Kirkland Lake Gold exceeds production target in Q1 2021
(Kitco News) - Senior gold producer Kirkland Lake Gold (TSX:KL) (NYSE:KL) (ASX:KLA) today announced production results for the first quarter of 2021 of 302,847 ounces, which exceeded guidance for the quarter of 270,000 – 290,000 ounces and was 8% less than production in Q1 2020 (330,864 ounces).
The company said that the strong results versus guidance largely resulted from higher-than-expected production at both Fosterville mine and Detour Lake mine in March, with Fosterville benefiting from significant grade outperformance and Detour Lake achieving higher than planned grades and tonnes processed.
Also, during Q1 2021, the Macassa #4 Shaft project remained ahead of schedule with shaft sinking reaching the 5,000-foot level as at March 31, 2021 and the project remaining on track for completion in late 2022.
Detour Lake mine produced 146,731 ounces, above target levels and compared to 91,555 ounces in Q1 2020 for the two months after Detour Lake was acquired on January 31, 2020 (138,051 ounces for the full quarter) and 153,143 ounces in Q4 2020.
Fosterville mine produced 108,679 ounces compared to 159,864 ounces in Q1 2020 and 164,008 the previous quarter. Production in Q1 2021 exceeded target levels due mainly to grade outperformance in March.
Macassa mine produced 47,437 ounces versus 50,861 ounces for the same period in 2020 and 52,283 ounces in Q4 2020.
President and CEO Tony Makuch commented, "We are pleased with our production results in Q1 2021, which exceeded target levels largely driven by stronger than expected results at Fosterville and Detour Lake. Q1 2021 is expected to be the lowest production quarter of the year with all three of our cornerstone assets being in low-grade cycles during this period."
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.