Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
announced the filing of a technical report (the “ 2021 Detour Lake
Technical Report” or the “Report”) for the Company’s Detour Lake
Mine, entitled “Detour Lake Operation, Ontario, Canada, NI 43-101
Technical Report.” The Report was prepared in compliance with
National Instrument 43-101 – Standards for Disclosure of Mineral
Projects (“NI 43-101”) and is effective as at December 31, 2020.
The Report is available under Kirkland Lake Gold’s profile on SEDAR
at www.sedar.com and on the Company’s website at www.kl.gold. All
dollar amounts in this press release are expressed in US dollars,
unless otherwise indicated.
The 2021 Detour Lake Technical Report includes a
new life-of-mine plan (“2021 LOMP”) that supports the scientific
and technical disclosure in the updated Mineral Resource and
Mineral Reserve estimates as at December 31, 2020 contained in the
Company’s press release dated February 25, 2021. In addition,
results published in the Report are consistent with, and confirm,
the multi-year production guidance (2021 – 2023) and unit cost and
capital expenditure guidance for 2021 included in the Company’s
press release dated December 10, 2020. The Report does not include
any of the exploration success achieved since the Company acquired
Detour Lake Mine on January 31, 2020; nor does it include the full
impact of business improvement initiatives undertaken since the
acquisition. The results of the Company’s exploration program will
be included in a new mine plan to be issued in 2022 (“2022 LOMP”),
which the Company expects will lead to significant value
enhancement opportunities for the Detour Lake operation.
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. As the Company
continues its exploration drilling and works to factor the
significant drilling success it is achieving into the 2022 LOMP, an
important objective will be to achieve growth in reserves and
changes to the production profile such that there is not a drop off
in production after 2025, and to achieve 900,000 ounces of
production, or higher, as early in the mine life as possible,
leading to further improvements in unit costs and free cash
flow.
The Detour Lake Technical Report was prepared by
following Kirkland Lake Gold employees, all of whom are qualified
persons as defined in NI 43-101, Standards of Disclosure for Mining
Projects and in compliance with Form 43-101F1: Mr. Andre Leite,
P.Eng, Detour Lake Mine Technical Service Manager; Mr. Jean
Francois Dupont, P.Eng, Detour Lake Chief Metallurgist; Dr.
Veronika Raizman, P.Geo., Manager, Reclamation & Geochemistry;
and Mr. Paul Andrew Fournier, P.Eng, Manager, Cost Accounting.
2021 Detour Lake Technical Report and
LOMP
Among the key results included in the 2021
Detour Lake Technical Report and LOMP are the following:
- Significant
production growth in first five years compared to previous
results driven by a lower strip ratio and expanded levels of mill
throughput, with production targeted at 680,000 – 720,000 ounces
from 2021 – 2024 and reaching 800,000 ounces in 2025
- Low unit
costs in the first five years (2021 – 2025) with operating
cash costs per ounce sold(1)(2) averaging US$524 and all-in
sustaining costs (“AISC”) per ounce per ounce sold(1)(2) averaging
$775
- Long
Production Life of 22 years based on 13.8 million ounces
of Mineral Reserves (at or above a 0.50 g/t cut-off grade) and 2.0
million ounces of low-grade stockpile Mineral Reserves (below 0.50
g/t cut-off grade) to mainly be processed at the end of the mine
life; potential exists for extended life with updated resource
model incorporating 2020 and 2021 exploration drilling
- Capital
expenditures that support expanded production levels and a
long mine life; sustaining capital expenditure estimates based on
actual operating experience; growth capital expenditure estimates
reflect the impact of multiple new growth projects aimed at
maximizing after-tax cash flow over the life of mine and
positioning Detour Lake to take advantage of additional growth
opportunities once the results of exploration drilling are factored
into the mine plan.
(1) See “Non-IFRS Measures” in this press
release and in the MD&A for the three and twelve months ended
December 31, 2020.(2) Unit costs determined using a gold price of
$1,500/oz and an exchange rate of CAD/USD of 1.31.
