Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

August 26, 2014 02:00 ET

Kirkland Lake Gold Exploration Programs Update: New SMC Footwall Zones Discovered on South Claims; Near Surface Drilling Intersects New High-Grade Lenses

TORONTO, ONTARIO--(Marketwired - Aug. 26, 2014) - Kirkland Lake Gold Inc. (TSX:KGI)(AIM:KGI), ("KL Gold" or the "Company") an operating and exploration gold company with operations in Ontario, Canada, is pleased to announce recent drilling results which have expanded the mineralization associated with the South Mine Complex ("SMC") on both the South Claims and the HM claim. The near surface drilling program has intersected new high-grade lenses within 360 feet of surface.

Highlights include:

  • New South Zone extended
    • New footwall zone discovered; assayed at 12.90 ounces per ton (opt) (442.3 grams per tonne (gpt)) over a core length of 1.0 feet.
    • Deeper, unrelated footwall zone discovered; assayed at 17.34 opt (594.5 gpt) over a core length of 1.7 feet.
  • HM Claim expected to be upgraded
    • Two drill intersections expected to upgrade the resource category
  • Amalgamated Trend Area
    • Two new additional lenses of gold mineralization identified

"The latest exploration results confirm our belief that on-going exploration will continue to add to the resource and reserve base within the Company's mining lease area," stated Mr. George Ogilvie, Chief Executive Officer.

"The underground exploration has both confirmed additional high grade mineralization and resulted in the discovery of new footwall zones in the SMC. This bodes well for KL Gold's long term future as the Company looks to utilize the SMC, where proven and probable reserve grades are 0.54 opt (18.5 gpt) as the cornerstone of its mine production.

The surface drilling continues at pace with a third drill being added at the beginning of August following the completion of our C$7.5M flow-through financing. Our objectives are to expand the near surface resource from its inaugural NI43-101 Indicated Resource of 310,000 tons at 0.34 opt (11.7 gpt) (104,000 ounces) and Inferred Resource of 131,000 tons at 0.36 opt (12.3 gpt) (48,000 ounces) while also conducting in-fill drilling to eventually produce an initial NI43-101 reserve after the resource has been sufficiently expanded which we expect to be included in our annual calendar year-end complex wide reserve and resource update.

Encouragingly, the near surface mineralization continues to grow and is open across strike and at depth with new zones also being discovered with robust grades. The near surface mineralization in plan view sits 6,500 feet from our mill with a nameplate capacity of 2,200 tons per day with feed ore from the Macassa Mine planned at 1,250 tons per day over the next three years, creating spare capacity in the mill to take any additional supplemental feed source."

The current phase of the underground exploration program, from the Macassa 5,300 foot level, was designed to further extend and upgrade resources on the South Claims to the -5900 foot elevation from a recently completed cross cut to the south as well as additional exploration on the HM claim up dip and along strike. Surface drilling to 1,000 feet below surface further tested mineralization associated with the Amalgamated Trend, located approximately 4,000 feet south of the historically mined Main Break.

Details of the drilling highlights are as follows:

  • The intersection in drill holes 53-2589 (1.48 opt (50.7 gpt) over a true width of 9.4 feet) and 53-2590 (0.30 opt (10.3 gpt) over a true width of 5.4 feet) have extended the New South Zone an additional 288 feet down-dip on this part of the South Claims. A new footwall zone was intersected as well in 53-2590 which assayed 12.90 opt (442.3 gpt) over a core length of 1.0 feet, approximately 53 feet below the New South Zone. A deeper, unrelated footwall zone, was intersected in drill hole 53-2591 and assayed 17.34 opt (594.5 gpt) over a core length of 1.7 feet. This intersection represents the deepest intersection to date on the South Claims, at the -5,855 foot elevation, 180 feet below the New South Zone.
  • Drill hole 53-2588 tested an inferred resource area on the South Claims and assayed 0.48 opt (16.5 gpt) over a true width of 31.0 feet. To the northeast of the South Claims, drill hole 53-2496 tested a large inferred resource area on the HM Claim. This drill hole assayed 1.22 opt (41.8 gpt) over a true width of 25.6 feet. Both intersections will upgrade the resource category. Drill hole 53-2497 (0.57 opt (19.5 gpt) over 4.7 feet true width) has extended the New South Zone on the HM claim an additional 125 feet north and up-dip.
  • The definition drilling program currently underway from surface within the Amalgamated Trend resource area has identified two new additional lenses of gold mineralization which lie in the footwall of the current FW 3 resource block on the South Claims property. The dip of these zones appears to be shallower than the current resources in the area (<45 degrees) and their strike slightly oblique to the current resource. Tighter spaced drilling and further interpretation is necessary to confirm the geometry and true width of these zones.
  • These drill holes cover an area approximately 400 feet along strike and 170 down the dip of these new mineralized zones and lie 270 to 360 feet below surface. The mineralization in these zones is of the same style as that of the current resource blocks and comprises quartz/carbonate veining generally within sericite/carbonate altered sediments with up to 5-7% pyrite and visible gold.

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

Figure 1 - plan view showing the latest underground exploration results: http://media3.marketwire.com/docs/KIRKFigure1.pdf

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

5300 LEVEL SMC UNDERGROUND EXPLORATION

DRILL
HOLE No.
ZONE FROM
(feet)
TO
(feet)
HOLE
DIP
(deg-
rees)
AZI-
MUTH
(deg-
rees)
ASSAY
(oz per ton/feet)
53-2588 New South 727.7 765.5 -37 318 0.48/37.8' CL=31.0' TW
South Claims Incl. 744.6 745.7 0.98/1.1' CL=0.9' TW, VG
and 759.0 760.0 1.93/1.0' CL=0.9' TW, VG
and 760.0 761.0 6.59/1.0' CL=0.9' TW, VG. Tell
53-2584 New South -32 302 NSV, Intersected diabase dyke
South Claims
53-2586A
South Claims
New South 705.0 712.0 -39 305 0.05/7.0' CL=TW Not Calculated
53-2587 New South 673.0 676.5 -49 305 0.22/3.5' CL=TW Not Calculated
South Claims
53-2589 New South 709.0 719.8 -46 318 1.48/10.8' CL=9.4' TW
South Claims Incl. 709.0 710.0 1.04/1.0' CL=0.9' TW, VG
and 710.0 711.0 1.79/1.0' CL=0.9' TW, VG
and 711.0 712.9 1.01/1.9' CL=1.7' TW
and 715.0 716.2 4.03/1.2' CL=1.1' TW, VG
and 716.2 717.8 1.14/1.6' CL=1.4' TW
and 718.8 719.8 3.46/1.0' CL=0.9' TW, VG
53-2590 New South 674.3 679.8 -55 318 0.30/5.5' CL=5.4' TW
South Claims Incl. 678.8 679.8 0.90/1.0' CL=1.0' TW, VG
New Footwall 1 721.8 722.8 12.90/1.0' CL=??' TW, VG
3.50/1.0' CL=??' TW Cut**
53-2591 New South 714.4 717.6 -42 326 0.44/3.2' CL=2.9' TW
South Claims Incl. 714.4 715.4 0.86/1.0' CL=0.9' TW, VG
New Footwall 2 888.2 889.9 17.34/1.7' CL=??' TW, VG, Tell
3.50/1.7' CL=??' TW, Cut**
53-2495 New South 548.5 551.8 -90 0 0.21/3.3' CL=TW Not Calculated
HM Claim
53-2496 New South 612.3 642.2 -50 310 1.22/29.9' CL=25.6' TW
HM Claim Incl. 612.3 614.0 1.85/1.7' CL=1.5' TW
and 614.0 616.1 5.00/2.1'CL=1.8' TW, VG, Tell
and 616.1 617.6 6.91/1.5' CL=1.3' TW, VG, Tell
and 637.7 639.5 2.84/1.8' CL=1.5' TW, VG
and 639.5 640.8 1.53/1.3' CL=1.1' TW
53-2497 New South 897.0 905.7 -31 320 0.57/8.7' CL=4.7' TW
HM Claim Incl. 903.6 905.7 1.15/2.1' CL=1.1' TW
TW = True Width, CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Tell = Tellurides *Cut = cut to 7.2 opt, **Cut = cut to 3.5 opt., TW Not Calculated=Intersection will not make minimum requirements to estimate a resource.

