Kirkland Lake Gold Inc.
TSX : KGI

Kirkland Lake Gold Inc.

October 20, 2015 07:00 ET

Kirkland Lake Gold Reports Successful Drilling to Expand and Confirm Continuity of the South Mine Complex on the HM Claim

TORONTO, ONTARIO--(Marketwired - Oct. 20, 2015) - Kirkland Lake Gold Inc., (TSX:KGI) ("Kirkland Lake Gold" or the "Company") an operating and exploration gold company provides an update on the underground exploration drilling program on the South Mine Complex ("SMC") at the Company's Macassa Mine Complex, and in particular on the HM claim (formerly a part of the Queenston Mining Joint Venture property).

The HM claim, located approximately 610 metres (2,000 feet) southeast of the #2 shaft at the Macassa Mine Complex, is an area that hosts the easterly extension of the SMC. The twelve-hole (4,278 metre or 14,031 feet) drilling program is a continuation of the program detailed in the Company's press release dated June 9th, 2015. This program concentrated on expanding the SMC by testing inferred resource block areas on both the New South Zone ("NSZ") and intersected both new and previously identified hanging wall ("HWZ") and footwall zones ("FWZ") to the NSZ.

Highlights:

  • Footwall mineralization intersected 383.3 grams per tonne ("g/t") uncut or 11.18 ounces per ton ("opt") uncut, over a true width of 1.7 metres (5.6 feet)
    • Drill hole 53-2886 intersected footwall mineralization at the -5800 foot elevation (1,767 metre) and returned 383.3 g/t uncut (58.3 g/t cut) or 11.18 opt uncut, (1.70 opt cut) over a true width of 1.7 metres (5.6 feet). Combined with previously released drill hole 53-2414 (21.6 g/t or 0.63 opt) over a true width of 0.7 metres (2.3 feet) (see press release dated March 3, 2014), this represents the furthest east intersections on the HM claim to date.
  • NSZ intersections confirm continuity
    • Drill hole 53-2881 returned 67.9 g/t (1.98 opt) over a true width of 4.4 metres (14.4 feet), drill hole 53-2882 returned 14.7 g/t (0.43 opt) over a true width of 2.9 metres (9.5 feet) and drill hole 53-2883 returned 16.5 g/t (0.48 opt) over a true width of 2.7 metres (8.8 feet).

Notes: Higher grade assays are cut to 246.9 g/t (7.20 opt) or 120.0 g/t (3.50 opt), depending on the zone (see tables below for more information).

Mr. George Ogilvie, Chief Executive Officer of the Company commented, "These additional positive results illustrate the robust nature of the SMC which continues to be expanded further to the east and at depth. Our goal is to test the extensions of the SMC, while conducting infill drilling in order to replace reserves and find new resources. We will have additional results on the area formally known as the South Claims, and look forward to providing another update in the coming weeks."

SMC Underground Drilling on the HM Claim

6 drill holes tested inferred resource areas on the flanks of NSZ where 4 of these drill holes (or 67%) returned intersections which will meet the requirement to be converted from inferred resources to indicated resources.

Previous drilling also identified a waste gap extending over 73.1 metres (240.0 feet) of strike length as indicated by previously released drill hole 53-2290 which returned 9.9 g/t (0.29 opt) over a true width of 1.2 metres (4.1 feet), which did not make the minimum requirements to define a resource (see press release dated September 19, 2013). Recently completed drill hole 53-2820 returned 31.2 g/t (0.91 opt) over a true width of 1.7 metres (5.7 feet) and drill hole 53-2884 returned 116.2 g/t (3.39 opt) over a true width of 0.7 metres (2.4 feet), and have decreased the strike length of the waste gap to 18.3 metres (60.0 feet).

