Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc.

July 11, 2005 02:01 ET

Kirkland Lake Gold Inc.: Drill Hole 50-627 Intersects 2.3 Ounces of Gold over 90.4 feet 'uncut'

KIRKLAND LAKE, ONTARIO--(CCNMatthews - July 11, 2005) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI)(AIM:KGI) is pleased to present an update on one of the programs in its three year $21 million exploration campaign. The goal of this campaign is to explore for a combined potential of 15 million tons of ore on the Main Break, Parallel Breaks and North South structures, such as the Lower D Zone, on the Company's land holdings. Each month 4 to 6 underground drills are carrying out 3 to 4 different exploration programs.

During this drilling campaign, drill hole 50-627 has intercepted a 90.4 foot section (the true width of which is unknown) which assayed 2.3 ounces of gold per ton (uncut) and 1.16 ounces of gold per ton (cut - all gold values above 3.5 ounces of gold per ton were cut to the 3.5 ounce level). This intersection is located 1,600 feet south of the active mine working at Macassa No. 3 shaft.

"This outstanding intersection either represents a significant new discovery or is part of the LK zone where the discovery hole returned 26 ounces of gold over 6.2 feet (see news releases dated September 26th, 2004 and April 18th, 2005)." said Stew Carmichael, Chief Exploration Geologist. "There is good continuity of gold mineralization throughout the intersection. Although the core axis angles are quite variable, averaging 30 to 35 degrees indicating that the true width will be much less than the intersection itself, this is one of the most important drill holes and intersections in the Kirkland Lake camp history."

Figure #1 is a plan view showing the Lower D, LK Zone and the latest intersections (The diagram referred to in this release may be viewed at the Companies website,

Further highlights of the current results from Hole 50-627 include:

- Mineralization occurred evenly through this 90.4 foot intersection including between 1,765.0 and 1,791.0 feet where only four feet failed to return an assay of more than one ounce of gold per ton. Mineralization can best be described as remarkably consistent in both grade and style of mineralization, comprising extensive quartz veining, flooding, and up to 15% finely disseminated pyrite. Visible gold was observed throughout the interval but is very fine, almost microscopic. The mineralization differs from the Lower D Zone which is closely associated with disseminated pyrite mineralization.

- As previously announced (news release July 7th, 2005) this same Drill Hole, 50-627, intersected what appears to be the north strike extension of the Lower D Zone that assayed 1.10 ounces of gold per ton over 18.0 feet core length (uncut, true width of 11.5 feet) at the -5165 elevation, located 1,560 feet north of the existing Lower D resource block.

- Hole 50-627 also intersected another interesting, highly altered zone from 1,460.9 feet to 1494.5 feet that is similarly mineralized to the high-grade intersection further down the hole. While it returned a sub-economic grade of 0.05 ounce per ton gold over 33.6 feet core length, it represents another important drill target.

- The primary target for this hole was the LK Zone which might correlate with the 90.4 foot interval but this would require a change in the interpretation of its orientation; alternatively, hole 50-627 may have been drilled under the LK Zone because it came in 50 feet below the intended target elevation.

"Hole 50-627, with the two outstanding intersections, continues to validate the Company's belief in the potential for new discoveries to the south of the Main Break. We are planning to wedge off of this hole to ascertain the orientation and true width." said Mike Sutton, the Company's Chief Geologist.

To date, four North-South structures have been discovered at Macassa, each of which may extend 5,000 feet or more. Historically, ore-bearing structures in Kirkland Lake are laterally very extensive (1,000 feet to 20,000 feet). Ore-grade shoots along these structures generally are also extensive (1,000 to 8,000 feet). An example of the extent of potential mineralization is the Teck-Hughes Mine, where 3,700,000 ounces of gold were mined from the Main Break over a strike length of only 1,400 feet (located on a single mineral claim).

