Kirkland Lake Gold (KL) was the number one mining stock on the inaugural TSX30. What are the main factors that have contributed to the company’s performance?

The devil is in the details; we understand this and it is how we drive our business model. We focus on our business, knowing the fundamentals of our operations and make decisions to support people. We put a lot of effort and investment into exploration, and this has helped the company to significantly add to reserves and resources at both Macassa and Fosterville, while increasing production and reducing unit costs at both of these mines. Both the nature of the high grade in these deposits and the prospective geology at these mines have been a big part of value creation. The company leads its peer group by investing more money on a per ounce of production basis into exploration. We have also delivered value to shareholders through capital investment.

The Detour Gold acquisition was met by some skepticism by the market. What would you say to those who question the decision?

We see Detour as a unique opportunity for the KL and Detour shareholders. For KL, it provides a third high quality asset in our portfolio. Detour is already a long life mine with a large reserve to support mining for over 20 years. We see significant exploration upside in the current pit area that can support growth in mine life, but also help to lower costs and increase production through improved productivity and higher throughput. We have already taken two “under-loved” assets at Macassa and Fosterville and turned them into industry leading mines through investments in exploration, infrastructure, equipment and development. Detour is in our back yard in northeastern Ontario, we know the geology here well, and bring a lot of synergies.

How has Kirkland Lake Gold incorporated new technologies at its Macassa mine?

The Macassa mine is leading the industry in the use of battery powered production equipment, including LHDs or scoop trams and underground haul trucks. The mine has worked closely with its suppliers and manufacturers to develop and trial the first underground mine trucks and scoops, but also in developing the battery systems and charging methods to be used. The mine originally started with 20 mt underground (u/g) trucks, and is now working on the third generation of u/g trucks with capabilities for 40 mt payloads. This equipment not only has supported the production growth at Macassa since 2015, but also improves working conditions in the mine through less heat and noise generation.

Can you elaborate on the company’s new projects for 2020: Robbin’s Hill at Fosterville, the Amalgamated Break at Macassa, and exploration work in the Northern Territory?

At Robbins Hill, the company has achieved significant exploration success with surface drilling following the same exploration thesis and findings from the Phoenix and Lower Phoenix systems the host the Eagle and Swan ore bodies at the current Fosterville mine. The new program for Robbins Hill involves the development of twin 3 km exploration ramps from the existing underground mine workings at Fosterville to the newly discovered mineralization at Robbins Hill.

At Macassa, a near surface resource was previously discovered along the Amalgamated Break. Recent drilling at depth has identified mineralization along the Amalgamated Break at depth below 5,800 feet. It is important to note that the past mining in Kirkland Lake has been entirely on the “Main or 04” Breaks and South Mine Complex. The Amalgamated Break is emerging as a potential new mining front and we have announced the development of an exploration ramp from surface into the new mineralization to support advanced exploration including both underground diamond drilling and bulk sampling. This ramp can also provide for a new ore source for the Macassa Mill, and allow for further exploration both on strike and to depth along the Amalgamated Break. This is exciting as it can lead to the development of a whole new mine in Kirkland Lake after 100 years of mining.

For Northern Territory in Australia, the company has been aggressively exploring the Cosmos, Union Reef and Pine Creek properties over the last three years. The Lantern discovery has been a game changer for the Cosmos mine, and this supported our decision to restart the Union Reef mill in October 2019. We have spent the last two years exploring the Lantern discovery at the Cosmos mine, including underground development, diamond drilling, mapping and bulk sampling.