Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

November 25, 2013 08:29 ET

Kirkland Lake Gold Corrects Second Quarter Operating Results

KIRKLAND LAKE, ONTARIO--(Marketwired - Nov. 25, 2013) - Kirkland Lake Gold Inc. (TSX:KGI)(AIM:KGI) ("Kirkland Lake" or "the Company"), an operating and exploration gold mining company, today announces corrected operational results for the second quarter of its fiscal year 2014 (August, September, October 2013).

On November 13, 2013 the Company announced that during the second quarter, 105,670 tons were produced at a head grade of 0.35 ounces per ton ("opt") and a recovery rate of 95.17% to produce 34,935 ounces of gold. A re-examination of month-end procedures surrounding inventories and the mill circuit protocols resulted in the number of gold ounces produced being corrected to 31,387 ounces. Total production for the first two quarters of the fiscal year is therefore corrected to 61,566 ounces.

Over the course of the last 12 - 18 months the Company has been upgrading the mill in preparation for an eventual increase to 2,200 tons per day milled. As part of this upgrade process additional new larger equipment has been installed and recently commissioned. In calculating the month end gold ounces produced the Company did not factor in gold that would be trapped in the upgraded circuit. The trapping of gold in any new circuit is common during the "bedding in" period. Essentially these gold ounces are "lost" and only recoverable when the mill or equipment is decommissioned followed by a full cleanout. In light of this the Company felt it was appropriate to take the prudent approach and correct the reported produced ounces accordingly.

This correction has no impact on any historic financial statements nor on the second quarter financial results which will be released on December 12, 2013. These financial statements will be based on the corrected operating results.

The Company has reviewied its policies and procedures concerning the reporting of mill inventories and all necessary improvements will be in place by the end of November. These initiatives will also result in improvements to the operating effectiveness of Disclosure Controls and Procedures.

George Ogilvie, CEO of Kirkland Lake Gold, commented, "It's unfortunate that this correction has had to be made. However, I believe we have taken the high ground and best practice approach and I'm now satisfied that we have the necessary policies and procedures in place to prevent any similar occurrence from taking place."

About the Company

Kirkland Lake Gold'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 increasing production capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. 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 for as long as practicable.

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", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. 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, and 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 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, 2013 and the Company's Management's Discussion and Analysis for the interim period ended July 31, 2013 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 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.

Contact Information

  • Kirkland Lake Gold Inc.
    Brian Hinchcliffe
    Deputy Chairman
    +1 705 567 5208
    +1 705 568 6444 (FAX)
    bhinchcliffe@klgold.com

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

    Kirkland Lake Gold Inc.
    Lindsay Dunlop
    Director of Investor Relations
    +1 416-840-7884
    +1 705 568 6444 (FAX)
    ldunlop@klgold.com
    www.klgold.com

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