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Enter Symbol
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Kirkland Lake Gold Inc
Symbol KGI
Shares Issued 80,704,117
Close 2015-11-02 C$ 5.52
Market Cap C$ 445,486,726
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Kirkland Lake drills 0.7 m of 3,241 g/t Au at Kirkland

2015-11-03 07:17 ET - News Release

Mr. George Ogilvie reports

KIRKLAND LAKE GOLD REPORTS INITIAL RESULTS FROM ITS REGIONAL EXPLORATION PROGRAM INTERCEPTING HIGH GRADE MINERALIZATION EAST OF THE SMC

Kirkland Lake Gold Inc. is providing results from its regional exploration program on its wholly owned property in Kirkland Lake, Ont. The company commenced a targeting program to test for mineralization on the north side of the amalgamated break and the possible easterly extension of the South Mine complex across a previously untested trend of approximately 1,500 metres in strike length.

Highlights (phase 1 and phase 1a):

Phase 1:

AB-15-12:  11.7 grams per tonne over 0.3 metre or 0.34 ounce per ton over 1.0 foot

AB-15-23:  3,241.4 grams per tonne over 0.7 metre or 94.54 ounces per ton over 2.3 feet; 11.7 grams per tonne over 0.3 metre or 0.34 ounce per ton over 1.0 foot

All four holes in phase 1 of the drill program returned gold values in excess of 6.0 g/t (0.18 ounce per ton).

Phase 1a:

AB-15-91:  1,783.2 g/t uncut over 0.3 metre or 52.01 ounces per ton uncut over 1.0 foot

George Ogilvie, chief executive officer of the company, commented: "This is an exciting venture for the company, as there has never been any historical testing of this kind on the company's holdings in the Kirkland Lake camp. Our geology team are satisfied with the initial results and, along with geophysics analysis, this information will be used to better target follow-up drilling. We look forward to completing additional drilling by calendar year-end, the results of which will be used to determine a further follow-up in phase 2 of the regional program to be implemented within our 2016 budget.

"The regional drill program is in keeping with management's vision to further develop the Kirkland Lake camp."

Phase 1 and 1a drilling program

The initial phase of the deep drill program (phase 1) consisted of four holes drilled to depths of between 1,940 metres to 2,070 metres (6,360 feet to 6,800 feet) and stepped out approximately 250 metres (800 feet) east of the last known intersection on the SMC, with each hole spaced at 300-metre intervals incrementally east of the previous hole. The SMC intrusive phase (porphyry, basic syenite) is generally mineralized with up to 5 per cent pyrite. The tuffs may have higher sulphide content, up to 10 per cent pyrite. Upon completion of the deep holes, the company completed a downhole induced-polarization geophysical survey to identify potential exploration targets. The DHIP identified several weak chargeability anomalies consistent with the intrusive-phase sulphide content of the SMC (approximately 5 per cent). The chargeability anomalies may indicate disseminated pyrite, but may not necessarily indicate gold mineralization.

Hole AB-15-23 returned a very high-grade intercept of 3,241.4 g/t (94.54 ounces per ton) over a core length of 0.7 metre (2.3 feet) at a downhole depth of 1,100 metres (3,609 feet). This intersection is characterized by quartz/carbonate stringers with abundant large clusters of visible gold within weakly hematite altered tuff along with 5 per cent to 7 per cent fine-to-medium-grained pyrite and minor chalcopyrite and hematite. Holes AB-15-12 and AB-15-23 returned assays of 11.7 g/t or 0.34 ounce per ton over a core length of 0.3 metre (1.0 feet). Both intersected visible gold and tellurides in quartz stringers within relatively unaltered basic syenite containing 1 per cent to 2 per cent fine-grained pyrite. Based on the results of the DHIP and the presence of high-grade gold mineralization, the company commenced a follow-up program (phase 1a) to perform confirmatory drilling and to follow up on the DHIP results.

