Kirkland Lake Gold Inc.
TSX : KLG

Kirkland Lake Gold Inc.

November 07, 2016 06:30 ET

Kirkland Lake Gold Reports Additional High Grade Intercepts and Identifies New Mineralization at Macassa From Underground Drilling on the South Mine Complex

TORONTO, ONTARIO--(Marketwired - Nov. 7, 2016) - Kirkland Lake Gold Inc., ("Kirkland Lake Gold" or the "Company") (TSX:KLG), is pleased to report new high grade drill intercepts from underground exploration drilling on the South Mine Complex ("SMC") at the Macassa Mine Complex, in Kirkland Lake, Ontario.

The drilling program infilled gaps in drill hole coverage between inferred resource blocks and identified new mineralization associated with the easterly strike extension of the SMC within the HM Claim, located approximately 2,000 feet (610 metres) southeast of the #2 shaft at the Macassa Mine Complex.

Underground Drilling Highlights:

  • 651.8 g/t Au (93.6 g/t cut) over 3.8 metres, including 2,846.1 g/t Au over 0.5 metres, in hole 53-2921
  • 40.1 g/t Au over 3.0 metres in hole 53-2967
  • 97.7 g/t Au (70.2 g/t cut) over 1.6 metres, including 263.3 g/t Au over 0.3 metres, in hole 53-3065
  • 102.5 g/t Au (26.7 g/t cut) over 3.2 metres, including 923.3 g/t Au over 0.3 metres, in hole 53-3098
  • 100.5 g/t Au (68.6 g/t cut) over 1.6 metres, including 261.6 g/t over 0.3 metres, in hole 53-3099

Notes: All intercepts are core lengths. High grade assays are cut to 246.9 g/t or 120.0 g/t depending on the zone. (see tables below for more information).

Mr. Tony Makuch, President and Chief Executive Officer of the Company commented, "We are encouraged by these new drill results. Not only does this confirm that the SMC mineralization continues to extend to the east, but this may provide us with the opportunity to further expand the known resource and potentially increase the level of confidence of the mineral resources, as we continue our current underground diamond drill program in the area. We are in the process of extending the exploration drift further to the east, closing the almost 1,500 meter gap between the current known extent of the SMC mineralization, and the regional surface holes that encountered previously reported SMC style mineralization. We look forward to releasing additional results as they become available."

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

Underground Drilling Program Continues to Grow the SMC Further to the East

This program concentrated on both infilling gaps in drill hole coverage and also expanding the SMC further to the east within the HM Claim by testing a zone which was initially identified by drill hole 53-2414 which returned 21.6 g/t Au over a core length of 0.9 metres (see press release dated March 3, 2014). Follow up drilling on this zone was conducted where results in drill hole 53-2705, returned 13.5 g/t Au over a core length of 1.5 metres, and drill hole 53-2886 which returned 383.3 g/t over a core length of 2.6 metres (see press release dated June 9, 2014). This new zone is located in the footwall, north of the New South Zone (which is part of the SMC), and has been identified as Footwall Zone 2 ("FWZ-2") for resource modelling purposes.

The Company has since completed 24 additional drill holes which has expanded and better defined this zone of mineralization. Based on the additional drilling, the FWZ-2 strikes north 20 degrees east with a shallow (5 degree) east dip. It has been defined over a strike length of 130 metres and located between the -5769 and -5850 elevations (approximately 21 metres below the NSZ). It is open up dip and is currently being tested with additional step out drilling. The Company recently extended the 5300' Level exploration drift an additional 190 metres to the east, and excavated a drill station which will be used to explore for SMC related mineralization to the east.

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

SMC UNDERGROUND EXPLORATION ( 5300' Level)

