KIRKLAND LAKE, ONTARIO--(Marketwired - Feb. 25, 2014) - Kirkland Lake Gold Inc. (the Company) (TSX:KGI) (AIM:KGI), an operating and exploration gold company, is pleased to announce recent drilling results from its ongoing surface diamond drilling exploration program. This latest program utilized one drill rig on the Macassa Property, west of the South Claims property boundary (See Figure 1), in a continuing effort to define potential near surface resources.
Mr. George Ogilvie, CEO commented, "We are very pleased with the results to date of this surface exploration program and are excited to shortly be able to announce a reserve and resource calculation on ounces close to surface for the first time in the Company's history. Intersections from the surface campaign to date have shown mineralization from surface to 1000-foot depth, which have the potential to be mined from a ramp or decline. The surface program will continue throughout the year as exploration continues both east and west from this area."
This phase of the surface exploration program was designed to follow up on the earlier success of drilling programs testing for near surface mineralization associated with the Amalgamated Break (see the Company's news releases dated February 28, 2012, September 5, 2012 and June 18, 2013). The Amalgamated Break had seen limited historic exploration prior to the recent drilling campaign initiated by the Company.
This phase of drilling has been successful on a number of fronts:
- Numerous drill holes intersected a third, previously undiscovered, zone of continuous high grade gold mineralization (Zone 3) west of the current known mineralized area (See Figure 2). This mineralized zone lies footwall to the previously discovered Zone 1 and Zone 2 (See the Company's new release dated June 18, 2013).
- Recent drilling intersected high grade gold mineralization 950 feet below surface, which is 550 feet deeper than the previously defined 400 foot elevation.
- Recent drilling has produced the highest grade intersection to date in the current surface drilling campaign (50.11 ounces of gold per ton (opt) over 1.4 feet true width). This phase of drilling also produced several sporadic high grade gold intercepts
- The broad zone of alteration and mineralization associated with the Amalgamated Break has now been defined at over 3,500 feet along strike and is open to drilling outside this current limit.
The following are some of the highlights of the drilling program:
- Drill hole AB-13-108 intersected Zone 3 and returned 50.11 opt uncut over 1.9 foot of core length (1.4 feet true width). This intersection is 920 feet below surface and contained significant visible gold. This represents the highest grade intercept to date in the current surface exploration campaign, as well as one of the deepest intercepts of this program to date.
- Drill hole AB-13-106 intersected Zone 3 and returned 6.95 opt uncut over 1.0 foot of core length (1.0 feet true width). This intersection is approximately 500 feet below surface and contained visible gold.
- Drill hole AB-13-151 intersected Zone 3 and returned 1.18 opt uncut over 7.5 foot of core length (7.2 feet true width). This intersection is approximately 470 feet below surface and contained significant visible gold.
- Drill hole AB-13-151 also intersected a new zone hanging wall to Zone 3 that returned 0.98 opt uncut over 3.3 feet of core length (true width unknown). This intersection is approximately 200 feet below surface and may be related to Zone 1 or Zone 2 which are currently defined to approximately 1000' feet east of this intersection.
