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Kirkland Lake Gold (KGI:AIM) 510p

The precious metals producer should say in April that its South Mine deposit contains more than 1 million ounces of gold when it provides an updated resource statement. This compares with the last estimate – published in July 2007 – of 670,500 ounces of gold, which is a combination of measured, indicated and inferred classifications. Analysts have criticised the company’s high production costs – currently $530 per ounce. Chairman Harry Dobson claims Kirkland will be able to get this under $200 per ounce once it reaches higher grade ore.

The company is hoping to ramp up production to commercial levels within 18 months. A City source believes Kirkland may struggle to meet this target because of complications with mining

old ground.