The announcement came on the same day that mine operator Kirkland Lake Gold released its quarterly update, showing the Fosterville mine produced a record 90,618 ounces of gold in the third quarter of 2018 – an increase of 17 per cent from the same period last year.

It processed 113,101 tonnes at an average grade of 25.6 grams per tonne.

The result was a key driver of Kirkland Lake’s overall quarterly production record.

More on the Fosterville gold mine:

In the report, Kirkland Lake Gold president and chief executive officer Tony Makuch said there was no sign of production growth slowing.

“We can look ahead to 2019 as another year of strong results and progress, including higher levels of production, continued low unit costs and solid financial performance,” he said.

“We also expect additional growth in mineral reserves and mineral resources, particularly at Fosterville, and will continue to accelerate progress with our growth projects.”

The company reported “exceptionally high-grade intersections” from drilling in the Swan Zone at Fosterville.

A new gravity circuit was commissioned at Fosterville in recent months, increasing the recovery of gravity gold by over 50 per cent of total ounces produced.

Victorian Resources Minister Tim Pallas announced an extension of the mining licence at Fosterville until 2035 during the International Mining and Resources Conference in Melbourne this week.

He said the mine employed 570 people, 80 per cent of which live in the Bendigo region.

“The extension of these licences is a boost to the Bendigo region. It’s great for jobs and allows the success story of these mines to continue,” Mr Pallas said.

Mineral exploration expenditure in Victoria increased 33 per cent from March to June this year – the fastest rate in Australia.

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