World News: 11:00 GMT Tuesday 3rd December 2019. [Kirkland Lake Gold Ltd. via Globe Newswire via SPi World News]
TORONTO, Dec. 03, 2019 (GLOBE NEWSWIRE) -- or the “”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced new high-grade results from the ongoing underground drilling programs at the Fosterville Mine in Victoria, Australia. Recent underground drilling targeting additional growth in Mineral Reserves and Mineral Resources confirmed significant continuity of mineralization down-plunge and adjacent to existing Mineral Reserves in the Lower Phoenix System. In addition, underground infill drilling into Swan Mineral Reserves continues to return exceptional high-grade results containing VG providing confirmation of the geological model, underpinning confidence in the operation’s mine plan. Drill results reported are from 206 holes (51,521 m) that targeted infill and extension of the Lower Phoenix Mineral Resources. Drill results reported are post the December 2018 Mineral Resource and Mineral Reserve update. (See press release dated February 21, 2019.)
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “We have an extensive exploration program at Fosterville covering four main target areas, Lower Phoenix down-plunge of Swan, Cygnet, Harrier and Robbin’s Hill (Figure 1). Today’s results focus on the Lower Phoenix area. They are encouraging as they include the extension of high-grade, VG-bearing mineralization 80 m down-plunge of the Swan Zone and demonstrate that Lower Phoenix is an extremely large gold system, with continuity of the system having been confirmed to over 950 metres down‑plunge of our deepest Mineral Reserves. In addition, we continue to get strong results from drilling of the Cygnet Zone, where we have intersected high-grade, VG-bearing mineralization, including 239 g/t Au over 1.2 m (ETW 0.9 m). Such results provide significant resource growth potential immediately adjacent to existing underground infrastructure.
“We are also progressing well with other components of our exploration program. At Robbin’s Hill, there have been up to six surface drill rigs in operation over recent months, with encouraging results which we plan to release shortly. We also continue to drill the anticline offset target at Harrier South from underground drill platforms and advance our LODE program on district targets. Drilling at Harrier South remains at an early stage given the time required to extend the existing exploration drift and poor ground conditions encountered in some areas. The fact that we have already intersected quartz veins with VG similar in texture to those found in the Swan Zone is promising. We have not yet seen the ultra-high grades you get at Swan, but it is early days and we remain optimistic. Harrier South will continue to be a high-priority target with extensive drilling to continue into, and throughout, 2020.”
During 2019, underground diamond drilling targeting down-plunge of the Swan Mineral Reserves has continued to return encouraging results, demonstrating the extensive down-plunge extent of the Lower Phoenix System (Figure 2).
Progressive step out drilling over 2019 from the Harrier Link Drill Drive, spaced at 100 m x 50 m centres has now confirmed continuity of moderate to high-grade mineralization over a down-plunge distance of 950 m from December 2018 Mineral Reserves in the Lower Phoenix System (Figure 3). Reported drill results are from 22 holes (16,611 m), and include moderate to high grade, large width sulfide intercepts of 14.8 g/t Au over 5.9 m (ETW 4.5 m) in hole UDE210, 6.2 g/t Au over 18.0 m (ETW 13.8 m) in hole UDE204 and 7.3 g/t Au over 8.8 m (ETW 6.7 m) in hole UDE199. The drilling has now defined continuity of mineralization between the Swan and Lower Phoenix South Resource blocks (Swan South Zone) and, with a high frequency of 30 gram-metre intercepts, it is anticipated that substantial additions of Inferred Mineral Resources will be realized in end-of-year model updates as a result of this program.
This drilling has also identified mineralization directly footwall to Swan South in the Swan Footwall Splay Zone up to 250 m down-plunge of December 2018 Mineral Reserves. Results of 2.8 g/t Au over 15.7 m (ETW 12.0 m) in hole UDE200A and 42.6 g/t Au over 0.8 m (ETW 0.5 m) in hole UDE204 (Figure 4) highlight the potential for Mineral Resource expansion immediately footwall to the Swan South Zone down-plunge.
