TSX & AIM: KGI
KIRKLAND LAKE GOLD EXPLORATION PROGRAMS UPDATE:
NEW SMC FOOTWALL ZONES DISCOVERED ON SOUTH CLAIMS;
NEAR SURFACE DRILLING INTERSECTS NEW HIGH-GRADE
LENSES
Toronto, Ontario (August 26th, 2014) - Kirkland Lake Gold Inc., (“KL Gold” or the
“Company”) an operating and exploration gold company with operations in Ontario, Canada, is
pleased to announce recent drilling results which have expanded the mineralization associated
with the South Mine Complex (“SMC”) on both the South Claims and the HM claim. The near
surface drilling program has intersected new high-grade lenses within 360 feet of surface.
Highlights include:
• New South Zone extended
o New footwall zone discovered; assayed at 12.90 ounces per ton (opt) (442.3
grams per tonne (gpt)) over a core length of 1.0 feet.
o Deeper, unrelated footwall zone discovered; assayed at 17.34 opt (594.5 gpt)
over a core length of 1.7 feet.
• HM Claim expected to be upgraded
o Two drill intersections expected to upgrade the resource category
• Amalgamated Trend Area
o Two new additional lenses of gold mineralization identified
“The latest exploration results confirm our belief that on-going exploration will continue to add
to the resource and reserve base within the Company’s mining lease area” stated Mr. George
Ogilvie, Chief Executive Officer.
“The underground exploration has both confirmed additional high grade mineralization and
resulted in the discovery of new footwall zones in the SMC. This bodes well for KL Gold’s long
term future as the Company looks to utilize the SMC, where proven and probable reserve
grades are 0.54 opt (18.5 gpt) as the cornerstone of its mine production.
The surface drilling continues at pace with a third drill being added at the beginning of August
following the completion of our C$7.5M flow-through financing. Our objectives are to expand
the near surface resource from its inaugural NI43-101 Indicated Resource of 310,000 tons at
0.34 opt (11.7 gpt) (104,000 ounces) and Inferred Resource of 131,000 tons at 0.36 opt (12.3
gpt) (48,000 ounces) while also conducting in-fill drilling to eventually produce an initial
NI43-101 reserve after the resource has been sufficiently expanded which we expect to be
included in our annual calendar year-end complex wide reserve and resource update.
Encouragingly, the near surface mineralization continues to grow and is open across strike and
at depth with new zones also being discovered with robust grades. The near surface
mineralization in plan view sits 6,500 feet from our mill with a nameplate capacity of 2,200 tons
per day with feed ore from the Macassa Mine planned at 1,250 tons per day over the next three
years, creating spare capacity in the mill to take any additional supplemental feed source.”
TSX & AIM: KGI
The current phase of the underground exploration program, from the Macassa 5,300 foot level,
was designed to further extend and upgrade resources on the South Claims to the -5900 foot
elevation from a recently completed cross cut to the south as well as additional exploration on
the HM claim up dip and along strike. Surface drilling to 1,000 feet below surface further tested
mineralization associated with the Amalgamated Trend, located approximately 4,000 feet
south of the historically mined Main Break.
Details of the drilling highlights are as follows:
•
The intersection in drill holes 53-2589 (1.48 opt (50.7 gpt) over a true width of 9.4 feet)
and 53-2590 (0.30 opt (10.3 gpt) over a true width of 5.4 feet) have extended the New
South Zone an additional 288 feet down-dip on this part of the South Claims. A new
footwall zone was intersected as well in 53-2590 which assayed 12.90 opt (442.3 gpt)
over a core length of 1.0 feet, approximately 53 feet below the New South Zone. A
deeper, unrelated footwall zone, was intersected in drill hole 53-2591 and assayed
17.34 opt (594.5 gpt) over a core length of 1.7 feet. This intersection represents the
deepest intersection to date on the South Claims, at the -5,855 foot elevation, 180 feet
below the New South Zone.
