Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced production results for the fourth quarter (“Q4 2020”) and
full-year (“FY 2020”) of 2020. Q4 2020 production totaled 369,434
ounces, a 32% increase from the fourth quarter of 2019 (“Q4 2019”)
and 9% higher than the previous quarter. All three of the Company’s
cornerstone assets achieved their highest quarterly production
levels of the year in Q4 2020. For FY 2020, the Company produced
1,369,652 ounces, a 41% increase from 2019 (“FY 2019”) and in line
with full-year 2020 guidance of 1,350,000 – 1,400,000 ounces. All
dollar amounts are expressed in U.S. dollars, unless otherwise
noted. Per share amounts are based on a total of 268,097,877 shares
outstanding at December 31, 2020.
$847.6 million returned to shareholders
in 2020
A total of $847.6 million of cash was returned
to shareholders through share repurchases and dividend payments in
FY 2020 ($280.1 million in Q4 2020), representing $3.16 per share
outstanding and $619 per ounce of FY 2020 production. A total of
$731.6 million (C$974.6 million) of cash was used to repurchase
18,925,900 shares during the year through the Company’s normal
course issuer bid (“NCIB”), of which 5,727,500 shares were
repurchased during Q4 2020 for $245.9 million (C$319.4 million).
With additional repurchases of 1,074,100 shares during the first
week of January 2021, for $46.3 million (C$58.8 million), the
Company has now achieved its goal of repurchasing 20.0 million
shares over a 12 to 24-month period, which was announced in
February 2020 following the completion of the Detour Gold
Corporation (“Detour Gold”) acquisition. Dividend payments in 2020
totaled $116.0 million, including $34.2 million being used in Q4
2020 for a dividend payment of US$0.125 per share on October 14,
2020 to shareholders of record on September 30, 2020. The Company
increased the quarterly dividend twice in 2020, doubling it to
US$0.125 per share effective the Q1 2020 payment, with an
additional 50% increase, to US$0.1875 per share, introduced
effective the Q4 2020 payment, to be paid on January 14, 2021 to
shareholders of record on December 31, 2020.
Significant financial strength
maintained
At December 31, 2020, the Company had cash of
$848 million (with no debt), an increase of $141 million or 20%
from $707 million at December 31, 2019. Cash at December 31 ,2020
was unchanged from the previous quarter end, mainly reflecting the
significant capital returned to shareholders during Q4 2020.
Highlights of Q4 2020 and FY 2020
Production Results
- Consolidated
production in Q4 2020 of 369,434 ounces, 32% increase from
279,742 ounces in Q4 2019 and 9% higher than 339,584 ounces in Q3
2020 (1,369,652 ounces for FY 2020 versus 974,615 ounces for FY
2019)
- Gold
poured of 373,284 ounces versus 279,054 ounces in Q4
2019 and 325,811 ounces in Q3 2020 (FY 2020 gold poured of
1,364,601 ounces compared to 978,455 ounces for FY 2019)
- Gold sales
totaling 371,009 ounces at an average realized price of $1,875 per
ounce compared to gold sales of 278,438 ounces ($1,481 per ounce)
in Q4 2019 and 331,959 ounces ($1,907 per ounce) in Q3 2020 (FY
2020 gold sales of 1,388,944 ounces ($1,772 per ounce) versus gold
sales of 979,733 ounces ($1,405 per ounce) for FY 2019)
- Production from Detour Lake
Mine of 153,143 ounces, 9% increase from 140,067 ounces in
Q3 2020 (Production from date of acquisition on January 31, 2020 to
December 31, 2020 totaled 516,757 ounces)
- Strong production at
Fosterville totalling 164,008 ounces compared to record
quarterly production of 191,894 ounces in Q4 2019 and 161,489
ounces the previous quarter (record production of 640,467 ounces in
FY 2020 versus 619,366 ounces a year earlier)
- Production at
Macassa totaling 52,283 ounces versus 56,379 ounces in Q4
2019 and 38,028 ounces in Q3 2020 (FY 2020 production of 183,038
ounces versus 241,297 ounces for FY 2019; production in FY 2020 was
impacted by reduced operations and health and safety protocols
related to COVID-19, as well as reduced workforce productivity and
equipment availability resulting from excessive heat in the mine
during the third quarter of the year).
