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Thursday, 19 September 2013
Kirkland Lake expands strike of South Mine Complex at Ontario gold operations
Kirkland Lake Gold (TSE:KGI)(AIM:KGI) has unveiled drilling results from its underground exploration program, which the Kirkland Lake, Ontario-focused gold miner says have further expanded the South Mine Complex.
In particluar, the company said in a statement today that it expanded the New South Zone on the HM claim and the North Amalgamated-Kirkland claim, both of which were formerly held under a joint venture with Queenston Mining, but were acquired by Kirkland in August last year.
Highlights of the latest results include 0.40 ounces per ton over a true width of 5.2 feet in hole 53-2381A - the furthest east interesection so far on the New South Zone, and a 400 foot step-out from a previous hole.
Kirkland said Thursday that the most recent hole brings the strike length of the South Mine Complex to 3,600 feet, with mineralization remaining open to the east and to depth.
"This latest round of exploration has not only extended the South Mine Complex east and up-dip but also down-dip onto the North AK property," said exploration manager, Stewart Carmichael, in the release.
This phase of the exploration program was designed to follow up on high grade intercepts found on the HM claim, as well as to test for mineralization on the North AK claim.
Carmichael said that drilling has now started from the two new drill bays located further east along the exploration drift, which will allow for further testing of the South Mine Complex on both the HM and North AK properties.
None of the drill holes reported today were included in the most recent reserve and resource estimate from May of this year, noted Kirkland.
The drilling program is part of a larger campaign for the company, which is currently operating two exploration drills on surface, and three exploration drills underground at its Macassa mine.
Earlier this month, the Ontario gold miner reported both record quarterly and average daily ore tonnage produced, with the company reaffirming it is on track to make its gold sales guidance for fiscal year 2014 of between 150,000 and 180,000 ounces of gold.
The boost in production is in large part attributable to the completion of the service cage project earlier this year, which allowed for an almost doubling of hoisting capacity.
The company’s project consists of 13,000 acres of five contiguous formerly producing gold mines - Macassa, Lake Shore, Wright Hargreaves, Teck-Hughes, and Kirkland Minerals - which historically produced 21 million ounces of gold grading 15.1 grams per ton, and for the first time are being developed and explored under one owner. Gold production re-started in 2005 from the most western portion of the camp, the Macassa mine, and the current focus is on expanding production to 2,200 tons per day from the historic Main/'04 Break, and a new discovery area, the South Mine Complex.
Shares of Kirkland have advanced almost 5 per cent in the last five trading sessions, benefiting from a rise in the price of gold.