•
Drill hole 53-2588 tested an inferred resource area on the South Claims and assayed
0.48 opt (16.5 gpt) over a true width of 31.0 feet. To the northeast of the South Claims,
drill hole 53-2496 tested a large inferred resource area on the HM Claim. This drill hole
assayed 1.22 opt (41.8 gpt) over a true width of 25.6 feet. Both intersections will
upgrade the resource category. Drill hole 53-2497 (0.57 opt (19.5 gpt) over 4.7 feet true
width) has extended the New South Zone on the HM claim an additional 125 feet north
and up-dip.
•
The definition drilling program currently underway from surface within the Amalgamated
Trend resource area has identified two new additional lenses of gold mineralization
which lie in the footwall of the current FW 3 resource block on the South Claims
property. The dip of these zones appears to be shallower than the current resources in
the area (<45 degrees) and their strike slightly oblique to the current resource. Tighter
spaced drilling and further interpretation is necessary to confirm the geometry and true
width of these zones.
•
These drill holes cover an area approximately 400 feet along strike and 170 down the
dip of these new mineralized zones and lie 270 to 360 feet below surface. The
mineralization in these zones is of the same style as that of the current resource blocks
and comprises quartz/carbonate veining generally within sericite/carbonate altered
sediments with up to 5-7% pyrite and visible gold.
The following figure, referred to elsewhere in this release, may be viewed at the Company’s
website at www.klgold.com.
•
Figure 1 - plan view showing the latest underground exploration results.
TSX & AIM: KGI
The following table summarize the latest underground drilling results in imperial values:
5300 LEVEL SMC UNDERGROUND EXPLORATION
DRILL
HOLE
No.
ZONE
FROM
(feet)
TO
(feet)
53-2588
New South
Incl.
and
and
727.7
744.6
759.0
760.0
765.5
745.7
760.0
761.0
South Claims
53-2584
South Claims
53-2586A
South Claims
53-2587
New South
53-2589
53-2590
South Claims
53-2591
South Claims
53-2495
HM Claim
53-2497
HM Claim
ASSAY
(oz per ton/feet)
-37
318
0.48/37.8’ CL=31.0’ TW
0.98/1.1’ CL=0.9’ TW, VG
1.93/1.0’ CL=0.9’ TW, VG
6.59/1.0’ CL=0.9’ TW, VG. Tell
-32
302
NSV, Intersected diabase dyke
705.0
712.0
-39
305
0.05/7.0’ CL=TW Not Calculated
New South
673.0
676.5
-49
305
0.22/3.5’ CL=TW Not Calculated
New South
Incl.
and
and
and
and
and
New South
Incl.
New Footwall
1
709.0
709.0
710.0
711.0
715.0
716.2
718.8
674.3
678.8
721.8
719.8
710.0
711.0
712.9
716.2
717.8
719.8
679.8
679.8
722.8
New South
Incl.
New Footwall
2
New South
714.4
714.4
888.2
717.6
715.4
889.9
548.5
551.8
New South
Incl.
and
and
and
and
New South
Incl.
612.3
612.3
614.0
616.1
637.7
639.5
897.0
903.6
642.2
614.0
616.1
617.6
639.5
640.8
905.7
905.7
HM Claim
53-2496
AZIMUTH
(degrees)
New South
South Claims
South Claims
HOLE
DIP
(degrees)
-46
318
-55
318
-42
326
-90
0
-50
310
-31
320
1.48/10.8’ CL=9.4’ TW
1.04/1.0’ CL=0.9’ TW, VG
1.79/1.0’ CL=0.9’ TW, VG
1.01/1.9’ CL=1.7’ TW
4.03/1.2’ CL=1.1’ TW, VG
1.14/1.6’ CL=1.4’ TW
3.46/1.0’ CL=0.9’ TW, VG
0.30/5.5’ CL=5.4’ TW
0.90/1.0’ CL=1.0’ TW, VG
12.90/1.0’ CL=??’ TW, VG
3.50/1.0’ CL=??’ TW Cut**
0.44/3.2’ CL=2.9’ TW
0.86/1.0’ CL=0.9’ TW, VG
17.34/1.7’ CL=??’ TW, VG, Tell
3.50/1.7’ CL=??’ TW, Cut**
0.21/3.3’ CL=TW Not Calculated
1.22/29.9’ CL=25.6’ TW
1.85/1.7’ CL=1.5’ TW
5.00/2.1’CL=1.8’ TW, VG, Tell
6.91/1.5’ CL=1.3’ TW, VG, Tell
2.84/1.8’ CL=1.5’ TW, VG
1.53/1.3’ CL=1.1’ TW
0.57/8.7’ CL=4.7’ TW
1.15/2.1’ CL=1.1’ TW
TW = True Width, CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Tell = Tellurides
*Cut = cut to 7.2 opt, **Cut = cut to 3.5 opt., TW Not Calculated=Intersection will not make minimum
requirements to estimate a resource.
