Kirkland Lake Gold Reports Initial Results From Its Regional Exploration Program Intercepting High Grade Mineralization East of the SMC
AB-15-23 returns 3,241.4 g/t Au, over 0.7 metres of core length; and AB-15-91 returns 1,783.2 g/t Au, over 0.3 metres of core length
TORONTO, ONTARIO--(Marketwired - Nov 3, 2015) - Kirkland Lake Gold Inc., ("KL Gold" or the "Company")(TSX:KGI) an operating and exploration gold company provides results from its regional exploration program on its wholly owned property in Kirkland Lake, Ontario. The Company commenced a targeting program to test for mineralization on the north side of the Amalgamated Break and the possible easterly extension of the South Mine Complex ("SMC") across a previously untested trend of approximately 1,500 metres in strike length.
Highlights (Phase 1 and Phase 1a):
| Phase 1 | ||
| AB-15-12 | 11.7 grams per tonne ("g/t") over 0.3 metres 0.34 ounce per ton ("opt") over 1.0 feet | Intersected visible gold and tellurides at the -5693 elevation. |
| AB-15-23 | 3,241.4 grams per tonne ("g/t"), over 0.7 metres 94.54 ounce per ton ("opt"), over 2.3 feet | Intersected coarse visible gold at the -3566 elevation |
| 11.7 grams per tonne ("g/t") over 0.3 metres 0.34 ounce per ton ("opt") over 1.0 feet | Intersected visible gold and tellurides at the -5908 elevation. | |
| All four holes in Phase I of the drill program returned gold values in excess of 6.0 g/t (0.18 opt) | ||
| Phase 1a | ||
| AB-15-91 | 1,783.2 g/t uncut, over 0.3 metres 52.01 opt uncut over 1.0 feet | located approximately midway between holes AB-15-12 and AB-15-23, and intersected visible gold and tellurides at the -5700 elevation. |
Mr. George Ogilvie, Chief Executive Officer of the Company commented, "This is an exciting venture for the Company, as there has never been any historical testing of this kind on the Company's holdings in the Kirkland Lake Camp. Our geology team are satisfied with the initial results, and along with geophysics analysis, this information will be used to better target follow-up drilling. We look forward to completing additional drilling by calendar year end, the results of which will be used to determine a further follow-up in Phase 2 of the regional program to be implemented within our 2016 budget.
"The regional drill program is in keeping with management's vision to further develop the Kirkland Lake camp."
Phase 1 and 1a Drilling Program
The initial phase of the deep drill program (Phase 1) consisted of four (4) holes drilled to depths of between 1,940 to 2,070 metres (6,360 feet to 6,800 feet) and stepped out approximately 250 metres (800 feet) east of the last known intersection on the SMC, with each hole spaced at 300 metre intervals incrementally east of the previous hole. The SMC intrusive phase (porphyry, basic syenite) is generally mineralized with up to 5% pyrite. The tuffs may have higher sulphide content, up to 10% pyrite. Upon completion of the deep holes, the Company completed a down-hole induced polarization ("DHIP") geophysical survey to identify potential exploration targets. The DHIP identified several weak chargeability anomalies consistent with the intrusive phase sulphide content of the SMC (approximately 5%). The chargeability anomalies may indicate disseminated pyrite, but may not necessarily indicate gold mineralization.
Hole AB-15-23 returned a very high grade intercept of 3,241.4 g/t (94.54 opt) over a core length of 0.7 metres (2.3 feet) at a down-hole depth of 1,100 metres (3,609 feet). This intersection is characterized by quartz/carbonate stringers with abundant large clusters of visible gold within weakly hematite altered tuff along with 5-7% fine to medium grained pyrite and minor chalcopyrite and hematite. Holes AB 15-12 and AB-15-23 returned assays of 11.7 g/t or 0.34 opt over a core length of 0.3 metres (1.0 feet). Both intersected visible gold and tellurides in quartz stringers within relatively unaltered basic syenite containing 1-2% fine grained pyrite. Based on the results of the DHIP, and the presence of high grade gold mineralization, the Company commenced a follow-up program (Phase 1a) to perform confirmatory drilling and to follow up on the DHIP results.
The follow up program (Phase 1a) consists of 15,000 metres (50,000 feet) of drilling in eight (8) to nine (9) holes targeting depths of between 1,370 metres (4,500 feet) to 2,200 metres (7,220 feet). Three of these holes are currently in progress, with AB-15-91 and AB-15-92 aimed at following up on the visible gold and tellurides intercepts in AB-15-12 and AB-15-23, as well as targeting the DHIP response at depth. Hole AB-15-106 is following up on the high grade (3,241.4 g/t) intercept in AB-15-23. To date, hole AB-15-91 returned significant results with a high grade intercept of 1,783.2 g/t (52.01 opt) over a core length of 0.3 metres (1.0 feet) at a down-hole depth of 1,764 metres (5,789 feet). This hole is located approximately midway between holes AB-15-12 and AB-15-23 and also intersected visible gold and tellurides in quartz stringers (as in the previous holes).
