Kirkland Lake Gold Inc.

Kirkland Lake Gold Inc.

November 18, 2005 00:05 ET

KL Gold Second Quarter Review and Second Half Review

KIRKLAND LAKE, ONTARIO--(CCNMatthews - Nov. 18, 2005) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI)(AIM:KGI), reports that during its second fiscal quarter ending October 31st, operations produced and milled 41,893 tons of ore at a grade of 0.33 ounces per ton producing 13,859 ounces of gold. While behind plan for the quarter, the month of October was the first month where tons produced of 14,967 were on plan. This is principally due to the decision in late September to remove chronically under-performing new equipment from underground and return it to the manufacturer for re-design (see additional information below). While overall operating cost for the quarter were C$174 per ton, during October, 6,117 ounces of gold were produced from ore feed grading 0.41 ounce per ton at an operating cost of C$160 per ton. Full financial information for the second quarter is expected to be issued the week of November 28th.

"While our operating costs decreased significantly in the second quarter, we are targeting additional 8-10% decreases in operating costs for each of the next three fiscal quarters to below C$140 a ton," said Bob Rodrigue, the Company's Chief Financial Officer. "We expect ore production for the next two quarters of the fiscal year to be 43-45,000 tons per quarter and the gold grade to range between 0.44 to 0.45 ounce per ton."

"In order to overcome the mechanical and design issues that we have had since taking delivery of new equipment in November 2004, we formed a task force of miners, mechanics, and maintenance management," said Brian Hinchcliffe, the Company's CEO. "This task force in mid September requested that the equipment assembler, and the original equipment manufacturer (OEM) visit our site, and then proceeded to re-design the cable winder for the scoop and the hydraulic system itself. We are pleased to report that within 60 days of that decision, which included rigorous offsite testing sessions, this equipment is now working underground in our critical high grade stopes at proper performance rates for the first time."

Other Second Quarter Highlights and Trends

- During the second quarter, an additional loading pocket in the Shaft #3 was commissioned at the 5700 level, which has a capacity of 100 tons per hour. This loading pocket will permit mining from five additional lower levels.

- The hydraulic fill system, required for continuous mining at Shaft #2, was completed and tested and has successfully filled its first stope, during the second quarter.

- Over the quarter the amount of ore extracted via more cost efficient long hole stoping has risen from 32-35% for the previous three quarters to the current 49%. The amount of ore scheduled to be mined from Long Hole Stopes is expected to rise to 62% by May 1st, 2006.

About the Company

The Company purchased the Macassa Mine and the 1,500 ton per day mill along with four former producing gold properties - Kirkland Lake Gold, 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 kilometers between the Macassa Mine on the east and Wright Hargreaves on the west and for the first time will be developed and explored under one owner. This camp is located in the Abitibi Southern Greenstone Belt of Kirkland Lake, Ontario, Canada.

No Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Kirkland Lake Gold Inc.
    Brian Hinchcliffe
    (705) 567-5208
    (705) 568-6444 (FAX)
    Kirkland Lake Gold Inc.
    Scott Koyich
    Investor Relations
    (403) 215-5979