TSX & AIM: KGI
The following table summarize the latest surface drilling results in imperial values:
SURFACE EXPLORATION
DRILL
HOLE
No.
ZONE
FROM
(feet)
TO
(feet)
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
AB-14-32
New Zone
335.8
337.5
-55
321
AB-13-135
AB-14-28
AB-14-31
AB-14-34
AB-14-36
AB-14-63
AB-14-64
AB-14-65
AB-14-69
AB-14-70
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
380.3
331.0
339.5
327.0
356.5
352.3
352.5
359.2
363.4
369.4
381.6
332.5
340.5
328.0
357.5
354.1
353.5
360.2
367.5
370.4
-51
-67
-57
-48
-44
-63
-59
-45
-56
-43
321
321
321
322
325
329
328
328
328
327
11.95/1.7’ CL=?? TW, VG
3.5/1.7’ CL=0.9’ TW, VG, Cut
1.01/1.3’ CL=?? TW, VG
0.22/1.5’ CL=?? TW
1.20/1.0’ CL=?? TW
2.21/1.0’ CL=?? TW, VG
0.72/1.0’ CL=?? TW, VG
0.84/1.8’ CL=?? TW, VG
0.45/1.0’ CL=?? TW, VG
0.83/1.0’ CL=?? TW, VG
0.39/4.1’ CL=?? TW, VG
0.44/1.0’ CL=?? TW, VG
AB-14-72
AB-14-73
New Zone
New Zone
372.4
339.5
373.4
340.5
-44
-57
331
321
2.51/1.0’ CL=?? TW, VG
0.55/2.1’ CL=?? TW, VG
ASSAY
(oz per ton/feet)
CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Cut = cut to 3.5 opt
The following table summarizes the latest underground drilling results in metric values:
5300 LEVEL SMC UNDERGROUND EXPLORATION
DRILL
HOLE
No.
ZONE
FROM
(m)
TO
(m)
53-2588
New South
Incl.
and
and
221.8
227.0
231.3
231.6
233.3
227.3
231.6
232.0
South Claims
53-2584
South Claims
53-2586A
South Claims
53-2587
New South
New South
214.9
217.0
New South
205.1
206.2
New South
Incl.
and
and
and
and
and
New South
Incl.
216.1
216.1
216.4
216.7
217.9
218.3
219.1
205.5
206.9
219.4
216.4
216.7
217.3
218.3
218.8
219.4
207.2
207.2
South Claims
53-2589
South Claims
53-2590
South Claims
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
ASSAY
(Grams Per tonne/m)
-37
318
16.46/11.5m CL=9.4m TW
33.60/0.3m CL=0.3m TW, VG
66.17/0.3m CL=0.3m TW, VG
225.94/0.4m CL=3m TW, VG.
Tell
-32
302
NSV, Intersected diabase dyke
-39
305
-49
305
-46
318
-55
318
1.71/2.1m CL=TW Not
Calculated
7.54/1.1m CL=TW Not
Calculated
50.74/3.3m CL=2.7m TW
35.66/0.3m CL=0.3m TW, VG
61.34/0.3m CL=0.3m TW, VG
34.63/0.6m CL=0.5m TW
138.17/0.4m CL=0.3m TW, VG
39.09/0.5m CL=0.4m TW
118.63/0.3m CL=0.3m TW, VG
10.29/1.7m CL=1.6m TW
30.86/0.3m CL=0.3m TW, VG
TSX & AIM: KGI
DRILL
HOLE
No.
