The Globe and Mail reports in its Tuesday, Nov. 26, edition that Kirkland Lake's second biggest shareholder, Eric Sprott, says he was "shocked" and "disappointed" when he first heard about the its plan to buy Detour Gold, though he expects the move to b a success in the long run. The Globe's Niall McGee writes that Mr. Sprott said of the acquisition of Detour by Kirkland Lake: "It's shocking everybody, as it was to me. But I've always been a great believer in the statement that you have to steal value. The value at Detour is that the production and grade can increase markedly."
Kirkland Lake has also reinvented itself over the past few years. Kirkland shares have gone up eightfold in the past three years.
Grades at Fosterville have typically run at least 25 grams a tonne, compared with below one gram a tonne for Detour.
When asked if there is a skills mismatch in an underground high-grade miner acquiring an open pit specialist, Kirkland chief executive officer Tony Makuch said he was confident Kirkland has the expertise to do both.
"Mining is mining. You just use larger equipment in an open pit versus underground. But for the most part there's a lot of similar execution," he said.
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