Kirkland Lakes releases D zone results
Kirkland Lake Gold Inc KGI
Shares issued 32,753,224 Feb 27 2004 close $ 3.90
Monday March 1 2004 News Release
Mr. Brian Hinchcliffe reports
KIRKLAND LAKE GOLD INC.: NEW 2.16 OUNCE 'D' ZONE INTERSECTION OVER 15.9 FEET YIELD BEST RESULTS YET; UPPER SHAFT #3 MINING PLAN ADVANCES
Kirkland Lake Gold has released drilling results from the D zone and a strategic production update of this upper portion of the Macassa mine. Definition drilling has started on the D zone north, now referred to as stope 3824, with the first hole (38-276) returning the best intersection to date on the structure, at 1.36 ounces of gold over 15.9 feet (12.6 feet true width (TW)) cut (or 2.16 ounces of gold/15.9 feet uncut).
Additional drilling on the D zone south, now referred to as stope 3833, has increased its dimensions in several directions, creating ore continuity between the 3825 and 3400 levels and allowing for the finalization of the first D zone mining plan. Hole 38-281 has intersected 3.32 ounces of gold over 2.6 feet (2.3 feet TW) cut (or 10.41 ounces of gold/2.6 feet uncut) including an assay of 17.67 ounces of gold over 1.3 feet (1.2 feet TW), bringing the ore to within 75 feet of the 38 level of the mine.
"Apart from the 575,000 feet of drilling that we will do this year unrelated to shaft No. 3, we will make exceptional progress in our definition and exploration drilling at shaft No. 3 as well, " said Brian Hinchcliffe, the company's president." Historically, the area from 4200 up to surface was thought to be barren. Our initial goal is to develop 500,000 ounces of gold in reserves solely in the D zone, '04 Break and other areas above the 4200 level and to make this an important part of the shaft No. 3 production profile. This first D zone mining block will produce 68,300 ounces of gold at a diluted grade of 0.9 ounce of gold per ton."
"The drilling results from the D zone between the 3800 and 3400 levels continue to be exceptional," said Mike Sutton, chief geologist. "We have yet to step out and undertake any real exploration on the structure. We are looking forward to shortly drilling the D zone above the 3400 level as it remains open in all directions."
D zone reserves and resources exceed 125,000 ounces
The D zone was discovered in February of 2003. The D zone today consists of a north and a south block. As described below, the D zone reserves have doubled since Kirkland's last mine reserve calculation in August, 2003.
The probable reserve, all of which is contained in the south block, has increased to 75,800 tons of 0.9-ounce-per-ton gold (68,300 ounces) from 43,400 tons of 0.74-ounce-per-ton gold (32,300 ounces). This includes the latest drill holes, 38-280 and 38-281, and has increased the block downplunge in terms of probable reserve. This latest estimate does not include the results of hole 38-276 (D vein north) plus the area that this definition hole represents.
In addition to the above probable reserve, the indicated resource on the D zone (north and south), stands at 45.7 tons of 0.75-ounce-per-ton gold (34,200 ounces) and the inferred resource is 40,712 tons of 0.66-ounce-per-ton gold (26,870 ounces).
In the foregoing calculations, the mining dilution was calculated at 35 per cent at 0.02 ounce per ton. Reserves are not part of resource.
Drilling campaign continuing
A drilling campaign has begun in order to convert resources in the north D zone, or stope 3824 (most of the indicated and inferred), to probable reserves. Drilling is currently being undertaken on 50-to-100-foot centres.
Hole 38-260, drilled 70 feet above hole 38-254 (previously reported at 2.03 ounces of gold over 5.3 feet (5.3 feet TW, uncut or 1.9 ounces of gold per ton cut), has intersected 5.5 feet of quartz, with visible gold, grading 0.45 ounce of gold over 5.5 feet (2.8 feet TW). Holes 38-274, 38-280 and 38-281 have extended the ore of the south D zone 145 feet below the 38-254 intersection. The results were 1.93 ounces of gold over 2.7 feet (2.4 feet TW), 4.32 ounces of gold over one foot (0.9 foot TW), and 3.32 ounces of gold over 2.6 feet (2.3 feet TW) cut (or 10.41/2.6 feet uncut) including an assay of 17.67 ounces of gold over 1.3 feet (1.2 feet TW).
