Kirkland Lake Gold-Queenston Joint Venture Report New Drill Results and Commences Accelerated Underground Exploration for the SMC
TORONTO, ONTARIO -- (Marketwire) -- 09/20/10 -- Kirkland Lake Gold Inc. ('KL Gold') (TSX: KGI)(AIM: KGI) and Queenston Mining Inc. ('Queenston') (TSX: QMI)(FRANKFURT: QMI)(STUTTGART: QMI) are pleased to announce the results from the recently completed drilling on the jointly held (50%-50%) South Claims and HM Claim Joint Venture properties within the South Mine Complex ('SMC') located south of KL Gold's Macassa Mine in Kirkland Lake, Ontario. Previous joint venture drilling results were reported in a news release dated November 24, 2009.
Four new underground diamond drill holes were completed from KL Gold's 5300 level drift along the South Claims boundary. Hole 53-1634 intersected the New South Zone and contained high-grade gold mineralization assaying 3.32 ounces of gold per ton ('opt') over a core length of 10.9 feet (1.96 opt cut over a true width of 9.7 feet). The other three holes (53-1610, 53-1611 and 53-1612) contained intersections of 0.66 opt over a core length of 2.6 feet, 0.37 opt over 1.0 foot and 0.82 opt over 2.5 feet, respectively, from new hanging wall and footwall zones but contained low gold values from the New South Zone.
In addition to the underground drilling program, the joint venture completed two wedge holes from surface pilot hole AK10 on the HM property. Two separate high-grade intersections were encountered in hole AK10-10W3, including 1.51 opt over a core length of 7.1 feet and 1.75 opt over a core length of 3.3 feet. Drill hole AK10-10W2 intersected a new zone that graded 0.65 opt over a core length of 1.8 feet. These intersections occur between 5700 and 6520 feet below surface. Although the intercepts are at elevations similar to the SMC to the west, it is too early to determine the true width of the mineralization and the relationship to the SMC.
Stewart Carmichael, KL Gold's Chief Exploration Geologist added, 'As part of the new joint venture the 5300 level drift will be extended southeast onto the AK property, excavation of drill bays followed by diamond drilling. Many of the exploration targets are within 1,500 feet of this drift extension which will result in an acceleration of the exploration on the South Claims joint venture.'
Charles Page, President and CEO of Queenston commented, 'Both the new underground and surface holes from the drilling program continue to expand the potential of the SMC eastward. The addition of the Amalgamated Kirkland claims to the joint venture provides an excellent underground drilling platform and opportunity to target the SMC on all three of the JV properties.'
Highlights of the current results:
- Drill hole 53-1634 intersected the New South Zone near the edge of the current inferred resource area and assayed 3.32 opt uncut (1.96 opt cut) over a true width of 9.7 feet. Three other underground drill holes in this area failed to return significant assays from the New South Zone indicating the presence of a localized waste gap, however, all three holes returned significant assay values related to a new footwall zone. (see figure 1: http://media3.marketwire.com/docs/QMI_KGI20.pdf)
- Surface drill hole AK10-10W3 intersected a New Zone at the HM - Amalgamated Kirkland property boundary grading 1.51 opt over 7.1 feet approximately 800 feet east of the existing mineral resource on the SMC. This intersection is also 100 feet west of previous hole AK08-2W4 that intersected 1.36 opt over 5.0 feet.
- A second deeper zone is reported in hole AK10-10W3, north and deeper into the HM property. This zone assayed 1.75 opt over 3.3 feet and is approximately 120 feet west and below previous hole AK09-2W6 that assayed 1.74 opt over 4.8 feet.
The figure referred to in this release may be viewed at KL Gold's and Queenston's websites, www.klgold.com or www.queenston.ca, and will provide context to the above statements. Figure 1 is a plan view showing the latest and previous drilling results.
