Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

January 20, 2015 02:00 ET

Kirkland Lake Gold Continues Exploration Success in the South Mine Complex

TORONTO, ONTARIO--(Marketwired - Jan. 20, 2015) - Kirkland Lake Gold Inc. (TSX:KGI)(AIM:KGI) ("KL Gold" or the "Company"), an operating and exploration gold company with operations in Ontario, Canada, today provides an update on the underground exploration drilling program on the South Mine Complex ("SMC") at the Company's Macassa Mine Complex.

Highlights:

  • New South Zone (NSZ) extended 180 feet (54.9 metres) down dip from previous intersections.
    • Drill hole 53-2593 returned 1.85 ounces per ton (opt) (63.4 grams per tonne (gpt)) over a true width of 11.6 feet (3.5 metres)
    • Drill hole 53-2597 returned 0.36 opt (12.3 gpt) over a true width of 14.7 feet (4.5 metres)
    • Deepest NSZ intersections to date on the South Claims (-5837 elevation)
  • New high grade parallel footwall mineralization intersected zone which assayed 3.55 opt (121.7 gpt) over a true width of 10.5 feet (3.2 metres).

Mr. George Ogilvie, Chief Executive Officer of the Company commented, "Ongoing exploration will continue to add to the resource and reserve base of the Kirkland Lake Mine Complex and especially in the SMC. This supports our initial goal of defining a multi-million ounce resource on the South Claim properties purchased from Queenston Mining.

"These recent results continue to show exceptional grades, which confirms the high-grade nature of the deposit, even with minimum mining widths applied. Encouragingly, the SMC remains open to the east and at depth paving the way for further exploration success.

"The annual update of the NI 43-101 compliant resource and reserve estimates is now underway and is expected to be released in the second quarter of this calendar year."

The current phase of the underground exploration program is being conducted from the 5,300 foot level near the SMC, and was designed to further extend and upgrade resources on the South Claims as a continuation of the program detailed in the Company's news release dated August 26, 2014.

  • The intersection in drill hole 53-2593 returned 1.85 opt (63.4 gpt) over a true width of 11.6 feet (3.5 metres); and drill hole 53-2597 returned 0.36 opt (12.3 gpt) over a true width of 14.7 feet (4.5 metres). Both intersections have extended the New South Zone an additional 180 feet (54.9 metres) down-dip from an earlier hole (53-1366) completed in 2009. The intersection in this drill hole returned 2.76 opt (94.6 gpt) over a true width of 3.6 feet (1.1 metres). The intersection in drill hole 53-2597 occurs at the -5837 elevation, which would be the deepest intersection to date on the NSZ within the South Claims area.
  • Drill hole 53-2595 intersected both the NSZ, which assayed 0.32 opt (10.8 gpt) over a true width of 9.9 feet (3 metres) and a new parallel footwall zone which assayed 3.55 opt (121.7 gpt) over a true width of 10.5 feet (3.2 metres). The footwall zone is located approximately 27 feet (8.2 metres) below the New South Zone.
  • Exploration plans for 2015 will include further testing of the New South Zone further east and down dip of the current resource area. Follow up drilling on new footwall zones will be completed as well.

The following figures, referred to elsewhere in this release, may be viewed at the Company's website at www.klgold.com.

The following table summarizes the latest underground drilling results in imperial values:

SMC UNDERGROUND EXPLORATION - Imperial Table (5300 Level)