DRILL
HOLE
ZONE DIP
(degrees)
AZIMUTH
(degrees)
FROM
(m)
TO
(m)
CORE
LENGTH
(m)
TRUE WIDTH
(m)
ASSAY
(g/t)
CUT
(g/t)
53-2414 FWZ-2 -44 017 258.3 259.2 0.9 0.5 21.6 -
53-2657B FWZ-2 -36 345 No Zone N/C NSV -
53-2705 FWZ-2 -45 344 225.7 227.2 1.5 1.1 13.4 -
53-2886 FWZ-2 -37 011 276.3 278.9 2.6 1.4 383.3 58.3*
Including 277.2 277.5 0.3 0.2 60.3 -
And 277.9 278.4 0.5 0.3 1,271.7, VG -
And 278.4 278.9 0.5 0.3 661 -
53-2415 FWZ-2 -33 006 320.6 323.9 3.3 1.5 8.6 -
53-2416 FWZ-2 -37 352 No Zone N/C NSV -
53-2655 FWZ-2 -40 010 No Zone N/C NSV -
53-2656 FWZ-2 -46 352 230.6 232.0 1.4 0.9 45.3 -
Including 231.6 232.0 0.4 0.2 95.3, VG -
53-2920 FWZ-2 -42 356 235.9 237.0 1.1 0.9 24.0 -
53-2921 FWZ-2 -36 006 279.3 283.1 3.8 2.2 651.8 93.6**
Including 279.9 280.6 0.7 0.4 108.3 -
And 280.9 281.3 0.4 0.2 762.2, VG, Tell -
And 281.3 282.0 0.7 0.4 277.7, VG -
And 282.0 282.5 0.5 0.4 2,846.1,VG,Tell -
And 282.5 283.1 0.6 0.4 669.9, VG, Tell -
53-2967 FWZ-2 -45 017 238.0 241.0 3.0 2.0 40.1 -
Including 238.0 238.3 0.3 0.2 54.2, VG -
And 240.2 241.0 0.8 0.5 111.8, Tell -
53-2968 FWZ-2 -53 020 222.0 227.4 5.4 N/C 1.0 -
53-2969 FWZ-2 -39 020 303.7 304.8 1.1 N/C 1.3 -
53-2971 FWZ-2 -44 025 249.1 249.6 0.5 N/C 0.7 -
53-2972 FWZ-2 -37 027 320.0 322.5 2.4 N/C 1.0 -
53-3050 FWZ-2 -50 003 No Zone N/C NSV -
53-3051 FWZ-2 -47 006 No Zone N/C NSV -
53-3063 FWZ-2 -46 350 No Zone N/C NSV -
53-3064 FWZ-2 -36 018 318.9 319.2 0.3 N/C NSV -
53-3065 FWZ-2 -43 020 272.0 273.6 1.6 0.8 97.7 70.2**
Including 272.3 272.7 0.4 0.2 87.8 -
And 272.7 273.0 0.3 0.2 263.3, VG -
And 273.0 273.3 0.3 0.2 104.2, VG -
53-3097 FWZ-2 -36 001 267.8 268.5 0.7 0.5 164.9, Tell 120.0**
53-3098 FWZ-2 -40 005 260.2 263.4 3.2 2.1 102.5 26.7**
Including 260.2 260.8 0.6 0.4 49.7, VG -
And 262.8 263.1 0.3 0.2 923.3, VG -
53-3099 FWZ-2 -44 010 255.8 257.4 1.6 0.9 100.5 68.6**
Including 256.5 256.8 0.3 0.2 261.6, VG, Tell -
And 256.8 257.4 0.6 0.3 132.7, VG -
53-3107 FWZ-2 -34 005 312.1 313.4 1.3 0.7 63.8 41.1**
Including 312.4 312.8 0.4 0.2 201.9, VG, Tell -
53-3108 FWZ-2 -39 009 268.2 269.3 1.0 0.7 8.6 -
53-3109 FWZ-2 -34 009 318.7 320.8 2.1 1.0 11.0 -
53-3121 FWZ-2 -37 357 286.4 287.7 1.3 0.7 75.8, VG -
53-3122 FWZ-2 -35 001 285.9 288.6 2.7 1.6 26.4 22.6**
Including 288.3 288.6 0.3 0.2 154.1, VG, Tell -
NSV = No significant value, VG = Visible Gold; Tell = Tellurides; *Cut = cut to 246.9 g/t, **Cut = cut to 120.0 g/t.
N/C = True width not calculated, will not make minimum requirements for resource definition.

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 best 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 certified reference standards, 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.

Qualified Person

The Company's exploration programs are under the supervision of Doug Cater, P.Geo., Vice President of Exploration. Mr. Cater 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. As the Vice President of Exploration, Mr. Cater is not considered independent.

About the Company

Kirkland Lake Gold Inc. is a Canadian focused, intermediate gold producer with assets in the historic Kirkland Lake gold camp, and east of the Timmins gold camp along the Porcupine-Destor Fault Zone, both in northeastern Ontario. The Company is currently targeting annual gold production of between 280,000 to 290,000 ounces from its cornerstone asset, the Macassa Mine Complex and the Holt Mine Complex that includes the Holt, Holloway and Taylor mines.

The Company is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer with quality assets in safe mining jurisdictions.

The Toronto Stock Exchange has neither reviewed nor 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" within the meaning of applicable securities laws, 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, including but not limited to; the continued exploration programs on the SMC mineralization, the timing and results thereof; the ability to continue to expand the SMC and to increase its level of resources and the timing thereof; and the potential to increase the level of resources and reserves. 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, 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 December 31, 2015, and the Company's Management's Discussion and Analysis for the interim period ended September 30, 2016, 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.

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