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “Our most significant
achievement in 2020 was our extensive response to the COVID-19
pandemic, which clearly demonstrated that, at Kirkland Lake Gold,
nothing is more important than the health and safety of our people
and the responsible operation of our business. Looking at our
operating performance, in many respects our team had its best year
ever in 2020. Faced with unprecedented challenges, we generated
solid results, with production of 1,369,652 ounces achieving our
full-year 2020 guidance. Our strong performance was driven by
Fosterville, which generated record production of 640,467 ounces,
including better than expected results during Q4 2020. Detour Lake
and Macassa were significantly impacted by COVID-19, including
being placed on reduced operations at the end of the first quarter.
Both operations bounced back later in the year, achieving their
best quarter of production in Q4 2020. Looking at Detour Lake, we
are extremely pleased with our acquisition of the mine on January
31, 2020, which was clearly a case of the right deal at the right
time. Detour Lake is a tremendous asset with substantial upside
that is already making a significant contribution to our operating
and financial results. In 2021, the mine is poised for strong
production growth and improved unit costs, with there being
considerable potential for additional growth as we continue to have
success with our extensive exploration program.
“Turning to exploration, we achieved very
encouraging drill results at all three of our cornerstone assets,
which support our view that Detour Lake, Macassa and Fosterville
are not just three very profitable operations, they are also three
of the most exciting exploration stories in the industry. We also
made excellent progress with our key growth projects, including our
#4 Shaft project at Macassa which was advancing ahead of schedule
at year end, with target completion in late 2022. At Fosterville, a
twin exploration drive being developed to Robbin’s Hill advanced
over 3,200 metres, with underground drilling from the drive to
commence late this year. We also commenced several key projects at
Detour Lake during 2020 in support of the significant production
growth we are targeting in the years ahead, with these projects
focused on mill enhancements, tailing capacity expansion, and
construction of new site infrastructure.
“Finally, one of our key strategic priorities is
returning capital to shareholders and, in this critical area of
value creation, 2020 was an extremely successful year. In total, we
returned $847.6 million to shareholders during the year, including
$731.6 million through share repurchases and $116.0 million in
dividend payments. In February of 2020, we announced a target to
repurchase 20.0 million shares through our NCIB within a 12 to
24-month period as part of completing the Detour Gold acquisition
and, as of January 8, 2021, we have achieved that goal. We also
increased our dividend twice in 2020, growing the quarterly
dividend from $0.06 per share when 2020 began to $0.1875 per share
effective the Q4 2020 dividend ($0.75 per share annualized). With
three cornerstone assets like Detour Lake, Macassa and Fosterville,
we expect to continue to generate strong earnings and cash flows,
which will support our ongoing efforts to return substantial
amounts of capital to shareholders going forward.”
Key Developments in FY 2020
Proactive and effective response to
COVID-19 pandemic
- Implemented extensive health and
safety protocols to protect workers from COVID-19, including
suspension of all non-essential work, remote work where possible,
and protocols in support of social distancing, medical testing and
cleaning and sanitizing; COVID-19 protocols are expected to
remained in effect for the foreseeable future; As part of the
COVID-19 response, reduced operations were introduced at Detour
Lake (March 23rd) and Macassa (April 2nd) with operations suspended
at Holt Complex (April 2nd); Gradual recall of workers commenced at
Detour Lake and Macassa in early May with workforces returning to
pre-COVID levels by June 30, 2020.