FROM
(m)
TO
(m)
220.0
220.3
New South
Incl.
New Footwall
2
217.7
217.7
270.7
218.7
218.1
271.2
New South
167.1
168.2
New South
Incl.
and
and
and
and
186.6
186.6
187.1
187.8
194.3
194.9
195.7
187.1
187.8
188.2
194.9
195.3
New South
Incl.
273.4
275.4
276.1
276.1
ZONE
New Footwall
1
53-2591
South Claims
53-2495
HM Claim
53-2496
HM Claim
53-2497
HM Claim
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
-42
326
-90
0
-50
310
-31
320
ASSAY
(Grams Per tonne/m)
442.29/0.3m CL=??m TW, VG
120.00/0.3m CL=??m TW, Cut**
15.09/1.0m CL=0.9m TW
29.49/0.4m CL=0.3m TW, VG
594.52/0.5m CL=??m TW, VG,
Tell
120.00/0.5m CL=??m TW, Cut**
7.2/1.1m CL=TW Not Calculated
41.83/9.1m CL=7.8m TW
63.43/0.5m CL=0.5m TW
171.43/0.7m CL=0.5m TW, VG
Tell
236.92/0.4m CL=0.4m TW,
VGTell
97.37/0.6m CL=0.5m TW, VG
52.46/0.4m CL=0.3m TW
19.54/2.7m CL=1.4m TW
39.43/0.7m CL=0.3m TW
TW = True Width, CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Tell = Tellurides
*Cut = cut to 246.9 grams/tonne, **Cut = cut to 120 grams/tonne., TW Not Calculated=Intersection will not
make minimum requirements to estimate a resource.
The following table summarizes the latest surface drilling results in metric values:
SURFACE EXPLORATION
DRILL
HOLE
No.
ZONE
FROM
(m)
TO
(m)
HOLE
DIP
(degrees)
AZIMUTH
(degrees)
AB-14-32
New Zone
102.4
102.9
-55
321
AB-13-135
AB-14-28
AB-14-31
AB-14-34
AB-14-36
AB-14-63
AB-14-64
AB-14-65
AB-14-69
AB-14-70
AB-14-72
AB-14-73
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
New Zone
115.9
100.9
103.5
99.7
108.7
107.4
107.4
109.5
110.8
112.6
113.5
113.0
116.3
101.3
103.8
100.0
109.0
107.9
107.7
109.8
112.0
112.9
113.8
103.6
-51
-67
-57
-43
-44
-63
-59
-45
-56
-43
-44
-57
321
321
321
322
325
329
328
328
328
327
331
321
ASSAY
(Grams Per tonne/m)
409.78/0.5m CL=??m TW, VG
120.00/0.5m CL=??m TW, VG,
Cut
34.70/0.4m CL=??m TW, VG
7.61/0.5m CL=??m TW
41.28/0.3m CL=??m TW
75.67/0.3m CL=??m TW, VG
24.82/0.3m CL=??m TW, VG
28.87/0.5m CL=??m TW, VG
15.26/0.3m CL=??m TW, VG
28.32/0.3m CL=??m TW, VG
13.27/1.2m CL=??m TW, VG
15.09/0.3m CL=??m TW, VG
86.13/0.3m CL=??m TW, VG
18.82/0.6m CL=??m TW, VG
CL = Core Length, VG = Visible Gold, TW = True Width Unknown, Cut = cut to 120 grams/tonne.
TSX & AIM: KGI
Technical Information and Qualified Person Notes
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 and reserve estimates 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. 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. titled Review of Resources and Reserves of Macassa Mine, Kirkland Lake,
Ontario at January 1, 2014 dated June 5, 2014, which has been filed on SEDAR
(www.sedar.com).
