Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

February 23, 2015 02:00 ET

Kirkland Lake Gold Intersects '04 Break Mineralization; Highest Elevation to Date and Within an Unexplored Area of the Mine

TORONTO, ONTARIO--(Marketwired - Feb. 23, 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, provides an update on the underground exploration drilling program on the '04 Break ("04") (to the east of Shaft 3), at the Company's Macassa Mine Complex. The drilling program returned significant intersections on the 04 as high as the -2890 elevation, highest elevation in the history of the Macassa Mine and within a large unexplored area of the mine.

Highlights:

  • This intersection occurred at the -2967 elevation and on the west side of the Tergren cross fault ("04 West").
    • Drill hole 34-666 returned 5.26 ounces per ton ("opt") uncut (180.34 grams per tonne ("g/t")) or 2.53 opt cut (86.74 g/t) over 6.2 feet (1.9 metres) or 2.4 feet (0.7 metres) true width.
  • This intersection occurred at the -2890 elevation, highest to date in the Macassa Mine on the '04 and east of the Tegren cross fault ("04 East").
    • Drill hole 34-668 returned 0.80 opt (27.43 g/t) over a core length of 7.9 feet (2.4 metres) or 4.4 feet (1.3 metres) true width.

Mr. George Ogilvie, President & Chief Executive Officer, commented, "We are very happy to report exploration success on the '04 Break mineralization. The drilling has identified mineralization on the highest level in the mine to date, and remains open further to the east.

We will continue to follow up on this target, as well as expanding the known mineralization at the South Mine Complex to the south. We have four other past producing dormant mines which have seen little to no exploratory work, and we believe warrant testing in the coming years.

The Company currently has a 14 year mine life based on the current level of resources and reserves, and with continued exploration success, we plan to be mining here for many years to come."

History of Macassa Mine

Production at the Macassa Mine began in 1933 and was centered on the Kirkland Lake Main Break, called the "Main Break", which had been followed westward from the Toburn, Sylvanite, Wright Hargreaves, Lakeshore Teck Hughes and Kirkland Minerals properties.

In 1955 a new major break was discovered on the Macassa property termed the "'04 Break". Located 400 feet north of the Main Break, the 04 has been the most important ore-related structure at Macassa since the 1980's and mined from the -3800 level to the -7,000 foot levels. As there is a mere 400 foot differential between these two distinct breaks east of the Amikougami north-south fault, they are sometimes referred together as the "'04-Main Break"

'04 Break Drilling Results

The current phase of the underground exploration program is being conducted from the 3,422 level incline. Mineralization is typical of the 04, comprising strong quartz veining with associated molybdenite, visible gold and tellurides. The mineralization generally dips 60-75 degrees to the south.

The Tegren cross fault is well known throughout the Macassa Mine. It is a late, post ore strike-slip fault with a sinistral movement (east side to the north) of approximately 150 feet (45.7 metres) in this area of the mine.

  • Drill hole 34-668 has intersected the 04 at the -2890 elevation, 60 feet (18.3 metres) east of the Tegren cross fault and assayed 0.80 opt (27.43 g/t) over a core length of 7.9 feet (2.4 metres), or (4.4 feet (1.3 metres) true width. This intersection represents the highest elevation to date on the 04.
  • A paste-fill hole completed in 2005 intersected two quartz veins in the unexplored area. The upper four inch vein was mineralized with considerable visible gold and tellurides and retained for display purposes. The lower vein assayed 0.51 opt (17.5 g/t) over a core length of 3.0 feet (0.9 metres). These intersections underpin the exploration potential in this area of the Macassa mine.
  • Mining and exploration in this area of the 04 to date indicates a strike length of 800 feet (243.8 metres), a vertical extent of 250 feet (76.2 metres) and remains open to the east and up-dip.
  • Mining commenced in this area late July 2014. Additional development is planned to facilitate mining and to provide access for additional exploration.