Significant achievements in Environment,
Social and Governance (“ESG”) performance
- Adopted World Gold Council’s
Responsible Gold Mining Principles; Completed Year One External
Assurance
- Finalized policies and standards on
Human Rights, Supplier Code of Conduct and Grievance
Resolution
- Verified that all active tailings
facilities meet or exceed all MAC/CDA and ANCOLD guidelines
- Received Tom Peters Memorial Mine
Reclamation Award in recognition of Detour Lake Mine’s Progressive
Reclamation Program aimed at reclaiming 10 hectares of land per
year commencing in 2019
- Achieved greenhouse gas (“GHG”)
emissions well below industry averages, with Macassa continuing to
have among the lowest GHG intensity rates in the industry
- Macassa purchased industry’s first
50-tonne battery-powered underground haul truck in 2020, with
delivery scheduled for Q1 2021
- Launched $20 million donation
program to support local health care agencies and community support
groups in areas where the Company operates; A$1.0 million donated
to support Australian bush fire relief and prevention.
Acquisition of Detour Gold
Corporation
- Acquired Detour Gold Corporation on
January 31, 2020 adding a large-scale, open-pit gold mine (Detour
Lake Mine) in Northern Ontario with a large base of Mineral
Reserves and significant potential for growth through exploration
success; Detour Lake is poised for significantly stronger results
in 2021 with production targeted to grow to 680,000 – 720,000
ounces at all-in sustaining costs1 better than $900 per ounce
sold.1. See the ”Non-IFRS Measures” section of the MD&A for the
three and nine months ended September 30, 2020 for more
information.
Drilling results demonstrate substantial
exploration upside at all three cornerstone assets
- Detour Lake: Broad
zones of mineralization intersected in the Saddle Zone between the
Main and West pits with high grades at depth supporting potential
underground mining operations; Results provide increasing evidence
that a much larger and higher-grade deposit exists than is
currently included in Mineral Reserves
- Macassa: Drilling
continued to expand the South Mine Complex (“SMC”), intersected
exceptional grades near the contact of the SMC and Amalgamated
Break, expanded mineralization along the Amalgamated Break and
identified a new high-grade corridor along the Main Break close to
the #4 Shaft (currently under development)
- Fosterville:
Drilling returned higher than expected grades from infill drilling
in the Swan Zone, confirmed the scale of mineralized systems at
Robbin’s Hill, Cygnet and Harrier and demonstrated the potential
for discovering new high-grade zones.
Significant progress with key growth
capital projects
- #4 Shaft project
(Macassa): Sinking advanced approximately 3,040 feet
during 2020, reaching 4,240 feet by year end; Project advancing
ahead of schedule on track for completion in late 2022, with
production at Macassa to grow to 400,000 – 425,000 ounces in
2023
- Robbin’s Hill exploration
decline at Fosterville: Twin exploration drive advanced
3,292 metres in 2020; Drive to support underground drilling at
Robbin’s Hill and other targets with drilling to commence in Q4
2021 and completion of the drive targeted for mid-2022
- Multiple projects at Detour
Lake: Multiple projects undertaken in support of future
production growth, including investments in mill improvements,
expansion of tailings capacity, construction of an assay lab and
improvements to other site infrastructure.
Operations suspended at non-core
assets
- Holt Complex:
Operations suspended effective April 2nd and extended until further
notice on July 16th; Strategic alliance agreement announced with
Newmont Canada FN Holdings ULC (“Newmont”) in August through which
the companies committed to work together to identify regional
exploration opportunities around the Holt Complex and Newmont’s
properties in Timmins, Ontario; Kirkland Lake Gold received $75
million from Newmont with Newmont acquiring an option on mining and
mineral rights related to the Holt Mine property
- Northern
Territory: Test mining and milling, as well as all
exploration drilling, suspended in March 2020; Three-year, $60 –
$65 million rehabilitation program was launched in Q3 2020,
intended to address environmental issues caused by prior owners
with objective of restoring approximately 360ha to grazing land
quality, removing waste rock dumps and filling open pits.