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

SURFACE EXPLORATION

DRILL
HOLE No.
ZONE FROM
(feet)
TO
(feet)
HOLE
DIP

(deg-
rees)
AZI-
MUTH
(deg-
rees)
ASSAY
(oz per ton/feet)
AB-14-32 New Zone 335.8 337.5 -55 321 11.95/1.7' CL=?? TW, VG
3.5/1.7' CL=0.9' TW, VG, Cut
AB-13-135 New Zone 380.3 381.6 -51 321 1.01/1.3' CL=?? TW, VG
AB-14-28 New Zone 331.0 332.5 -67 321 0.22/1.5' CL=?? TW
AB-14-31 New Zone 339.5 340.5 -57 321 1.20/1.0' CL=?? TW
AB-14-34 New Zone 327.0 328.0 -48 322 2.21/1.0' CL=?? TW, VG
AB-14-36 New Zone 356.5 357.5 -44 325 0.72/1.0' CL=?? TW, VG
AB-14-63 New Zone 352.3 354.1 -63 329 0.84/1.8' CL=?? TW, VG
AB-14-64 New Zone 352.5 353.5 -59 328 0.45/1.0' CL=?? TW, VG
AB-14-65 New Zone 359.2 360.2 -45 328 0.83/1.0' CL=?? TW, VG
AB-14-69 New Zone 363.4 367.5 -56 328 0.39/4.1' CL=?? TW, VG
AB-14-70 New Zone 369.4 370.4 -43 327 0.44/1.0' CL=?? TW, VG
AB-14-72 New Zone 372.4 373.4 -44 331 2.51/1.0' CL=?? TW, VG
AB-14-73 New Zone 339.5 340.5 -57 321 0.55/2.1' CL=?? TW, VG
CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Cut = cut to 3.5 opt

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

5300 LEVEL SMC UNDERGROUND EXPLORATION

DRILL
HOLE No.
ZONE FROM
(m)
TO
(m)
HOLE
DIP
(deg-
rees)
AZI-
MUTH

(deg-
rees)
ASSAY
(Grams Per tonne/m)
53-2588 New South 221.8 233.3 -37 318 16.46/11.5m CL=9.4m TW
South Claims Incl. 227.0 227.3 33.60/0.3m CL=0.3m TW, VG
and 231.3 231.6 66.17/0.3m CL=0.3m TW, VG
and 231.6 232.0 225.94/0.4m CL=3m TW, VG.Tell
53-2584 New South -32 302 NSV, Intersected diabase dyke
South Claims
53-2586A New South 214.9 217.0 -39 305 1.71/2.1m CL=TW Not
South Claims Calculated
53-2587 New South 205.1 206.2 -49 305 7.54/1.1m CL=TW Not Calculated
South Claims
53-2589 New South 216.1 219.4 -46 318 50.74/3.3m CL=2.7m TW
South Claims Incl. 216.1 216.4 35.66/0.3m CL=0.3m TW, VG
and 216.4 216.7 61.34/0.3m CL=0.3m TW, VG
and 216.7 217.3 34.63/0.6m CL=0.5m TW
and 217.9 218.3 138.17/0.4m CL=0.3m TW, VG
and 218.3 218.8 39.09/0.5m CL=0.4m TW
and 219.1 219.4 118.63/0.3m CL=0.3m TW, VG
53-2590 New South 205.5 207.2 -55 318 10.29/1.7m CL=1.6m TW
South Claims Incl. 206.9 207.2 30.86/0.3m CL=0.3m TW, VG
New Footwall 1 220.0 220.3 442.29/0.3m CL=??m TW, VG
120.00/0.3m CL=??m TW, Cut**
53-2591 New South 217.7 218.7 -42 326 15.09/1.0m CL=0.9m TW
South Claims Incl. 217.7 218.1 29.49/0.4m CL=0.3m TW, VG
New Footwall 2 270.7 271.2 594.52/0.5m CL=??m TW, VG, Tell
120.00/0.5m CL=??m TW, Cut**
53-2495 New South 167.1 168.2 -90 0 7.2/1.1m CL=TW Not Calculated
HM Claim
53-2496 New South 186.6 195.7 -50 310 41.83/9.1m CL=7.8m TW
HM Claim Incl. 186.6 187.1 63.43/0.5m CL=0.5m TW
and 187.1 187.8 171.43/0.7m CL=0.5m TW, VG Tell
and 187.8 188.2 236.92/0.4m CL=0.4m TW, VG Tell
and 194.3 194.9 97.37/0.6m CL=0.5m TW, VG
and 194.9 195.3 52.46/0.4m CL=0.3m TW
53-2497 New South 273.4 276.1 -31 320 19.54/2.7m CL=1.4m TW
HM Claim Incl. 275.4 276.1 39.43/0.7m CL=0.3m TW
TW = True Width, CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Tell = Tellurides *Cut = cut to 246.9 grams/tonne, **Cut = cut to 120 grams/tonne., TW Not Calculated=Intersection will not make minimum requirements to estimate a resource.

