Kirkland Lake Gold Inc.: Drill Hole 53-1794 Assays 1.05 Ounces of Gold Per Ton Over 37.5 Feet True Width and Expands SMC to the East; Fiscal 2012 Exploration Budget Set at $15.8 Million
KIRKLAND LAKE, ONTARIO -- (Marketwire) -- 06/01/11 -- Kirkland Lake Gold Inc. ('Kirkland Lake Gold' or the 'Company') (TSX: KGI)(AIM: KGI), an operating and exploration gold company, is pleased to announce three new exploration drill holes testing the east portion of the New South Zone which forms part of the South Mine Complex (SMC), new results from the west exploration program as well as the exploration plans for fiscal year 2012.
'These new intersections on the New South Zone continue to expand South Mine Complex to the east,' said Stewart Carmichael, Chief Exploration Geologist. 'Most exploration over the last five years has been focused on the SMC due to the success in consistently discovering new high grade gold ounces. This year, we will also focus on new, unexplored areas of the camp that have always been of interest. We will also be adding two additional surface drills to the current single rig as it's been a number of years since we have explored near surface potential mineralization which could be accessed by the existing Lake Shore ramp. We plan to maintain the current six underground exploration drills at the Macassa Mine testing various targets, four of which will continue to expand the SMC.'
The highlights of this recent drilling include:
-- Drill hole 53-1794 has intersected both the New South Zone and a related
footwall zone. The New South Zone assayed 1.05 ounces of gold per ton
(opt) uncut (0.99 opt cut) over a true width of 37.5 feet with a
footwall zone assaying 0.93 opt over a true width of 4.0 feet. These
intersections are located 110 feet north of previously reported drill
hole 53-1685 which assayed 8.16 opt over a true width of 46.7 feet. (See
the Company's news release dated May 4, 2011.)
-- A second new exploration drill hole, 53-1794, has intersected the New
South Zone 117 feet east of 53-1685 and assayed 1.22 opt (0.83 opt cut)
over a true width of 8.7 feet with a footwall zone assaying 3.66 opt
(1.27 opt cut) over a true width of 10.0 feet. Both of these
intersections are located along the east edge of the existing New South
Zone resource area on the Company's 100% owned ground and will expand
the SMC east. (See figure 1)
-- Drill hole 53-1795 intersected the New South Zone 120 feet southeast of
hole 53-1794 and assayed 2.77 opt (1.69 opt cut) over a true width of
8.8 feet. This is the furthest intersection to the southeast to date on
the SMC.
The exploration budget for fiscal 2012 includes an estimated 294,000 feet of combined underground and surface exploration utilizing up to nine drill rigs. The exploration programs will be fully funded through operations and are estimated to cost $15.8 million. (See figure 2)
The figures referred to in this release may be viewed at the Company's website, www.klgold.com and will provide context to the above statements. Figure 1 is a plan view showing new intersections on the New South Zone east. Figure 2 is a plan view showing the proposed underground exploration programs.
To view Figure 1 and Figure 2 to please visit the following link: http://media3.marketwire.com/docs/KGfig1-2.pdf
The following table summarizes the latest drilling results (Imperial values)
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HOLE
DRILL DIP AZIMUTH
HOLE FROM TO (deg- (deg- ASSAY
No. ZONE (feet) (feet) rees) rees) (oz per ton/feet)
----------------------------------------------------------------------------
New South 496.0 536.5 1.05/40.5' CL=37.5' TW, Uncut
0.99/40.5' CL=37.5' TW,Cut(i)
Incl. 496.0 497.0 1.68/1.0' CL=0.9' TW,VG, Tell
and 505.0 506.0 2.44/1.0' CL=0.9' TW
and 513.0 514.0 4.70/1.0' CL=0.9' TW, VG
and 515.5 517.0 6.36/1.5' CL=1.4' TW, VG
53- and 518.5 520.0 1.92/1.5' CL=1.4' TW
1794 and 521.6 522.6 -65 331 1.84/1.0' CL=0.9' TW, VG
and 527.1 528.1 1.67/1.0' CL=0.9' TW
and 529.6 530.6 1.75/1.0' CL=0.9' TW
and 531.8 532.8 9.45/1.0' CL=0.9' TW, VG,Tell
New
South
Footwall 541.5 546.0 0.93/4.5' CL=4.0' TW
Incl. 544.5 546.0 2.00/1.5' CL=1.3' TW, VG,Tell
----------------------------------------------------------------------------
New South 527.4 537.0 2.77/9.6' CL=8.8' TW, Uncut
1.69/9.6' CL=8.8' TW Cut(i)