DRILL
HOLE
ZONE DIP
(degrees)
AZIMUTH
(degrees)
FROM
(feet)
TO
(feet)
CORE
LENGTH
(feet)
TRUE WIDTH
(feet)
ASSAY
(oz/ton)
CUT
(oz/ton)
53-2592B NSZ -50 3331 690.6 696.7 6.1 6.0 1.99 -
Including 692.7 694.0 1.3 1.3 2.53, VG -
And 694.0 695.5 1.5 1.5 2.81, VG -
And 695.5 696.7 1.2 1.2 2.5, VG -
53-2593 NSZ -59 331 677.0 688.6 11.6 11.6 1.85 1.68*
Including 677.0 678.5 1.5 1.5 8.52, VG -
And 678.5 680.0 1.5 1.5 3.07 VG -
And 684.2 685.6 1.4 1.4 1.29 VG -
53-2594 NSZ -54 344 685.9 696.1 10.2 9.8 1.96 -
Including 685.9 686.9 1.0 1.0 3.88, VG -
And 686.9 688.4 1.5 1.5 2.07, VG -
And 690.0 691.4 1.4 1.4 2.86, VG -
And 693.4 694.6 1.2 1.2 3.08, VG -
NFZ 740.3 741.3 1.0 UK 3.35 VG, Tell -
53-2595 NSZ -50 351 700.2 711.0 10.8 9.9 0.32 -
NFZ 735.0 746.4 11.4 10.5 3.55 1.50**
Including 740.6 741.6 1.0 0.9 8.22, VG -
And 741.6 742.9 1.3 1.2 6.03, VG -
And 742.9 743.9 1.0 0.9 18.79, VG -
And 743.9 744.9 1.0 0.9 3.04, VG -
53-2596 NSZ -42 355 783.7 793.5 9.8 7.6 4.54 4.51*
Including 785.0 787.5 2.5 1.9 7.70, VG -
And 787.5 790.0 2.5 1.9 6.98, VG -
And 790.0 792.0 2.0 1.6 2.80, VG -
53-2597 NSZ -60 350 676.1 691.0 14.9 14.7 0.36 -
Including 686.0 688.5 2.5 2.4 0.92, VG -
NFZ 724.5 727.5 3.0 UK 1.11 -
53-2598 NSZ -49 002 719.6 720.6 1.0 0.9 1.10 -
53-2599 NSZ -41 002 809.2 815.5 6.3 5.6 0.24 -
53-2660 NSZ -63 002 Abandoned in strong fault
53-2661 NSZ -54 002 691.5 700.2 8.7 8.4 1.96 -
Including 691.5 693.2 1.7 1.6 1.94 -
And 693.2 695.2 2.0 1.9 3.48, VG -
And 699.0 700.2 1.2 1.2 4.68, VG -
VG = Visible Gold; Tell = Tellurides; *Cut = cut to 7.2 opt, **Cut = cut to 3.5 opt.
NSZ=New South Zone; NFZ=New Footwall Zone True Width UK = True Width Unknown.

The following table summarizes the latest underground drilling results in metric values:

SMC UNDERGROUND EXPLORATION - Metric Table (5300 Level)

DRILL
HOLE
ZONE DIP
(degrees)
AZIMUTH
(degrees)
FROM
(m)
TO
(m)
CORE
LENGTH
(m)
TRUE WIDTH
(m)
ASSAY
(g/t)
CUT
(g/t)
53-2592B NSZ -50 3331 210.5 212.4 1.9 1.8 68.23 -
Including 211.1 211.5 0.4 0.4 86.74, VG -
And 211.5 212.0 0.5 0.5 96.34, VG -
And 212.0 212.4 0.4 0.4 86.40, VG -
53-2593 NSZ -59 331 206.3 209.9 3.6 3.5 63.43 57.60*
Including 206.3 206.8 0.5 0.5 292.12, VG -
And 206.8 207.3 0.5 0.5 105.26, VG -
And 208.5 209.0 0.5 0.5 44.23, VG -
53-2594 NSZ -54 344 209.0 212.2 3.2 3.0 67.20 -
Including 209.0 209.4 0.4 0.4 133.03, VG -
And 209.4 209.8 0.4 0.4 70.97, VG -
And 210.3 210.7 0.4 0.4 98.06, VG -
And 211.3 211.7 0.4 0.4 105.60, VG -
NFZ 225.6 225.9 0.3 UK 114.86 VG, Tell -
53-2595 NSZ -50 351 213.4 216.7 3.3 3.0 10.97 -
NFZ 224.0 227.5 3.5 3.2 121.72 51.43**
Including 225.7 226.0 0.3 0.3 281.83, VG -
And 226.0 226.4 0.4 0.4 206.74, VG -
And 226.4 226.7 0.3 0.3 644.23, VG -
And 226.7 227.0 0.3 0.3 104.23, VG -
53-2596 NSZ -42 355 238.9 241.9 3.0 2.3 155.70 151.20*
Including 239.3 240.0 0.7 0.6 264.00, VG -
And 240.0 240.8 0.8 0.6 239.32, VG -
And 240.8 241.4 0.6 0.5 96.0, VG -
53-2597 NSZ -60 350 206.1 210.6 4.5 4.5 12.34 -
Including 209.1 209.9 0.8 0.7 31.54, VG -
NFZ 220.8 221.7 0.9 UK 38.06 -
53-2598 NSZ -49 002 219.3 219.6 0.3 0.3 37.71 -
53-2599 NSZ -41 002 246.6 248.6 2.0 1.7 8.23 -
53-2660 NSV -63 002 Abandoned in strong fault
53-2661 NSZ -54 002 210.8 213.4 2.6 2.6 67.20 -
Including 210.8 211.3 0.5 0.5 66.51 -
And 211.3 211.9 0.6 0.6 119.32, VG -
And 213.1 213.4 0.3 0.3 160.46, VG -
VG = Visible Gold; Tell = Tellurides; *Cut = cut to 246.9 g/t, **Cut = cut to120.0 g/t.
NSZ=New South Zone; NFZ=New Footwall Zone True Width UK = True Width Unknown.