Tony Makuch, President and CEO of Kirkland Lake
Gold, commented: “The 2021 LOMP represents an important interim
report on our progress advancing the Detour Lake Mine, defining a
highly profitable operation that is well positioned to benefit from
our ongoing exploration success and other value creation
opportunities. Based on the new mine plan, Detour Lake is poised to
become Canada’s largest gold producer and, with the potential for
substantial growth in Mineral Reserves as our drilling programs
continue, could very well become one of the largest and most
profitable gold mines in the world.
“The 2021 LOMP includes significant production
growth and improved unit costs compared to past operating
experience. Production growth is driven by higher levels of mill
throughput, reflecting increased ore tonnes mined, lower stripping
ratios, better ore fragmentation and improved productivity in the
mill based on a number of key business improvement initiatives.
Sustaining capital estimates, which account for about half of total
capital expenditures in the first five years, are based on actual
experience over the last several years and extensive engineering
work. Growth capital expenditures over this period mainly relate to
new growth projects aimed at maximizing returns and positioning the
operation to benefit fully from additional value creation
opportunities.
“A key factor driving our interest in acquiring
Detour Lake Mine was the belief that we could substantially grow
Mineral Reserves through extensive drilling. Results to date
support our view that there is a large, continuous corridor of
mineralization along the Detour Mine Trend that extends from the
Main Pit, through the Saddle Zone and continues beyond the West Pit
location. With continued drilling success, we anticipate
transitioning to a much larger pit design as we grow our Mineral
Reserve base leading to further increases in production at better
unit costs.”
Key Assumptions
The Economic analysis of the operation was
completed using a gold price of US$1,500 per ounce and a CAD$/US$
exchange rate of 1.31. The current gold price provided for Mineral
Reserve estimation is US$1,300/oz, with US$ 1,500/oz being used for
Mineral Resource estimation. Both Mineral Resource and Mineral
Reserve estimates use an exchange rate assumption of CAD/US $1.31.
The project start date is January 1, 2021 with mining conducted
over a period of 18 years and processing activities extending over
22 years, with the final three years of processing reflecting the
milling previously stockpiled low-grade Mineral Reserves.
Review of Operations
During the Life of Mine (“LOM”), a total of
14,499,000 ounces of gold is produced at an average grade of 0.82
g/t and an average recovery rate of 91.9%. The production profile
assumes the mining of 593.9 million tonnes of ore with an average
strip ratio of 1.90 and an ex-pit ore grade of 0.82 g/t over a
period of 18 years, including 1,954,000 ounces of low-grade
stockpiled Mineral Reserves, which will mainly be processed over a
four year period at the end of the mine life. Over the first five
years of operation, starting at January 1, 2021, 3,618,000 ounces
of gold are produced in aggregate (an average of 723,600 ounces per
year) from processing 132.8 million tonnes at an average grade of
0.92 g/t and at an average recovery rate of 92.0%. A total of 186.4
million tonnes of ore is projected to be mined during this
five-year period at an average grade of 0.78 g/t and at an average
strip ratio of 2.08.
On a per ounce sold basis, average unit costs
over the LOM are expected to include operating cash costs per ounce
sold of $619 and AISC per ounce sold of $821. Unit costs in the
first five years of the operation are expected to be better than
the LOM averages and clearly establish Detour Lake Mine as a
low-cost gold mining operation with operating cash costs of $524
and AISC per ounce sold of $775.
Table 1. Operating Summary1
|
2021 – 2025 |
|
Mining |
|
|
Ore Mined (Mt) |
186.4 |
|
Waste Mined (Mt) |
386.9 |
|
Ex-Pit Mined (Mt) |
573.3 |
|
Strip Ratio (waste/ore) |
2.08 |
|
Ex-Pit Ore Grade (g/t) |
0.78 |
|
Processing |
|
|
Tonnes Milled (Mt) |
132.8 |
|
Head Grade (g/t) |
0.92 |
|
Recovery (%) |
92.0 |
|
Gold Recovered (Koz) |
3,618 |
|
Gold Poured (Koz) |
3,618 |
|
Gold Sales (Koz) |
3,618 |
|
Unit Costs |
|
|
Operating Cash Cost ($/oz)2 |
524 |
|
AISC ($/oz)2 |
775 |
|
(1) Tonnes and ounces are based on Mineral
Reserves and Mineral Resources as at December 31, 2020.(2) Note:
See “Non-IFRS Measures” set out below and as further set out on
page 40 of the Company’s MDA for the three and twelve months ended
December 31, 2020 for further details.
