Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

June 01, 2011 02:00 ET

Kirkland Lake Gold Inc.: Drill Hole 53-1794 Assays 1.05 Ounces of Gold Per Ton Over 37.5 Feet True Width and Expands SMC to the East; Fiscal 2012 Exploration Budget Set at $15.8 Million

KIRKLAND LAKE, ONTARIO--(Marketwire - June 1, 2011) - Kirkland Lake Gold Inc. ('Kirkland Lake Gold' or the 'Company') (TSX:KGI)(AIM:KGI), an operating and exploration gold company, is pleased to announce three new exploration drill holes testing the east portion of the New South Zone which forms part of the South Mine Complex (SMC), new results from the west exploration program as well as the exploration plans for fiscal year 2012.

"These new intersections on the New South Zone continue to expand South Mine Complex to the east," said Stewart Carmichael, Chief Exploration Geologist. "Most exploration over the last five years has been focused on the SMC due to the success in consistently discovering new high grade gold ounces. This year, we will also focus on new, unexplored areas of the camp that have always been of interest. We will also be adding two additional surface drills to the current single rig as it's been a number of years since we have explored near surface potential mineralization which could be accessed by the existing Lake Shore ramp. We plan to maintain the current six underground exploration drills at the Macassa Mine testing various targets, four of which will continue to expand the SMC."

The highlights of this recent drilling include:

  • Drill hole 53-1794 has intersected both the New South Zone and a related footwall zone. The New South Zone assayed 1.05 ounces of gold per ton (opt) uncut (0.99 opt cut) over a true width of 37.5 feet with a footwall zone assaying 0.93 opt over a true width of 4.0 feet. These intersections are located 110 feet north of previously reported drill hole 53-1685 which assayed 8.16 opt over a true width of 46.7 feet. (See the Company's news release dated May 4, 2011.)
  • A second new exploration drill hole, 53-1794, has intersected the New South Zone 117 feet east of 53-1685 and assayed 1.22 opt (0.83 opt cut) over a true width of 8.7 feet with a footwall zone assaying 3.66 opt (1.27 opt cut) over a true width of 10.0 feet. Both of these intersections are located along the east edge of the existing New South Zone resource area on the Company's 100% owned ground and will expand the SMC east. (See figure 1)
  • Drill hole 53-1795 intersected the New South Zone 120 feet southeast of hole 53-1794 and assayed 2.77 opt (1.69 opt cut) over a true width of 8.8 feet. This is the furthest intersection to the southeast to date on the SMC.

The exploration budget for fiscal 2012 includes an estimated 294,000 feet of combined underground and surface exploration utilizing up to nine drill rigs. The exploration programs will be fully funded through operations and are estimated to cost $15.8 million. (See figure 2)

The figures referred to in this release may be viewed at the Company's website, www.klgold.com and will provide context to the above statements. Figure 1 is a plan view showing new intersections on the New South Zone east. Figure 2 is a plan view showing the proposed underground exploration programs.

To view Figure 1 and Figure 2 to please visit the following link: http://media3.marketwire.com/docs/KGfig1-2.pdf

The following table summarizes the latest drilling results (Imperial values)


DRILL
HOLE No.

ZONE

FROM
(feet)

TO
(feet)
HOLE
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(oz per ton/feet)
53-1794New South


Incl.
and
and
and
and
and
and
and
and

New South
Footwall
Incl.
496.0


496.0
505.0
513.0
515.5
518.5
521.6
527.1
529.6
531.8


541.5
544.5
536.5


497.0
506.0
514.0
517.0
520.0
522.6
528.1
530.6
532.8


546.0
546.0
-653311.05/40.5' CL=37.5' TW, Uncut
0.99/40.5' CL=37.5' TW, Cut* 1.68/1.0'

CL=0.9' TW, VG, Tell
2.44/1.0' CL=0.9' TW
4.70/1.0' CL=0.9' TW, VG
6.36/1.5' CL=1.4' TW, VG
1.92/1.5' CL=1.4' TW
1.84/1.0' CL=0.9' TW, VG
1.67/1.0' CL=0.9' TW
1.75/1.0' CL=0.9' TW
9.45/1.0' CL=0.9' TW, VG, Tell