Additional drilling is currently in progress with approximately 7,000 metres (23,000 feet) remaining. The Company will employ 4 drills up to the end of the year to complete the (Phase 1a) follow up program.
The intersections in the drilling programs described herein are between 460 metres (1,500 feet) and 760 metres (2,500 feet) south of the Main Break and do not appear to be related.
The following figures may be viewed at the Company's website at www.klgold.com.
Figure 1 - long section looking north, showing the location of the regional drilling program relative to the SMC and the historical mines.
Figure 2 - Cross section looking east, showing the results of the regional drilling completed to date.
Figure 3 - detailed plan view showing the results of the regional drilling completed to date.
The following table summarizes the latest underground drilling results in metric values:
REGIONAL SURFACE DRILL PROGRAM - Metric Table
| DRILL HOLE | DIP (degrees) | AZIMUTH (degrees) | FROM (m) | TO (m) | CORE LENGTH ****(m) | ASSAY (g/t)*** |
| AB-15-12 | -80 | 324 | 96.3 | 97.2 | 0.9 | 5.8 |
| And | -79 | 344 | 1,761.0 | 1,761.3 | 0.3 | 4.1 |
| And | 1,770.1 | 1,770.4 | 0.3 | 11.7, VG, TELL | ||
| And | 1,891.9 | 1,897.8 | 5.9 | 1.4 | ||
| And | -79 | 349 | 1,952.2 | 1,956.7 | 4.4 | 2.1, VG |
| And | -79 | 354 | 2,010.2 | 2,010.8 | 0.6 | 6.9, VG |
| AB-15-23 | -79 | 330 | 542.4 | 543.0 | 0.6 | 24.3 |
| And | 1,100.1 | 1,100.8 | 0.7 | 3,241.4, VG | ||
| Including | 1,100.1 | 1,100.4 | 0.3 | 1,413.9, VG | ||
| Including | 1,100.4 | 1,100.8 | 0.4 | 4,646.7, VG | ||
| And | 1,390.7 | 1,391.7 | 0.9 | 7.5 | ||
| And | 1,835.5 | 1,835.8 | 0.3 | 11.7, VG, TELL | ||
| AB-15-33 | -76 | 322 | 205.7 | 206.7 | 0.9 | 6.2 |
| And | 745.9 | 746.4 | 0.5 | 7.9 | ||
| And | 809.6 | 810.2 | 0.5 | 8.2 | ||
| AB-15-53 | -77 | 334 | 1,560.5 | 1,561.0 | 0.5 | 12.3 |
| AB-15-66 | - | - | - | NSV | ||
| AB-15-76 | - | - | - | NSV | ||
| AB-15-91* | -78 | 332 | 791.6 | 792.0 | 0.4 | 5.1 |
| And | -77 | 339 | 1,764.4 | 1,765.2 | 0.9 | 646.3, VG TELL |
| Including | 1,764.4 | 1,764.7 | 0.3 | 1,783.2, VG, TELL | ||
| And | 1,769.0 | 1,769.3 | 0.3 | 89.5, VG, TELL | ||
| And | 1,772.0 | 1,772.4 | 0.4 | 7.5, VG | ||
| AB-15-92* | - | - | - | NSV | ||
| AB-15-106* | -75 | 317 | 570.6 | 574.1 | 3.4 | 2.4 |
| And | -75 | 323 | 717.0 | 717.9 | 0.9 | 4.5 |
| KM-11-01** | -77 | 346 | 1,081.4 | 1,081.7 | 0.3 | 81.6, VG |
* Hole in progress, assay data not complete
** Historic hole
*** Assays presented are uncut as not enough information is available to determine a cutting factor.
**** True widths are unknown at this time.
NSV = No significant value; VG = Visible Gold; Tell = Tellurides
The following table summarizes the latest underground drilling results in imperial values:
REGIONAL SURFACE DRILL PROGRAM - Imperial Table
| DRILL HOLE | DIP (degrees) | AZIMUTH (degrees) | FROM (feet) | TO (feet) | CORE LENGTH **** (feet) | ASSAY (oz/ton)*** |
| AB-15-12 | -80 | 324 | 316.0 | 319.0 | 3.0 | 0.17 |
| And | -79 | 344 | 5,777.7 | 5,778.7 | 1.0 | 0.12 |
| And | 5,807.4 | 5,808.4 | 1.0 | 0.34, VG, TELL | ||
| And | 6,207.0 | 6,226.3 | 19.3 | 0.04 | ||
| And | -79 | 349 | 6,405.0 | 6,419.5 | 14.5 | 0.06, VG |
| And | -79 | 354 | 6,595.2 | 6,597.2 | 2.0 | 0.20, VG |
| AB-15-23 | -79 | 330 | 1,779.5 | 1,781.5 | 2.0 | 0.71 |
| And | 3,609.3 | 3,611.6 | 2.3 | 94.54, VG | ||
| Including | 3,609.3 | 3,610.3 | 1.0 | 41.24, VG | ||
| Including | 3,610.3 | 3,611.6 | 1.3 | 135.53, VG | ||
| And | 4,562.8 | 4,565.8 | 3.0 | 0.22 | ||
| And | 6,022.0 | 6,023.0 | 1.0 | 0.34, VG, TELL | ||
| AB-15-33 | -79 | 322 | 675.0 | 678.0 | 3.0 | 0.18 |
| And | -76 | 324 | 2,447.3 | 2,448.8 | 1.5 | 0.23 |
| And | 2,656.2 | 2,658.0 | 1.8 | 0.24 | ||
| AB-15-53 | -77 | 334 | 5,119.6 | 5,121.3 | 1.7 | 0.36 |
| AB-15-66 | - | - | - | NSV | ||
| AB-15-76 | - | - | - | NSV | ||
| AB-15-91* | -78 | 332 | 2,597.0 | 2,598.4 | 1.4 | 0.15 |
