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Monday, 5 November 2012
Kirkland Lake Gold extends South Mine Complex in Ontario further east
Kirkland Lake Gold (TSE:KGI)(AIM:KGI) unveiled Monday high grade results from its underground diamond drilling program on the HM property, a former joint venture with Queenston Mining (TSE:QMI) that was acquired by Kirkland, along with other properties, this past August.
This most recent round of drilling on the HM claim, and the adjoining west Macassa claim in the Kirkland Lake Goldcamp of Ontario, has extended the South Mine Complex to its furthest point east so far, the gold producer said.
Drill hole 53-2111A returned 2.97 ounces of gold per ton (opt) uncut, or 1.61 opt cut over a true width of 10.0 feet, and has extended the New South Zone an additional 220 feet east from previously reported drill hole 53-1797.
Kirkland said this is the further east intersection to date on the South Mine Complex, bringing the total strike length to around 3,500 feet.
"Drill hole 53-2111A confirms that the South Mine Complex continues east with strong mineralization and remains open in that direction," said exploration manager, Stewart Carmichael, in a statement Monday.
"This latest round of drilling has also intersected a number of narrower zones, though with still significant mineralization in both the hanging wall and footwall to the New South Zone which will be further tested over the next year."
Indeed, holes 53-1978 and 53-1979 tested an inferred resource area of the New South Zone. Both of these drill holes returned high grade gold mineralization, the company said, including 4.64 opt uncut or 2.34 opt cut over a true width of 17.5 feet, and 3.45 opt uncut or 2.73 opt cut over a true width of 5.3 feet.
And hole 53-1980 tested potential footwall mineralization with three footwall zones intersected, including 0.26 opt over a true width of 5.4 feet, a second zone testing 2.12 opt uncut or 1.98 opt cut over a true width of 4.2 feet, and a third zone assaying 3.06 opt over a core length of 1.0 feet.
"The high-grade results over larger widths confirm our strategic thinking in acquiring 100% interest in these claims," affirmed Kirkland Lake's chairman, Harry Dobson.
"Underground development is in place to both continue drilling on the HM and South Claims, and connect the eastern extension of the SMC to our trackless haulage ramp."
The HM property, along with the South Claims and North Amalgamated joint venture properties, were acquired in full by Kirkland in August.
Kirkland said that development is now proceeding on schedule to fully explore the potential extension of the South Mine Complex to the east.
The exploration drift will continue eastward through the Kirkland Minerals, Teck Hughes and eventually the Lakeshore property, "providing an excellent platform for exploration drilling to test for SMC style mineralization as well as other potential mineralized systems associated with the Main and South Breaks," the gold company concluded.
Kirkland Lake Gold operates in the Kirkland Lake, Ontario camp, in the Southern Abitibi gold belt. The company plans to increase production to 250,000 - 300,000 ounces per year in several stages.
Last month, the company launched a $60 million private placement financing of convertible debentures, with the new funds to be used to finance a production expansion program at its operations in Kirkland Lake.
The funds will also be used to complete remaining payments due to Queenston Mining related to the acquisition of various joint ventures projects.
In September, the Ontario-focused gold producer maintained its output guidance for the year of between 180,000 - 200,000 ounces as it announced its fiscal first quarter results.
For the three months that ended in July, Kirkland's Macassa mine in Ontario produced 70,201 tons of ore at a head grade of 0.26 ounces of gold per ton. A gold recovery rate of 95.2 per cent gave the company 17,396 ounces of gold in the latest quarter, with Kirkland selling a total of 19,964 ounces in the period, despite some production challenges.