02:59:13 EDT Thu 01 Oct 2020
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Kirkland Lake Gold Ltd
Symbol KL
Shares Issued 277,244,914
Close 2020-07-16 C$ 59.84
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Kirkland Lake extends suspension of operations at Holt

2020-07-16 13:54 ET - News Release

Mr. Anthony Makuch reports


The suspension of operations at Kirkland Lake Gold Ltd.'s Holt complex, in effect since April 2, 2020, will be extended until further notice. The company suspended business activities at the complex as part of its COVID-19 protocols, and at the same time continued with a strategic review to assess a potential restart of the operations.

The Holt complex, including the Holt, Taylor and Holloway mines and Holt mill, was designated as non-core by the company on Feb. 19, 2020, with the company planning to consider all options to maximize the value of the assets. The complex's high cost structures, low grades, diminishing reserves and requirements for new investments have resulted in significant negative cash flows from these operations, and are key drivers of Kirkland's decision to extend the suspension of business activities.

Tony Makuch, president and chief executive officer of Kirkland Lake Gold, commented: "When we transitioned Holt complex to suspended operations in early April, our first step was to provide base wages to all affected workers for the first month. We also began working to identify opportunities to reassign as many employees as possible from the complex to new roles at other sites within our Canadian operations. I am pleased to report that, to date, more than 220 employees at Holt complex, from a total work force of 475 people, have been reassigned to new positions, or have recently been offered new roles within the organization. In cases where it is not possible to find alternative employment arrangements, and where employees have been on an extended temporary layoff, we now believe that the best course of action is to provide severance packages.

"Extending the suspension of operations at Holt complex was a difficult decision. I want to personally thank everyone at the complex for their efforts and contribution to our company. Going forward, we will continue to review strategic options for the Holt complex properties, including the potential for additional exploration activities in the area."

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019. The production profile of the company is anchored by three high-quality operations, including the Macassa mine and Detour Lake mine, both located in Northern Ontario, and the Fosterville mine located in the state of Victoria, Australia.

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