Kirkland Lake Gold: Detour Lake Continues To Grow
Summary
- Kirkland Lake Gold released an update resource estimate for its Detour Lake Mine in Ontario, Canada, and increased its measured and indicated resource base by more than 210%.
- This massive increase in the resource base to ~12.2 million ounces (excluding low grade) is completely separate from the company's ~15.8 million ounce reserve base that supports a 22-year mine life.
- Notably, the company still has 100,000 meters of drilling between now and year-end, and I would expect Detour Lake to grow to the largest Tier-1 jurisdiction gold mine by 2023.
- This outstanding update reinforces my view that Kirkland Lake Gold is a top-5 gold producer in the sector and that it remains undervalued, and I see a fair value for the stock above US$60.00.
Taylor Dart is an individual investor with over 16 years of trading experience, with his primary focus being precious metals developers, producers and royalty/streaming companies.
Taylor leads the investing group Alluvial Gold Research, where he offers portfolios with entry/exit points, Buy/Sell alerts, and proprietary sentiment indicators for gold and silver miners. Learn more.
- Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of GLD, NEM, KL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.
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