Kirkland Lake Gold-Queenston Joint Venture Report New Drill Results; 0.44 Ounces of Gold per Ton Over 22.1 Feet TW, SMC Extended East
TORONTO, ONTARIO -- (Marketwire) -- 09/07/11 -- 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 September 20, 2010. The HM claim was jointly purchased by KL Gold and Queenston in 2009 (see KL Gold and Queenston press releases dated February 12, 2009). The HM claim is subject to net smelter return royalties of 3%.
Three new underground diamond drill holes (totalling 5,930 feet) were completed from the east end of KL Gold's 5300 level drift along the South Claims boundary. All three drill holes intersected the New South Zone, two of which returned significant assays. In addition, all three holes intersected various high grade footwall mineralization including 3.18 ounces of gold per ton ('opt') over a core length of 1.3 feet (hole 53-1823), 2.48 opt over a core length of 1.0 feet, 7.79 opt over a core length of 1.0 feet and 0. 25 opt over a core length of 7.2 feet (hole 53-1824) and 1.14 opt over a core length of 1.9 feet (hole 53-1825) These footwall zones may be related to the SMC however, further drilling is required to ascertain their geometry and true widths.
'This first pass of the underground exploration program has been a success. We've now extended the South Mine Complex east onto the HM claim as well as identified new high grade veins to form the basis for future drilling,' said Stewart Carmichael, Chief Exploration Geologist for KL Gold.
Charles Page, President and CEO of Queenston commented, 'We are pleased with the first phase of underground drilling on the HM property where all three holes intersected high grade mineralization. The strong results show the South Mine Complex remaining open to the east and now drilling will begin to target the AK joint venture property to the south.'
Highlights of the current results:
-- Drill hole 53-1823 intersected the New South Zone 243 feet down-dip of
KL Gold's previously released drill hole 50-1242 and at the -5728 foot
elevation (see KL Gold news release dated June 15, 2010). Drill hole 53-
1823 assayed 0.44 opt over a core length of 25.1 feet (22.1 feet true
width). The New South Zone is interpreted to dip at 23 degrees to the
southeast at this location. (see figure 1)
-- Drill hole 53-1824 intersected the New South Zone at the -5756 foot
elevation and assayed 1.54 opt over a core length of 1.8 feet (1.7 feet
true width). The controlling structure or break was particularly strong,
comprising a 12 inches of strongly brecciated molybdenitic fault within
syenite porphyry. Both visible gold and tellurides were observed in this
break. The mineralization remains open to the east.
-- The drill at this location on the -5300 level has now been turned to the
south and is currently testing the north portion of Queenston's
Amalgamated property. KL Gold has been granted an option by Queenston to
earn a 50% interest in the north portion of the Amalgamated property by
spending $400,000.00 in exploration expenses targeting the possible
extension of the SMC. Drilling is expected to continue into the fall of
this year.
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.
To view accompanying Figure 1, visit the following link: http://media3.marketwire.com/docs/FIGURE_1_FINALSEPT7_2011.jpg
The following table summarizes the latest underground drilling results from the HM claim in Imperial units:
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HOLE ASSAY
DRILL FROM TO DIP AZIMUTH (ounces per
HOLE No. ZONE (feet) (feet) (degrees) (degrees) ton/feet)
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53-1823 New South 530.9 556.0 -61 014 0.44/25.1 ft
CL=22.1 ft TW
Incl. 530.9 532.3 3.42/1.4 ft
CL=1.2 ft TW, VG.
