Kirkland Lake Gold Inc: Annual Reserves & Resources for Mine; Continued Increases in the South Mine Complex
KIRKLAND LAKE, ONTARIO -- (Marketwire) -- 07/14/10 -- Kirkland Lake Gold Inc. (the 'Company') (TSX: KGI)(AIM: KGI) is pleased to present its fiscal year-end (April 30, 2010) gold reserve and resource estimates for its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered South Mine Complex ('SMC'). The SMC consists of 25 or more mineralized zones, five of which have been defined over strike lengths in excess of 1,000 feet.
During fiscal 2010, the Company concentrated its exploration efforts on the SMC and realized substantial increases in all categories. These increases are attributable to drifting and definition diamond drilling, as well as exploration diamond drilling. During fiscal 2011, the Company will accelerate the exploration drilling program and increase drilling from 172,000 feet in fiscal 2010 to 283,000 feet.
'Our exploration program this past year focused on the SMC and this lead to the expansion of new resources. The discovery of the new '08 break in the SMC added a significant fraction of the overall growth in the resource base,' said Company President, Brian Hinchcliffe. 'We are extremely pleased that the Geology Department has delivered one our most successful years in exploration based on expended dollars and, by increasing exploration drilling this year by 56% this year, we will continue to focus on expanding the SMC.'
SOUTH MINE COMPLEX RESERVES & RESOURCES
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As at April 30, 2009 As at April 30, 2010 %
----------------------- ------------------------ Change
Grade Grade (in
Tons Opt Tons Opt total
(Tonnes) (g/t) Ounces (Tonnes) (g/t) Ounces ounces)
---------------------------------------------------------------------------
Reserves:
---------------------------------------------------------------------------
Proven 118,000 0.70 83,000 127,000 0.64 82,000
(107,000) (24.0) (115,000) (21.9)
------------------------------------------------------------------ +4%
Probable 817,00 0.75 613,000 827,000 0.77 639,000
(741,000) (25.7) (750,000) (26.4)
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Resources:
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Measured 7,000 0.37 3,000 8,000 0.42 3,000
(6,000) (12.7) (7,000) (14.4)
------------------------------------------------------------------ +63%
Indicated(i) 468,000 0.64 299,000 750,000 0.65 489,000
(425,000) (21.9) (680,000) (22.3)
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Inferred(i) 704,000 0.84 590,000 893,000 0.76 677,000 +15%
(639,000) (28.8) (810,000) (26.1)
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(i) Includes 50% of resources estimated in the South Claims Joint Venture
Property
PROPERTY WIDE RESERVES & RESOURCES
(Including the South Mine Complex)
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As at April 30, 2009 As at April 30, 2010 %
----------------------- ------------------------ Change
Grade Grade (in
Tons Opt Tons Opt total
(Tonnes) (g/t) Ounces (Tonnes) (g/t) Ounces ounces)
---------------------------------------------------------------------------
Reserves:
---------------------------------------------------------------------------
Proven 1,137,000 0.44 1,071,000 0.45 477,000
(1,032,000) (15.1) 499,000 (972,000) (15.4)
-------------------------------------------------------------------- 0%
Probable 1,426,000 0.62 1,410,000 0.65 920,000
(1,294,000) (21.3) 897,000 (1,279,000) (22.3)
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Resources:
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Measured 950,000 0.39 1,024,000 0.40 410,000
(862,000) (13.4) 368,000 (929,000) (13.7)
-------------------------------------------------------------------- +28%
Indi- 1,309,000 0.47 1,668,000 0.51 857,000
cated(i) (1,188,000) (16.1) 619,000 (1,513,000) (17.5)
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Inf- 1,516,000 0.59 1,740,000 0.58 1,002,000 +12%
erred(i) (1,375,000) (20.2) 894,000 (1,579,000) (19.9)
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(i) Includes 50% of resources estimated in the South Claims Joint Venture
Property
The above reserve and resource estimates have been audited and verified by the Company's independent reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. He is a 'qualified person' under National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. A report detailing the fiscal 2010 reserve and resource estimates will be filed on SEDAR (www.sedar.com) within 45 days of this press release. See 'Notes for Reserves and Resources' below for key assumptions, parameters and methods used to estimate the foregoing reserves and resources.
Highlights of the Current Reserve and Resource Estimates
The highlights of the current reserve and resource estimates include:
-- One of the larger increases in indicated and inferred resources was
realized with the discovery of the '08 Break. The mineralization on this
zone has been extended to the 6600 foot elevation. As of April 30th,
2010, the indicated resources for this zone includes 53,000 ounces at a
grade of 0.77 ounces of gold per ton ('opt'), with an additional 62,000
ounces inferred resource at a grade of 0.68 opt.