Figure 1. 2021 LOMP Gold Production is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/51c6bd13-7584-48d6-b64b-686062b09fb5
Figure 2. Total Mined Tonnes, Stripping
Ratio is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/f35c6bff-1d78-4b7f-9602-ec0c79309c92
Figure 3. Historical & Near-Term
Production is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/0ff2b7da-ddea-45c7-a4d2-8eda5697ec3b
(1) For the twelve months ended December 31,
2020; Reduction from 2019 largely related to impact reduced
operations and other components of the Company’s COVID-19
response(2) Included in Company’s production guidance for 2021 (see
press release dated December 10, 2020)
Figure 4. Operating Cash Costs Per Ounce Sold1 is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/d18eb370-8acb-48e2-8428-d5c8146c0e5a
Note: See “Non-IFRS Measures” set out below and
as further set out on page 40 of the Company’s MDA for the three
and twelve months ended December 31, 2020 for further details.
Figure 5. AISC Per Ounce Sold1 is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/843c0b6b-f145-4869-a4f6-275c97d942cf
Note: See “Non-IFRS Measures” set out below and
as further set out on page 40 of the Company’s MDA for the three
and twelve months ended December 31, 2020 for further details.
Figure 6. Operating Cash Costs & AISC Per Ounce Sold Over
2021 LOMP is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/ada156ca-8575-4172-b2fe-a5640d8d7fd6
Review of Economic Analysis
The economic analysis included a discounted cash
flow assessment using a gold price of US$1,500 per ounce and a
discount rate of 5%. The currency used to calculate cash flow in
the 2021 Detour Lake Technical Report is the Canadian dollar. For
the purpose of this press release, amounts have been converted to
US dollars using an exchange rate of CAD/US 1.31. Operating costs
were prepared based on recent operating history and technical
assumptions associated with the production profile. Capital
expenditures were prepared based on engineering estimates, vendor
quotes, maintenance strategies, or estimated long-term requirements
based on current asset value. The economic evaluation assumes the
continued payment of a 2% net smelter royalty to Franco-Nevada
Corporation and the continuation of existing payment obligations to
First Nations groups.
As outlined in Table 2 below, the pre-tax
cumulative cash flow is estimated at $8,505 million. The post-tax
cumulative cash flow is estimated at $6,377 million. At a 5%
discount rate, the Net Present Value of pre-tax cash flows is
$5,049 million and of post-tax cash flows is $3,792 million.
Over the first five years of the project total
pre-tax cumulative cash flow is estimated at $1,602 million, for an
average of $320.3 million per year. The post-tax cumulative cash
flow is estimated at $1,299 million over the five-year period.
Table 2. Cash Flow Analysis1
$ Millions unless otherwise stated |
LOM |
2021 – 2025 |
Sales |
|
|
Gold Sold (Koz) |
14,519 |
|
3,618 |
|
Gold Price (US$/oz) |
1,500 |
|
1,500 |
|
Gross Revenue |
21,778 |
|
5,427 |
|
Refining and Transport Costs |
(25) |
|
(6) |
|
Net Revenue |
21,754 |
|
5,421 |
|
Operating Costs – Mining |
(3,526) |
|
(931) |
|
Operating Costs – Processing |
(3,976) |
|
(827) |
|
Operating Costs – Site Adm. |
(1,458) |
|
(388) |
|
Operating Costs |
(8,690) |
|
(2,146) |
|
Royalties and First Nation Payments |
(584) |
|
(152) |
|
Changes in Inventory |
(27) |
|
250 |
|
Operating Margin |
12,183 |
|
3,373 |
|
Capital Expenditures |
(3,621) |
|
(1,510) |
|
Reclamation |
(79) |
|
(7) |
|
Lease Payments |
(9) |
|
(2) |
|
Less: Changes in W/C |
32 |
|
(252) |
|
Free Cash Flow Before Taxes |
8,505 |
|
1,602 |
|
Taxes |
(2,127) |
|
(303) |
|
Free Cash Flow After Taxes |
6,377 |
|
1,299 |
|
Net Present Value Before Tax (5%) |
5,049 |
|
1,405 |
|
Net Present Value After Tax (5%) |
3,792 |
|
1,149 |
|
Note: See “Non-IFRS Measures” set out below and as further set
out on page 40 of the Company’s MDA for the three and twelve months
ended December 31, 2020 for further details.