and 554.7 556.0 2.45/1.3 ft
CL=1.1 ft TW
New 567.5 570.5 0.24/3.0 ft
Footwall CL=?? ft TW
New 607.5 608.5 0.28/1.0 ft
Footwall CL=?? ft TW
New 809.0 810.3 3.18/1.3 ft
Footwall CL=?? ft TW
---------------------------------------------------------------------------
53-1824 New South 524.0 525.8 -74 014 1.54/1.8 ft
CL=1.7 ft TW, VG
New 909.0 910.0 2.48/1.0 ft
Footwall CL=?? ft TW, VG,
Tell
New 1,078.0 1,079 7.79/1.0 ft
Footwall CL=?? ft TW, VG.,
Tell
New 1,157.5 1,164.7 0.25/7.2 ft
Footwall CL=?? ft TW
---------------------------------------------------------------------------
53-1825 New South 517.6 527.5 -79 014 0.04/9.9 ft
CL=9.4 ft TW
New 1,218.1 1,220.0 1.14/1.9 ft
Footwall CL=?? ft TW, VG.,
Tell
---------------------------------------------------------------------------
TW = True Width,
CL = Core Length,
VG = Visible Gold,
Tell=Tellurides,
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:
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HOLE
DRILL FROM TO DIP AZIMUTH ASSAY
HOLE No. ZONE (m) (m) (degrees) (degrees) (grams per tonne/m)
---------------------------------------------------------------------------
53-1823 New South 161.8 169.5 -61 014 15.1/7.7m CL=6.7m
TW
Incl. 161.8 162.2 117.3/0.4m CL=0.4m
TW, VG.
and 169.1 169.5 84.0/0.4m CL=0.3m
TW
New 172.4 173.4 8.2/1.0m CL=??m TW
Footwall
New 185.2 185.5 9.6/0.3m CL=??m TW
Footwall
New 246.6 247.0 109.0/0.4m CL=??m
Footwall TW
---------------------------------------------------------------------------
53-1824 New South 159.7 160.3 -74 014 52.8/0.6m CL=0.5m
TW, VG
New 277.1 277.4 85.0/0.3m CL=??m
Footwall TW, VG, Tell
New 328.6 328.9 267.1/0.3m CL=??m
Footwall TW, VG,Tell
New 352.8 355.0 8.6/2.2m CL=??m TW
Footwall
---------------------------------------------------------------------------
53-1825 New South 157.8 160.2 -79 014 1.4/2.4m CL=2.9m
TW
New 371.3 371.9 39.1/0.6m CL=??m
Footwall TW, VG, Tell
---------------------------------------------------------------------------
TW = True Width,
CL = Core Length,
VG = Visible Gold,
Tell-Tellurides,
HW = Hanging Wall
CUT = cut to 246.9 grams/tonne,
?? TW = True Width Undetermined
The South Claims were purchased by KL Gold and Queenston in April of 2007 to cover the potential down-dip extension of the SMC. KL Gold and Queenston formed a joint venture in 2007 and an underground diamond drilling program commenced on the South Claims.
An updated resource estimate for the South Claims joint venture was completed January 1, 2011 outlining an indicated resource of 101,000 tons grading 1.41 opt and an inferred resource of 113,000 tons grading 1.35 opt. These resource estimates were also included as part of a broader report prepared for KL Gold dated April 4, 2011 entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2011 prepared by Glenn R. Clark, P. Eng. This report is available on SEDAR (www.sedar.com) under KL Gold's filings.
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 approved by Stewart Carmichael, P.Geo., KL Gold's Chief Exploration Geologist, 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 sampling, analytical and test data) and approved by its President, Charles Page, 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. Page also supervised 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 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/rejects at alternate certified labs (SPJ Labs, 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 23,000 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 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 $65 million and has an 2011 exploration budget of $25 million, employing up to 14 diamond drill rigs on 7 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
Pelham Bell Pottinger
Lorna Spears / Philippe Polman
44 (0) 20 7861 3232
lspears@pelhambellpottinger.co.uk
NOMAD: Panmure Gordon (UK) Limited
Katherine Roe / Callum Stewart
44 (0) 20 7459 3600
katherine.roe@panmure.com /
callum.stewart@panmure.com
Ocean Equities Ltd.
Guy Wilkes
44 207 786 4370
guywilkes@oceanequities.co.uk
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
acurkovic@proconsulcapital.com
Queenston Mining Inc.
Ann Gibbs-Baines
416-627-8872
ann@anngibbspr.com
www.queenston.ca