Page 23 Contd on pg 24 success is its low production cost Operating cash costs per ounce sold averaged 439 in Q3 2018 a 16 improvement from 521 in Q3 2017 The all in sustaining costs AISC per ounce sold averaged 722 14 better than 845 in Q3 2017 The key to continued minin g at Ma cassa is the development of Shaft 4 project at the South Mine Complex A 216 ft headframe for the Shaft 4 project was erected by Cementation in October 2018 W ith headframe in place Kirkland Lake has commenced construction on a four compartment shaft that will have a total hoisting ca pacity of 4000 tonnes per day of ore and waste Production from Macassa is expected to be similar to the 240000 ounces produced in 2018 until the shaft is completed earl y in 2022 when it will increase signifcantly The new shaft will increase Macassa s output to 400000 ounces per year Once completed Shaft 4 will support higher levels of production lower unit costs and improve working conditions at the mine The frst phase of the shaft construc tion will be to a depth of 5450 feet and include a midshaft loading pocket Completion of phase one is tar geted for the second quarter of 2022 at a capital cost estimated at 240 million Completion of phase two of the proj ect will extend the shaft to about 7000 feet W ork on phase 2 will begin af ter the commencement of production from phase one Completion of phase two is tar geted for the end of 2023 at an estimated capital cost of approxi mately 80 million The new shaft will also enable more efective under ground exploration to the east of the South Mine Complex It will also help improve ventilation and general working conditio ns in the mine Contd from pg 22 A Proud Sponsor of TSX NYSE ASX KL KL KLA Kirkland Lake Gold Ltd is a growing gold producer operating in Canada and Australia that produced 723477 ounces in 2018 and is on track to achieve significant production grow th over the next three years The production profile of the Company is anchored by two highgrade lowcost operations including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of V ictoria Australia Kirkland Lake Golds solid base of quality assets is complemented by district scale exploration potential supported by a strong financial position with extensive management and operational expertise T oday one hundred years later the town is still going strong and the Ma cassa Mine is a vital part of Kirk land Lake Gold s operations KL also operates the Holt and T ay lor mines just north of Kirkland Lake acquired through the purchase of St Andrew Goldfelds in January 2016 The mines out contributes to the overall KL gold production totals The Holt mine has produced over 67770 oz 2018 66677 oz 2017 and 57086 oz 2016 The grade of the gold has ranged between 4 and 5 gt and the recovery rate has ranged between 94 and 95 percent The T aylor mine has contribu ted pro Cementation er ects 216 ft headframe for Shaft 4