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Kirkland Lake eyes 74% production increase at Detour Lake by 2032, envisions 22-year mine life

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(Kitco News) - Kirkland Lake Gold (TSX:KL) (NYSE:KL) (ASX:KLA) today announced a new life-of-mine plan ("2021 LOMP") for its Detour Lake gold mine, located in Canada.

Under the 2021 LOMP, production is expected to average 680,000 – 720,000 ounces from 2021 – 2024, before increasing to 800,000 ounces in 2025. Production would then decline for three years during a period of increased stripping before reaching over 900,000 ounces beginning in 2032, which is 74% more than 516,757 ounces produced in 2020.

The company said that large Mineral Reserve provides 22-year production life with potential for further growth. Kirkland Lake expects low unit costs, including average operating cash costs of $524/oz and AISC/oz of $775 in first five years (2021 – 2025).

Mineral Reserves at Detour Lake as at December 31, 2020 were estimated at 13,821,000 ounces at an average grade of 0.96 g/t at an average cut-off grade at or above 0.50 g/t. In addition, the company also established low-grade Mineral Reserves of 1,954,000 ounces at an average grade of 0.41 g/t. Measured and Indicated Mineral Resources as at December 31, 2020 were estimated at 5,191,000 ounces at an average grade of 1.21 g/t. Inferred Mineral Resources totaled 1,606,000 ounces at an average grade of 0.94 g/t.

Kirkland Lake Gold 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.

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