The following table summarizes the latest drilling program results in ounces of gold per ton over feet:

No. VEIN (feet) (feet) (degrees) (degrees) (oz. per ton/feet)
50-627 LOWER D(?) 964.0 982.0 -10 121 1.10/18.0' CL equals
11.5' TW, UNCUT
0.70/18.0' CL equals
11.5' TW, CUT
Inc. 980.0 982.0 7.08/2.0' CL equals
1.3' TW, VG
New 1460.9 1494.5 0.05/33.6' equals TW?
New 1685.1 1691.1 0.31/6.0' CL equals TW?
LK? 1700.6 1791.0 2.30/90.4' CL equals
1.16/90.4' CL equals
Incl. 1709.8 1714.8 15.57/5.0' CL, UNCUT,
VG or
3.50/5.0' CL CUT
Incl. 1745.2 1749.2 5.43/4.0' CL UNCUT or
2.95/4.0' CL, CUT
Incl. 1765.0 1791.0 3.59/26.0' CL, UNCUT or
2.34/26.0' CL, CUT, VG


TW equals True Width TW ? equals True width unknown
VG equals Visible Gold TELL equals Tellurides
CUT equals cut to 3.50 oz./ton QV equals Quartz vein
QS equals Quartz stringers

About the Company

The Company purchased the Macassa Mine and the 1,500 ton per day mill along with four former producing gold properties - Kirkland Lake Gold, Teck-Hughes, Lake Shore and Wright Hargreaves - in December 2001. These properties, which have historically produced some 22 million ounces of gold, extend over seven kilometres between the Macassa Mine on the east and Wright Hargreaves on the west and for the first time are being developed and explored under one owner. This camp is located in the Abitibi Southern Greenstone Belt of Kirkland Lake, Ontario, Canada.

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', Michael Sutton P.Geo., for the purpose of NI 43-101, Standards of Disclosure for Mineral Projects).

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 half of the core samples shipped to the Swastika Laboratories in Swastika, Ontario or to the Macassa mine laboratory for analysis. 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/rejects at alternate certified labs (Polymet, Accurassay). 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 Kirkland Lake properties are the subject of a report prepared by Roland H. Ridler, B.A.Sc.(hons.), M.A.Sc., Ph.D.(Econ.Geol.), P.D., entitled Kirkland Lake Mineral Properties (Macassa Mine, Kirkland Lake Gold, Teck-Hughes, Lake Shore, Wright-Hargreaves dated November 30, 2001. The Company's Macassa Mine Property is the subject of reserve reports prepared by

- David W. Rennie, P.Eng. and Richard E. Routledge, M.Sc., P.Geol. entitled Review of Mineral Resources and Mineral Reserves of the Macassa Mine Property, Kirkland Lake, Ontario Prepared for Kirkland Lake Gold Inc dated December 23, 2002.

- Michael Sutton P.Geo., and Stewart Carmichael, P.Geo. entitled Mineral Resources and Mineral Reserves of the Macassa Mine Property, Kirkland Lake, Ontario (Kirkland Lake Gold Inc.) as at April 30, 2003 dated August 30, 2003.

- Michael Sutton P.Geo., and Stewart Carmichael, P.Geo. entitled Mineral Resources and Mineral Reserves of the Macassa Mine Property, Kirkland Lake, Ontario (Kirkland Lake Gold Inc.) as at April 30, 2004 dated August 31, 2004.

All of these technical reports have been filed on SEDAR (

The reserves and resources disclosed in this news release have been estimated using definitions and procedures which conform to National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. These reserves and resources were completed internally by the Company's personnel, while the previous reserves and resources were completed in December 2002 internally by the Company's personnel and were audited by Roscoe Postle Associates Inc. (an independent geological and mining consulting firm). The reserves are not part of the resources. For details on the calculation of reserves and resources, please refer to the disclosure on the Company's website.

Cautionary Note to U.S. investors concerning estimates of Measured and Indicated Resources

This news release uses the terms "measured" and "indicated resources." We advise U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

Cautionary Note to U.S. investors concerning estimates of Inferred Resources

This news release uses the term "inferred resources." We advise U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.

Cautionary Note to U.S. Investors- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms is press release, such as "measured," "indicated," and "inferred" "resources," that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20F, File No. 01-31380, which may be secured from us, or from the SEC's website at

NOTE: To view Figure #1 please visit the following link -

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.

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