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

• To view "Figure 1 - Long Section (view to the north showing the latest underground exploration results relative to the #3 shaft)" please visit: http://media3.marketwire.com/docs/993191fig1.pdf

• To view "Figure 2 - Detailed Long Section (view to the north) showing the latest underground exploration results)" please visit: http://media3.marketwire.com/docs/993191fig2.pdf

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

'04 BREAK UNDERGROUND EXPLORATION - Imperial Table (3400 Level)

DRILL
HOLE
ZONE DIP
(degrees)
AZIMUTH
(degrees)
FROM
(feet)
TO
(feet)
CORE
LENGTH
(feet)
TRUE
WIDTH
(feet)
ASSAY
(oz/ton)
CUT
(oz/ton)
34-626 04 +21 021 410.7 413.3 2.6 N/C 0.12 -
34-627 04 +14 024 442.0 464.5 22.5 6.6 0.25 -
Including 442.0 444.1 2.1 0.6 0.83, VG -
And 458.3 460.6 2.3 0.7 0.63 -
34-635** 04 -2 348 139.9 142.3 2.4 N/C 0.02 -
34-636** 04 +19 354 199.3 205.0 5.7 3.4 2.74 1.93*
Including 199.3 200.6 1.3 0.8 1.22 -
And 200.6 202.7 2.1 1.3 5.70, VG,T -
And 202.7 203.8 1.1 0.7 1.01 -
34-637** 04 +36 342 254.8 258.2 3.4 1.7 1.98 -
Including 254.8 256.9 2.1 1.1 3.03, VG,T -
34-638 04 +40 342 281.6 283.0 1.4 0.7 3.47, VG -
34-639 04 +42 329 281.2 282.4 1.2 0.5 1.28, VG -
34-640 04 +43 317 267.3 268.6 1.3 N/C 0.08 -
34-643** 04 +28 358 245.3 247.4 2.1 1.1 5.42 3.50*
Including 245.3 246.4 1.1 0.6 6.69, VG -
And 246.4 247.4 1.0 0.5 4.03, VG -
34-644 04 +1 014 211.2 225.5 14.3 8.1 0.42 -
Including 211.2 212.2 1.0 0.6 1.92 -
And 221.8 222.8 1.0 0.6 2.81, VG -
34-645** 04 +1 018 217.6 219.2 1.6 1.0 2.95, VG -
34-646 04 West +1 021 227.7 228.7 1.0 N/C 0.30 -
34-646 04 East 499.2 500.3 1.1 N/C 0.48, VG -
34-647** 04 +11 352 171.4 173.1 1.7 1.2 0.62 -
34-648** 04 +3 354 157.9 160.3 2.4 1.8 4.19 2.70*
Including 157.9 159.2 1.3 1.0 6.26, VG -
And 159.2 160.3 1.1 0.8 1.75 -
34-649** 04 -10 356 150.0 151.2 1.2 1.0 0.57 -
34-650** 04 -25 356 146.8 148.5 1.7 1.4 2.36, VG,T -
34-654 04 +2 006 190.0 191.0 1.0 N/C 0.24 -
34-655 04 +8 014 235.3 241.0 5.7 3.5 8.56 1.86*
Including 237.3 239.0 1.7 1.0 1.77, VG,T -
And 239.0 240.0 1.0 0.6 5.10, VG -
And 240.0 241.0 1.0 0.6 40.13, VG,T -
34-656 04 +7 018 238.2 239.2 1.0 0.6 3.01 -
34-657 04 West +6 025 282.9 285.4 2.5 1.2 1.03 -
Including 282.9 284.0 1.1 0.5 1.97, VG -
34-657 04 East 627.7 639.0 11.3 N/C .16 -
34-658 04 +17 006 301.3 319.4 18.1 8.5 2.83 1.67*
Including 301.3 302.3 1.0 0.5 9.34, VG,T -
And 311.3 312.3 1.0 0.5 1.88, VG -
And 312.3 314.5 2.2 1.0 8.54, VG,T -
And 314.5 316.0 1.5 0.7 4.62, VG,T -
And 316.0 317.3 1.3 0.6 5.32, VG,T -
And 317.3 319.4 2.1 1.0 2.42 -
34-661 04 West +11 025 293.9 296.3 2.4 1.1 9.64, VG,T 3.50*
04 East 637.9 639.6 1.7 0.9 2.23, VG -
34-662 04 +24 008 313.5 318.2 4.7 2.2 2.14 1.33*
Including 315.8 316.8 1.0 0.5 7.28, VG,T -
34-663 04 +21 014 305.5 311.3 5.8 2.8 0.28 -
Including 310.2 311.3 1.1 0.5 0.72 -
34-664 04 +19 018 340.6 341.7 1.1 0.5 5.02, VG,T 3.50*
34-665 04 +32 358 266.5 270.0 3.5 1.7 8.22 2.72*
Including 266.5 268.0 1.5 0.7 10.19, VG,T -
And 268.0 269.0 1.0 0.5 12.72, VG -
34-666 04 +30 008 350.0 356.2 6.2 2.4 5.26 2.53*
Including 350.0 352.7 2.7 1.1 2.08 -
And 352.7 353.7 1.0 0.4 1.31 -
And 353.7 355.2 1.5 0.6 14.61, VG -
And 355.2 356.2 1.0 0.4 3.74, VG -
34-667 04 +27 014 356.6 360.2 3.6 1.5 4.13 3.28*
Including 356.6 358.3 1.7 0.7 5.30, VG -
And 358.3 360.2 1.9 0.8 3.09, VG -
34-668 04 West +24 018 367.0 370.0 3.0 N/C 0.14 -
04 East 622.6 630.5 7.9 4.4 0.80 0.60*
Including 622.6 623.6 1.0 0.6 5.09, VG,T -

