Kirkland Lake shares rise as it starts ramp-up at Ontario mine

Mon Feb 4, 2013 10:59am EST
 
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TORONTO Feb 4 (Reuters) - Shares of Kirkland Lake Gold Inc rose more than 5 percent on Monday after the gold miner said it had completed a service cage project at its Macassa project in Ontario, clearing the way to ramp up its production rate.

With the ramp-up, Kirkland Lake will boost production to between 1,400 and 1,600 tons per day, up from a current rate of 1,000 tons per day. The ramp-up will begin this month and is set for completion in the fall, the company said.

Kirkland Lake in December slashed its production forecast for the year ending on April 30 as it struggled with technical issues on the service cage project, which is used to hoist ore and waste.

The miner said it remained on track to meet its revised sales outlook of 90,000 to 110,000 ounces of gold this fiscal year. The company has forecast 150,000 to 180,000 gold ounces for fiscal 2014.

Shares of Kirkland Lake rose 5.4 percent to C$6.45 in morning trading on the Toronto Stock Exchange. (Reporting by Julie Gordon; Editing by Lisa Von Ahn; Editing by Janet Guttsman)