Kirkland Lake GoldInc. said April 14 that it is targeting production of 270,000 ouncesto 290,000 ounces of gold in 2016 at a head grade of 7.7 g/t.

The production will include between 160,000 ounces and 170,000ounces at 15.1 g/t of gold from the Macassamine in Ontario and between 110,000 ounces and 120,000 ounces at 4.8 g/t of goldfrom the East Timminsoperations.

All-in sustaining costs are expected to lie between US$1,000per ounce and US$1,050 per ounce of gold sold.

Kirkland expects total CapEx of C$120 million in the year — C$70million at Macassa and C$50 million at East Timmins.

President and CEO George Ogilvie said the exploration budgetwas increased to about C$18 million, with C$10 million focused on the Kirkland LakeCamp and C$8 million at East Timmins, mainly for exploration at and Holloway.

Kirkland's total gold production reached 69,464 ounces in thefirst quarter from the Macassa and East Timmins operations.