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Why are smaller Canadian gold mines thriving?

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|Oct 7|magazine9 min read

Diggin’ for gold? Well, if you happen to be digging deep underground in Kirkland Lake, some 300 kilometres north of Sudbury, then you just may find something worth keeping.

Currently, crews are in the area and working 5,400 to 5,600 feet below the surface. Therefore, this specific location has become one of Canada’s deepest gold mines.

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However, it’s not an easy task; if you want your gold, you’re going to have to fight for it!

The heat and humidity in the mines are quite overpowering. In fact, first time visitors would most likely find the surrounding temperatures suffocating. There’s a reason that mining this far down is challenging and not for the faint of heart.

As soon as workers step out from the shaft underground and begin their shift, the difficult conditions begin.

But despite these troubles, as well as the gloomy price of gold, this North Ontario mine is still as active as ever — even 100 years after the first shaft was originally sunk.

How is this possible?

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The Kirkland Lake operation, also known as Macassa, is one of the world’s richest gold mines by all measures. It has the kind of high-quality operation that was built to withstand even the worst bear market in gold.

And it’s not the only one!

Other small and medium-sized Canadian gold producers in the region have been able to create turnarounds, even though they were once left for dead. Following in Kirkland Lake Gold’s footsteps are Detour Gold Corporation, Lake Shore Gold Corporation, Claude Resources Inc. and Richmont Mines Inc.

It looks as if major operational improvements have also assisted with this success. These mines have re-aligned business plans to become prosperous in a low-environment by raising money where necessary and then investing it.

“We’ve all put in optimization plans and turned our operations around, “ said George Ogilvie, Kirkland Lake Gold’s chief executive.

Take a look at the following table provided by KLGold.com and the Financial Post.   

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[SOURCE: Financial Post]

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