Capital Expenditures
Total capital expenditures for the project
$3,621 million over the LOM and $1,510 million from 2021 – 2025,
for an average over the first five years of $302.0 million.
Contributing to the level of capex in the first five years are a
number of key projects, including $65 – $75 million for projects
aimed at increasing throughput in the mill to 28 million tonnes per
year. Capital expenditures for mining includes equipment
replacement, planned component replacements, and capitalized
maintenance of 795 haul trucks. Expenditures related to the
tailings management areas (“TMA”) include construction of Cell 2
and Cell 3, while G&A costs are largely related to
environmental permitting for the West Detour project and the Mine
Water Pond.
Figure 7. Capital Expenditures (2021 – 2025) is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/04a3a6c5-368c-411d-8ec0-8cf8f5355bc2
Mineral Reserves and Mineral Resources
Mineral Reserve estimates included in the 2021
Detour Lake Technical Report and LOMP are as at December 31, 2020
and were previously reported in a press release dated February 25,
2021. 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. These Mineral Reserves will
mainly be processed at the end of the mine life and, under previous
mine planning, would have been mined as waste. Measured and
Indicated (“M&I”) 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.
Table 3. Mineral Reserve Estimates1 is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/11449321-0a71-4d3b-a955-987e4df0ee6b
Notes: Readers are referred to the footnotes set out at the end
of this press release.
Table 4. M&I Mineral Resource Estimates1 is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/9cb94a89-6698-407c-87c3-1d24eda3617c
Notes: Readers are referred to the footnotes set out at the end
of this press release.
Table 5. Inferred Mineral Resource Estimates1 is available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/a82bcc08-fd48-47f5-af9a-01db9ed0cbb8
Notes: Readers are referred to the footnotes set out at the end
of this press 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.
Qualified Persons
The technical contents related to the Detour
Lake Mine in this press release, have been reviewed and approved by
Andre Leite, P. Eng., Detour Lake Mine Technical Service Manager.
Mr. Leite is a “qualified person” as defined in National Instrument
43-101 and have reviewed and approved disclosure of the technical
information and data in this press release.
Footnotes Related to Mineral Reserve Calculations:
- The mineral reserves have an
effective date of December 31, 2020. The Qualified Person for the
estimate is Mr. Andre Leite
- Mineral reserves amenable to open
pit mining methods were estimated using a gold price assumption of
US$1,300/oz, an exchange rate of 1.31 C$/US$, a 2% net smelter
return royalty, refining charge of 0.05%, variable metallurgical
recoveries based on a formula, inter-ramp pit slope angles that
range from 25.1–56.3º, mining cost of C$3.42/t mined, incremental
haulage costs of C$0.019/7.25 m bench at Detour Lake and
C$0.15/5 m bench at West Detour and North Pit, process costs
of C$9.75/t milled, general and administrative costs of C$3.59/t
milled, non-mining sustaining capital costs of C$3.42/t milled, and
mining sustaining capital costs of C$0.35/t mined. The estimate is
reported above variable optimized cut-off and a minimum cut-off
grade of 0.35 g/t Au.
- Estimates were rounded in
accordance with reporting guidelines. Totals may not sum due to
rounding.
- Totals may not add up due to
rounding.
Footnotes Related to Mineral Resource Calculations:
- The mineral resources have an
effective date of December 31, 2020. The Qualified Person for the
estimate is Mr. Andre Leite, P.Eng., a Kirkland Lake Gold
employee.