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

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

HM CLAIM SMC UNDERGROUND EXPLORATION Metric Table (5300 Level)

DRILL HOLE ZONE DIP
(degrees)
AZIMUTH
(degrees)
FROM (m) TO (m) CORE LENGTH (m) TRUE WIDTH (m) ASSAY (g/t) CUT (g/)
53-2820 NSZ 193.9 196.0 2.1 1.7 31.2 -
Including -47 323 194.5 195.1 0.6 0.5 52.1, VG, Tell -
And 195.4 196.0 0.6 0.5 35.7, VG -
53-2825 NSZ -74 033 179.4 179.7 0.3 N/C 3.1 -
53-2826 NSZ -67 047 192.9 193.3 0.4 N/C 26.7 -
53-2879 NSZ 214.7 215.1 0.4 N/C 2.7 -
FWZ -40 291 240.1 241.2 1.1 ?? 83.3, VG -
FWZ 248.6 249.6 1.0 0.8 45.3 -
Including 249.1 249.6 0.5 0.4 59.3, VG, Tell -
53-2880 NSZ -67 294 153.7 154.2 0.5 0.5 145.4, VG -
FWZ 294.7 295.4 0.7 ?? 33.6 -
53-2881 HWZ 153.2 153.5 0.3 0.3 82.3, VG -
HWZ 177.4 178.4 1.0 0.9 192.7 67.2**
Including 177.4 178.0 0.6 0.5 72.7, VG -
And -54 307 178.0 178.4 0.4 0.4 356.2, VG, Tell -
NSZ 180.8 185.8 5.0 4.4 67.9 -
Including 181.5 182.2 0.7 0.6 220.5, VG -
And 185.2 185.8 0.6 0.5 226.3, VG, Tell -
53-2882 HWZ 219.4 221.5 2.1 1.5 77.1 35.7**
Including 219.4 219.7 0.3 0.2 407.3, VG -
NSZ -36 310 245.4 248.9 3.5 2.9 14.7 -
Including 245.4 245.9 0.5 0.4 41.1, VG -
FWZ 254.7 258.4 3.7 ?? 12.0 -
Including 256.0 256.3 0.3 ?? 38.4, VG -
53-2883 HWZ 153.1 153.4 0.3 0.3 57.6, VG, Tell -
NSZ -59 333 169.2 171.9 2.7 2.7 16.5 -
Including 169.8 170.2 0.4 0.4 29.5 -
And 170.2 170.7 0.5 0.5 21.6 -
53-2884 NSZ -44 338 203.0 203.9 0.9 0.7 116.2, VG -
53-2885 NSZ -47 350 204.0 204.3 0.3 N/C 1.4 -
53-2886 NSZ 248.2 248.5 0.3 N/C 0.3 -
FWZ 276.3 278.9 2.6 1.7 383.3 58.3**
Including 277.2 277.5 0.3 0.2 60.3, VG -
And -37 011 277.9 278.4 0.5 0.3 1,271.7, VG, Tell -
And 278.4 278.9 0.5 0.3 661.0 -
FWZ 304.3 305.0 0.7 ?? 69.60 61.7**
Including 304.6 305.0 0.4 ?? 129.9, VG -
53-2887 NSZ -57 013 200.4 201.2 0.8 N/C 5.5 -
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.
?? = True width unknown, requires additional drilling to ascertain geometry.

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

SMC UNDERGROUND EXPLORATION (HM CLAIM) Imperial Table (5300 Level)