The follow-up program (phase 1a) consists of 15,000 metres (50,000 feet) of drilling in eight to nine holes targeting depths of between 1,370 metres (4,500 feet) to 2,200 metres (7,220 feet). Three of these holes are currently in progress, with AB-15-91 and AB-15-92 aimed at following up on the visible gold and telluride intercepts in AB-15-12 and AB-15-23, as well as targeting the DHIP response at depth. Hole AB-15-106 is following up on the high-grade (3,241.4 g/t) intercept in AB-15-23. To date, hole AB-15-91 returned significant results, with a high-grade intercept of 1,783.2 g/t (52.01 ounces per ton) over a core length of 0.3 metre (1.0 foot) at a downhole depth of 1,764 metres (5,789 feet). This hole is located approximately midway between holes AB-15-12 and AB-15-23 and also intersected visible gold and tellurides in quartz stringers (as in the previous holes).

Additional drilling is currently in progress, with approximately 7,000 metres (23,000 feet) remaining. The company will employ four drills up to the end of the year to complete the (phase 1a) follow-up program.

The intersections in the drilling programs described herein are between 460 metres (1,500 feet) and 760 metres (2,500 feet) south of the main break and do not appear to be related.

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


                REGIONAL SURFACE DRILL PROGRAM -- METRIC TABLE

                                                 Core
Drill                  From           To       length                  Assay
hole                    (m)          (m)     (iv) (m)            (g/t) (iii)

AB-15-12               96.3         97.2          0.9                    5.8
And                 1,761.0      1,761.3          0.3                    4.1
And                 1,770.1      1,770.4          0.3         11.7, VG, tell
And                 1,891.9      1,897.8          5.9                    1.4
And                 1,952.2      1,956.7          4.4                2.1, VG
And                 2,010.2      2,010.8          0.6                6.9, VG
AB-15-23              542.4        543.0          0.6                   24.3
And                 1,100.1      1,100.8          0.7            3,241.4, VG
Including           1,100.1      1,100.4          0.3            1,413.9, VG
Including           1,100.4      1,100.8          0.4            4,646.7, VG
And                 1,390.7      1,391.7          0.9                    7.5
And                 1,835.5      1,835.8          0.3         11.7, VG, tell
AB-15-33              205.7        206.7          0.9                    6.2
And                   745.9        746.4          0.5                    7.9
And                   809.6        810.2          0.5                    8.2
AB-15-53            1,560.5      1,561.0          0.5                   12.3
AB-15-66                  -            -            -                    NSV
AB-15-76                  -            -            -                    NSV
AB-15-91 (i)          791.6        792.0          0.4                    5.1
And                 1,764.4      1,765.2          0.9        646.3, VG, tell
Including           1,764.4      1,764.7          0.3      1,783.2, VG, tell
And                 1,769.0      1,769.3          0.3         89.5, VG, tell
And                 1,772.0      1,772.4          0.4                7.5, VG
AB-15-92 (i)              -            -            -                    NSV
AB-15-106 (i)         570.6        574.1          3.4                    2.4
And                   717.0        717.9          0.9                    4.5
KM-11-01 (ii)       1,081.4      1,081.7          0.3               81.6, VG

(i) Hole in progress, assay data not complete. 
(ii) Historic hole. 
(iii) Assays presented are uncut, as not enough information is available to 
determine a cutting factor. 
(iv) True widths are unknown at this time.
NSV equals no significant value; VG equals visible gold; tell equals 
tellurides.

