Kirkland Lake Gold Inc.
TSX : KGI
AIM : KGI

Kirkland Lake Gold Inc.

March 03, 2014 02:00 ET

Step-Out Drilling Extends the SMC 500 Feet Further East; Drill Hole 53-2414 Assays 10.31 Ounces of Gold Per Ton (353.5 grams) Uncut Over a Core Length of 3.5 Feet (1.1 metres)

KIRKLAND LAKE, ONTARIO--(Marketwired - March 3, 2014) - Kirkland Lake Gold Inc. (the Company) (TSX:KGI)(AIM:KGI), an operating and exploration gold mining company, is pleased to announce drilling results from its ongoing underground diamond drilling exploration program. This latest program has served to further expand the mineralization associated with the South Mine Complex (SMC) on the HM claim and the North Amalgamated-Kirkland (North AK) claim. The HM and North AK claims were formerly held under a joint venture with Queenston Mining Inc. but were 100% acquired, along with other formerly joint venture properties, from Queenston on August 30, 2012.

This phase of the underground exploration program, from the Macassa 5,300 foot level, was designed to follow up on mineralized intercepts on the HM and North AK claims. (see the Company's news release dated September 19, 2013).

Mr. George Ogilvie, President and CEO commented, "This year's underground and surface exploration campaign was, for the most part, focused on drilling on the former joint venture properties, where in places, the average gold grades are greater than one ounce of gold per ton. The extension of the South Mine Complex "(SMC)" five hundred feet (500') to the east is extremely encouraging considering the Company's new business plan aimed at maximizing grade. To this end, all of our planned stope development for the remainder of fiscal year 2014 and 2015 will take place predominately in the SMC where the reserve grade is 0.52 ounces per ton."

"The intersection in drill hole 53-2414 represents a significant five hundred foot step out to the east from previous drilling, further reinforcing the exploration potential of this high grade complex." said Stewart Carmichael, Exploration Manager. "This is a SMC related footwall zone and will require follow up drilling over the next year to determine size and geometry. The SMC remains open to the east and we plan to extend the current drift in this direction to provide additional drill platforms with the intent to further expand the SMC. Results from these step out holes will not be included in this year's reserve and resource update as they were drilled after the December 31, 2013 cut-off date," added Mr. Carmichael.

The following are some of the highlights of the current exploration program:

  • The intersection in drill hole 53-2432 (0.98 ounces per ton (opt) over a true width of 14.5 feet) is the furthest east intersection to date on the New South Zone and is located along the HM North AK boundary. This is the furthest east intersection on the New South Zone to date.

  • The footwall intersection in drill 53-2414 (10.31 opt (3.5 opt cut) over a core length of 3.5 feet) has extended the SMC 500 feet east (a 39% increase) and brings the known strike length of the SMC to 4,100 feet which remains open in all directions at this point. The mineralization in this intersection comprises strong quartz veining within basic syenite associated with visible gold, tellurides and 2-5% fine pyrite.

This drill program is part of a larger long term exploration initiative. The Company is currently operating one exploration drill on surface and two exploration drills underground at the Macassa Mine.

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

To view Figure 1 - plan view showing the latest underground exploration results, please visit the following link: http://media3.marketwire.com/docs/Fig1KGI.pdf.

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

5300 LEVEL SMC UNDERGROUND EXPLORATION

DRILL
HOLE No.
ZONE FROM
(feet)
TO
(feet)
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
ASSAY
(oz per ton/feet)
New South
New Footwall
847.5
1,169.0
850.5
1,172.5
0.63/3.0' CL=2.0' TW
10.31/3.5' CL=??' TW, Uncut
53-2414 -44 017 3.50/3.5' CL=??' TW, Cut**
Incl.
and
1,169.0
1,170.5
1,170.5
1,172.5
8.84/1.5' CL=??' TW, VG, Tell
11.42/2.0' CL=??' TW, VG, Tell
53-2412 New South 725.0 745.0 -52 038 0.02/20.0' CL=TW, Not Calculated
53-2413 New South
New Footwall
640.6
765.7
651.5
766.7
-68 066 0.04/10.9' CL= TW Not Calculated
1.32/1.0' CL=??' TW, VG


53-2418
New South
Incl.
New Footwall
New Footwall
New Footwall
584.2
584.2
716.0
975.7
1,042.5
589.4
586.0
717.7
982.9
1,053.0


-90



360

0.77/5.2' CL=5.0' TW
1.84/1.8' CL=1.7' TW, VG, Tell
0.64/1.7' CL=??' TW
0.19/7.2' CL=??' TW
0.17/10.5'CL=??' TW
53-2431
(hole being extended)
New South
623.0
631.3
-77 064 0.03/8.3' CL= TW Not Calculated
53-2433 New South 732.9 738.5 -64 089 No Significant Values
53-2384 New South
Incl.
and
New Footwall
733.5
737.7
739.1
1,289.0
743.5
739.1
740.8
1,291
-36