Significant proceeds from sale of
strategic investments
- During FY 2020, $174.4 (C$230.1)
million was received from the sale of strategic investments,
including $107.7 (C$143.2) million from the sale of 32.6 million
shares of Osisko Mining Inc. in Q3 2020; $38.9 (C$50.7) million
from the sale of 20,605,100 shares and 9,225,000 warrants of Novo
Resources Corp., most of which was sold in Q4 2020, and $27.8
(C$36.2) million related to the sale of 35,656,084 shares of De
Grey Mining Ltd. in Q4 2020.
Q4 and FY 2020 Production
Production Results |
Q4 2020 |
Q4 2019 |
Q3 2020 |
FY 2020 |
FY 2019 |
Fosterville |
|
|
|
|
|
Ore Milled (tonnes) |
183,635 |
121,998 |
167,533 |
593,343 |
492,874 |
Grade (g/t Au) |
28.1 |
49.3 |
30.3 |
33.9 |
39.6 |
Recovery (%) |
98.9 |
99.2 |
99.0 |
98.9 |
98.8 |
Gold Production (ozs) |
164,008 |
191,893 |
161,489 |
640,467 |
619,366 |
Macassa |
|
|
|
|
|
Ore Milled (tonnes) |
74,353 |
87,573 |
78,526 |
312,758 |
324,077 |
Grade (g/t Au) |
22.4 |
20.5 |
15.4 |
18.6 |
23.6 |
Recovery (%) |
97.7 |
97.8 |
97.8 |
97.7 |
97.9 |
Gold Production (ozs) |
52,283 |
56,379 |
38,028 |
183,038 |
241,297 |
Detour Lake1 |
|
|
|
|
|
Ore Milled (tonnes) |
5,829,230 |
- |
5,898,694 |
21,091,938 |
- |
Grade (g/t Au) |
0.89 |
- |
0.81 |
0.83 |
- |
Recovery (%) |
91.8 |
- |
90.7 |
91.3 |
- |
Gold Production (ozs) |
153,143 |
- |
140,067 |
516,757 |
- |
Holt Complex2 |
|
|
|
|
|
Ore Milled (tonnes) |
- |
252,801 |
- |
215,318 |
853,528 |
Grade (g/t Au) |
- |
4.1 |
- |
4.5 |
4.4 |
Recovery (%) |
- |
94.1 |
- |
93.6 |
94.7 |
Gold Production (ozs) |
- |
31,469 |
- |
29,391 |
113,952 |
Total Consolidated Production (ozs)3 |
369,434 |
279,742 |
339,584 |
1,369,652 |
974,615 |
Total Consolidated Gold Sales (ozs) |
371,009 |
278,438 |
331,959 |
1,388,944 |
979,733 |
1) |
The Detour Lake Mine was acquired on January 31, 2020. FY 2020
production represents output from that date to December 31,
2020. |
2) |
The Holloway Mine, a component of Holt Complex, was placed on care
and maintenance in March 2020 with no plans for a resumption of
operations. The remainder of the Holt Complex was placed on
temporary suspension effective April 2, 2020 as part of the
Company’s COVID-19 response. In July 2020, the Company announced
that operations at the Holt Complex would remain suspended until
further notice |
3) |
Production numbers may not add to totals due to rounding. |
Performance Against Full-Year 2020 Production Guidance
(as at November 5, 2020)
|
Macassa |
Holt Complex |
DetourLake |
Fosterville |
Consolidated |
2020 Guidance (,000 ozs) |
210 – 220 |
29 |
520 – 540 |
590 – 610 |
1,350 – 1,400 |
FY 2020 Production (ozs) |
183,038 |
29,391 |
516,757 |
640,467 |
1,369,652 |
After withdrawing guidance for 2020 on April 2,
2020 due to uncertainties related to the COVID-19 pandemic, the
Company issued new guidance on June 30, 2020 (see table above),
which remained unchanged throughout the balance of the year. FY
2020 consolidated production totalled 1,369,652 ounces, in line
with re-issued guidance and a 41% increase from FY 2019. The
increase from the previous year mainly reflected the addition of
Detour Lake Mine, which was acquired on January 31, 2020, as well
as the impact of record production at Fosterville. These factors
more than offset a significant reduction in production at Holt
Complex, where operations were suspended effective April 2, 2020,
as well as lower production at Macassa largely reflecting the
impact of reduced operations and protocols related to COVID-19 and
reduced workforce productivity and equipment availability resulting
from excessive heat in the mine during Q3 2020.