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


           REGIONAL SURFACE DRILL PROGRAM -- IMPERIAL TABLE

                                              Core
                                            length
Drill                 From          To        (iv)              Assay
hole                (feet)      (feet)      (feet)     (oz/ton) (iii)

AB-15-12             316.0       319.0         3.0               0.17
And                5,777.7     5,778.7         1.0               0.12
And                5,807.4     5,808.4         1.0     0.34, VG, tell
And                6,207.0     6,226.3        19.3               0.04
And                6,405.0     6,419.5        14.5           0.06, VG
And                6,595.2     6,597.2         2.0           0.20, VG
AB-15-23           1,779.5     1,781.5         2.0               0.71
And                3,609.3     3,611.6         2.3          94.54, VG
Including          3,609.3     3,610.3         1.0          41.24, VG
Including          3,610.3     3,611.6         1.3         135.53, VG
And                4,562.8     4,565.8         3.0               0.22
And                6,022.0     6,023.0         1.0     0.34, VG, tell
AB-15-33             675.0       678.0         3.0               0.18
And                2,447.3     2,448.8         1.5               0.23
And                2,656.2     2,658.0         1.8               0.24
AB-15-53           5,119.6     5,121.3         1.7               0.36
AB-15-66                 -           -           -                NSV
AB-15-76                 -           -           -                NSV
AB-15-91 (i)       2,597.0     2,598.4         1.4               0.15
And                5,788.6     5,791.4         2.8    18.85, VG, tell
Including          5,788.6     5,789.6         1.0    52.01, VG, tell
And                5,803.8     5,804.8         1.0     2.61, VG, tell
And                5,813.6     5,814.8         1.2           0.22, VG
AB-15-92 (i)             -           -           -                NSV
AB-15-106 (i)      1,872.2     1,883.5        11.3               0.07
And                2,352.3     2,355.3         3.0               0.13
KM-11-01 (ii)      3,547.8     3,548.8         1.0           2.38, VG

(i) Hole in progress, assay data not complete. 
(ii) Historic hole. 
(iii) Assays presented are uncut, as not enough information is 
available to determine a cutting factor. 
(iv) True widths are unknown at this time.
NSV equals no significant value; VG equals visible gold; tell equals 
tellurides.

Historical info

There are seven past producers, including the Macassa mine, that contributed over 25 million ounces of gold production in the camp and are all located along the main ore horizon, the Main and '04 Break system. Kirkland Lake owns five of these former producers, namely the Macassa, Wright Hargreaves, Lakeshore, Kirkland minerals and Teck Hughes mines, which account for about 90 per cent of the historical production from the camp.

Prior to 1999, little exploration had been done to test for potential mineralization south of the main ore horizon. Drifting and mining on the Main and '04 Break systems by the various mines in Kirkland Lake was sufficient to maintain production. After purchasing the Macassa mine property -- along with four contiguous former producers in 2001 -- Kirkland Lake Gold began dewatering the underground workings at the Macassa mine. Once the minus-4,700-foot level was dewatered in 2003, an exploration program was initiated to test further south for potential mineralization south of the '04 Break system. In November of 2003, the fourth drill hole of this program intersected multiple mineralized zones up to 480 metres south of the '04 Break, indicating the presence of significant gold mineralization, now known as the South Mine complex.

The SMC represents an entirely new mineralized system in the Kirkland Lake mining camp and is characterized by generally shallowly dipping (25-degree to minus-50-degree) structurally controlled zones of finely disseminated pyrite, visible gold and tellurides. The SMC also exhibits a higher grade than what has been historically mined in the Kirkland Lake camp and has been intersected as deep as the minus-6,500-foot elevation and as high as the minus-4,700-foot elevation over a strike length in excess of 2,000 feet. Gold mineralization in the SMC area occurs in a complex interconnected network of narrow east-to-northeast-trending shallow south-dipping shear zones and auriferous alteration. It consists of wide, gold-bearing alteration and mineralization halos, in contrast to the narrow quartz vein systems associated with the Main and '04 Break systems.

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 -- Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has reviewed and approved this news release. As the manager of exploration, Mr. Carmichael is not considered independent.

Quality assurance/quality control

The company has implemented a quality assurance and control program to ensure sampling and analysis of all exploration work is 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 quality assurance/quality control includes the insertion of blanks and the regular reassaying of pulps and rejects at alternate 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.

Readers are cautioned that the potential quantity and grade set out above are conceptual in nature and that there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. As well, the very high-grade assay results are not necessarily representative of the mineralization hosted in the system.

We seek Safe Harbor.

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