Kirkland Lake Gold (TSX, NYSE: KL) is extending the suspension of operations at the Holt Complex in Ontario until further notice, the company announced on Thursday. Business activities have been suspended by the company as part of its covid-19 protocols since April 2.
The Holt Complex, including the Holt, Taylor and Holloway mines and Holt mill, was designated as non-core by the Toronto-based gold miner earlier in February, with the company planning to consider all options to maximize the value of the assets.
According to Kirkland Lake, the Complex’s high cost structures, low grades, diminishing reserves and requirements for new investments have resulted in “significant negative cash flows” from these operations, resulting in its decision to extend the suspension of business activities.
Since the beginning of the work suspension, the company has reassigned or offered new roles to more than 220 employees out of a total workforce of 475 people at the Holt Complex. For those that it could not reassign within the organization and are on extended temporary layoff, Kirkland Lake says the “best course of action” is to provide severance packages.
The Holt Complex assets were acquired through the acquisition of St Andrew Goldfields in January 2016. The Holt mine, built in the late 1980s by Barrick, produced 113,952 ounces of gold at an average grade of 4.4 g/t in 2019.
Shares of Kirkland Lake Gold were down 2.2% on the NYSE by noon EDT Thursday, capping the company at $12.1 billion.