Review of Operations
Fosterville
The Fosterville Mine produced 164,008 ounces in
Q4 2020 based on processing 183,635 tonnes at an average grade of
28.1 g/t and average mill recoveries of 98.9%. Q4 2020 production
compared to record production of 191,893 ounces in Q4 2019, when
the mine processed 121,998 tonnes at an average grade of 49.3 g/t
and average recoveries of 99.2%. Q4 2020 production compared to
production of 161,489 ounces the previous quarter when the mine
processed 167,533 tonnes at an average grade of 30.3 g/t and at
average recoveries of 99.0%. The change from Q4
2019 reflected a lower average grade, which more than offset
the impact of increased tonnes processed, resulting from higher
mining rates in both Lower Phoenix and Harrier as the mine
benefited from recent investments in improved ventilation and paste
fill. The reduction in the average grade reflected mine sequencing
in the Swan Zone as well as a lower proportion of total mined
tonnes coming from the Swan Zone versus other, lower-grade,
areas. The increase in production from the previous quarter
resulted from increased tonnes processed in Q4 2020.
Production at Fosterville for FY 2020 was a
record 640,467 ounces, 21,101 ounces or 3% higher than the 619,366
ounces produced in FY 2019. FY 2020 production resulted from
processing 593,343 tonnes at an average grade of 33.9 g/t and
average recoveries of 98.9%. The increase from FY 2019 was mainly
due to a 20% increase in tonnes processed, which more than offset a
14% reduction in the average grade. The 640,467 ounces of
production for FY 2020 exceeded full-year 2020 production guidance
of 590,000 – 610,000 ounces mainly due to higher than planned
tonnes processed and average grades during the second half of
2020.
Macassa
Production at Macassa in Q4 2020 totaled 52,283
ounces compared to production of 56,379 ounces in Q4 2019 and
38,028 ounces the previous quarter. Production in Q4 2020 resulted
from processing 74,353 tonnes at an average grade of 22.4 g/t and
average recoveries of 97.7%, which compared to 87,573 tonnes
processed in Q4 2019 at an average grade of 20.5 g/t and average
recoveries of 97.8% and 78,526 tonnes at an average grade of 15.4
g/t and average recoveries of 97.8% in Q3 2020. The change in
production from Q4 2019 largely reflected lower tonnes processed
which was only partially offset by an improvement in the average
grade, mainly due to mine sequencing in the SMC. The 37% increase
in production compared to the previous quarter was due to a 45%
improvement in the average grade reflecting a greater proportion of
higher-grade stopes in the SMC being mined during the final quarter
of the year. During Q3 2020, mine production was affected by
limited operating development being completed during reduced
operations, the impact of ongoing health and safety protocols,
including those related to COVID-19, and reduced equipment
availability, mainly due to extremely high temperatures in the
mine. These factors resulted in reduced mining rates and a focus on
the most accessible areas, which were largely the lower-grade
stopes planned for the quarter.
Production at Macassa in FY 2020 totaled 183,038
ounces, which resulted from processing 312,758 tonnes at an average
grade of 18.6 g/t and at average recoveries of 97.7%. FY 2020
production compared to production of 241,297 ounces for FY 2019,
which resulted from processing 324,077 tonnes at an average grade
of 23.6 g/t and at average recoveries of 97.9%. FY 2020 production
did not achieve the re-issued full-year 2020 guidance of 210,000 –
220,000 ounces reflecting both lower than expected processing rates
and average grades largely due to the impact of ongoing health and
safety protocols related to COVID-19 and reduced workforce
productivity and equipment availability resulting from excessive
heat in the mine in Q3 2020.