53- -78 344
1795 Incl. 527.4 528.5 16.64/1.1'CL=1.0' TW, VG,Tell
and 536.0 537.0 5.45/1.0' CL=0.9' TW, VG
----------------------------------------------------------------------------
New HW 494.9 496.3 22.72/1.4' CL=??' TW, VG
New South 508.5 519.5 1.22/11.0' CL=8.7' TW, Uncut
0.83/11.0' CL=8.7' TW, Cut(i)
Incl. 518.5 519.5 11.58/1.0' CL=0.8' TW, Tell
53- New South -47 341 3.66/12.9' CL=10.0' TW, Uncut
1684 Footwall 529.5 542.4 1.27/12.9' CL=10.0' TW,Cut(ii)
Incl. 529.5 532.5 5.58/3.0' CL=2.3' TW
and 541.4 542.4 28.18/1.0' CL=0.8' TW, VG,Tell
----------------------------------------------------------------------------
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides
(i)CUT = cut to 7.2 opt, HW = Hanging Wall (ii)Cut = cut to 3.5 opt. ?? TW =
Unknown True Width
The following table summarizes the latest drilling results (Metric values)
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HOLE
DRILL DIP AZIMUTH
HOLE FROM TO (deg- (deg- ASSAY
No. ZONE (m) (m) rees) rees) (grams per tonne/m)
----------------------------------------------------------------------------
New
South 151.2 163.5 36.00/12.3m CL=11.4m TW, Uncut
33.94/12.3m CL=11.4m TW, Cut(i)
Incl. 151.2 151.5 57.60/0.3m CL=0.3m TW, VG, Tell
and 153.9 154.2 83.66/0.3m CL=0.3m TW
and 156.4 156.7 161.14/0.3m CL=0.3m TW, VG
53- and 157.1 157.6 218.06/0.5m CL=0.4m TW, VG
1794 and 158.0 158.5 65.83/0.5m CL=0.4m TW
and 159.0 159.3 -65 331 63.09/0.3m CL=0.3m TW, VG
and 160.7 161.0 57.26/0.3m CL=0.3m TW
and 161.4 161.7 60.00/0.3m CL=0.3m TW
and 162.1 162.4 324.00/0.3m CL=0.3m TW, VG, Tell
New
South
Footwall 165.0 166.4 31.861.4m CL=1.2m TW
Incl. 166.0 166.4 68.57/0.4m CL=0.4m TW, VG, Tell
----------------------------------------------------------------------------
New 94.97/2.9m CL=2.7m TW, Uncut
53- South 160.8 163.7 -78 344 57.94/2.9m CL=2.7m TW Cut(i)
1795 Incl. 160.8 161.1 570.52/0.3m CL=0.3m TW, VG, Tell
and 163.4 163.7 186.86/0.3m CL=0.3m TW, VG
----------------------------------------------------------------------------
New HW 150.8 151.3 778.98/0.5m CL=??m TW, VG
New 155.0 158.3 41.83/3.3m CL=2.6m TW, Uncut
South 28.46/3.3m CL=2.6 TW, Cut(i)
53- Incl. 158.0 158.3 11.58/0.3m CL=0.2m TW, Tell
1684 New -47 341
South 161.4 165.3 125.49/3.9m CL=3.0m TW, Uncut
Footwall 43.54/3.9m CL=3.0m TW, Cut(ii)
Incl. 161.4 162.3 191.32/0.9m CL=0.7m TW
and 165.0 165.3 966.18/0.3m CL=0.2m TW, VG, Tell
----------------------------------------------------------------------------
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides
(i)CUT = cut to 246.86 grams/tonne, HW = Hanging Wall (ii)Cut = cut to 120
grams/tonne.?? TW = Unknown True Width
Fiscal 2012 Exploration Programs and Budget
Exploration plans for fiscal 2012 (May 2011 to April 2012) include six underground drill rigs at the Macassa Mine and three surface rigs testing the remainder of the Company's land holdings. The underground exploration budget is estimated to be $12.2 million dollars and will include close to 1,500 feet of track development to facilitate diamond drilling and approximately 197,000 feet of drilling (compared to 141,000 feet completed in fiscal 2011). Of the 197,000 feet of underground drilling, 24,000 feet will test the joint venture properties with Queenston Mining Inc.
The surface exploration programs will include three rigs testing both grassroots targets and shallow (up to 1,000 feet below surface) potential near production drilling along the Main Break from the Wright Hargreaves property to the Kirkland Minerals property. The surface programs are scheduled to include approximately 97,000 feet of drilling (compared to 26,200 feet completed in fiscal 2011) with an estimated cost of $3.6 million dollars. The total exploration budget for the fiscal year is estimated at $15.8 million dollars.
'08 Break Exploration
Exploration on the '08 Break is currently being conducted with two drills from the 5305 drift. The targets are divided into three areas including the west, central and east. Exploration on the west portion of the `08 has been temporarily suspended until the completion of an enlarged drill bay and additional drifting southwest of the west bay. This drill has been moved east to test the potential `08 Break in the central area. Results of this program will be reported upon completion and compilation.