VG = Visible Gold; T= Tellurides; *Cut = cut to 3.5 opt; N/C = True Width not calculated as intersection will not meet minimum requirements to define a resource; ** Drill hole designated as a definition hole, the core was sampled in its entirety but assayed by an independent lab. All other holes were split following standard QA/QC protocols.

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

'04 BREAK UNDERGROUND EXPLORATION - Metric Table (3400 Level)


DRILL
HOLE

ZONE

DIP
(degrees)

AZIMUTH
(degrees)

FROM
(m)

TO
(m)
CORE
LENGTH
(m)
TRUE
WIDTH
(m)

ASSAY
(g/t)

CUT
(g/t)
34-626 04 +21 021 125.2 126.0 0.8 N/C 4.10 -
34-627 04 +14 024 134.7 141.6 6.9 2.0 8.57 -
Including 134.7 135.4 0.7 0.2 28.46, VG -
And 139.7 140.4 0.7 0.2 21.60 -
34-635** 04 -2 348 42.6 43.4 0.8 N/C 0.69 -
34-636** 04 +19 354 60.7 62.5 1.8 1.0 93.94 66.17*
Including 60.7 61.1 0.4 0.2 41.83 -
And 61.1 61.8 0.7 0.4 195.43, VG,T -
And 61.8 62.1 0.3 0.2 34.63 -
34-637** 04 +36 342 77.7 78.7 1.0 0.5 67.89 -
Including 77.7 78.3 0.6 0.3 103.89, VG,T -
34-638 04 +40 342 85.8 86.3 0.5 0.2 118.97, VG -
34-639 04 +42 329 85.7 86.1 0.4 0.1 43.89, VG -
34-640 04 +43 317 81.5 81.9 0.4 N/C 2.74 -
34-643** 04 +28 358 74.7 75.4 0.7 0.3 185.83 120.00*
Including 74.8 75.1 0.3 0.2 229.37, VG -
And 75.1 75.4 0.3 0.2 138.17, VG -
34-644 04 +1 014 64.4 68.7 4.3 2.5 14.40 -
Including 64.4 64.7 0.3 0.2 65.83 -
And 67.6 67.9 0.3 0.2 96.3, VG -
34-645** 04 +1 018 66.3 66.8 0.5 0.3 101.14, VG -
34-646 04 West +1 021 69.4 69.7 0.3 N/C 10.29 -
34-646 04 East 152.2 152.5 0.3 N/C 16.46, VG -
34-647** 04 +11 352 52.2 52.8 0.6 0.4 21.26 -
34-648** 04 +3 354 48.1 48.9 0.8 0.5 143.66 92.57*
Including 48.1 48.5 0.4 0.3 214.63, VG -
And 48.5 48.9 0.4 0.2 60.00 -
34-649** 04 -10 356 45.7 46.1 0.4 0.3 19.54 -
34-650** 04 -25 356 44.7 45.3 0.6 0.4 80.91, VG,T -
34-654 04 +2 006 57.9 58.2 0.3 N/C 8.23 -
34-655 04 +8 014 71.7 73.5 1.8 1.1 293.49 63.77*
Including 72.3 72.8 0.5 0.3 60.69, VG,T -
And 72.8 73.2 0.4 0.2 174.86, VG -
And 73.2 73.5 0.3 0.2 1375.90, VG,T -
34-656 04 +7 018 72.6 72.9 0.3 0.2 103.20 -
34-657 04 West +6 025 86.2 87.0 0.8 0.4 35.31 -
Including 86.2 86.6 0.4 0.2 67.54, VG -
34-657 04 East 191.3 194.8 3.5 N/C 5.49 -
34-658 04 +17 006 91.8 97.4 5.6 2.6 97.03 57.26*
Including 91.8 92.1 0.3 0.2 320.23, VG,T -
And 94.9 95.2 0.3 0.2 64.46, VG -