- Mineral resources are reported
exclusive of those mineral resources converted to mineral reserves.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resources are reported
using the 2014 CIM Definition Standards.
- Mineral resources considered
amenable to open pit mining methods were estimated using a gold
price of US1,500/oz, an exchange rate of 1.31 C$/US$, variable
metallurgical recovery assumptions based on formulae, refining and
transport costs of C$5/oz Au, mining costs of C$3.42/t mined,
process costs of C$9.75/t milled, tailings management costs of
C$1.50/t milled, general and administrative costs of C$3.59/t
milled, non-mining sustaining capital costs of $2.44/t milled,
mining sustaining capital costs of C$0.35/t mined, incremental
bench cost of $0.019/t/bench, and variable pit slope angles that
range from 25–56º. The estimate is reported above a cut-off grade
of 0.5 g/t Au.
- Mineral resources considered
amenable to underground pit mining methods were estimated assuming
long-hole and transverse stoping methods. The estimates used a gold
price of US1,300/oz, metallurgical recovery assumption of 97%,
refining and transport costs of C$5/oz Au, average mining cost of
C$75/t mined, process and tailings costs of C$9/t milled, general
and administrative costs of C$11.50/t, assumed dilution average of
12%. The estimate is reported above a cut-off grade of 2.2 g/t
Au.
- Estimates have been rounded in
accordance with reporting guidelines. Totals may not sum due to
rounding.
Non-IFRS Measures
The Company has included certain non-IFRS
measures in this document, as discussed below. The Company believes
that these measures, in addition to conventional measures prepared
in accordance with IFRS, provide investors an improved ability to
evaluate the underlying performance of the Company. The non-IFRS
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These measures do not
have any standardized meaning prescribed under IFRS, and therefore
may not be comparable to other issuers.
Free Cash FlowIn the gold mining industry, free
cash flow is a common performance measure with no standardized
meaning. The Company calculates free cash flow by deducting cash
capital spending (capital expenditures for the period, net of
expenditures paid through finance leases) from net cash provided by
operating activities. The Company discloses free cash flow as it
believes the measure provides valuable assistance to investors and
analysts in evaluating the Company’s ability to generate cash flow
after capital investments and build the cash resources of the
Company.
Operating Cash Costs and Operating Cash Costs
per Ounce SoldOperating cash costs and operating cash cost per
tonne and per ounce sold are non-IFRS measures. In the gold mining
industry, these metrics are common performance measures but do not
have any standardized meaning under IFRS. Operating cash costs
include mine site operating costs such as mining, processing and
administration, but exclude royalty expenses, depreciation and
depletion and share based payment expenses and reclamation costs.
Operating cash cost per ounce sold is based on ounces sold and is
calculated by dividing operating cash costs by volume of gold
ounces sold.
The Company discloses operating cash costs and
operating cash cost per tonne and per ounce as it believes the
measures provide valuable assistance to investors and analysts in
evaluating the Company’s operational performance and ability to
generate cash flow. The most directly comparable measure prepared
in accordance with IFRS is total production expenses. Operating
cash costs and operating cash cost per ounce of gold should not be
considered in isolation or as a substitute for measures prepared in
accordance with IFRS.
Sustaining and Growth CapitalSustaining capital
and growth capital are Non-IFRS measures. Sustaining capital is
defined as capital required to maintain current operations at
existing levels. Growth capital is defined as capital expenditures
for major growth projects or enhancement capital for significant
infrastructure improvements at existing operations. Both
measurements are used by management to assess the effectiveness of
investment programs.
AISC and AISC per Ounce SoldAISC and AISC per
ounce are Non-IFRS measures. These measures are intended to assist
readers in evaluating the total costs of producing gold from
current operations. While there is no standardized meaning across
the industry for this measure, the Company’s definition conforms to
the definition of AISC as set out by the World Gold Council in its
guidance note dated June 27, 2013. The Company defines AISC as the
sum of operating costs (as defined and calculated above), royalty
expenses, sustaining capital, corporate expenses and reclamation
cost accretion related to current operations. Corporate expenses
include general and administrative expenses, net of transaction
related costs, severance expenses for management changes and
interest income. AISC excludes growth capital expenditures, growth
exploration expenditures, reclamation cost accretion not related to
current operations, interest expense, debt repayment and taxes.