Detour Lake
Production at Detour Lake in Q4 2020 totaled
153,143 ounces, which involved processing 5,829,230 tonnes at an
average grade of 0.89 g/t and average recoveries of 91.8%.
Production in Q4 2020 compared to production in Q3 2020 of 140,067
ounces, which resulted from processing 5,898,694 tonnes at an
average grade of 0.81 g/t and average recoveries of 90.7%. The
increase in production quarter over quarter resulted from a higher
average grade due to mine sequencing with production concentrated
in higher-grade areas than during the previous quarter.
Production at Detour Lake for the 11 months
ended December 31, 2020 totalled 516,757 ounces, which resulted
from processing 21,091,938 tonnes at an average grade of 0.83 g/t
with average recoveries of 91.3%. The 516,757 ounces of production
in FY 2020 was below the re-issued full-year 2020 guidance range of
520,000 – 540,000 ounces, reflecting slightly lower than planned
average grades during the second half of 2020.
Holt Complex
The assets included in the Holt Complex (Holt,
Holloway and Taylor mines and Holt Mill) were designated as
non-core on February 19, 2020 with the Company planning to assess
options for maximizing the value of these assets. In March 2020,
the Holloway Mine was transitioned to care and maintenance.
Effective April 2, 2020, operations were suspended at the remainder
of the Holt Complex as part of the Company’s COVID-19 response and
while the Company conducted a strategic review of these assets. In
July 2020, the Company announced that the suspension of operations
at Holt Complex would be extended until further notice. As a
result, there was no production from Holt Complex in Q4
2020.
For FY 2020, production from Holt Complex
totaled 29,391 ounces, almost all of which was produced during the
first quarter of the year. The Company has no plans for a future
resumption of operations at Holt Complex at the present time.
Qualified Person
Natasha Vaz, P.Eng., Senior Vice President,
Technical Services and Innovation is a “qualified person” as
defined in National Instrument 43-101 and has reviewed and approved
disclosure of the technical information and data in this News
Release.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold
producer operating in Canada and Australia that is targeting
1,300,000 – 1,400,000 ounces of production in 2021. 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 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 future production,
Mineral Reserve growth and the expectation of exploration success
at the Company’s assets, realization of future synergies in
connection with the integration of Detour Gold and the anticipated
timing thereof, changes in Mineral Resources and conversion of
Mineral Resources to proven and probable reserves, and other
information that is based on forecasts of future operational or
financial results, estimates of amounts not yet determinable and
assumptions of management. These forward-looking statements
include, but are not limited to, statements with respect to the
Company’s forward looking production outlook, future exploration
potential, project economics, timing and scope of future
exploration, anticipated costs and expenditures, anticipating
timing and effects of the #4 shaft project, the anticipated overall
impact of the Company’s COVID 19 response plans including measures
taken by the Company to reduce the reduce the spread of COVID 19,
and changes in Mineral Resources and conversion of Mineral
Resources to proven and probable reserves.
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 government response to
such pandemic, the ability of the Company to continue operations at
its mine sites in lieu of the pandemic, its ability to reduce the
spread of COVID 19 through the implementation of various COVID 19
screening and health and safety protocols and the risk of future
shut downs as a result thereof; future development and growth
potential of the Company’s projects; estimates of future mineral
reserves, mineral resources, mineral production, optimization
efforts and sales, future exploration activities planned at the
Canadian and Australian properties; risks relating to government
regulations; 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
associated with the integration of Detour Gold; risks related to
various expansion projects, recovery rates, mill throughput,
optimization, including the costs and other estimates on which such
projections are based; 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 financial years ended
December 31, 2019 and 2018, and the three months ended September
30, 2020, filed with the securities regulatory authorities in
certain provinces of Canada and available on SEDAR and EDGAR.