The following table summarizes the latest underground drilling results from the SMC in Imperial units:
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HOLE AZI-
DRILL DIP MUTH ASSAY
HOLE FROM TO (deg- (deg- (ounces per
No. ZONE (feet) (feet) rees) rees) ton/feet)
---------------------------------------------------------------------------
53-1634 New South HW 272.9 274.1 -76 235 1.31/1.2 ft CL=TW
Unknown
New South 512.0 522.9 3.32/10.9 ft
CL=9.7 ft TW, Uncut
1.96/10.9 ft
CL=9.7 ft TW, Cut
Incl. 517.8 518.8 4.66/1.0 ft
CL=0.9 ft TW
and 520.8 522.9 14.30/2.1 ft
CL=1.9 ft TW, VG
---------------------------------------------------------------------------
53-1610 New South 611.0 612 -75 194 0.04/1.0 ft CL=TW
not calculated
Footwall 646.0 648.6 0.66/2.6 ft CL=TW
Unknown
---------------------------------------------------------------------------
53-1611 New South 514.5 515.5 -88 155 0.08/1.0 ft CL=TW
not calculated
Footwall 566.0 567.0 0.37/1.0 ft CL=TW
Unknown
---------------------------------------------------------------------------
53-1612 New South 573.0 576.0 -79 155 0.07/3.0 ft CL=TW
not calculated
Footwall 760.0 762.5 0.82/2.5 ft CL=TW
Unknown
---------------------------------------------------------------------------
TW = True Width
CL = Core Length
VG = Visible Gold
HW = Hanging Wall
CUT = cut to 7.2 opt
The following table summarizes the latest surface drilling results from the HM property in Imperial units:
---------------------------------------------------------------------------
HOLE AZI-
DRILL DIP MUTH ASSAY
HOLE FROM TO (deg- (deg- (ounces per
No. ZONE (feet) (feet) rees) rees) ton/feet)
---------------------------------------------------------------------------
AK10-10W2 New Zone 6,954.1 6,955.9 -75 342 0.65/1.8 ft CL=TW
Unknown
---------------------------------------------------------------------------
AK10-10W3 New Zone 6,311.5 6,318.9 -75 342 0.17/7.4 ft CL=TW
Unknown
New Zone 6,373.0 6,380.1 1.51/7.1 ft CL=TW
Unknown
Including 6,376.0 6,378.0 4.75/2.0 ft CL=TW
Unknown
New Zone 7,240.0 7,243.3 1.75/3.3 ft CL=TW
Unknown
---------------------------------------------------------------------------
TW = True Width
CL = Core Length
VG = Visible Gold
HW = Hanging Wall
CUT = cut to 7.2 opt
?? TW = True Width Undetermined
The following table summarizes the latest underground results from the SMC in Metric units:
---------------------------------------------------------------------------
HOLE AZI-
DRILL DIP MUTH ASSAY
HOLE FROM TO (deg- (deg- (grams per
No. ZONE (m) (m) rees) rees) tonne/m)
---------------------------------------------------------------------------
53-1634 New South HW 83.2 83.5 -76 235 44.9/0.3 m CL=TW
Unknown
New South 156.1 159.4 113.8/3.3 m
CL=3.0 m TW, Uncut
67.2/3.3 m CL=3.0 m
TW, Cut
Incl. 157.8 158.1 159.8/0.3 m
CL=0.3m TW
and 158.7 159.4 490.3/0.7 m
CL=0.6 m TW, VG
---------------------------------------------------------------------------
53-1610 New South 186.2 186.6 -75 194 1.4/0.4 m CL=TW
not calculated
Footwall 196.9 197.7 22.6/0.8 m CL=TW
Unknown
---------------------------------------------------------------------------
53-1611 New South 156.8 157.1 -88 155 2.7/0.3 m CL=TW
not calculated
Footwall 172.5 172.8 12.7/0.3 m CL=TW
Unknown
---------------------------------------------------------------------------
53-1612 New South 174.7 175.6 -79 155 2.4/0.9 m CL=TW
not calculated
Footwall 231.6 232.4 28.1/0.8 m CL=TW
Unknown
---------------------------------------------------------------------------
TW = True Width
CL = Core Length
VG = Visible Gold
HW = Hanging Wall
CUT = cut to 246.9 grams/tonne
?? TW = True Width Undetermined
The following table summarizes the latest surface drilling results from the HM property in Metric units:
---------------------------------------------------------------------------
HOLE AZI-
DRILL DIP MUTH ASSAY
HOLE FROM TO (deg- (deg- (grams per
No. ZONE (m) (m) rees) rees) tonne/m)
---------------------------------------------------------------------------
AK10-10W2 New Zone 2,119.6 2,120.2 -75 342 22.1/0.6 m CL=TW
Unknown
---------------------------------------------------------------------------
AK10-10W3 New Zone 1,923.8 1,926.0 -75 342 5.8/2.2 m CL=TW
Unknown
New Zone 1,942.5 1,944.7 51.8/2.2 m CL=TW
Unknown
Including 1,943.4 1,944.0 162.7/0.6 m CL=TW
Unknown
New Zone 2,206.8 2,207.8 60.2/1.0 m CL=TW
Unknown
----------------------------------------------------------------------------
TW = True Width
CL = Core Length
VG = Visible Gold
HW = Hanging Wall
CUT = cut to 246.9 grams/tonne
?? TW = True Width Undetermined
To further explore the SMC on the joint venture properties an accelerated program of underground development and diamond drilling is planned. The 5300 level drift is currently advancing eastward and will be driven south-easterly onto the Amalgamated Kirkland property for 360 feet where a drill station will be established to target the SMC on the South Claims, HM and Amalgamated Kirkland properties. Under the terms of the Amalgamated Kirkland agreement, KL Gold will expend the first $400,000 of the program.