Two holes, drilled to target the -3450 elevation, have successfully extended the D zone to the south. The total known strike length of the mineralized structure is currently 1,950 feet, with ore grade intersections now covering 1,150 feet on strike. The D zone south is ore grade for 450 feet downdip.
Hole 38-268 is located 70 feet south of hole 38-211A which had returned 2.79 ounces of gold over 3.2 feet (2.5 feet TW) cut, or 5.07 ounces of gold over 3.2 feet (2.5 feet TW) uncut. Hole 38-268 has returned 1.32 ounces of gold over 1.8 feet (1.7 feet TW). Hole 38-266, located 160 feet south of 38-211A, has returned 0.32 ounce of gold over 3.3 feet (2.8 feet TW). Visible gold was observed in both drill holes.
In the north D zone, hole 38-276 may represent the area where the C and D structures start to diverge going north, or it may be a similar widening of the D horizon as is 38-206. That hole had intersected 3.23 ounces of gold per ton over 3.5 feet (three feet TW), in a wider zone that grades 0.97 ounce of gold per ton (cut) over 13 feet (11.2 feet TW). The uncut values were 4.56 ounces of gold per ton over 3.5 feet (three feet TW), in a wider zone that grades 1.32 ounces of gold per ton over 13 feet (11.2 feet TW cut). Hole 38-206 is 65 feet south of 38-276.
The following table summarizes the new D zone drill results:
Drill
hole Azi- Assay
No./ From To Dip muth (oz. per
vein ft ft deg deg ton/feet)
38-276
D vein 414.4 430.3 +71 169 1.36/15.9
equals 12.6'
(+C vein?)
TW (cut)
(or 2.16/
15.9' uncut)
VG
incl. 414.4 415.4 +71 169 15.28/1.1'
equals 0.9'
TW VG
incl. 426.6 427.6 +71 169 4.67/1.0'
0.8' equals
TW VG
38-266
D vein 456.7 460.0 +46 149 0.32/3.3
equals 2.8'
TW VG
D vein
splay 489.0 493.5 +46 149 0.15/4.5
equals 3.8'
TW
38-268
D vein 378.0 380.0 +53 149 1.32/1.8
equals 1.7'
TW VG
38-267
D vein 400.8 401.8 +55 113 0.14/1.0
equals 2.8'
TW
38-260
D vein 430.4 435.9 +36 084 0.45/5.5
equals 4.7'
TW
38-280
D vein 388.7 391.3 +21 094 3.32/2.6
equals 2.3'
TW
(cut) VG
(or 10.41/2.3'
uncut) VG
incl. 388.7 390.0 +21 094 17.67/1.3
equals 1.2'
TW VG
38-281
D vein 389.7 390.7 +15 104 4.32/1.0
equals
0.9'TW
(uncut) VG
395.0 398.5 +15 104 0.09/3.5
equals
3.2' TW
38-278
D vein 392.7 393.3 +44 151 6 QV, VG
38-274
D vein 395.1 397.8 +23 102 1.93/2.7'
equals 2.4'
TW VG
TW equals true width
VG equals visible gold
TELL equals tellurides
cut equals cut to 3.5 ounces per ton
QV equals quartz vein
Very little drilling has been carried out historically at Macassa to the south of the primary ore structure, the '04 Break. The newly discovered D zone is one example of what exists to the south (the hangingwall). 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). Based on existing drilling, this new zone is mineralized for 1,300 feet downdip by 1,100 feet on strike. The D zone is open in most directions.
Though most ore zones in Kirkland Lake are east-west striking, this zone is north-south striking. The D zone projects close to shaft No. 3, thus enhancing the economics of developing two new levels at both 3400 and 3000 elevations. The 3400 level development is being excavated along the new D zone out north to the primary host structures at the Macassa mine -- the '04 Break and the South zone.
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