Kirkland Lake Gold – moves into profitability

Kirkland Lake Gold Inc, an operating and exploration gold mining company located in Ontario, Canada, has announced profitable results for the financial year.  

In brief the Company generated a positive production margin of $1.8 million and positive operating cash flows of $2.2 million in the year to April 30, 2008. 
The number of ounces sold increased 2% to 52,019 however the number of ounces produced fell 8% to 48,833 compared to 2007.  Production levels were lower due to a higher level of definition and delineation drilling taking place to develop reserves in the South Mine Complex and difficulties with waste passes which have now been resolved.
Gold head grade for the year improved 10% to 0.4 ounces per tonne (‘opt’) (2007: 0.365 opt) due to a larger proportion of production coming from the higher-grade deposits in the SMC. Investment in plant and equipment rose 88% to $3.4 million to accommodate the anticipated increase in development and mining activity in the SMC.
Due to the SMC being in an intensive definition and delineation phase, investment in mineral properties decreased 22% to $4.2 million. 
Cash resources as at April 30, 2008 were $31 million.

Prospects include Gold production for the coming fiscal year expected to be in the range of 58,000 to 62,000 ounces. 
Their exploration spending, including access development, will be $6.3 million.
Also a major development program has also been launched to provide access to the new high grade ore stopes between the 5000 – 5600 foot level elevations of the SMC.  This $10 million programme will have a material effect on the results and financial position of the Company in future periods.

Harry Dobson, Kirkland Lake’s Chairman, commented “We are very pleased with the progress which has been made during fiscal 2008.  We are gaining a far better understanding of the SMC and strongly believe in the exploration potential of this new and important area.  Aside from reporting the highest recorded drill hole intersection in the history of the Kirkland Lake camp during the final quarter, our financial performance continues to improve with revenues now 25% higher at $13.2 million over the prior quarter generating nearly $1 million of net income.  Our goal of financing our exploration programme from ongoing production should be achievable during fiscal 2009.”

For full details go to www.klgold.com