DRILL HOLE ZONE DIP (degrees) AZIMUTH (degrees) FROM (feet) TO (feet) CORE LENGTH (feet) TRUE WIDTH (feet) ASSAY (oz/ton) CUT (oz/ton)
53-2820 NSZ 636.0 643.2 7.2 5.7 0.91 -
Including -47 323 638.0 640.0 2.0 1.6 1.52, VG, Tell -
And 641.0 643.2 2.2 1.7 1.04, VG -
53-2825 NSZ -74 033 588.7 589.7 1.0 N/C 0.09 -
53-2826 NSZ -67 047 633.0 634.1 1.1 N/C 0.78 -
53-2879 NSZ 704.3 705.6 1.3 N/C 0.08 -
FWZ -40 291 789.2 791.5 2.3 ?? 2.43, VG -
FWZ 815.7 818.8 3.1 2.5 1.32 -
Including 817.1 818.8 1.7 1.4 1.73, VG, Tell -
53-2880 NSZ -67 294 504.3 505.8 1.5 1.5 4.24, VG -
FWZ 966.6 969.1 2.5 ?? 0.98 -
53-2881 HWZ 502.5 503.5 1.0 1.0 2.40, VG -
HWZ 582.0 585.3 3.3 2.9 5.62 1.96**
Including 582.0 583.9 1.9 1.7 2.12, VG -
And -54 307 583.9 585.3 1.4 1.2 10.39, VG, Tell -
NSZ 593.0 609.7 16.7 14.4 1.98 -
Including 595.6 597.8 2.2 1.9 6.43, VG -
And 607.7 609.7 2.0 1.7 6.60, VG, Tell -
53-2882 HWZ 719.8 726.7 6.9 4.8 2.25 1.04**
Including 719.8 720.8 1.0 0.7 11.88, VG -
NSZ -36 310 805.0 816.6 11.0 9.5 0.43 -
Including 805.0 806.6 1.6 1.4 1.20, VG -
FWZ 835.5 847.7 12.2 ?? 0.35 -
Including 840.0 841.0 1.0 ?? 1.12, VG -
53-2883 HWZ 502.3 503.3 1.0 0.9 1.68, VG, Tell -
NSZ -59 333 555.0 564.0 9.0 8.8 0.48 -
Including 557.0 558.5 1.5 1.5 0.86 -
And 558.5 560.0 1.5 1.5 0.63 -
53-2884 NSZ -44 338 666.0 668.8 2.8 2.4 3.39, VG -
53-2885 NSZ -47 350 669.3 670.3 1.0 N/C 0.04 -
53-2886 NSZ 814.4 815.4 1.0 N/C 0.01 -
FWZ 906.5 915.0 8.5 5.6 11.18 1.70**
Including 909.5 910.5 1.0 0.7 1.76, VG -
And -37 011 911.7 913.3 1.6 1.1 37.09. VG, Tell -
And 913.3 915.0 1.7 1.1 19.28 -
FWZ 998.2 1,000.8 2.6 ?? 2.03 1.80**
Including 999.5 1,000.8 1.3 ?? 3.79, VG -
53-2887 NSZ -57 013 657.4 660.0 2.6 N/C 0.16 -
VG = Visible Gold; Tell = Tellurides; *Cut = cut to 7.2 opt; **Cut = cut to 3.5 opt.
N/C = True width not calculated, will not make minimum requirements for resource definition.
?? = True width unknown, requires additional drilling to ascertain geometry.

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.

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. Carmichael 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.

Technical Information

The Company's Macassa Mine Property is the subject of a technical report prepared by Glenn R. Clark, P.Eng., titled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2015, dated May 22, 2015, which has been filed on SEDAR (www.sedar.com).

About the Company

Kirkland Lake Gold Inc. is a gold producer with assets in Kirkland Lake, northeastern Ontario. Current gold production is in excess of 150,000 ounces per year and is expected to grow to over 180,000 ounces per year in the next three years as exploration and development work continue. The exploration program is aimed at maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years, with the current mine life estimated at between ten to fourteen years of production in a high grade gold camp.

The Company is committed to building a sustainable mining company that is recognized as a safe and responsible gold producer. Kirkland Lake Gold plans to evolve into an intermediate gold mining company centred in the historically robust Kirkland Lake gold camp, while evaluating opportunities for growth in other 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 Company's planned drilling program on the SMC and the timing and results thereof; and the ability to increase its level of resources in the SMC and the timing thereof. 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 April 30, 2015, and the Company's Management's Discussion and Analysis for the interim period ended April 30, 2015, 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.

Contact Information

  • Kirkland Lake Gold Inc.
    Toll Free: 1-866-384-2924

    Kirkland Lake Gold Inc.
    George Ogilvie, P.Eng
    Chief Executive Officer
    +1 416-840-7884
    gogilvie@klgold.com

    Kirkland Lake Gold Inc.
    Suzette N. Ramcharan, CPIR
    Director of Investor Relations
    Direct: +1 647-361-0200 or Mobile: +1 647-284-5315
    sramcharan@klgold.com
    www.klgold.com