-- Fiscal 2010 resource and reserve gains in excess of 388,000 ounces
reflect a C$8.00 per ounce delineated expenditure based on direct
drilling costs.
Exploration Plans for Fiscal 2011
The exploration plans for fiscal 2011 include:
-- The 2011 fiscal year exploration budget has been set at $7.1 million
($5.3 million expended in fiscal 2010) of which $4.7 million has been
allocated to drilling ($3.1 million expended in fiscal 2010) and $1.0
million for exploration related development ($579,000 expended in fiscal
2010).
-- New drill bays excavated during the past fiscal year enable exploration
on large areas of previously unexplored areas of the Macassa Mine as
well as expanding known mineralized zones, conversion of inferred
resources to indicated resources and testing unexplored portions of the
Macassa property including the South Claims joint venture property with
Queenston Mining Inc.
Going forward, the Company plans to change reporting of reserves and resources to a calendar year (December 31st) which will allow greater flexibility and planning for the mining department.
Notes for Reserves and Resources:
1. The reserves and resources are estimated using the polygonal method.
2. All intersections are calculated out to a 5.0 foot minimum horizontal
mining width for structures dipping greater than 45 degrees. The minimum
mining height for structures dipping less than 45 degrees is 6.5 feet or
in the case of the South Mine Complex, to 8.0 feet.
3. Dilution is added to reserves at varying rates depending on mining
method, and the width of the ore. The average dilution of the reserves
at April 2010 was 33.2% at 0.02 opt. Long-hole stopes are diluted by 32-
50%, mostly 50%. Cut and fill stopes 5-7 feet wide are diluted 15-50%.
Most of the narrower stopes are diluted by 50%. Cut-and-fill stopes that
are greater than 7 feet wide are diluted 10-15%.
4. All higher grades are cut to 3.50 opt. Based on a statistical analysis
completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the
Company has implemented various higher grade cutting factors for four
zones in the SMC. These four zones are the New South Zone (7.2 opt),
Lower D North (9.3 opt), Lower D North Footwall (4.8 opt), and the #7
and #7 HW Zones (6.4 opt). The cut-off is 0.25-0.30 opt over the
horizontal or vertical mining width. Cut-off grades of 0.25 opt and 0.30
opt are used for reserve and resource calculations, depending on the
location, and economics of the block. Generally, a cut-off of 0.31 opt
is required on a whole-block basis to achieve profitability. It is
possible to have sub-blocks within an ore reserve block that assay less
than any cut-off which have been incorporated for mining or geotechnical
reasons. Ore blocks that grade between 0.20 opt and the cut-off has been
classified as resource.
5. The area of influence of the proven and measured categories are 30 feet
from development chip samples, probable and indicated categories are 50
feet of radius from a known sample point (drill holes) and inferred is
another 50 feet of influence.
6. A 94% tonnage recovery is used. Continuity of the veins appears very
good.
7. The assumptions used include $898.01 U.S. per ounce of gold, and an
exchange rate of $1 Canadian=U.S. $0.9147 ($982.66 Canadian per ounce =
3 year average).
8. The Company is not aware of any environmental, permitting, legal, title,
taxation, socio-political, marketing or other issue that may materially
affect its estimate of mineral resources.
9. Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
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, 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 kilometres between the Macassa Mine on the west and Wright Hargreaves on the east and, for the first time, are being developed and explored under one owner. This camp is located in the Abitibi Southern Greenstone Belt of Kirkland Lake, Ontario, Canada.
Cautionary Note Regarding Forward Looking Statements
This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers 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, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR 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.
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.
Contacts:
Kirkland Lake Gold Inc.
Brian Hinchcliffe
President
1 705 567 5208
1 705 568 6444 (FAX)
bhinchcliffe@klgold.com
Kirkland Lake Gold Inc.
Lindsay Carpenter
Director of Investor Relations
1 416 840 7884
416 850 1617 (FAX)
lcarpenter@klgold.com
www.klgold.com
Pelham Bell Pottinger
Klara Kaczmarek
+44 207 861 3883
kkacmarek@pelhambellpottinger.co.uk
NOMAD: Panmure Gordon (UK) Limited
Katherine Roe / Callum Stewart
+44 20 7743 6675
katherine.roe@panmure.com
Ocean Equities Ltd.
Guy Wilkes
+44 207 786 4370
guy.wilkes@oceanequities.co.uk