Page 36 we are poised for solid year over year production growth to a millio n ounc es of annual production over the next fve to seven years Q1 2018 production totalled 147644 ounces an increase of 13 from 130426 ounces in Q1 2017 Exclud ing production from mines currently on care and maintenance total con solidated production for Q1 2018 grew by 22 from 121067 ounces in Q1 2017 Production in Q1 2018 compared to record quarterly production of 166579 ounces in Q4 2017 The main contributor to the change in produc tion from Q4 2017 was the impact of a greater proportion of highgrade stopes mined at the Fosterville Mine during Q4 2017 consistent with the mine plan The Macassa Mine in Kirkland Lake achieved record quarter production in Q1 2018 of 54038 ounces based on 86661 tonnes milled at an average grade of 199 gt and average mill re coveries of 976 Q1 2018 produc tion was 1 1 higher than the 48723 ounces produced in Q1 2017 when a total of 91460 tonnes were processed at an average grade of 171 gt The increase from Q1 2017 was pri marily related to an improvement in the average grade refecting mining higher grade stopes as well as the im pact of favourable grade reconcilia tions in Q1 2018 A signifcant increase in the aver age grade more than ofset reduced tonnes processed in accounting for a 5 increase in production compared to the previous quarter when Macassa produced 51608 ounces of gold from processing 1 19129 tonnes at an aver age grade of 139 gt and with average recoveries of 968 The Fosterville Mine produced 63843 ounces based on processing 123669 tonnes at an average grade of 168 gt and average mill recoveries of 957 Q1 2018 production increased 39 from 46083 ounces in Q1 2017 based on processing 137788 tonnes at an average grade of 1 11 gt and av erage recoveries of 937 The increase in production compared to the same period in 2017 resulted from higher average grades consis tent with the trend at Fosterville to wards improvin g grades at depth Pro duction in the Lower Phoenix system in Q1 2018 was approximately 80 me tres lower than mining fronts for the same period in 2017 Q1 2018 production compared to re cord quarterly production of 79157 ounces the previous quarter when a total of 1 18877 tonnes were pro cessed at an average grade of 215 gt and at average recoveries of 963 The quarter over quarter change in production mainly refected a greater proportion of highgrade stopes in the mine plan during Q4 2017 with both quarters benefting from positive grade reconciliations The Holt MineKL Gold completed the acquisition of St Andrew Gold felds Ltd in January of 2016 which included the Holt Mine Complex comprising of the T aylor Holt and Holloway Mines and a milling facil ity The Holt Mine is close to Matheson During Q1 2018 the Holt produced 16675 ounces representing an in crease of 9 from 15319 ounces in Q1 2017 as higher mill throughput more than ofset the impact of a slight reduction in the average grade year over year Q1 2018 production compared to re cord quarterly production of 19263 ounces in Q4 2017 with the change refecting reduced tonnes processed and a lower average grade compared to the previous quarter A total of 122280 tonnes were pro cessed in Q1 2018 at an average grade of 45 gt and with average recoveries of 948 which compared to 105629 tonnes at an average grade of 48 gt and average recoveries of 949 in Q1 2017 and 127494 tonnes at an average grade of 50 gt and aver age recoveries of 949 the previous quarter The T aylor Mine is the company s newest gold mine with signifcant ex ploration potential It is a highgrade cornerstone asset for the company The mine is located ap proximately 70 km west of the Holt Mill and ore is trucked daily for pro cessing and refning Contd from pg 32