Up 10% overnight on NYSE.
Short story; Reserves increased to 2.72m ounces at 31 g/t.
Extensions to high grade everywhere, look alikes and extensions to Swan also present.
Happy times for holders and anyone holding similar ground in what is now the worlds most profitable and highest potential gold field.
Fosterville In 2018, the transformation of Fosterville into one of the world's most profitable, highest-grade gold mines gained further momentum. Exploration work during the year at Fosterville focused on infill and extension drilling at a number of in-mine targets, as well as work to evaluate district targets in close proximity to the mine. Encouraging infill drilling results from the Swan Zone were reported in July, September and December in support of Mineral Resource conversion into Mineral Reserves. In addition, development of an exploration drift at Harrier South at Fosterville commenced during Q2 2018, with drilling from the drift commencing in Q4 2018 in order to test the depth potential of the Harrier South system. Harrier is a highly attractive exploration target where concentrations of quartz veining with visible gold have been intersected similar to those found at the Lower Phoenix system near the high-grade Swan Zone.Largely based on the success of the Swan Zone infill drilling, Mineral Reserves at December 31, 2018 increased 1,020,000 ounces from the December 31, 2017 Mineral Reserve, to 2,720,000 ounces at an average grade of 31.0 g/t from 1,700,000 ounces at an average grade of 23.1 g/t at December 31, 2017. The increase in ounces represented 60% growth, while the average grade was 34% higher than the prior year's Mineral Reserve estimate. The 60% increase in Mineral Reserve ounces was achieved after depletion of 366,000 ounces through 2018 gold production, resulting in total additions to Mineral Reserves of 1,386,000 ounces. With the completion of the December 31, 2018 Mineral Reserve and Mineral Resource estimates, the Mineral Reserve at Fosterville has grown by a total of 2,476,000 ounces or 1,015% from 244,000 ounces at December 31, 2015 Mineral Reserve estimate, the existing Mineral Reserve when Fosterville was acquired by Kirkland Lake Gold in November 2016.Mineral Reserves in the Swan Zone doubled from the prior year level, increasing to 2,340,000 ounces at an average grade of 49.6 g/t at December 31, 2018 from 1,160,000 ounces at 61.2 g/t at December 31, 2017. A significant proportion of Swan Mineral Resources at December 31, 2017 were converted into Mineral Reserves in the December 31, 2018 estimates, consistent with the priority placed on Mineral Resource conversion in the 2018 drilling program. In addition to continued infill drilling to convert Mineral Resources, future drilling around the Swan Zone will also target continued expansion of the Zone, including following up on drill results in 2018 that intersected the Lower Phoenix Gold System approximately 750 metres down-plunge from the deepest Mineral Resources in the Swan Zone. Fosterville continues to have a large base of Mineral Resources to support future growth in Mineral Reserves, as well as a number of attractive exploration targets with significant potential to add future Mineral Resources. At December 31, 2018, M&I Mineral Resources totaled 2,110,000 ounces at an average grade of 4.4 g/t, which compared to M&I Mineral Resources of 2,150,000 ounces at an average grade of 4.8 g/t at December 31, 2017. Inferred Mineral Resources at December 31, 2018 totaled 1,830,000 ounces at an average grade of 5.5 g/t, versus 1,900,000 ounces at an average grade of 7.1 g/t at December 31, 2017.During 2019, exploration work at Fosterville is focusing on continuing to extend known mineralized zones and test new mineralized structures in the Lower Phoenix and Harrier systems, and at Robbin's Hill. In addition, work is continuing on the LODE ("Large Ore Deposit Exploration") program, which is evaluating a number of regional targets, some of which are beneath former open pits along known fault structures around the Fosterville mine.
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