TORONTO, Oct. 09, 2018 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced record quarterly gold production of 180,155 ounces for the third quarter of 2018 (“Q3 2018”). Production in Q3 2018 exceeded target levels for the quarter driven by record quarterly production from Fosterville of 90,618 ounces as well as from the Company’s Canadian operations, with Macassa, Holt and Taylor collectively producing 89,537 ounces. Production for the first nine months of 2018 (“YTD 2018”) totaled 492,484 ounces, with the Company completing the third quarter well positioned to achieve the improved full-year 2018 consolidated production guidance of over 635,000 ounces. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.

Highlights of Q3 2018 and YTD 2018 production results include:
• Q3 2018 production of 180,155 ounces, a 30% increase from 139,091 ounces in the third quarter of 2017 (“Q3 2017”) and a 9% increase from 164,685 ounces in the second quarter of 2018 (“Q2 2018”)
• Gold poured in Q3 2018 totaling 187,331 ounces, with total gold sales of 184,509 ounces
• Quarterly production at Fosterville totaling 90,618 ounces in Q3 2018, an increase of 47% from 61,535 ounces in Q3 2017 and 17% higher than 77,462 ounces in Q2 2018
• Production from Canadian operations in Q3 2018 of 89,537 ounces, lead by Macassa, which produced 55,582 ounces, in line with target levels, production at Holt of 20,609 ounces and production at Taylor of 13,333 ounces
• YTD 2018 consolidated production totaling 492,484 ounces, an increase of 15% from 429,822 ounces in the first nine months of 2017 (“YTD 2017”), with year-over-year production growth of 26% at Fosterville, to 231,923 ounces, 19% at Macassa, to 170,190 ounces, 8% at Holt, to 50,996 ounces, and 15% at Taylor, to 39,328 ounces
• YTD 2018 gold poured of 498,124 ounces, with YTD 2018 gold sales of 496,577 ounces.

Other key developments during Q3 2018 include:
• Significant exploration success
• Fosterville: In-fill drilling in the Swan Zone intersects exceptionally high grades over solid widths up to 200 metres down plunge of current Mineral Resources; significant growth in Swan Zone Mineral Reserve expected as part of year-end 2018 Mineral Reserve and Mineral Resource estimates

• Macassa: High-grade intersections outside current Mineral Resources in South Mine Complex (“SMC”) support continued resource growth; high-potential area identified within SMC with grades in excess of 30 g/t and true widths greater than 3.0 metres.


• Strong cash and cash flow
• Cash and cash equivalents totaling approximately $275 million at September 30, 2018. During Q3 2018, the Company used $47.8 (CAD$62.5) million to acquire 32.6 million common shares of Osisko Mining Inc., representing approximately 13.6% of currently issued and outstanding common shares. In addition, the Company repurchased 1,570,600 common shares during Q3 2018 through its normal course issuer bid at an average price of $24.77 per share and a total cost of $30.0 (CAD $38.9) million.

• On August 1, 2018, the Company reported Q2 2018 net earnings of $61.5 million ($0.29/share), cash flow from operating activities of $120.9 million and free cash flow of $60.7 million.


• Continued focus on shareholder value
• Q2 2018 quarterly dividend of C$0.03/share was paid on July 13, 2018, with Q3 2018 quarterly dividend payment of C$0.03/share to be paid on October 12, 2018 to shareholders of record as of September 28, 2018.

Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “Q3 2018 was a record quarter for both Fosterville in Australia and our Canadian operations as a whole. At Fosterville, we commissioned a second gravity circuit during Q3 2018 and saw an immediate spike in production, with the Fosterville Mill processing over 18,000 ounces in the first week of the circuit’s operation. This spike can largely be attributed to the gravity circuit’s effectiveness in recovering gold previously contained in the recirculating load of the grinding circuit. We also mined and processed our first Swan Zone stope during the quarter, which contributed over 7,500 ounces of production at an average grade of close to 40 g/t, in line with target levels. Turning to our Canadian operations, record production across our three mines reflected strong results at Macassa, where Q3 2018 production was very much in line with target levels, our best quarter of production to date at Holt and a better production performance from Taylor Mine compared to the previous quarter. Heading into the final quarter of the year, we are very well positioned to achieve our improved 2018 consolidated production guidance of over 635,000 ounces.”

Q3 and YTD 2018 Production Results


Q3 2018 Q3 2017 Q2 2018 YTD 2018 YTD 2017
Fosterville
Ore Milled (tonnes) 113,101 143,326 121,342 358,112 428,599
Grade (g/t Au) 25.6 14.1 20.6 20.9 14.2
Recovery (%) 97.5 94.7 96.2 96.6 94.4
Gold Production (ozs) 90,618 61,535 77,462 231,923 184,688
Macassa
Ore Milled (tonnes) 92,503 93,391 89,781 268,945 289,935
Grade (g/t Au) 19.2 16.5 21.5 20.2 15.7
Recovery (%) 97.3 97.4 97.7 97.5 97.2
Gold Production (ozs) 55,582 48,206 60,571 170,190 142,628
Holt
Ore Milled (tonnes) 135,849 124,394 95,343 353,472 335,493
Grade (g/t Au) 5.0 4.5 4.8 4.7 4.6
Recovery (%) 95.0 94.5 94.2 94.7 94.7
Gold Production (ozs) 20,609 16,995 13,712 50,996 47,414
Taylor
Ore Milled (tonnes) 94,092 71,897 99,711 278,266 202,706
Grade (g/t Au) 4.7 5.0 4.3 4.7 5.5
Recovery (%) 94.3 95.5 94.1 94.6 96.2
Gold Production (ozs) 13,333 11,066 12,940 39,328 34,223
Operations on Care & Maintenance 1
Cosmo – Gold Production (ozs) - 1,290 n/a - 20,595
Holloway – Gold Production (ozs) 13 - n/a 47 274
Gold Production (excluding operations on care and maintenance or sold in 2017) 180,142 137,801 164,685 492,437 408,953
Total Consolidated Production (ozs)2 180,155 139,091 164,685 492,484 429,822
Total Consolidated Gold Sales (ozs) 184,509 137,908 164,305 496,577 427,017

1) The Cosmo Mine was placed on care and maintenance effective June 30, 2017 (see News Release dated May 4/17). The Holloway mine was placed on care and maintenance effective December 31, 2016 (see News Release dated Dec. 12/16).
2) Production numbers may not add to total due to rounding.

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