Drilling on the east portion of the `08 Break has been at 200 foot centres has thus far been unable to expand on the target intersection (drill hole 53-1520, 6.14 opt over a core length of 13.7 feet) reported in the Company's press release dated January 12, 2010. Drilling in this area is still in progress.
Macassa West Exploration
Further to the Company's news release dated February 15, 2011, an additional nine drill holes have been completed with assays received for five of the nine holes. This initial follow-up program will include 30 drill holes totalling 41,000 feet. Drilling is currently at 200 foot centres.
The following table summarizes the latest drilling results (Imperial values)
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HOLE
DRILL FROM TO DIP AZIMUTH ASSAY
HOLE No. ZONE (feet) (feet)(degrees)(degrees) (oz per ton/feet)
----------------------------------------------------------------------------
53-1728 Macassa 728.4 729.6 6.5 158 0.17/1.2' CL=??' TW
West
----------------------------------------------------------------------------
53-1729A Macassa 894.5 895.5 -6.5 164 2.07/1.0' CL=??' TW, VG,
West Tell
----------------------------------------------------------------------------
53-1742 Macassa 927.0 928.0 -7 147 0.25/1.0' CL
West
----------------------------------------------------------------------------
53-1743 Macassa - - -7 152 No Significant values
West
----------------------------------------------------------------------------
53-1744 Macassa 844.0 846.0 -7 158 0.16/2.0' CL
West
----------------------------------------------------------------------------
53-1745 Macassa1 101.31 106.2 -7 164 0.20/4.9' CL=??' TW
West
----------------------------------------------------------------------------
53-1785 Macassa 12.5 164 Pending
West
----------------------------------------------------------------------------
53-1786 Macassa -1 164 Pending
West
----------------------------------------------------------------------------
53-1787 Macassa 772.0 773.0 -1 158 4.64/1.0' CL=??' TW, VG,
West 939.7 940.7 Tell
0.38/1.0' CL=??' TW
----------------------------------------------------------------------------
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides
(i)CUT = cut to 7.2 opt, HW = Hanging Wall (ii)Cut = cut to 3.5 opt. ?? TW =
Unknown True Width
The following table summarizes the latest drilling results (Metric values)
----------------------------------------------------------------------------
HOLE
DIP AZIMUTH
DRILL FROM TO (deg- (deg- ASSAY
HOLE No. ZONE (m) (m) rees) rees) (grams per tonne/m)
----------------------------------------------------------------------------
53-1728 Macassa 222.0 222.4 6.5 158 5.83/0.4m CL=??m TW
West
----------------------------------------------------------------------------
53-1729A Macassa 272.6 272.9 -6.5 164 70.97/0.3m CL=??m TW, VG,
West Tell
----------------------------------------------------------------------------
53-1742 Macassa 282.5 282.9 -7 147 8.57/0.4m CL=??m TW
West
----------------------------------------------------------------------------
53-1743 Macassa - -7 152 No Significant values
West
----------------------------------------------------------------------------
53-1744 Macassa 257.3 257.9 -7 158 5.49/0.6m CL=??m TW
West
----------------------------------------------------------------------------
53-1745 Macassa 335.7 336.7 -7 164 6.86/1.0m CL=??m TW
West
----------------------------------------------------------------------------
53-1785 Macassa 12.5 164 Pending
West
----------------------------------------------------------------------------
53-1786 Macassa -1 164 Pending
West
----------------------------------------------------------------------------
53-1787 Macassa 253.3 235.6 159.09/0.3m CL=??m TW, VG,
West Tell
286.4 286.7 -1 158 13.03/0.3m CL=??m TW
----------------------------------------------------------------------------
TW = True Width, CL = Core Length, VG = Visible Gold, Tell = Tellurides
(i)CUT = cut to 246.86 grams/tonne, HW = Hanging Wall (ii)Cut = cut to 120
grams/tonne.?? TW = Unknown True Width
About the Company
The Company purchased the Macassa Mine and the 1,450 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 to the west and Wright Hargreaves to 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.
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, or to SPJ Labs in Lively, 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, 2011 dated April 4, 2011.
This technical report has been filed on SEDAR (www.sedar.com).
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
1 705 568 6444 (FAX)
lcarpenter@klgold.com
www.klgold.com
Pelham Bell Pottinger
Philippe Polman
44 (0) 20 7861 3921
ppolman@pelhambellpottinger.co.uk
Ocean Equities Ltd.
Guy Wilkes
44 (0) 207 786 4370
guy.wilkes@oceanequities.co.uk
NOMAD: Panmure Gordon (UK) Limited
Katerine Roe/Callum Stewart
44 (0) 20 7 459 3600
katherine.roe@panmure.com