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soUtHeRn stAtes

Lower-grade Fosterville

still beats guidance

he remarkable Fosterville gold mine duction from the ultra-high-grade Swan The March quarter saw group explora-
Tkeeps delivering for Kirkland Lake Zone orebody by increasing mining rates tion expenditure of $US42.4 million, with
Gold Inc with the high-grade operation in other, lower-grade areas in an effort to $US20.6 million committed to Fosterville
again beating guidance in the March create a more sustainable operation over where drilling and development contin-
quarter despite a deliberate switch to the longer term. ued in the Lower Phoenix System, Rob-
lower-grade ore. The Swan Zone accounted for 42% of bin’s Hill, Cygnet and Harrier zones.
A prolific producer for five years now, tonnes milled and 72% of ounces pro- Outperformance at Fosterville was
Fosterville churned out 108,679oz gold duced in Q1 2021, which compared to matched at the company’s newly acquired
for the reporting period at an average 62% and 93%, respectively, in Q1 2020. Detour Lake project in Canada with over-
grade of 19.8 g/t. That figure was down The lower average grade also drove all group production of 302,847oz gold
from the 159,864oz @ 42.4 g/t in the operating costs up with AISC averag- beat the 290,000oz guidance.
corresponding 2020 March quarter and ing $US423/oz for the quarter versus With group AISC of $US846/oz, Kirk-
164,008oz @ 28.1 g/t in the previous $US313/oz in March 2020 and $US314/ land was able to boast free cash flow of
quarter but still beat guidance thanks to in for December 2020. $US42.7 million for the quarter and re-
outperformance on head grades. The lower-grade mining plan is de- turned $US96.6 million to shareholders
The March quarter was the first period signed to buy Kirkland additional time in via $US50.3 million in dividends and a
to fully reflect Kirkland’s revised plan for Swan Zone while it ramps up exploration $US46.3 million share buyback.
Fosterville which will see reduced pro- work elsewhere in the Fosterville system.

Underground exploration continues
at Kirkland Lake’s Fosterville mine
with $US20 million spent in the
March quarter

Page 42 JUNe 2021 aUSTRaLIa’S PaYDIRT