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Kirkland Lake Gold Inc
Symbol KGI
Shares Issued 80,371,617
Close 2015-06-08 C$ 6.09
Market Cap C$ 489,463,148
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Kirkland Lake drills 4.2 m of 276 g/t Au at Macassa

2015-06-09 06:10 ET - News Release

Mr. George Ogilvie reports

KIRKLAND LAKE GOLD INFILL DRILLING PROGRAM CONFIRMS GRADE AND CONTINUITY OF THE SOUTH MINE COMPLEX ON THE HM CLAIM

Kirkland Lake Gold Inc. is providing an update on the underground exploration drilling program on the South mine complex (SMC) at the company's Macassa mine complex, and in particular on the HM claim (formerly a part of the Queenston Mining joint venture property).

The HM claim, located approximately 2,000 feet (610 metres) southeast of the No. 2 shaft at the Macassa mine complex, is an area that hosts the easterly strike of the SMC. The drilling program tested inferred resource blocks within a larger combined indicated and inferred resource area, as well as along the fringe areas targeting the New South zone (NSZ) and a parallel hangingwall zone (HWZ).

Highlights:

  • NSZ extended 89 feet (27.1 metres) downdip from previous intersections.
  • Drill hole 53-2705 returned 8.05 ounces per ton uncut (5.02 ounces per ton cut), or 276.0 grams per tonne uncut (172.1 g/t cut), over a true width of 6.7 feet (two metres).
  • Drill hole 53-2822 returned 3.96 ounces per ton uncut (3.46 ounces per ton cut), or 135.8 g/t uncut (118.6 g/t cut), over a true width of 6.4 feet (two m).
  • NSZ extended 105 feet (32.0 metres) updip and 53 feet (16.2 metres) east from previous intersections.
  • Drill hole 53-2704 returned 1.83 ounces per ton, or 62.7 g/t (no cutting factor applied), over a true width of 1.3 feet (0.4 metre).
  • Drill hole 53-2659 returned 1.92 ounces per ton, or 65.8 g/t (no cutting factor applied), over a true width of 1.9 feet (0.6 metre).
  • Three new intersections on the HWZ help define the zone over a strike length of 200 feet (60.1 metres), with a 100-foot (30.5 metres) dip component.
  • Drill hole 53-2699 returned 3.69 ounces per ton uncut (2.17 ounces per ton cut), or 126.5 g/t uncut (74.4 g/t cut), over a true width of seven feet (2.1 metres).
  • Drill hole 53-2701 returned 3.04 ounces per ton uncut (1.18 ounces per ton cut), or 104.2 g/t uncut (40.5 g/t cut), over a true width 15.8 feet (4.8 metres).
  • Drill hole 53-2818 returned 1.67 ounces per ton uncut (1.30 ounces per ton cut), or 57.2 g/t uncut (44.6 g/t cut), over a true width of six feet (1.8 metres).

Higher-grade assays are cut to 7.20 ounces per ton (246.9 g/t) and 3.50 ounces per ton (120.0 g/t), depending on location within the zone.

George Ogilvie, chief executive officer of the company, commented: "Since acquiring the properties associated with the Queenston joint venture in August of 2012, we have seen tremendous exploration success, particularly on the South claims. In April of this year, we reported 49,000 ounces of probable reserves (40,000 tons at an average grade of 1.23 ounces per ton, or 42.2 g/t). As well, we announced an increase in indicated resources on the South claims by 35 per cent and an increase in inferred resources by 19 per cent, year over year. We are encouraged by these results and look forward to the possibility of expanding, as well as improving our confidence of resources onto the HM claim that remains open to the east.

"Since the company commenced exploration activities, we have focused on exploration associated with the Macassa mine complex, which includes areas near the old Macassa mine and the South mine complex. We now look to expand our exploration efforts and embark upon a regional program to test the four contiguous properties that lie to the east, with an initial investment of $1.5-million, to be carried out during calendar 2015. We strongly believe in the robust nature of this camp and our potential to extend our life of mine through organic growth."

SMC underground drilling on the HM claim

The initial phase of drilling was spaced at an average of 120-foot (36.6 metres) intersections, while the infill drilling conducted recently has reduced the intersections to an average of 50 to 80 feet (15.2 metres to 24.4 metres) within the existing resource blocks.

Of the 10 drill holes testing the NSZ inferred resource areas and within the existing resource area, nine holes returned intersections which will make the minimum requirements to calculate an indicated resource (which is updated annually). Based on the conversion of the inferred resources to an indicated resource level, this represents a conversion rate of approximately 90 per cent.

Of the five drill holes testing the NSZ inferred resources along the fringe areas of the current resource area, four returned intersections which will make the minimum requirements to calculate an indicated resource (which is updated annually). Based on the conversion of the inferred resources to an indicated resource level in these areas, this represents a conversion rate of approximately 80 per cent, and is expected to expand the dip and strike components of the current resource blocks.