The South Claims were purchased by KL Gold and Queenston in April of 2007 to cover the potential down-dip extension of the SMC. They formed a joint venture in 2007 and an underground diamond drilling program commenced on the South Claims. To date, the SMC has been outlined over a strike length 1,500 feet on the South Claims property and contains a mineral resource of 97,000 tons grading 1.37 opt (indicated) and 134,000 tons grading 1.24 opt (inferred) (see Queenston news release dated July 17, 2010).
An updated resource estimate for the South Claims joint venture was released July 17, 2010 outlining an indicated resource of 97,000 tons grading 1.37 opt and an inferred resource of 134,000 tons grading 1.24 opt. The reserves and resources were calculated by Glenn R. Clark, P.Eng. in a technical report entitled Review of Resources on South Claims Property, Kirkland Lake, Ontario dated August 20, 2010 and disclosed in Queenston's news release dated July 17, 2010, This report is available on SEDAR (www.sedar.com) under Queenston's filings.
The above resource estimates were also included as part of a broader report prepared for KL Gold dated July 16, 2009 entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario prepared by Glenn R. Clark, P. Eng. This report is available on SEDAR (www.sedar.com) under KL Gold's filings and was disclosed in a KL Gold news release dated July 15, 2009.
In 2009 the HM property was purchased by KL Gold and Queenston and added to the joint venture (see KL Gold and Queenston joint news release dated February 12, 2009). Recently an expansion of the joint venture was announced to include a portion of the Amalgamated Kirkland property and the Kirkland Hudson property (see KL Gold and Queenston joint news release dated August 24, 2010).
KL Gold's Cautionary Note Regarding NI 43-101
The disclosure attributed in this release to KL Gold has been reviewed, verified (including sampling, analytical and test data) and compiled by its geological staff, one of whom, Stewart Carmichael, P.Geo., KL Gold's Chief Exploration Geologist, is a 'qualified person' 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.
Queenston's Cautionary Note Regarding NI 43-101
The disclosure attributed in this release to Queenston has been reviewed, verified (including review of sampling, analytical and test data) and compiled by Frank Ploeger, P. Geo., a 'qualified person', for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. Mr. Ploeger also assisted in the preparation of the information that forms the basis of the technical disclosure in this release.
Quality Assurance & Control
KL Gold and Queenston have 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 half of the core samples shipped to the Swastika Laboratories in Swastika, Ontario or to Polymet Resources Inc. in Cobalt, 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/rejects at alternate certified labs (Polymet Resources Inc., Swastika Laboratories). 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.
About Kirkland Lake Gold Inc.
Kirkland Lake Gold Inc. 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 Southern Abitibi Greenstone Belt of Kirkland Lake, Ontario, Canada.
About Queenston Mining Inc.
Queenston maintains a significant land package in the Kirkland Lake gold camp containing 29 contiguous properties totalling approximately 19,000 hectares. The Company strategy is to return to producer status through the development of 100% owned gold projects including the Upper Beaver, McBean, Anoki and Upper Canada. The Company is also carrying out deep exploration targeting the new South Mine Complex with joint venture partner Kirkland Lake Gold Inc. on the South Claims and HM property and on its 100% owned AK property. Queenston is well financed with working capital in excess of $40 million and has an 2010 exploration budget of $16 million, employing up to 15 diamond drill rigs on 8 individual properties.
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 companies, and their directors, or officers with respect to the future business activities and operating performance of the companies. The words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions, as they relate to the companies, 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 companies' 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 companies' Annual Information Forms and quarterly and annual Management's Discussion & Analyses, 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 companies have 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 companies do not intend, and do 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
705-567-5208
705-568-6444 (FAX)
bhinchcliffe@klgold.com
Kirkland Lake Gold Inc.
Lindsay Carpenter
Director of Investor Relations
1 416 840 7884
1 416 850 1617 (FAX)
lcarpenter@klgold.com
www.klgold.com
Queenston Mining Inc.
Charles E. Page, P. Geo.
President and CEO
416-364-0001
Queenston Mining Inc.
Hugh D. Harbinson
Chairman
416-364-0001
416-364-5098 (FAX)
info@queenston.ca
Queenston Mining Inc.
Andreas Curkovic
Investor Relations
416-577-9927
www.queenston.ca
Pelham Bell Pottinger
Klara Kaczmarek
+44 207 861 3883
kkacmarek@pelhambellpottinger.co.uk
NOMAD: Panmure Gordon (UK) Limited
Katherine Roe / Callum Stewart
+44 207 743 6675
katherine.roe@panmure.com
Ocean Equities Ltd.
Guy Wilkes
+44 207 786 4370
guywilkes@oceanequities.co.uk