Forward-looking statements are subject to a variety of risks and
uncertainties that could cause actual events or results to differ
from those reflected in the forward-looking statements. Exploration
results that include geophysics, sampling, and drill results on
wide spacings may not be indicative of the occurrence of a mineral
deposit. Such results do not provide assurance that further work
will establish sufficient grade, continuity, metallurgical
characteristics and economic potential to be classed as a category
of Mineral Resource. A Mineral Resource that is classified as
"Inferred" or "indicated" has a great amount of uncertainty as to
its existence and economic and legal feasibility. It cannot be
assumed that any or part of an "indicated Mineral Resource" or
"Inferred Mineral Resource" will ever be upgraded to a higher
category of resource. Investors are cautioned not to assume that
all or any part of mineral deposits in these categories will ever
be converted into proven and probable reserves.
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
This press release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States
securities laws. The terms “mineral reserve”, “proven mineral
reserve” and “probable mineral reserve” are Canadian mining terms
as defined 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. These definitions
differ from the definitions in SEC Industry Guide 7 under the
United States Securities Act of 1993, as amended (the “Securities
Act”).
The SEC has adopted amendments to its disclosure
rules to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the
Securities Exchange Act of 1934 (“Exchange Act”). These amendments
became effective February 25, 2019 (the “SEC Modernization Rules”)
and, following a two-year transition period, the SEC Modernization
Rules will replace the historical property disclosure requirements
for mining registrants that were included in SEC Industry Guide 7.
Following the transition period, as a foreign private issuer that
files its annual report on Form 40-F with the SEC pursuant to the
multi-jurisdictional disclosure system, the Company is not required
to provide disclosure on its mineral properties under the SEC
Modernization Rules and will continue to provide disclosure under
NI 43-101 and the CIM Definition Standards. If the Company ceases
to be a foreign private issuer or loses its eligibility to file its
annual report on Form 40-F pursuant to the multi-jurisdictional
disclosure system, then the Company will be subject to the SEC
Modernization Rules which differ from the requirements of NI 43-101
and the CIM Definition Standards. The SEC Modernization Rules
include the adoption of terms describing mineral reserves and
mineral resources that are “substantially similar” to the
corresponding terms under the CIM Definition Standards. As a result
of the adoption of the SEC Modernization Rules, the SEC now
recognizes estimates of “measured mineral resources”, “indicated
mineral resources” and “inferred mineral resources”. In addition,
the SEC has amended its definitions of “proven mineral reserves”
and “probable mineral reserves” to be “substantially similar” to
the corresponding CIM Definitions. U.S. investors are cautioned
that while the above terms are “substantially similar” to CIM
Definitions, there are differences in the definitions under the SEC
Modernization Rules and the CIM Definition Standards. Accordingly,
there is no assurance any mineral reserves or mineral resources
that the Company may report as “proven mineral reserves”, “probable
mineral reserves”, “measured mineral resources”, “indicated mineral
resources” and “inferred mineral resources” under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules.
U.S. investors are also cautioned that while the
SEC will now recognize “measured mineral resources”, “indicated
mineral resources” and “inferred mineral resources”, investors
should not assume that any part or all of the mineralization in
these categories will ever be converted into a higher category of
mineral resources or into mineral reserves. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, investors are cautioned not
to assume that any measured mineral resources, indicated mineral
resources, or inferred mineral resources that the Company reports
are or will be economically or legally mineable. Further, “inferred
mineral resources” have a greater amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. Therefore, U.S. investors are also cautioned not to
assume that all or any part of the “inferred mineral resources”
exist. Under Canadian securities laws, estimates of “inferred
mineral resources” may not form the basis of feasibility or
pre-feasibility studies, except in rare cases.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884E-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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