Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.
Queenston Mining Inc.
TSX : QMI
FRANKFURT : QMI
OTCQX : QNMNF

Queenston Mining Inc.

February 28, 2012 02:00 ET

Kirkland Lake Gold-Queenston Joint Venture Reports New Drill Results Including the AK and South Claims

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2012) - Kirkland Lake Gold Inc. ("KL Gold") (TSX:KGI)(AIM:KGI) and Queenston Mining Inc. ("Queenston") (TSX:QMI)(FRANKFURT:QMI)(OTCQX:QNMNF) are pleased to announce the results from recently completed underground and surface diamond drilling exploration programs on their joint venture properties. These programs include underground drilling on the North AK property, on which KL Gold has the right to earn a 50% interest by expending $400,000 on exploration (see KL Gold and Queenston Mining press releases dated August 24, 2010), and a preliminary surface exploration drilling program on the existing jointly held (50%-50%) South Claims Joint Venture property.

A total of 11 underground diamond drill holes (totalling 12,392 feet) were completed from the east end of KL Gold's 5300 level drift along the South Claims boundary and drilled southeast onto the north portion of Queenston's AK property.

The 11 underground exploration drill holes testing the north portion of the AK property were reconnaissance in nature and tested a strike length of 850 feet to the east and 500 feet to the south. Six of the drill holes returned significant intersections including:

  • Drill hole 53-1922 intersected two mineralized zones and assayed 0.47 ounces per ton of gold (opt) over a core length of 4.0 feet and 0.46 opt over a core length of 7.2 feet.
  • Drill hole 53-1925 intersected two mineralized zones and assayed 0.20 opt over a core length of 26.5 feet and 14.66 opt over a core length of 1.0 feet.
  • Drill hole 53-1926 intersected one mineralized zone and assayed 0.40 opt over a core length of 4.3 feet.
  • Drill hole 53-1927 intersected two mineralized zones and assayed 1.88 opt (uncut, 1.67 opt cut) over a core length of 5.8 feet and 1.54 opt over a core length of 1.0 feet.
  • Drill 53-1965 intersected two mineralized zones and assayed 1.87 opt over a core length of 1.0 feet and 0.18 opt over a core length of 1.2 feet.

As part of a preliminary surface exploration drilling program on the South Claims Joint Venture property, five surface exploration drill holes were completed totalling 3,800 feet. One of the surface drill holes intersected the Amalgamated Kirkland Break and assayed 1.74 ounces of gold per ton (opt) uncut (0.49 opt cut) over a true width of 4.6 feet and at a depth of 400 feet below surface. The mineralization remains open in all directions. The Amalgamated Kirkland Break is located 5,000 feet south of the Kirkland Lake Main Break with an orientation similar to the Kirkland Lake Main Break.

"This reconnaissance first pass of the underground exploration program on the north portion of the AK property appears to confirm that the South Mine Complex extends onto this property. In addition, the preliminary surface exploration on the South Claims Joint Venture property indicates the potential for near surface mineralization," said Stewart Carmichael, Chief Exploration Geologist for KL Gold.

Charles Page, President and CEO of Queenston stated, "The partnership with KL Gold in exploring for the South Mine Complex on jointly held lands continues to be highly successful. We are pleased with the new drilling results as they continue to expand the footprint of gold mineralization that appears related to the SMC a further 656 feet to the southeast onto the North AK Property where it remains open."

The following table summarizes the latest underground drilling results from the North AK property in imperial units:

DRILL
HOLE
No.