This drill program is being carried out utilizing one drill rig on surface and will continue to focus on defining gold mineralization both east and west of the current known limits of all three zones.
The following figures, referred to elsewhere in this release, may be viewed at the Company's website at www.klgold.com.
- Figure 1 - plan view showing the location of the current surface drill program.
- Figure 2 - long section showing current Zone 3 intercepts.
The following tables summarize the latest drilling results in imperial values:
SOUTH CLAIMS SURFACE EXPLORATION
| DRILL HOLE No. | ZONE | FROM (feet |
) | TO (feet |
) | HOLE DIP (degrees |
) | AZIMUTH (degrees |
) | ASSAY (oz per ton/feet |
) | |
| AB-13-108 | Zone 3 | 1,009.7 | 1,011.6 | -68 | 326 | 50.11/1.9' CL=1.4' TW, VG | ||||||
| 3.50/1.9' CL=1.4' TW, *CUT | ||||||||||||
| AB-13-106 | Zone 3 | 813.4 | 814.4 | -34 | 313 | 6.95/1.0' CL=1.0' TW, VG | ||||||
| 3.50/1.0' CL=1.0' TW, *CUT | ||||||||||||
| AB-13-151 | New | 262.5 | 265.8 | -47 | 334 | 0.98/3.3' CL=??' TW, VG | ||||||
| Zone 3 | 621.2 | 628.7 | 1.18/7.5' CL=7.2' TW, VG | |||||||||
| AB-13-90 | Zone 3 | 741.8 | 743.5 | -58 | 306 | 0.02/1.7' CL=??' TW | ||||||
| AB-13-92 | Zone 3 | 650.1 | 651.1 | -42 | 305 | 0.17/1.0' CL=??' TW | ||||||
| AB-13-97 | Zone 3 | 962.8 | 963.9 | -64 | 323 | 0.21/1.1' CL=??' TW | ||||||
| AB-13-98 | Zone 3 | 915.3 | 916.3 | -57 | 324 | 0.22/1.0' CL=??' TW | ||||||
| AB-13-103 | Zone 3 | 1,020.9 | 1,021.9 | -71 | 315 | 0.44/1.0' CL=??' TW | ||||||
| AB-13-107 | Zone 3 | 930.8 | 931.8 | -56 | 310 | 0.15/1.0' CL=??' TW | ||||||
| AB-13-109 | Zone 3 | 863.5 | 864.5 | -53 | 326 | 0.11/1.0' CL=??' TW | ||||||
| AB-13-110 | Zone 3 | -43 | 327 | NSV | ||||||||
| New | 848.5 | 849.5 | 0.87/1.0' CL=??' TW | |||||||||
| AB-13-123 | -80 | 327 | NSV | |||||||||
| AB-13-124 | New | 938.1 | 939.1 | -65 | 331 | 1.63/1.0' CL=??' TW, VG | ||||||
| Zone 3 | 975.5 | 976.5 | 0.56/1.0' CL=0.9'TW | |||||||||
| AB-13-125 | Zone 3 | -69 | 308 | NSV | ||||||||
| AB-13-137 | Zone 3 | 934.1 | 935.8 | -62 | 327 | 0.46/1.7' CL=1.5' TW, VG | ||||||
| AB-13-138 | New | 1,033.0 | 1,035.0 | -70 | 304 | 0.25/2.0' CL=??' TW | ||||||
| Zone 3 | NSV | |||||||||||
| AB-13-139 | Zone 3 | 1,045.9 | 1,047.1 | -71 | 335 | 0.15/1.2' CL=1.8' TW | ||||||
| AB-13-144A | Zone 3 | -70 | 309 | NSV | ||||||||
| AB-13-145 | Zone 3 | 1,019.2 | 1,021.5 | -69 | 333 | 0.27/2.3' CL=1.9' TW | ||||||
| AB-13-152A | Zone 3 | -58 | 347 | NSV | ||||||||
| AB-13-153 | Zone 3 | -45 | 343 | NSV | ||||||||
| AB-13-154A | Zone 3 | 650.3 | 651.3 | -47 | 353 | 2.86/1.0' CL=0.9' TW, VG | ||||||
| AB-13-155 | Zone 3 | -45 | 356 | NSV | ||||||||
| AB-13-156 | Zone 3 | 646.0 | 647.3 | -40 | 319 | 0.55/1.3' CL=1.3' TW, VG | ||||||
| AB-13-162 | New | 230.5 | 232.1 | -52 | 320 | 1.87/1.6' CL=??' TW, VG | ||||||
| Zone 3 | 659.5 | 660.7 | 1.16/1.2' CL=1.1' TW, VG | |||||||||
| AB-13-166 | Zone 3 | 637.2 | 640.2 | -44 | 325 | 1.21/3.0' CL=3.0' TW, VG | ||||||
| AB-13-167 | Zone 3 | 689.5 | 694.5 | -39 | 306 | 1.04/5.0' CL=4.9' TW, VG | ||||||
| AB-13-168 | Zone 3 | 692.5 | 693.5 | -58 | 315 | 1.58/1.0' CL=0.9' TW, VG | ||||||
| AB-13-170 | New | 699.9 | 700.9 | -66 | 316 | 1.08/1.0' CL=??' TW | ||||||
| Zone 2 | 764.0 | 765.0 | 0.18/1.0' CL=?? TW | |||||||||
| AB-13-171A | Zone 3 | 701.8 | 702.8 | -51 | 001 | 2.24/1.0' CL=1.0' TW, VG | ||||||
| AB-13-172 | New | 270 | 271 | -47 | 323 | 1.25/1.0' CL=??' TW, VG | ||||||
| Zone 3 | 670.5 | 672.0 | 3.39/1.5' CL=1.5' TW, VG | |||||||||
| AB-13-173 | New | 581.8 | 583.2 | -53 | 327 | 1.02/1.4' CL=??' TW, VG | ||||||
| Zone 3 | 713.0 | 716.0 | 0.11/3.0' CL=??' TW |
