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DIGGERS & DEALERS PREVIEW
A drive-in, drive-out, regionally-based underground
workforce at Fosterville has seen the high-value
gold mine in Victoria function uninterrupted.
organic growth are our main disciplines we are focusing on.” Victoria has been the Australian state most affected
by COVID-19 and at the time of print Premier Daniel
Kirkland Lake’s latest round of consolidation saw its
Andrews was figuring out a way to release the State
wholly-owned subsidiary St Andrew Goldfields Ltd enter
from its strict lockdown.
a strategic alliance agreement with Newmont Canada FN
Kirkland Lake Gold Ltd president Tony Makuch said the
Holdings ULC to explore and develop opportunities around
State Government’s job of easing restrictions was not
the company’s Holt Complex and Newmont’s properties in
easy and welcomed its support in keeping Fosterville
Timmins, Ontario. operating.
Newmont will pay Kirkland Lake Gold $US75 million to “We were working on a ventilation system and that got
acquire an option on certain mining and mineral rights delayed a bit. The engineers and consulting company
related to the latter’s Holt property. were actually from Germany and installing surface fans,
so we had to get some people from Australia to do the
“We have always had a relationship with Newmont and
final commission and that was up and running about
said, ‘how can we do this?’ We worked on some other a month ago,” Makuch said. “The electrical substation
opportunities in the region, we have a large land package, was started and stopped, while diamond drilling was
so we bring that exploration acumen to the table,” Makuch going on most of the time.”
said. While sympathising with the Government’s current
“We have this mill strategically located, like at Fosterville situation and otherwise enjoying a good relationship
with various departments, there was one bugbear for
and other people can explore there. If they find something
Makuch in Victoria.
around what is a permitted plant – I don’t know how many
“There is a kangaroo or moose on the table if you like;
more mills are going to get permitted in Australia or Canada
we didn’t appreciate the new royalty that they basically
– so strategically it was there and a good opportunity to work
imposed on Fosterville. But we lick our wounds and
with Newmont in terms of mining new deposits or bringing move on,” Makuch said.
some of these other high exploration targets maybe further
A royalty of 2.75% of the net market value of gold
up the development ladder.” produced in Victoria was introduced in January. The
royalty does not apply to the first 2,500 ozpa gold
produced.

Kirkland Lake re-issued guidance
for 2020 at the end of June, with
production estimates of 1.35-1.4
moz gold, operating cash costs
of $US410-430/oz sold and AISC
$US790-810/oz sold. The impact
of COVID-19 protocols is expected
to be offset by the suspension
of operations at Holt Complex,
Ontario, as well as the impact of a
number of company initiatives and
changes in market conditions

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