ZONE

FROM
(feet)

TO
(feet)
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(ounces per
ton/feet)
53-1918 New 563.0 564.0 -58 163 0.16/1.0' CL=??' TW
New 721.9 723.9 0.14/2.0' CL=??' TW
53-1919 -51 159 No significant values
53-1920 0 153 No significant values
53-1921 -71 120 No significant values
53-1922 New 149.3 153.3 -60 133 0.47/4.0' CL=??' TW
New 708.0 715.2 0.46/7.2' CL=??' TW
53-1923 New 183.5 185.0 -52 138 0.18/1.5' CL=??' TW
New 555.0 557.5 0.23/2.5' CL=??' TW
53-1924 Not Drilled
53-1925 New 622.0 648.5 -60 094 0.20/26.5' CL=??' TW
Incl. 624.5 626.5 0.86/2.0' CL=??' TW
New 942.4 943.4 14.66/1.0' CL=??' TW, VG
53-1926 New 567.5 571.8 -50 120 0.40/4.3' CL=??' TW
Incl. 570.3 571.8 0.82/1.5' CL=??' TW
53-1927 New 725.5 731.3 -51 085 1.88/5.8' CL=??' TW, Uncut
1.67/5.8' CL=??' TW, Cut*
Incl. 725.5 727.2 4.23/1.7' CL=??' TW, VG
New 1051.5 1052.5 1.54/1.0' CL=??' TW
53-1928 -46 107 No significant values
53-1965 New 852.4 853.4 -16 094 1.87/1.0' CL=??' TW
New 896.8 898.0 0.18/1.2' CL=??' TW

TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides, HW = Hanging Wall CUT = cut to 3.5 opt, ?? TW = True Width Undetermined

The following table summarizes the latest surface drilling results from the South Claims Joint Venture in imperial units:

DRILL
HOLE
No.

ZONE

FROM
(feet)

TO
(feet)
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(ounces per
ton/feet)
SC-11-01 -45 307 No significant values
SC-11-02 Amalgamated 601.8 620.8 -45 147 1.74/19.0' CL=4.6' TW, Uncut
0.49/19.0' CL=4.6' TW, Cut*
Incl. 604.8 605.8 27.27/1.0' CL=0.2' TW, VG
and 616.0 618.0 1.15/2.0' CL=0.5' TW
SC-11-03 -45 327 No significant values
SC-11-04 -45 147 No significant values
SC-11-05 New 724.8 726.7 -90 147 0.94/1.9' CL=??' TW

The following table summarizes the latest underground drilling results from the North AK property in metric units:

DRILL
HOLE
No.

ZONE

FROM
(m)

TO
(m)
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(grams per
tonne/m)
53-1918 New 171.6 171.9 -58 163 5.49/0.3m CL=??m TW
New 220.0 220.6 4.80/0.6m CL=??m TW
53-1919 -51 159 No significant values
53-1920 0 153 No significant values
53-1921 -71 120 No significant values
53-1922 New 45.5 46.7 -60 133 16.11/1.2m CL=??m TW
New 215.8 218 15.77/2.2m CL=??m TW
53-1923 New 55.9 56.4 -52 138 6.17/0.5m CL=??m TW
New 169.2 169.9 7.89/0.7m CL=??m TW
53-1924 Not Drilled
53-1925 New 189.6 197.7 -60 094 6.86/8.1m CL=??m TW
Incl. 190.3 190.6 29.49/0.3m CL=??m TW
New 287.2 287.5 502.63/0.3m CL=??m TW, VG
53-1926 New 173.0 174.3 -50 120 13.71/1.3m CL=??m TW
Incl. 173.8 174.3 28.11/0.5m CL=??m TW
53-1927 New 221.1 222.9 -51 085 64.46/1.8m CL=??m TW, Uncut
57.26/1.8m CL=??m TW, Cut*
Incl. 221.1 221.7 145.03/0.6m CL=??m TW, VG
New 320.5 320.8 52.80/0.3m CL=??m TW
53-1928 -46 107 No significant values
53-1965 New 259.8 260.1 -16 094 64.11/0.3m CL=??m TW
New 273.3 273.7 6.17/0.4m CL=??m TW

TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides, HW = Hanging Wall CUT = cut to 120 grams/tonne, ?? TW = True Width Undetermined

The following table summarizes the latest surface drilling results from the South Claims Joint Venture in metric units:

DRILL
HOLE
No.