0.93/4.5' CL=4.0' TW
2.00/1.5' CL=1.3' TW, VG, Tell
53-1795New South

Incl.
and
527.4

527.4
536.0
537.0

528.5
537.0
-783442.77/9.6' CL=8.8' TW, Uncut
1.69/9.6' CL=8.8' TW Cut* 16.64/1.1' CL=1.0' TW, VG, Tell
5.45/1.0' CL=0.9' TW, VG
53-1684New HW
New South


Incl.
New South
Footwall
Incl.
and
494.9
508.5


518.5

529.5
529.5
541.4
496.3
519.5


519.5

542.4
532.5
542.4
-4734122.72/1.4' CL=??' TW, VG
1.22/11.0' CL=8.7' TW, Uncut
0.83/11.0' CL=8.7' TW, Cut* 11.58/1.0'

CL=0.8' TW, Tell
3.66/12.9' CL=10.0' TW, Uncut
1.27/12.9' CL=10.0' TW, Cut** 5.58/3.0'CL=2.3' TW
28.18/1.0' CL=0.8' TW, VG, Tell
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides *CUT = cut to 7.2 opt,, HW = Hanging Wall **Cut = cut to 3.5 opt. ?? TW = Unknown True Width

The following table summarizes the latest drilling results (Metric values)


DRILL
HOLE No.

ZONE

FROM
(m)

TO
(m)
HOLE
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(grams per tonne/m)
53-1794New South
Incl.
and
and
and
and
and
and
and
and
New South
Footwall
Incl.
151.2
151.2
153.9
156.4
157.1
158.0
159.0
160.7
161.4
162.1

165.0
166.0
163.5
151.5
154.2
156.7
157.6
158.5
159.3
161.0
161.7
162.4

166.4
166.4
-6533136.00/12.3m CL=11.4m TW, Uncut
33.94/12.3m CL=11.4m TW, Cut* 57.60/0.3mCL=0.3m TW, VG, Tell
83.66/0.3m CL=0.3m TW
161.14/0.3m CL=0.3m TW, VG
218.06/0.5m CL=0.4m TW, VG
65.83/0.5m CL=0.4m TW
63.09/0.3m CL=0.3m TW, VG
57.26/0.3m CL=0.3m TW
60.00/0.3m CL=0.3m TW
324.00/0.3m CL=0.3m TW, VG, Tell
31.861.4m CL=1.2m TW
68.57/0.4m CL=0.4m TW, VG, Tell
53-1795New South

Incl.
and
160.8

160.8
163.4
163.7

161.1
163.7
-7834494.97/2.9m CL=2.7m TW, Uncut
57.94/2.9m CL=2.7m TW Cut* 570.52/0.3m CL=0.3m TW, VG, Tell
186.86/0.3m CL=0.3m TW, VG
53-1684New HW
New South

Incl.
New South
Footwall
Incl.
and
150.8
155.0

158.0

161.4
161.4
165.0
151.3
158.3

158.3

165.3
162.3
165.3
-47341778.98/0.5m CL=??m TW, VG
41.83/3.3m CL=2.6m TW, Uncut
28.46/3.3m CL=2.6 TW, Cut*
11.58/0.3m CL=0.2m TW, Tell
125.49/3.9m CL=3.0m TW, Uncut
43.54/3.9m CL=3.0m TW, Cut** 191.32/0.9m CL=0.7m TW
966.18/0.3m CL=0.2m TW, VG, Tell
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides *CUT = cut to 246.86 grams/tonne, HW = Hanging Wall **Cut = cut to 120 grams/tonne.?? TW = Unknown True Width

Fiscal 2012 Exploration Programs and Budget

Exploration plans for fiscal 2012 (May 2011 to April 2012) include six underground drill rigs at the Macassa Mine and three surface rigs testing the remainder of the Company's land holdings. The underground exploration budget is estimated to be $12.2 million dollars and will include close to 1,500 feet of track development to facilitate diamond drilling and approximately 197,000 feet of drilling (compared to 141,000 feet completed in fiscal 2011). Of the 197,000 feet of underground drilling, 24,000 feet will test the joint venture properties with Queenston Mining Inc.