Average Realized Price per Ounce SoldIn the gold
mining industry, average realized price per ounce sold is a common
performance measure that does not have any standardized meaning.
The most directly comparable measure prepared in accordance with
IFRS is revenue from gold sales. Average realized price per ounce
sold should not be considered in isolation or as a substitute for
measures prepared in accordance with IFRS. The measure is intended
to assist readers in evaluating the total revenues realized in a
period from current operations.
Risks and Uncertainties
The exploration, development and mining of
mineral deposits involves significant risks, which even a
combination of careful evaluation, experience and knowledge may not
eliminate. Kirkland Lake Gold is subject to several financial and
operational risks that could have a significant impact on its cash
flows and profitability. The most significant risks and
uncertainties faced by the Company include: the price of gold; the
uncertainty of production estimates (which assume accuracy of
projected grade, recovery rates, and tonnage estimates and may be
impacted by unscheduled maintenance, labour and other operating,
engineering or technical difficulties with respect to the
development of its projects, many of which may not be within the
control of the Company), including the ability to extract
anticipated tonnes and successfully realizing estimated grades; the
threat of outbreaks of viruses or other infectious disease,
including COVID-19; changes to operating and capital cost
assumptions; the inherent risk associated with project development
and permitting processes; the uncertainty of the mineral resources
and their development into mineral reserves; the replacement of
depleted reserves; foreign exchange risks; changes in applicable
laws and regulations (including tax legislation); reclamation
obligations; regulatory; tax matters and foreign mining tax
regimes, as well as health, safety, environmental and cybersecurity
risks. For more extensive discussion on risks and uncertainties
refer to the “Risks and Uncertainties” section in the December 31,
2020 Annual Information Form and the Company’s MD&A for the
period ended December 31, 2020 filed on SEDAR and on EDGAR.
Cautionary Note Regarding
Forward-Looking StatementsCertain statements in this press
release constitute ‘forward looking statements’, including
statements regarding the plans, intentions, beliefs and current
expectations of the Company with respect to the future business
activities and operating performance of the Company. The words
“may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “expect” and similar expressions, as they
relate to the Company, are intended to identify such
forward-looking statements. Investors are cautioned that
forward-looking statements are based on the opinions, assumptions
and estimates of management considered reasonable at the date the
statements are made, and are inherently subject to a variety of
risks and uncertainties and other known and unknown factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. These factors
include, among others, the development of the Company’s properties
and the anticipated timing thereof, expected production from, and
the further potential of the Company’s properties, the potential to
increase the levels of mineral resources and mineral reserves and
potential conversion of mineral resources; the anticipated timing
and commencement of exploration programs on various targets within
the Company’s land holdings and the implication of such exploration
programs (including but not limited to any potential decisions to
proceed to commercial production), the anticipated overall impact
of the Company’s COVID19 response plans, including measures taken
by the Company to reduce the spread of COVID19, including but not
limited to the rapid testing implemented at the Company’s sites,
the ability to lower costs and gradually increase production, the
ability of the Company to successfully achieve business objectives,
the ability of the Company to achieve its longer-term outlook and
the anticipated timing and results thereof, statements made with
respect to our guidance for production, assumptions relating to
revenues, operating cash flow and other metrics set out in the
Company’s disclosure materials, the optimization of the Company’s
mine plans, including the updated mine plan for the Detour Lake
mine expected in 2022, the Company’s continuous improvement
initiatives and the potential impacts thereof, the performance of
the Company’s equity investments and the ability of the Company to
realize on its strategic goals with respect to such investments,
the effects of unexpected costs, liabilities or delays, the
potential benefits and synergies and expectations of other
economic, business and or competitive factors, including the
ability of the Company to realize on certain planned synergies
associated with the acquisition of Detour Gold Corporation, the
Company's expectations in connection with the projects and
exploration programs being met, the impact of general business and
economic conditions, global liquidity and credit availability on
the timing of cash flows and the values of assets and liabilities
based on projected future conditions, fluctuating gold prices,
currency exchange rates (such as the Canadian dollar versus the US
