North Bay, Ont.-based mine developer J. S. Redpath has signed a deal with Kirkland Lake Gold (KGI-T, KGILF-O) to ramp up production at the gold miner’s South Mine Complex to 425 tonnes per day, seven days a week.
The letter of intent allows enough time for both companies to begin in early January, with full planning and preparation completed in the interim.
The current crews posted at the South mine will take on stope development at the nearby Main Break, with production between the two targeted at 100,000 oz. gold per year.
“Both areas can be mined from the same shaft and this plan will allow us to free up experienced mining crews to develop new mining areas in the Main Break,” said Brian Hinchcliffe, president of Kirkland Lake Gold, in a press release.
The company hopes the new infrastructure will allow it to boost production to 700 tonnes per day by March.
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