And 95.2 95.9 0.7 0.3 292.80, VG,T -
And 95.9 96.3 0.4 0.2 158.40, VG,T -
And 96.3 96.7 0.4 0.2 182.40, VG,T -
And 96.7 97.4 0.7 0.3 82.97 -
34-661 04 West +11 025 89.6 90.3 0.7 0.3 330.52, VG,T 120.00*
04 East 194.4 195.0 0.6 0.3 76.46, VG -
34-662 04 +24 008 95.6 97.0 1.4 0.7 73.37 45.60*
Including 96.3 96.6 0.3 0.2 249.60, VG,T -
34-663 04 +21 014 93.1 94.9 1.8 0.9 9.60 -
Including 94.5 94.9 0.4 0.2 24.69 -
34-664 04 +19 018 103.8 104.2 0.4 0.2 172.12, VG,T 120.00*
34-665 04 +32 358 81.2 82.3 1.1 0.5 281.83 93.26*
Including 81.2 81.7 0.5 0.2 349.37, VG,T -
And 81.7 82.0 0.3 0.2 436.12, VG -
34-666 04 +30 008 106.7 108.6 1.9 0.7 180.34 86.74*
Including 106.7 107.5 0.8 0.3 71.31 -
And 107.5 107.8 0.3 0.1 44.91 -
And 107.8 108.3 0.5 0.2 500.92, VG -
And 108.3 108.6 0.3 0.1 128.23, VG -
34-667 04 +27 014 108.7 109.8 1.1 0.5 141.60 112.46*
Including 108.7 109.2 0.5 0.2 181.72, VG -
And 109.2 109.8 0.6 0.2 105.94, VG -
34-668 04 West +24 018 111.9 112.8 0.9 N/C 4.80 -
04 East 189.8 192.2 2.4 1.3 27.43 20.57*
Including 189.8 190.1 0.3 0.2 174.52, VG,T -

VG = Visible Gold; T= Tellurides; *Cut = cut to 120 g/t; N/C = True Width not calculated as intersection will not meet minimum requirements to define a resource; ** Drill hole designated as a definition hole, the core was sampled in its entirety but assayed by an independent lab. All other holes were split following standard QA/QC protocols.

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. Stewart 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, as well as to explore opportunities for growth in other safe mining jurisdictions. 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 14 years of mining with exploration upside.

Website - www.klgold.com

Neither the Toronto Stock Exchange nor 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.

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.

To view Figures 1 and 2 please click the following link: http://media3.marketwire.com/docs/KLGFigs1-2.pdf

Contact Information

  • George Ogilvie, P.Eng
    Chief Executive Officer
    Phone: +1 709 532 5716
    Fax: +1 705 568 6444
    E-mail: gogilvie@klgold.com

    Suzette N. Ramcharan, CPIR
    Director of Investor Relations
    Phone: +1 647-284-5315
    Fax: +1 705 568 6444
    E-mail: sramcharan@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