" or similar
expressions and include information regarding the suspension of
operations at the Holt Complex, and anticipated effects thereof and
the ability of the Holt Complex to fully resume operations in the
future, if at all.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
Kirkland Lake Gold's management's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although Kirkland
Lake Gold believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves risks and uncertainties, and undue reliance should not be
placed on such information, as unknown or unpredictable factors
could have material adverse effects on future results, performance
or achievements of the combined company. Among the key factors that
could cause actual results to differ materially from those
projected in the forward-looking information are the following: the
future impacts of the COVID 19 pandemic and the risk of future shut
downs as a result thereof; future development and growth potential
of the Company’s projects; future exploration activities planned at
the Holt Complex and the Company’s Canadian and Australian
properties as a whole; risks relating to equity investments; risks
relating to first nations and Aboriginal heritage; the availability
of infrastructure, energy and other commodities; nature and
climactic conditions; currency exchange rates (such as the Canadian
dollar and the Australian dollar versus the United States dollar);
risks associated with dilution; labour and employment matters;
risks in the event of a potential conflict of interest; changes in
general economic, business and political conditions, including
changes in the financial markets; changes in applicable laws; and
compliance with extensive government regulation. This
forward-looking information may be affected by risks and
uncertainties in the business of Kirkland Lake Gold and market
conditions. This information is qualified in its entirety by
cautionary statements and risk factor disclosure contained in
filings made by Kirkland Lake Gold, including its annual
information form for the year ended December 31, 2019 and financial
statements and related MD&A for the interim period ended March
31, 2020 filed with the securities regulatory authorities in
certain provinces of Canada and available at www.sedar.com and
www.edgar.com.
Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although Kirkland
Lake Gold has attempted to identify important risks, uncertainties
and factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. Kirkland Lake Gold does not intend, and do
not assume any obligation, to update this forward-looking
information except as otherwise required by applicable law.
Cautionary Note to U.S. Investors -
Mineral Reserve and Resource Estimates
Certain terms referenced in this news release
have been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Standards"). NI 43-101 is a rule developed by the Canadian
Securities Administrators, which established standards for all
public disclosure an issuer makes of scientific and technical
information concerning mineral projects. The terms "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
are Canadian mining terms as defined in accordance with NI 43-101
and the CIM Standards. These definitions differ materially from the
definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under
the United States Securities Act of 1933, as amended, and the
Exchange Act.
In addition, the terms "Mineral Resource",
"measured Mineral Resource", "indicated Mineral Resource" and
"Inferred Mineral Resource" are defined in and required to be
disclosed by NI 43-101 and the CIM Standards; however, these terms
are not defined terms under SEC Industry Guide 7 and are normally
not permitted to be used in reports and registration statements
filed with the U.S. Securities and Exchange Commission (the "SEC").
Investors are cautioned not to assume that all or any part of
mineral deposits in these categories will ever be converted into
reserves. "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an Inferred Mineral Resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, except in very limited circumstances.
Investors are cautioned not to assume that all or any part of a
Mineral Resource exists, will ever be converted into a Mineral
Reserve or is or will ever be economically or legally mineable or
recovered.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884, E-mail:
tmakuch@kl.gold
Mark Utting, Senior Vice-President, Investor Relations Phone: +1
416-840-7884, E-mail: mutting@kl.gold
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