The surface exploration programs will include three rigs testing both grassroots targets and shallow (up to 1,000 feet below surface) potential near production drilling along the Main Break from the Wright Hargreaves property to the Kirkland Minerals property. The surface programs are scheduled to include approximately 97,000 feet of drilling (compared to 26,200 feet completed in fiscal 2011) with an estimated cost of $3.6 million dollars. The total exploration budget for the fiscal year is estimated at $15.8 million dollars.

`08 Break Exploration

Exploration on the `08 Break is currently being conducted with two drills from the 5305 drift. The targets are divided into three areas including the west, central and east. Exploration on the west portion of the `08 has been temporarily suspended until the completion of an enlarged drill bay and additional drifting southwest of the west bay. This drill has been moved east to test the potential `08 Break in the central area. Results of this program will be reported upon completion and compilation.

Drilling on the east portion of the `08 Break has been at 200 foot centres has thus far been unable to expand on the target intersection (drill hole 53-1520, 6.14 opt over a core length of 13.7 feet) reported in the Company's press release dated January 12, 2010. Drilling in this area is still in progress.

Macassa West Exploration

Further to the Company's news release dated February 15, 2011, an additional nine drill holes have been completed with assays received for five of the nine holes. This initial follow-up program will include 30 drill holes totalling 41,000 feet. Drilling is currently at 200 foot centres.

The following table summarizes the latest drilling results (Imperial values)


DRILL
HOLE No.

ZONE

FROM
(feet)

TO
(feet)
HOLE
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(oz per ton/feet)
53-1728Macassa West728.4729.6+6.51580.17/1.2' CL=??' TW
53-1729AMacassa West894.5895.5-6.51642.07/1.0' CL=??' TW, VG, Tell
53-1742Macassa West927.0928.0-71470.25/1.0' CL
53-1743Macassa West---7152No Significant values
53-1744Macassa West844.0846.0-71580.16/2.0' CL
53-1745Macassa West1,101.31,106.2-71640.20/4.9' CL=??' TW
53-1785Macassa West+12.5164Pending
53-1786Macassa West-1164Pending
53-1787Macassa West772.0
939.7
773.0
940.7
-11584.64/1.0' CL=??' TW, VG, Tell
0.38/1.0' CL=??' TW
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides, *Cut = cut to 7.2 opt,HW= Hanging Wall **Cut = cut to 3.5 opt. ?? TW = Unknown True Width.

The following table summarizes the latest drilling results (Metric values)


DRILL
HOLE No.

ZONE

FROM
(m)

TO
(m)
HOLE
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(grams per tonne/m)
53-1728Macassa West222.0222.4+6.51585.83/0.4m CL=??m TW
53-1729AMacassa West272.6272.9-6.516470.97/0.3m CL=??m TW, VG, Tell
53-1742Macassa West282.5282.9-71478.57/0.4m CL=??m TW
53-1743Macassa West---7152No Significant values
53-1744Macassa West257.3257.9-71585.49/0.6m CL=??m TW
53-1745Macassa West335.7336.7-71646.86/1.0m CL=??m TW
53-1785Macassa West+12.5164Pending
53-1786Macassa West-1164Pending
53-1787Macassa West253.3
286.4
235.6
286.7
-1158159.09/0.3m CL=??m TW, VG, Tell
13.03/0.3m CL=??m TW
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides *CUT = cut to 246.86 grams/tonne, HW = Hanging Wall **Cut = cut to 120 grams/tonne.?? TW = Unknown True Width

About the Company

The Company purchased the Macassa Mine and the 1,450 ton per day mill along with four former producing gold properties – Kirkland Lake, 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 to the west and Wright Hargreaves to the east and, for the first time, are being developed and explored under one owner. This camp is located in the Southern Abitibi 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', 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 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, or to SPJ Labs in Lively, 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. entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario At January 1, 2011 dated April 4, 2011.

This technical report has been filed on SEDAR (www.sedar.com).

Cautionary Note Regarding Forward Looking Statements

This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers 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, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR 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.

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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