337

0.96/10.0' CL=7.7' TW
2.76/1.4' CL=1.1' TW, VG
2.69/1.7' CL=1.3' TW, VG, Tell
0.57/1.7' CL=??' TW
53-2396 New H Wall
New South
499.8
667.6
501.9
675.8
-70 208 0.70/2.1' CL=??' TW
0.12/8.2' CL=TW Not Calculated
53-2397 New South
New Footwall
602.4
747.8
606.7
757.0
-79 204 No Significant Values
0.36/9.2'CL=??' TW
53-2432 New South
Incl.
And
New Footwall
Incl.
and
693.3
695.0
698.0
788.4
788.4
790.8
708.5
698.0
699.0
798.0
790.8
792.2
-71

082

0.98/15.2' CL=14.5' TW
2.30/3.0' CL=2.9' TW, VG
5.06/1.0' CL=1.0' TW, VG
1.15/9.6' CL=??' TW
1.24/2.4' CL=??' TW, VG
3.26/1.4' CL=??' TW,VG
TW = True Width, CL = Core Length, VG = Visible Gold, ?? TW = True Width Unknown, Tell = Tellurides
*Cut = cut to 7.2 opt, **Cut = cut to 3.5 opt.
The following table summarizes the latest drilling results in metric values:
5300 LEVEL SMC UNDERGROUND EXPLORATION
DRILL
HOLE No.
ZONE FROM
(m)
TO
(m)
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
ASSAY
(Grams Per tonne/m)
53-2414 New South
New Footwall

Incl.
and
258.3
356.3

356.3
356.8
259.2
357.4

356.8
357.4
-44

017

21.60/0.9m CL=0.6m TW
353.5/1.1m CL=??m TW, Uncut
120.0/1.1m CL=??m TW, Cut**
303.1/0.5m CL=??m TW, VG, Tell
391.5/0.6m CL=??m TW, VG, Tell
53-2412 New South 221.0 227.1 -52 038 0.7/6.1m CL=TW Not Calculated
53-2413 New South
New Footwall
195.3
233.4
198.6
233.7
-68 066 1.4/3.3m CL= TW Not Calculated
45.3/0.3m CL=??m TW, VG
53-2418 New South
Incl.
New Footwall
New Footwall
New Footwall
178.1
178.1
218.2
297.4
317.8
179.6
178.6
218.8
299.6
321.0
-90

360

26.40/1.5m CL=1.5m TW
63.1/0.5m CL=0.5m TW, VG, Tell
21.9/0.6m CL=??m TW
6.5/2.2m CL=??m TW
5.8/3.2m CL=??m TW
53-2431
(hole being extended)
New South
189.9

192.4
-77 064 1.0/2.5m CL= TW Not Calculated
53-2433 New South 223.4 225.1 -64 089 No Significant Values
53-2384 New South
Incl.
and
New Footwall
223.6
224.9
225.3
392.9
226.6
225.3
225.8
393.5
-36

337

32.9/3.0m CL=2.3m TW
94.6/0.4m CL=0.3m TW, VG
92.2/0.5m CL=0.4m TW, VG, Tell
19.5/0.6m CL=??m TW
53-2396 New H Wall
New South
152.3
203.5
153.0
206.0
-70 208 24.0/0.7m CL=??m TW
4.1/2.5m CL=TW Not Calculated
53-2397 New South
New Footwall
183.6
227.9
184.9
230.7
-79 204 No Significant Values
12.3/2.8m CL=??m TW
53-2432 New South
Incl.
and
New Footwall
Incl.
and
211.3
211.8
212.8
240.3
240.3
241.0
216.0
212.8
213.1
243.2
241.0
241.5
-71

082

33.6/4.7m CL=4.4m TW
78.9/1.0m CL=0.9m TW, VG
173.5/0.8m CL=0.3m TW, VG
39.4/2.9m CL=??m TW
42.5/0.7m CL=??m TW, VG
111.8/0.4m CL=??m TW,VG
TW = True Width, CL = Core Length, VG = Visible Gold, ?? TW = True Width Unknown, Tell = Tellurides
*Cut = cut to 246.9 grams/tonne, **Cut = cut to 120 grams/tonne.

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. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow 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 camp while the current reserve and resource provides for potentially 10 years of mining with significant exploration upside.

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 (which includes a 'qualified person', Stewart Carmichael P.Geo., the Company's Chief Exploration Geologist, 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.

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.

The Company's Macassa Mine Property is the subject of a reserve report prepared by Glenn R. Clark, P.Eng. entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2013 dated June 24, 2013, which has been filed on SEDAR (www.sedar.com) under the Company's filings.

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.

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", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Press Release include, but may not be limited to, statements regarding the acceptance of the Rights Plan by the TSX and the timing thereof, the approval of the Rights Plan by shareholders of the Company, the Company's production capacity and its exploration program. 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 complete the strategic and mine plan review and 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 outcome of the strategic review process the Board has implemented, 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 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, 2013 and the Company's Management's Discussion and Analysis for the interim period ended October 31, 2013 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 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.
    George Ogilvie
    CEO
    +1 705 567 5208
    +1 705 568 6444 (FAX)
    gogilvie@klgold.com

    Kirkland Lake Gold Inc.
    Lindsay Dunlop
    Director of Investor Relations
    +1 416-840-7884
    +1 705 568 6444 (FAX)
    ldunlop@klgold.com
    www.klgold.com

    NOMAD: Panmure Gordon (UK) Limited
    Katherine Roe / Callum Stewart / Adam James
    +44 (0) 20 7 886 2500