Kirkland Lake Gold's Reserves Increase to 927,000 Ounces; Drifting to Begin South to Access Substantial New Discoveries; Exploration Update
Tuesday September 20, 12:06 am ET
KIRKLAND LAKE, ONTARIO--(CCNMatthews - Sept. 20, 2005) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI - News; AIM:KGI) is pleased to present its new year-end (April 30, 2005) gold reserve and resource estimates for its operations in Kirkland Lake, Ontario and an exploration update.
Since the December 2002 reserves were released, the Company has increased the reserves by 160%, as a result of an aggressive exploration campaign together with the conversion of resources to reserves. In addition, significant increases to resources are anticipated in the year ahead due to recent outstanding exploration discoveries to the south of the mine workings such as the 90.4 foot intersection assaying 2.3 ounces of gold (uncut or 1.16 ounces cut - higher grades are cut to 3.50 ounces of gold per ton) and the follow-up 124.5 foot interval which assayed 1.43 ounces of gold uncut (see news releases dated July 11th, 2005 and August 15th, 2005).
"Continued exploration success in the wide-spaced drilling to the south of the Kirkland Lake Camp, which has historically produced 24 million ounces of gold, is beginning to bring in tonnages surpassing the original projections now that closer spaced drilling is underway, "commented Mike Sutton, Chief Geologist. "The new discoveries will have a very positive effect on the economics of mining."
Drift to Access New North-South Discoveries from 5300 Level
Exploration drilling to the south over the past two years has resulted in the discovery of many new north-trending zones of mineralization and the extension of previously discovered zones. These include the Lower D, LK and the most recent "unnamed" discovery over which a 90.4 foot intersection assayed 2.3 ounces of gold (uncut or 1.16 ounces cut), and the follow-up 124.5 foot interval which assayed 1.43 ounces of gold (uncut or 0.84 cut). An inferred resource of 172,000 tons at grade of 0.96 ounces of gold per ton has been estimated based on the two drill hole intersections for this new "unnamed "discovery.
"The new drift will add an exciting chapter to the exploration programs, allowing the conversion of wide-spaced drilling into resource drilling on 100-200 foot spacing with 600-700 foot long holes, instead of the current 300-500 foot spacing with 2,000 foot holes " added Stewart Carmichael, Chief Exploration Geologist. "The potential to develop a new mine over the short term is clear on this part of the property and the geological knowledge gained will pay dividends for years to come."
The Company plans to begin a multi-functional exploration drift to the south that will serve as both a drilling platform and to enable bulk sampling of the various new discoveries. The drift will begin on the easternmost Macassa property at the 5300-foot level and will be approximately 2,500 feet in length. The drift will intersect the latest discovery close to the same elevation (-5340) as the wedged drill hole, 50-627W1. The drift will also intersect the LK Zone approximately 45 feet above drill hole 45-911A which assayed 26.21 ounces of gold over 6.0 feet (uncut or 1.43 cut) and included an assay of 102.46 ounces of gold over 1.5 feet.
It is anticipated that the drift will intersect additional mineralized zones as indicated by exploration drilling. These include the #6 Break, #6 Break Splay, the Lower D, and other identified zones. The Company plans to excavate a series of drill bays along the drift, which will provide drilling platforms to test these various zones at close spaced intervals. Drilling will cover an area from the existing Lower D reserve and resource block back to the mine workings, a distance of 2,000 feet horizontal and 800 feet vertical. This will be used to define resources with a combined potential of up to 700,000 ounces of gold from all the various zones. As part of the exploration program, bulk sampling of the various zones will be completed to ascertain grade distribution, ore geometry and recovery. The end of this drift will also provide access to drill the Kirkland Lake Main Break to the -7000 foot level, and is estimated to require approximately eight months for completion.
A plan view of the proposed drift (figure 1) may be viewed on the company's website (www.klgold.com) or at the following link: ccnmatthews.com
To date, nine mineralized structures, including at least five North-South structures, have been discovered south of the active mine workings at Macassa. These may extend 5,000 feet or more. To date, the Lower D has ore-grade intersections for 2,700 feet horizontally. Historically, ore-bearing structures in Kirkland Lake are laterally very extensive (1,000 feet to 20,000 feet). Ore-grade shoots along these structures generally are also extensive (1,000 to 8,000 feet). An example of the extent of potential mineralization is the Teck-Hughes Mine, where 3,700,000 ounces of gold were mined from the Main Break over a strike length of only 1,400 feet (located on a single mineral claim). |