The table summarizes the latest underground drilling results in imperial values.

            SMC UNDERGROUND EXPLORATION -- IMPERIAL TABLE

Drill hole                   From          To
                              (ft)        (ft)

53-2657B                    739.5       740.5
53-2658A                    572.8       582.2
53-2659                     591.8       593.8
53-2699                     628.5       637.3
Including                   628.5       630.2
And                         630.2       632.5
And                         632.5       634.3
                            666.0       672.7
Including                   666.0       668.0
And                         668.0       669.6
And                         669.6       670.9
53-2700                     728.2       733.1
Including                   728.2       729.4
And                         729.4       730.4
53-2701                     578.8       597.2
Including                   586.8       588.4
And                         591.8       593.8
And                         595.7       597.2
                            619.3       624.5
Including                   620.3       622.2
And                         622.2       624.5
53-2702                     708.3       720.0
Including                   708.3       709.8
And                         709.8       710.9
And                         710.9       713.0
And                         716.1       717.6
And                         717.6       718.7
53-2703                     573.0       586.7
Including                   576.3       577.9
And                         577.9       580.7
53-2704                     569.1       570.4
53-2705                     713.8       722.2
Including                   715.5       717.4
And                         717.4       720.0
And                         720.0       722.2
53-2706                     599.0       602.5
53-2707B                    632.6       636.6
Including                   632.6       633.9
53-2818                     655.1       662.2
Including                   655.1       656.2
And                         658.9       660.0
                            672.7       680.0
53-2819                     720.7       733.9
Including                   724.8       725.8
And                         725.8       727.2
And                         730.0       732.7
53-2822                     602.6       609.4
Including                   602.6       604.6
And                         604.6       606.5
And                         606.5       607.7

Drill hole            Core length  True width        Assay        Cut
                              (ft)        (ft)       (oz/t)     (oz/t)

53-2657B                      1.0         N/C          NSV          -
53-2658A                      9.4         N/C         0.05          -
53-2659                       2.0         1.9         1.92          -
53-2699                       8.8         7.0         3.69       2.17(ii)
Including                     1.7         1.3         6.09          -
And                           2.3         1.8         7.41          -
And                           1.8         1.4         1.51          -
                              6.7         5.1         2.54          -
Including                     2.0         1.5         3.18          -
And                           1.6         1.2         2.75          -
And                           1.3         1.0         3.43          -
53-2700                       4.9         3.5         2.51          -
Including                     1.2         0.9         6.85          -
And                           1.0         0.7         2.89          -
53-2701                      18.4        15.8         3.04       1.18(ii)
Including                     1.6         1.4        17.36          -
And                           2.0         1.7         9.04          -
And                           1.5         1.3         4.15          -
                              5.2         4.3         1.16          -
Including                     1.9         1.6         1.69          -
And                           2.3         1.9         1.11          -
53-2702                      11.7         8.5         2.20          -
Including                     1.5         1.1         7.26          -
And                           1.1         0.8         2.16          -
And                           2.1         1.5         3.92          -
And                           1.5         1.1         1.17          -
And                           1.1         0.8         1.11          -
53-2703                      13.7        12.1         0.80          -
Including                     1.6         1.4         1.19          -
And                           2.8         2.5         2.35          -
53-2704                       1.3         1.3         1.83          -
53-2705                       8.4         6.7         8.05       5.02(i)
Including                     1.9         1.5         3.70          -
And                           2.6         2.1        13.98          -
And                           2.2         1.8        12.48          -
53-2706                       3.5         3.3         0.43          -
53-2707B                      4.0         3.6         0.69          -
Including                     1.3         1.2         1.29          -
53-2818                       7.1         6.0         1.67       1.30(ii)
Including                     1.1         0.9         5.90          -
And                           1.1         0.9         2.33          -
                              7.3         5.7         0.35          -
53-2819                      13.2        10.7         1.38          -
Including                     1.0         0.8         1.36          -
And                           1.4         1.1         6.33          -
And                           2.7         2.2         1.70          -
53-2822                       6.8         6.4         3.96       3.46(i)
Including                     2.0         1.9         3.66          -
And                           1.9         1.8         8.96          -
And                           1.2         1.1         1.81          -

(i) Cut to 7.20 ounces per ton.
(ii) Cut to 3.50 ounces per ton.

The table summarizes the latest underground drilling results in metric values.