ZONE

FROM
(m)

TO
(m)
DIP
(degrees)

AZIMUTH
(degrees)
ASSAY
(grams per
tonne/m)
SC-11-01 -45 307 No significant values
SC-11-02 Amalgamated 183.4 189.2 -45 147 59.66/5.8m CL=1.4m TW, Uncut
16.80/5.8m CL=1.4m TW, Cut*
Incl. 184.3 184.6 935.00/0.3m CL=0.1m TW, VG
and 187.8 188.4 39.43/0.6m CL=0.2m TW
SC-11-03 -45 327 No significant values
SC-11-04 -45 147 No significant values
SC-11-05 New 220.9 221.5 -90 147 32.23/0.6m CL=??m TW

TW = True Width, CL = Core Length, VG = Visible Gold, Tell=Tellurides, HW = Hanging Wall CUT = cut to 120 grams/tonne, ?? TW = True Width Undetermined

The North AK property adjoins the South Claims property to the east and the HM property to the south located approximately 2000 feet south of the Kirkland Lake Main Break. Combined, these properties form the heart of the joint venture where underground drilling directed by KL Gold from the 5300 foot level of the Macassa Mine has been targeting the southern and eastern continuation of South Mine Complex.

Total expenditures by KL Gold on the exploration of the North AK and Kirkland Hudson properties were $592,500, exceeding the required $400,000 expenditures, under the terms of its earn-in. KL Gold has now earned a 50% interest from Queenston in the North AK and Kirkland Hudson properties.

The South Claims were purchased by KL Gold and Queenston in April of 2007 to cover the potential down-dip extension of the SMC. KL Gold and Queenston formed a joint venture in 2007 and an underground diamond drilling program commenced on the South Claims.

An updated resource estimate for the South Claims Joint Venture as of January 1, 2011 outlines an indicated resource of 101,000 tons grading 1.41 opt and an inferred resource of 113,000 tons grading 1.35 opt. These resource estimates were also included as part of a broader report prepared for KL Gold dated April 4, 2011 entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2011 prepared by Glenn R. Clark, P. Eng. This report is available on SEDAR (www.sedar.com) under KL Gold's filings.

In 2009 the HM property was purchased by KL Gold and Queenston and added to the joint venture (see KL Gold and Queenston joint news release dated February 12, 2009). Recently an expansion of the joint venture was announced to include a portion of the Amalgamated Kirkland property and the Kirkland Hudson property (see KL Gold and Queenston joint news release dated August 24, 2010).

KL Gold's Cautionary Note Regarding NI 43-101

The disclosure attributed in this release to KL Gold has been reviewed, verified (including sampling, analytical and test data) and approved by Stewart Carmichael, P.Geo., KL Gold's Chief Exploration Geologist, a 'qualified person' 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.

Queenston's Cautionary Note Regarding NI 43-101

The disclosure attributed in this release to Queenston has been reviewed, verified (including sampling, analytical and test data) and approved by its President, Charles Page, P.Geo., a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. Mr. Page also supervised the preparation of the information that forms the basis of the technical disclosure in this release.

Quality Assurance & Control

KL Gold and Queenston have 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 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/rejects at alternate certified labs (SPJ Labs, Swastika Laboratories). 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.

About Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc. purchased the Macassa Mine and the 1,500 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 on the west and Wright Hargreaves on 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.

About Queenston Mining Inc.

Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 235 km² of prime exploration lands. The Company's assets include six 100% owned gold deposits, all with NI 43-101 compliant mineral resources and ongoing exploration and development. The objective of the Company is to advance the flagship, Upper Beaver project towards feasibility and production. The project is currently being permitted for advanced exploration leading to new shaft development beginning in 2012. The Company is also very active in exploring and advancing the other five 100% owned deposits that will provide additional feed for a central milling facility. The Company has cash and short-term investments of approximately $75 million, no debt and a fiscal 2012 exploration budget of $25 million.

Cautionary Note Regarding Forward-Looking Statements

This Press Release may contain statements which constitute 'forward-looking information,' including statements regarding the plans, intentions, beliefs and current expectations of the companies, and their directors, or officers with respect to the future business activities and operating performance of the companies. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the companies, 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 companies' 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 companies' Annual Information Forms and quarterly and annual Management's Discussion & Analyses, 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 companies have 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 companies do not intend, and do 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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