In August 2019, the establishment of the P4040 drill drive development enabled close space drill targeting of the down-plunge extensions of the Swan Mineral Reserves down to 25 m x 25 m centres with the aim to extend Indicated Mineral Resources to facilitate Mineral Reserve evaluation. Four underground drill rigs have been located in this drill platform since August and results returned demonstrate continuity of high-grade mineralization, including occurrences of quartz vein hosted VG enveloped by sulfide mineralization up to a distance of 150 m down-plunge of Mineral Reserves (Figure 3). Two intercepts containing VG outside Mineral Reserves are greater than 100 gram-m, with 87.6 g/t Au over 7.6 m (ETW 5.5 m) in hole UDH3132 and 45.0 g/t Au over 5.2 m (ETW 4.7 m), including 267 g/t Au over 0.7 m (ETW 0.7 m) in hole UDH3142 which occur 40 m and 80 m down-plunge from Mineral Reserve respectively. A further 11 drill hole intercepts from this program are greater than 30 gram-m and it is anticipated that Mineral Reserves will be extended down-plunge of the Swan Mineral Reserves in the end of year model updates.
Exploration drilling footwall to Swan in 2018 discovered significant mineralization on a west southwesterly dipping structure, Cygnet. Further drilling into the up-plunge projection of this target has returned several high-grade intercepts containing VG mineralization. Recent key intercepts into the Cygnet Zone are listed below, with further details provided in the commentary that follows:
Drill results returned to date in the Cygnet Zone demonstrate strike continuity of mineralization over a distance of approximately 650 m and dip continuity of mineralization over a vertical distance of approximately 300 m between the 6100mN and 6750mN and 4050RL and 3750RL (Figure 7).
The Cygnet structure sub-parallels the Swan structure and is positioned approximately 125m footwall (east) of the Swan Zone (Figure 6). The north northwest striking mineralized structure transects the eastern limb of an anticline and an anticline-syncline fold pair. The mineralized fault occurs east of the main anticlinal axis, and has an interpreted reverse displacement of approximately 30 m. A shallower structure named the Pen Fault, splays from the Cygnet structure footwall to the Benu Shale stratigraphic units and at the intersection point of these two structures is where occurrences of quartz hosted VG mineralization have been intersected. Further footwall (approximately 70 m), another structure named the Cob Fault has also been identified containing a consistent trend of sulfide mineralization.
Drilling further down-plunge of 6100mN into the projected position of the Cygnet Zone also demonstrates that significant mineralization persists approximately 550 m down-plunge. Four intercepts containing significant grades and widths of sulfide mineralization highlight the growth potential down-plunge on the Cygnet Zone including 11.1 g/t Au over 3.4 m (ETW 2.4 m) in hole UDE200, 7.9 g/t Au over 3.1 m (ETW 2.6 m) in hole UDE209, 6.6 g/t Au over 6.6 m (ETW 5.5 m) in hole UDE181A and 8.7 g/t Au over 2.3 m (ETW 2.1 m) in hole UDE185A.
Drilling undertaken to date in the Cygnet Zone has demonstrated sufficient continuity of mineralization and the Company expects to substantially extend Mineral Resources to the north of the December 2018 Cygnet block which hosts an Inferred Mineral Resource of 582Kt @ 6.9g/t Au for 120Koz Au. Opportunity exists for further expansion of Mineral Resources to the north and south and drill targeting of the Cygnet structure will continue into 2020. Drilling will also focus on infill drilling of Mineral Resources to increase geological confidence to facilitate mineral reserve evaluation on this attractive growth target positioned in close proximity to current infrastructure.
Results from the ongoing underground infill drilling program targeting Swan, reaffirm the high-grade tenor of the Swan Mineral Reserves. Since the December 2018 Swan Mineral Reserve of 2.34Moz grading at 49.6 g/t Au, a total of 117 holes for 13,484 m have been drilled into this zone in 2019 for the purpose of optimizing development and stope positioning. Of the 117 results returned to date, 19 results returned greater than 1,000 gram-metres and an additional 44 results returned greater than 100 gram-metres (Figure 5). Key intercepts over 2,000 gram-metres include;
Intercepts through the Swan Footwall Splay also returned some exceptional high-grade, VG intercepts, including one over 2,000 gram-metres and a further three intercepts over 100 gram-metres. The Swan Footwall Splay Fault emanates from and branches off the Swan Fault at approximately 6400mN and 4000mRL (Figures 4 & 6). Mineralized widths containing significant VG grades are typically largest on this fault immediately footwall to the Swan Fault. Key infill intercepts returned that contain VG mineralization include;
Results returned from infill drilling into the Swan Mineral Reserves to a spacing of 12.5 m x 12.5 m have verified the continuity of very high-grade mineralization in Swan. This drilling, coupled with model reconciliation performance, has provided increased confidence in the geological model which underpins the mine plan.