dollar), mark-to-market derivative variances, possible variations
in ore grade or recovery rates, changes in accounting policies,
changes in the Company's corporate mineral resources, changes in
project parameters as plans continue to be refined, changes in
project development, construction, production and commissioning
time frames, the possibility of project cost overruns or
unanticipated costs and expenses, higher prices for fuel, power,
labour and other consumables contributing to higher costs and
general risks of the mining industry, failure of plant, equipment
or processes to operate as anticipated, unexpected changes in mine
life, seasonality and unanticipated weather changes, costs and
timing of the development of new deposits, success of exploration
activities, permitting time lines, risks related to information
technology and cybersecurity, timing and costs associated with the
design, procurement and construction of the Company’s various
capital projects, including but not limited to potential future
impacts and effects of COVID19, including but not limited to
potential future delays and unanticipated suspension or
interruption of operations, the #4 Shaft project at the Macassa
Mine, the ventilation, paste plant, transformer and water treatment
facility at the Fosterville Mine, the ability to obtain all
necessary permits associated with the Detour Lake Mine, the ability
to obtain the necessary permits in connection with all of its
various capital projects, including but not limited to the
rehabilitation of the Macassa tailings facility and the development
of a new tailings facility and the anticipated results associated
therewith, the West Detour project, processing plant expansion at
the Detour Lake Mine, the ability to obtain renewals of certain
exploration licences in Australia, native and aboriginal heritage
issues, including but not limited to ongoing negotiations and
consultations with the Company’s First Nations partners, risks
relating to infrastructure, permitting and licenses, exploration
and mining licences, government regulation of the mining industry,
risks relating to foreign operations, uncertainty in the estimation
and realization of mineral resources and mineral reserves, quality
and marketability of mineral product, environmental regulation and
reclamation obligations, including but not limited to risks
associated with reclamation and closure obligations relating to the
Northern Territory projects, risks relating to the Northern
Territory wet season, risks relating to litigation and
unanticipated costs to assume the defence of such litigation, risks
relating to applicable tax and potential reassessments thereon,
risks relating to changes to tax law and regulations and the
Company's interpretation thereof, foreign mining tax regimes and
the potential impact of any changes to such foreign tax regimes,
competition, currency fluctuations, government regulation of mining
operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, and limitations on insurance,
as well as those risk factors discussed or referred to in the AIF
of the Company for the year ended December 31, 2019 filed with the
securities regulatory authorities in certain provinces of Canada
and available at www.sedar.com. Should one or more of these risks
or uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
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 be as anticipated,
estimated or intended. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements
except as otherwise required by applicable law.
Mineral resources are not mineral reserves, and
do not have demonstrated economic viability, but do have reasonable
prospects for eventual economic extraction. Measured and indicated
resources are sufficiently well defined to allow geological and
grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the
economic viability of the resource. Inferred resources are
estimated on limited information not sufficient to verify
geological and grade continuity or to allow technical and economic
parameters to be applied. Inferred resources are too speculative
geologically to have economic considerations applied to them to
enable them to be categorized as mineral reserves. There is no
certainty that Measured or Indicated mineral resources can be
upgraded to mineral reserves through continued exploration and
positive economic assessment.
Information Concerning Estimates Of Mineral
Reserves And Measured, Indicated And Inferred Resources
This press release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ in certain material respects from the
disclosure 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 (the “CIM Standards”). These definitions
differ significantly from the definitions in the disclosure
requirements promulgated by the Securities and Exchange Commission
(the “SEC”) applicable to domestic reporting companies. Investors
are cautioned that information contained in this Annual Information
Form may not be comparable to similar information made public by
United States companies subject to the reporting and disclosure
requirements under the United States federal securities laws and
the rules and regulations of the SEC thereunder.
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 RelationsPhone: +1
416-840-7884E-mail: mutting@kl.gold
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