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The plant will use Clean TeQ's DeSALx technology, which is an integrated precipitation and continuous ionic filtration process.
Clean TeQ will design, supply and commission a 2 million litre per day plant under a A$3.5 million contract.
It follows due diligence carried out at Fosterville to validate the DeSALx process.
The precipitation process removes arsenic and antimony from the water, then the water is treated by the DeSALx process to remove hardness, sulphate and other dissolved metals.
The DeSALx by-product is gypsum-based and is compatible with Fosterville's lime treatment facility.
Fosterville produces groundwater that is currently stored at surface in limited capacity dams on site.
Mine operators approached Clean TeQ to provide a system to treat the mine water to match the quality of the region's underlying aquifer.
The mine can then use managed aquifer injection to return the water to its natural source, or use the treated water from the plant for further treatment and subsequent recycling and reuse.
Fosterville is Australia's highest grade gold mine, producing at an average head grade of 23 grams per tonne gold in October.
The mine is due to produce 250,000-260,000 ounces of gold this year and KL is looking at ways to get production to more than 400,000oz per annum within the next three years.
Meanwhile, Clean TeQ is talking to other mining companies globally to test its continuous ion-exchange systems for water treatment for recycling or discharge.
Clean TeQ's main focus is the Sunrise nickel-cobalt-scandium project in New South Wales, which is nearing a final investment decision.
Shares in Clean TeQ jumped by 11.6% to $1.30, while Kirkland Lake, which listed in Australia on November 30, is yet to trade.