About the Company
Kirkland Lake Gold Inc.’s corporate goal is to create a self-sustaining and long-lived
intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The
Company plans to do this by mining to the reserve grade, generating profits and free cash flow
for the shareholders. The Company will also look to take advantage of its increased
infrastructure capacity in the appropriate gold price environment. At the same time, the
Company is committed to maintaining a significant exploration program aimed at developing
and maintaining a property wide reserve and resource base sufficient to sustain a mine life of
more than ten years.
Over the last several years the Company has invested significant capital to improve the
infrastructure of the business including upgrading the production hoist, skips, mill, underground
mobile equipment and capital development. From initial discovery to present day there have
been over 24 million ounces of gold mined from the Kirkland Lake camp while the current
reserve and resource provides for potentially 14 years of mining with significant exploration
upside.
TSX & AIM: KGI
For further information, please contact:
George Ogilvie, P.Eng.
President and CEO
Phone: +1 709 532 5716
Fax: +1 705 568 6444
E-mail: [email protected]
NOMAD: Panmure Gordon (UK) Limited
Dominic Morley / Adam James
Phone: +44 (0) 20 7886 2500
Blytheweigh
Tim Blythe / Halimah Hussain / Camilla Horsfall
Phone: +44 (0) 20 7138 3204
Website- www.klgold.com
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.
Cautionary Note Regarding Forward Looking Statements
This Press Release contains statements which constitute “ forward-looking statements”, 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”, “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, and 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 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 Management's
Discussion and Analysis and Annual Information Form each for the year ended April 30, 2014 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 from those expected, there may be others that cause
results not to be as anticipated. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements except as required by applicable law.
TSX & AIM: KGI
Glossary of Terms
National Instrument 43-101 Definitions of Resources and Reserves
The Reserve and Resource estimation classifications as prescribed in National Instrument
43-101 are given here for clarity.
Mineral Resource
Mineral Resources are sub-divided into 3 categories depending on the geological confidence.
The highest level with the most confidence is the `Measured’ category. The next level of
confidence is the `Indicated’ category and the lowest level, or the resource with the least
confidence, is the `Inferred’ category.
Inferred Mineral Resource
An `Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based
on limited information and sampling, gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes.
Indicated Mineral Resource
An `Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics, can be estimated with a level of
confidence sufficient to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits, workings and
drill holes that are spaced closely enough for geological and grade continuity to be reasonably
assumed.
Measured Mineral Resource
A `Measured Mineral Resource’ is that part of a Mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.
Mineral Reserve
Mineral Reserves are sub-divided into 2 categories. The highest level of Reserves or the level
with the most confidence is the `Proven’ category and the lower level of confidence of the
Reserves is the `Probable’ category. Reserves are distinguished from resources as all of the
technical and economic parameters have been applied and the estimated grade and tonnage
of the resources should closely approximate the actual results of mining. The guidelines state
TSX & AIM: KGI
“Minerals Reserves are inclusive of the diluting material that will be mined in conjunction with
the Mineral Reserve and delivered to the treatment plant or equivalent facility.” The guidelines
also state that, “The term `Mineral Reserve’ need not necessarily signify that extraction
facilities are in place or operative or that all government approvals have been received. It does
signify that there are reasonable expectations of such approvals.”
Probable Mineral Reserve
A `Probable Mineral Reserve’ is the economically mineable part of an Indicated and in some
circumstances a Measured Mineral Resource demonstrated by a least a Preliminary Feasibility
Study. This study must include adequate information on mining, processing, metallurgical,
economic, and other relevant factors that demonstrate, at the time of reporting, that economic
extraction can be justified.
Proven Mineral Reserve
A `Proven Mineral Reserve’ is the economically mineable part of a Measured Mineral Resource
demonstrated by at least a Preliminary Feasibility Study. This study must include adequate
information on mining, processing, metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is justified.
A more detailed list of technical terms can be found at
http://klgold.com/cmsAssets/docs/pdfs/2013/2013%20Annual%20Information%20Form.pdf