Dual-listed gold miner Kirkland Lake is continuing to invest in organic growth and is advancing three new potential mining operations – two in Australia and one in Canada.

The miner is starting work on development ramps aimed at establishing two new operations, Robbin's Hill at Fosterville, Australia, and previously identified high-grade zones near surface along the Amalgamated Break at Macassa, Canada.

The company is also continue advanced exploration work in the Northern Territory, a potential third new source of future production.

“Robbin’s Hill and the Amalgamated Break are key exploration targets for our company, and we believe are two of the most compelling exploration stories in our industry today. Gaining access to these areas underground will allow us to accelerate efforts to fully evaluate their potential and will provide valuable infrastructure to support moving them into production,” said CEO Tony Makuch on Thursday.

Kirkland provided the organic growth update as part of its guidance for 2020 and beyond. The miner is targeting consolidated production of 950 000 oz to one-million ounces, at an operating cash costs and all-in sustaining costs of $300/oz to $330/oz and $570/oz to $630/oz, respectively.  

About 100 000 oz to 120 000 oz could also be produced at the Union Reefs Mill, in the Northern Territory, during the coming year, which Kirkland did not include in its 2020 guidance until a decision to resume commercial operations is reached.

This decision, Makuch said, could come as early as February 2020.

Kirland has also announced a three-year production guidance for the Macassa and Fosterville mines.

Production at Macassa is targeted to increase to more than 320 000 oz by 2022 reflecting initial production from the #4 Shaft and potential production from the planned Macassa surface ramp. Production at Macassa is expected to grow to well over 400 000 oz beginning in 2023.

Production at Fosterville is expected to maintain the strong growth achieved in 2019 over the next three years as mining continues to advance in the high-grade Swan Zone, with the potential for production to commence from Robbin’s Hill in 2023.

Kirkland did not include its agreement to acquire Detour Gold in its guidance. The deal has the potential to significantly change the outlook for 2020, with the Detour Lake mine, in Canada, producing 600 000 oz/y.

“For Kirkland Lake Gold, the transaction adds a third high-quality asset with substantial growth potential. For Detour Gold, the deal provides access to a highly profitable, multi-asset portfolio as well as the industry’s strongest balance sheet and a dividend programme that we expect will grow and return significantly higher levels of capital to shareholders going forward. The agreement is a good deal for the shareholders of both companies and we are looking forward to it closing at the end of January 2020, with our guidance to be revised following closing of the transaction,” said Makuch.