             SMC UNDERGROUND EXPLORATION -- METRIC TABLE

Drill hole                    From          To
                                (m)         (m)

53-2657B                     225.4       225.7
53-2658A                     174.6       177.5
53-2659                      180.4       181.0
53-2699                      191.6       194.2
Including                    191.6       192.1
And                          192.1       192.8
And                          192.8       193.3
                             203.0       205.0
Including                    203.0       203.6
And                          203.6       204.1
And                          204.1       204.5
53-2700                      222.0       223.4
Including                    222.0       222.3
And                          222.3       222.6
53-2701                      176.4       182.0
Including                    178.9       179.3
And                          180.4       181.0
And                          181.6       182.0
                             188.8       190.3
Including                    189.1       189.6
And                          189.6       190.3
53-2702                      215.9       219.5
Including                    215.9       216.3
And                          216.3       216.7
And                          216.7       217.3
And                          218.3       218.7
And                          218.7       219.1
53-2703                      174.7       178.8
Including                    175.7       176.1
And                          176.1       177.0
53-2704                      173.5       173.9
53-2705                      215.9       220.1
Including                    218.1       218.7
And                          218.7       219.5
And                          219.5       220.1
53-2706                      182.6       183.6
53-2707B                     192.8       194.0
Including                    192.8       193.2
53-2818                      199.7       201.8
Including                    199.7       200.0
And                          200.8       201.2
                             205.0       207.3
53-2819                      219.7       223.7
Including                    220.9       221.2
And                          221.2       221.7
And                          222.5       223.3
53-2822                      183.7       185.7
Including                    183.7       184.3
And                          184.3       184.9
And                          184.9       185.2

Drill hole             Core length  True width        Assay        Cut
                                (m)         (m)        (g/t)      (g/t)

53-2657B                       0.3         N/C          NSV          -
53-2658A                       2.9         N/C          1.7          -
53-2659                        0.6         0.6         65.8          -
53-2699                        2.6         2.1        126.5       74.4(ii)
Including                      0.5         0.4        208.8          -
And                            0.7         0.5        254.1          -
And                            0.5         0.4         51.8          -
                               2.0         1.6         87.1          -
Including                      0.6         0.5        109.0          -
And                            0.5         0.4         94.3          -
And                            0.4         0.3        117.6          -
53-2700                        1.4         1.1         86.1          -
Including                      0.3         0.3        234.9          -
And                            0.6         0.2         99.1          -
53-2701                        5.6         4.8        104.2       40.5(ii)
Including                      0.4         0.4        595.2          -
And                            0.6         0.5        309.9          -
And                            0.4         0.4        142.3          -
                               1.5         1.3         39.8          -
Including                      0.5         0.5         57.9          -
And                            0.7         0.6         38.1          -
53-2702                        3.6         2.6         75.4          -
Including                      0.4         0.3        248.9          -
And                            0.4         0.2         74.1          -
And                            0.6         0.5        134.4          -
And                            0.4         0.3         40.1          -
And                            0.4         0.2         38.1          -
53-2703                        4.1         3.7         27.4          -
Including                      0.4         0.4         40.8          -
And                            0.9         0.8         80.6          -
53-2704                        0.4         0.4         62.7          -
53-2705                        4.2         2.0        276.0      172.1(i)
Including                      0.6         0.5        126.9          -
And                            0.8         0.6        479.3          -
And                            0.6         0.5        427.9          -
53-2706                        1.0         1.0         14.7          -
53-2707B                       1.2         1.1         23.7          -
Including                      0.4         0.4         44.2          -
53-2818                        2.1         1.8         57.3       44.6(ii)
Including                      0.3         0.3        202.3          -
And                            0.4         0.3         79.9          -
                               2.3         1.7         12.0          -
53-2819                        4.0         3.3         47.3          -
Including                      0.3         0.2         46.6          -
And                            0.5         0.3        217.0          -
And                            0.8         0.7         58.3          -
53-2822                        2.0         2.0        135.8      118.6(i)
Including                      0.6         0.6        125.5          -
And                            0.6         0.5        307.2          -
And                            0.3         0.3         62.1          -

(i) Cut to 246.9 g/t.
(ii) Cut to 120.0 g/t.

Qualified person

The results of the company's underground diamond drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the company's geological staff under the supervision of Stewart Carmichael, PGeo, manager of exploration. Mr. Carmichael is the qualified person for the purpose of National Instrument 43-101, and has reviewed and approved this news release.

Quality assurance/quality control

The company has implemented a QA/QC program to ensure sampling and analysis of all exploration work are conducted in accordance with the best possible practices. The drill core is sawn in half with one-half of the core samples shipped to Swastika Laboratories in Swastika, Ont. The other half of the core is retained for future assay verification. Other QA/QC includes the insertion of blanks, and the regular reassaying of pulps and rejects at alternative certified labs. Gold analysis is conducted by fire assay using atomic absorption or gravimetric finish. The laboratory reassays at least 10 per cent of all samples and additional checks may be run on anomalous values.

Technical information

The company's Macassa mine property is the subject of a technical report prepared by Glenn R. Clark, PEng, titled "Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario, at Jan. 1, 2015," dated May 22, 2015, which has been filed on SEDAR.

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