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

SURFACE EXPLORATION

DRILL
HOLE No.
ZONE FROM
(m)
TO
(m)
HOLE
DIP
(deg-
rees)
AZI-
MUTH

(deg-
rees)
ASSAY
(Grams Per tonne/m)
AB-14-32 New Zone 102.4 102.9 -55 321 409.78/0.5m CL=??m TW, VG
120.00/0.5m CL=??m TW, VG, Cut
AB-13-135 New Zone 115.9 116.3 -51 321 34.70/0.4m CL=??m TW, VG
AB-14-28 New Zone 100.9 101.3 -67 321 7.61/0.5m CL=??m TW
AB-14-31 New Zone 103.5 103.8 -57 321 41.28/0.3m CL=??m TW
AB-14-34 New Zone 99.7 100.0 -43 322 75.67/0.3m CL=??m TW, VG
AB-14-36 New Zone 108.7 109.0 -44 325 24.82/0.3m CL=??m TW, VG
AB-14-63 New Zone 107.4 107.9 -63 329 28.87/0.5m CL=??m TW, VG
AB-14-64 New Zone 107.4 107.7 -59 328 15.26/0.3m CL=??m TW, VG
AB-14-65 New Zone 109.5 109.8 -45 328 28.32/0.3m CL=??m TW, VG
AB-14-69 New Zone 110.8 112.0 -56 328 13.27/1.2m CL=??m TW, VG
AB-14-70 New Zone 112.6 112.9 -43 327 15.09/0.3m CL=??m TW, VG
AB-14-72 New Zone 113.5 113.8 -44 331 86.13/0.3m CL=??m TW, VG
AB-14-73 New Zone 113.0 103.6 -57 321 18.82/0.6m CL=??m TW, VG
CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Cut = cut to 120 grams/tonne.

Technical Information and Qualified Person Notes

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 (which includes a 'qualified person', Stewart Carmichael P.Geo. the Company's Chief Exploration Geologist, for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators). Mr. Carmichael also supervised the preparation of the information that forms the basis of the technical disclosure and reserve estimates in this release.

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.

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 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 camp while the current reserve and resource provides for potentially 14 years of mining with significant exploration upside.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither 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", "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, 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 Management's Discussion and Analysis and Annual Information Form each for the year ended April 30, 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 from those expected, there may be others that cause results not to be as anticipated. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as 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.
    President and CEO
    Phone: +1 709 532 5716
    +1 705 568 6444 (FAX)
    E-mail: gogilvie@klgold.com
    Website: www.klgold.com

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

    Blytheweigh
    Tim Blythe / Halimah Hussain / Camilla Horsfall
    Phone: +44 (0) 20 7138 3204