TW = True Width, CL = Core Length, VG = Visible Gold, ?? TW = True Width Unknown, NSV=No Significant Values *Cut = cut to 3.5 opt
The following tables summarize the latest drilling results in metric values:
SOUTH CLAIMS SURFACE EXPLORATION
| DRILL HOLE No. | ZONE | FROM (m |
) | TO (m |
) | HOLE DIP (degrees |
) | AZIMUTH (degrees |
) | ASSAY (grams per tonne/metres |
) | |
| AB-13-108 | Zone 3 | 307.8 | 308.3 | -68 | 326 | 1,718.06/0.6m CL=0.4m TW, VG | ||||||
| 120.00/0.6m CL=0.4m TW, *CUT | ||||||||||||
| AB-13-106 | Zone 3 | 247.9 | 248.2 | -34 | 313 | 283.29/0.3m CL=0.3m TW, VG | ||||||
| 120.00/0.3m CL=0.3m TW, *CUT | ||||||||||||
| AB-13-151 | New | 80.0 | 81.0 | -47 | 334 | 33.60/1.0m CL=??m TW, VG | ||||||
| Zone 3 | 189.3 | 191.6 | 40.46/2.3m CL=2.2m TW, VG | |||||||||
| AB-13-90 | Zone 3 | 226.1 | 226.6 | -58 | 306 | 0.51/0.5m CL=??m TW | ||||||
| AB-13-92 | Zone 3 | 198.2 | 198.5 | -42 | 305 | 5.90/0.3m CL=??m TW | ||||||
| AB-13-97 | Zone 3 | 293.5 | 293.8 | -64 | 323 | 7.03/0.3m CL=??m TW | ||||||
| AB-13-98 | Zone 3 | 279.0 | 279.3 | -57 | 324 | 7.54/0.3m CL=??m TW | ||||||
| AB-13-103 | Zone 3 | 311.2 | 311.5 | -71 | 315 | 15.02/0.3m CL=??m TW | ||||||
| AB-13-107 | Zone 3 | 283.7 | 284.0 | -56 | 310 | 5.14/0.3m CL=??m TW | ||||||
| AB-13-109 | Zone 3 | 263.2 | 263.5 | -53 | 326 | 3.77/0.3m CL=??m TW | ||||||
| AB-13-110 | Zone 3 | -43 | 327 | NSV | ||||||||
| New | 258.6 | 258.9 | 29.83/0.3m CL=??m TW | |||||||||
| AB-13-123 | -80 | 327 | NSV | |||||||||
| AB-13-124 | New | 285.9 | 286.2 | -65 | 331 | 55.89/0.3m CL=??m TW, VG | ||||||
| Zone 3 | 297.3 | 297.6 | 19.20/0.3m CL=0.3m TW | |||||||||
| AB-13-125 | Zone 3 | -69 | 308 | NSV | ||||||||
| AB-13-137 | Zone 3 | 284.7 | 285.2 | -62 | 327 | 15.77/0.5m CL=0.5m TW, VG | ||||||
| AB-13-138 | New | 314.9 | 315.5 | -70 | 304 | 8.57/0.6m CL=??m TW | ||||||
| Zone 3 | NSV | |||||||||||
| AB-13-139 | Zone 3 | 318.8 | 319.2 | -71 | 335 | 5.14/0.4m CL=??m TW | ||||||
| AB-13-144A | Zone 3 | -70 | 309 | NSV | ||||||||
| AB-13-145 | Zone 3 | 310.7 | 311.4 | -69 | 333 | 9.26/0.7m CL=0.6m TW | ||||||
| AB-13-152A | Zone 3 | -58 | 347 | NSV | ||||||||
| AB-13-153 | Zone 3 | -45 | 343 | NSV | ||||||||
| AB-13-154A | Zone 3 | 198.2 | 198.5 | -47 | 353 | 98.06/0.3m CL=??m TW, VG | ||||||
| AB-13-155 | Zone 3 | -45 | 356 | NSV | ||||||||
| AB-13-156 | Zone 3 | 196.9 | 197.3 | -40 | 319 | 18.86/0.4m CL=0.4m TW, VG | ||||||
| AB-13-162 | New | 70.3 | 70.7 | -52 | 320 | 64.11/0.5m CL=??m TW, VG | ||||||
| Zone 3 | 201.0 | 201.4 | 39.77/0.4m CL=0.3m TW, VG | |||||||||
| AB-13-166 | Zone 3 | 194.2 | 195.1 | -44 | 325 | 41.49/0.9m CL=0.9m TW, VG | ||||||
| AB-13-167 | Zone 3 | 210.2 | 211.7 | -39 | 306 | 35.66/1.5m CL=1.5m TW, VG | ||||||
| AB-13-168 | Zone 3 | 211.1 | 211.4 | -58 | 315 | 54.17/0.3m CL=0.3m TW, VG | ||||||
| AB-13-170 | New | 213.3 | 213.6 | -66 | 316 | 37.03/0.3m CL=??m TW | ||||||
| Zone 2 | 232.9 | 233.2 | 6.21/0.3m CL=??m TW | |||||||||
| AB-13-171A | Zone 3 | 213.9 | 214.2 | -51 | 001 | 76.80/0.3m CL=0.3m TW, VG | ||||||
| AB-13-172 | New | 82.3 | 82.6 | -47 | 323 | 42.69/0.3m CL=??m TW, VG | ||||||
| Zone 3 | 204.4 | 204.8 | 116.23/0.5m CL=0.5m TW, VG | |||||||||
| AB-13-173 | New | 177.3 | 177.8 | -53 | 327 | 34.97/0.4m CL=??m TW, VG | ||||||
| Zone 3 | 217.3 | 218.2 | 3.77/0.9m CL=??m TW |
TW = True Width, CL = Core Length, VG = Visible Gold, ?? TW = True Width Unknown, NSV=No Significant Values *Cut = cut to 120.0 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.
To view Figures 1 and 2 that are associated with this release, please visit the following link: http://media3.marketwire.com/docs/929319fig1-2.pdf
Contact Information:
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