Troy Fuller, MAIG, Director of Exploration, Australia, is a "Qualified Person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this News Release.
For further information regarding the Company’s 2018 Mineral Reserves and Mineral Resources estimates for the Fosterville Gold Mine, please refer to the Company’s news release dated February 21, 2019 and the Technical Report entitled “Updated NI 43-101 Technical Report Fosterville Gold Mine In the State of Victoria, Australia” effective December 31, 2018.
Kirkland Lake Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All diamond drill hole collars (Table 2) are accurately surveyed using a Leica TS16 Total Station instrument and down-hole deviations are measured by either electronic gyro or single-shot instruments.
Sampling consisted of diamond drill core that was either full core or half core sampled. Half core samples were cut longitudinally in half with a diamond saw; one-half of the drill core was sent to an independent laboratory for analysis and the other drill core half retained for reference.Sample pulps are returned from the assay laboratory for reference and future geological or metallurgical studies. Drill core sample intervals vary between 0.3 and 1.2 m in length and were determined from logging of sulfide and visible gold to geological boundaries.
Samples containing VG or considered likely to contain VG were separated from sulfide gold samples and dispatched independently for assaying. At the laboratory, “VG” jobs were processed through a single pulverizer and material barren of gold (‘quartz wash’) was crushed before and after each sample to minimize the potential for gold to contaminate successive samples.
Assays are either based on 25-gram or 40-gram charge fire assay. Mean grades are calculated using a variable lower grade cut-off (generally 2 g/t Au) and maximum 2 m internal dilution. No upper gold grade cut is applied to the data. However, during future Mineral Resource studies the requirement for assay top cutting will be assessed.
The majority of samples were assayed at On Site Laboratories, an independent laboratory in Bendigo, Victoria. The facility is registered ISO 9001:2008 (CERT-C33510). Some samples were assayed at Bureau Veritas, Adelaide. This facility is registered ISO 9001 : 2015 (CERT RN – 44 100 160145) and NATA accredited (1526).
Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 723,701 ounces in 2018 and is on track to achieve significant production growth over the next three years, including target production of 950,000 – 1,000,000 ounces in 2019, 930,000 – 1,010,000 ounces in 2020 and 995,000 – 1,055,000 ounces in 2021. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management and operational expertise.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to planned exploration programs, costs and expenditures, changes in Mineral Resource estimates, potential growth in Mineral Resources, conversion of Mineral Resources to proven and probable Mineral Reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These forward-looking statements include, but are not limited to, statements with respect to future exploration potential, project economics, timing and scope of future exploration, anticipated costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others, risks related to international operations, risks related to obtaining the permits required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Annual Information Form, financial statements and related MD&A for the periods ended December 31, 2017 and March 31, 2018 and other disclosures of "Risk Factors" by the Company and its predecessors, which are filed with the securities regulatory authorities in certain provinces in Canada and available on SEDAR. Although the Company has attempted to identify key factors that could cause actual results to differ materially, there may be other factors that cause unanticipated and unintended results. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
All resource and reserve estimates included in this news release or documents referenced in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. These definitions differ materially from the definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act.
In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. Securities and Exchange Commission (the "SEC"). Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve or is or will ever be economically or legally mineable or recovered.
Anthony Makuch, President, Chief Executive Officer & DirectorPhone: +1 416-840-7884E-mail:
Mark Utting, Vice-President, Investor Relations Phone: +1 416-840-7884 E-mail:
Globe Newswire: 11:00 GMT Tuesday 3rd December 2019
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