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Two, huge land packages with history of very high-grade past-producing mines

Spin-off of Fosterville South: FSX delivered as much as a 5X return for investors in 2020

Proximate to Kirkland Lake’s world-class Fosterville Gold Mine

Gold mining stocks have always had more luster for investors than other mining companies. Among gold mining stocks, high-grade gold opportunities have always commanded the most attention – and the highest premiums.

For those who subscribe to this view of the mining industry, you will definitely want to take a closer look at Leviathan Gold Ltd. as it is poised to go public.

Why? Three words: very high grades.

New gold company, hot exploration story

Leviathan Gold is the new spin-out of Fosterville South Exploration (CAN: FSX / US: FSXLF). Leviathan holds two large, prospective land packages in what is arguably one of the hottest districts on the planet today for high grade gold mining.

The Lachlan Fold Gold Belt in Victoria State, Australia hosts one of the world’s most lucrative gold mines currently in production. Kirkland Lake Gold’s now-legendary Fosterville Gold Mine has transformed Kirkland Lake (US: KL / CAN: KL) from a successful mid-tier gold mining company into a very successful emerging senior producer.

The Fosterville Mine boasts metrics that will make any serious gold mining investor drool.

• Production of 619,366 ounces of gold (2019) at an average grade of 39.6 g/t
• 98.8% gold recovery
• Cash costs of US$119 per ounce (AISC of US$291/oz)

The mine has current gold reserves in excess of 2 million ounces, but “[d]rilling continues to intersect high-grade gold results in multiple zones”. Kirkland Lake itself spent roughly $CAD30 million in additional exploration in 2019 alone.

While the Fosterville Mine is the Crown Jewel of the Lachlan Ford Gold Belt, it is far from the only prospective opportunity in this gold district.

Kirkland Lake’s success in this region came recently. Discovery of the ultra high-grade gold at Fosterville (in the Swan Zone) only came in 2016 – even though Fosterville commenced gold production back in 2005.

However, high-grade gold mining in the State of Victoria dates back well over a century. Australia is gold country, and currently the world’s #3 gold producer.

A number of smaller-scale (but high grade) gold mines went into production in this district, beginning in the mid-1800s. These were generally crude, low-tech mining operations because the high-grade gold ore was near surface – and easy to process.