| And | -77 | 339 | 5,788.6 | 5,791.4 | 2.8 | 18.85, VG, TELL |
| Including | 5,788.6 | 5,789.6 | 1.0 | 52.01, VG, TELL | ||
| And | 5,803.8 | 5,804.8 | 1.0 | 2.61, VG, TELL | ||
| And | 5,813.6 | 5,814.8 | 1.2 | 0.22, VG | ||
| AB-15-92* | - | - | - | NSV | ||
| AB-15-106* | -75 | 317 | 1,872.2 | 1,883.5 | 11.3 | 0.07 |
| And | -75 | 323 | 2,352.3 | 2,355.3 | 3.0 | 0.13 |
| KM-11-01** | -77 | 346 | 3,547.8 | 3,548.8 | 1.0 | 2.38, VG |
* Hole in progress, assay data not complete
** Historic hole
*** Assays presented are uncut as not enough information is available to determine a cutting factor.
**** True widths are unknown at this time.
NSV = No significant value; VG = Visible Gold; Tell = Tellurides
Historical Info
There are seven past producers, including the Macassa Mine, that contributed over 25 million ounces of gold production in the camp and are all located along the main ore horizon, the Main and '04 Break system. Kirkland Lake owns five of these former producers namely the Macassa, Wright Hargreaves, Lakeshore, Kirkland Minerals and Teck Hughes mines which account for about 90% of the historical production from the camp.
Prior to 1999, little exploration had been done to test for potential mineralization south of the main ore horizon. Drifting and mining on the Main and '04 Break systems by the various mines in Kirkland Lake was sufficient to maintain production. After purchasing the Macassa Mine property - along with four contiguous former producers in 2001, Kirkland Lake Gold began dewatering the underground workings at the Macassa Mine. Once the -4700 foot level was dewatered in 2003, an exploration program was initiated to test further south for potential mineralization south of the '04 Break system. In November of 2003, the fourth drill hole of this program intersected multiple mineralized zones up to 480 metres south of the '04 Break indicating the presence of significant gold mineralization now known as the South Mine Complex.
The SMC represents an entirely new mineralized system in the Kirkland Lake mining camp and is characterized by generally shallowly dipping (25°-50°) structurally controlled zones of finely disseminated pyrite, visible gold and tellurides. The SMC also exhibits a higher grade than what has been historically mined in the Kirkland Lake camp and has been intersected as deep as the -6500 foot elevation and as high as the -4700 foot elevation over a strike length in excess of 2,000 feet. Gold mineralization in the SMC area occurs in a complex interconnected network of narrow, east to northeast trending shallow south dipping shear zones and auriferous alteration. It consists of wide, gold-bearing alteration and mineralization halos, in contrast to the narrow quartz vein systems associated with the Main and '04 Breaks.
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. As the Manager of Exploration, Mr. Carmichael is not considered independent.
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.
Readers are cautioned that the potential quantity and grade set out above is conceptual in nature and that there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. As well, the very high grade assay results are not necessarily representative of the mineralization hosted in the system.
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 anticipated timing and results of the remaining Phase 1a drill program and any Phase 2 drill program, if warranted; and the potential development and/or expansion of the project as well as all operational and economic assumptions 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 July 31, 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
Kirkland Lake Gold Inc.
Toll Free: 1-866-384-2924
George Ogilvie, P.Eng
Chief Executive Officer
+1 416-840-7884
gogilvie@klgold.com
Suzette N. Ramcharan, CPIR
Director of Investor Relations
+1 647-361-0200
Mobile: +1 647-284-5315
sramcharan@klgold.com
www.klgold.com