Qualified Person

The results of the Company's underground diamond drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff under the supervision of Mr. Stewart Carmichael, P.Geo., Manager of Exploration. Mr. Carmichael is the 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, and has reviewed and approved this news release.

QA/QC Controls

The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. The drill core is sawn in half with one half of the core samples shipped to Swastika Laboratories in Swastika, Ontario. The other half of the core is retained for future assay verification. Other QA/QC includes the insertion of blanks, and the regular re-assaying of pulps and rejects at alternate certified labs. Gold analysis is conducted by fire assay using atomic absorption or gravimetric finish. The laboratory re-assays at least 10% of all samples and additional checks may be run on anomalous values.

Technical Information

The Company's Macassa Mine Property is the subject of a reserve report prepared by Glenn R. Clark, P.Eng. titled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2014 dated June 5, 2014, which has been filed on SEDAR (www.sedar.com).

About the Company

Kirkland Lake Gold Inc.'s corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake gold camp. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow with a view to maximising value for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.

Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development. From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake gold camp while the current reserve and resource provides for potentially 10 years of mining with significant exploration upside.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements

This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Press Release include, but may not be limited to, statements regarding the Company's exploration efforts, including underground drilling being conducted at the SMC and the results thereof, the inclusion of these results into the annual mineral reserve and resource statements and any possible increase in Company's level of resources and reserves. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company's business, its ability to increase its production capacity and decrease its production cost.

Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral reserves and resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company's Management's Discussion and Analysis for the interim period ended October 31, 2014 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

Glossary of Terms

National Instrument 43-101 Definitions of Resources and Reserves

The Reserve and Resource estimation classifications as prescribed in National Instrument 43-101 are given here for clarity.

Mineral Resource

Mineral Resources are sub-divided into 3 categories depending on the geological confidence. The highest level with the most confidence is the 'Measured' category. The next level of confidence is the 'Indicated' category and the lowest level, or the resource with the least confidence, is the 'Inferred' category.

Inferred Mineral Resource

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling, gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Indicated Mineral Resource

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

Measured Mineral Resource

A 'Measured Mineral Resource' is that part of a Mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

Mineral Reserve

Mineral Reserves are sub-divided into 2 categories. The highest level of Reserves or the level with the most confidence is the 'Proven' category and the lower level of confidence of the Reserves is the 'Probable' category. Reserves are distinguished from resources as all of the technical and economic parameters have been applied and the estimated grade and tonnage of the resources should closely approximate the actual results of mining. The guidelines state

"Minerals Reserves are inclusive of the diluting material that will be mined in conjunction with the Mineral Reserve and delivered to the treatment plant or equivalent facility." The guidelines also state that, "The term 'Mineral Reserve' need not necessarily signify that extraction facilities are in place or operative or that all government approvals have been received. It does signify that there are reasonable expectations of such approvals."

Probable Mineral Reserve

A 'Probable Mineral Reserve' is the economically mineable part of an Indicated and in some circumstances a Measured Mineral Resource demonstrated by a least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Proven Mineral Reserve

A 'Proven Mineral Reserve' is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

A more detailed list of technical terms can be found at http://klgold.com/cmsAssets/docs/pdfs/2013/2013%20Annual%20Information%20Form.pdf

Contact Information

  • George Ogilvie, P.Eng
    Chief Executive Officer
    +1 709 532 5716
    +1 705 568 6444 (FAX)
    gogilvie@klgold.com

    Suzette N. Ramcharan, CPIR
    Director of Investor Relations
    +1 647-284-5315
    +1 705 568 6444 (FAX)
    sramcharan@klgold.com

    NOMAD: Panmure Gordon (UK) Limited
    Dominic Morley / Adam James
    +44 (0) 20 7886 2500

    Blytheweigh
    Tim Blythe/Halimah Hussain/Camilla Horsfall
    +44 (0) 20 7138 3204
    www.klgold.com