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Kirkland Lake Gold Ltd
Symbol KL
Shares Issued 275,020,846
Close 2020-12-22 C$ 53.04
Market Cap C$ 14,587,105,672
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Kirkland Lake drills 43 m of 4.02 g/t Au at Detour Lake

2020-12-23 13:23 ET - News Release

Mr. Anthony Makuch reports

KIRKLAND LAKE GOLD REPORTS WIDE, HIGH-GRADE INTERSECTIONS IN SADDLE ZONE AT DETOUR LAKE MINE, DRILLING EXTENDS MINERALIZATION 200 METRES TO WEST

Kirkland Lake Gold Ltd. has released results from 25 holes (19,523 metres) and one wedge hole (1,110 metres) of drilling at the Detour Lake property. The new holes being reported are the third batch of results from the recently announced 250,000 m exploration program, which the company is targeting for completion by the end of 2021. The program is being completed to collect information for an updated, and potentially expanded, mineral reserve as well as to support the completion of a new production plan. Most of the new holes announced today are from drilling in the Saddle zone, located between the Main pit and West pit locations, which has been underexplored and has no mineral reserves and only limited mineral resources. Several new holes are also being announced from the area west of the West pit, which also contains only limited past drilling.

  • Additional intersections with exceptional grades reported in eastern portion of Saddle zone(1):
    • Key intercepts: 4.02 grams per tonne over 43.0 metres, including 37.19 g/t over 3.0 m; 4.38 g/t over 31.0 m, including 47.46 g/t over 2.0 m; 2.58 g/t over 70.9 m, including 31.05 g/t over 2.0 m; 1.64 g/t over 62.8 m; 1.99 g/t over 55.4 m; 1.5 g/t over 75.0 m; 1.35 g/t over 63.0 m; 1.26 g/t over 76.0 m; 1.11 g/t over 58.0 m.
  • Drilling in central portion of Saddle zone continues to confirm continuity of mineralization between Main and West pits:
    • Key intercepts: 8.13 g/t over 17.0 m, including 22.51 g/t over 5.9 m; 2.34 g/t over 42.7 m, including 25.6 g/t over 2.5 m; 2.53 g/t over 18.0 m; 1.10 g/t over 67.0 m; 2.63 g/t over 21.3 m, including 20.39 g/t over 2.0 m; 1.06 g/t over 40 m; 2.65 g/t over 24.0 m; 1.94 g/t over 13.6 m; 0.89 g/t over 49.8 m; 0.82 g/t over 54.7 m.
  • Mineralization intersected up to 550 m below West pit reserve shell in west portion of Saddle zone:
    • Key intercepts: 1.86 g/t over 37.9 m, including 13.3 g/t over 2.0 m; 1.85 g/t over 24.7 m; 1.00 g/t over 44.7 m; 0.88 g/t over 42.0 m; 0.81 g/t over 58.0 m; 0.88 g/t over 34.0 m.
  • Drilling west of West pit extends mineralized corridor by 200 m, remains open for expansion:
    • Key intercepts: 2.19 g/t over 39.8 m, including 21.32 g/t over 2.7 m; 2.67 g/t over 21.0 m, including 17.67 g/t over 2.0 m; 1.57 g/t over 38.0 m; 1.79 g/t over 39.0 m, including 12.28 g/t over 3.0; 1.19 g/t over 23.8 m; 1.44 g/t over 22.2 m and 0.66 g/t over 90.0 m, including 47.53 g/t over 2.0 m.

(1) True widths are unknown at this time and intervals are reported using core lengths intersected in the holes.

Tony Makuch, president and chief executive officer of Kirkland Lake Gold, commented: "Today's results provide further evidence that a much larger and higher-grade deposit exists around the Main pit and West pit locations at Detour Lake mine than is currently included in mineral reserves. We continue to intersect broad zones of mineralization in the Saddle zone between the two pits, which demonstrates the potential for continuous mineralization over very large area and supports our view that a much larger pit design concept may be warranted leading to substantial mineral reserve growth, increased levels of production and improved unit costs. In addition, with a growing number of high-grade intersections at depth, we are increasingly optimistic that both production levels and average grades can be augmented through the addition of an underground mining operation. We are also very encouraged by drill results on the west side of the property, which include extending mineralization 200 m west of the current West pit location. We are still relatively early in our 250,000 m drill program and expect 2021 to be a very important year for establishing the full potential of the Detour Lake mine."

East portion of Saddle zone

Drilling in the east portion of the Saddle zone included nine holes (7,586 m) and targeted areas along the Detour mine trend (DMT) directly west of the Main pit mineral reserve shell between surface and 500 m below.

Significant results from the drilling including: 4.38 g/t over 31.0 m, including 47.46 g/t over 2.0 m and 5.45 g/t over 3.2 m, from hole DLM-20-028, 1.50 g/t over 75.0 m, including 3.59 g/t over 23.0 m, 1.33 g/t over 14.7 m, 0.87 g/t over 30.9 m and 0.78 g/t over 21.0 m, from hole DLM-20-035, 1.11 g/t over 58.0 m and 0.73 g/t over 34.0 m from hole DLM-20-026, and 1.12 g/t over 46.0 m, 0.69 g/t over 17 m and 3.02 g/t over 4.0 m from hole DLM-20-020. All of these new holes were designed to intersect the DMT between surface and 200 m below and strongly confirmed the continuation of the DMT west of the current Main pit reserve.

Additional significant results from this area include: 4.02 g/t over 43.0 m, including 37.19 g/t over 3.0 m, 2.58 g/t over 70.9 m, including 31.05 g/t over 2.0 m, 1.00 g/t over 51.8 m, 0.78 g/t over 87.8 m and 1.40 g/t over 28.0 m, from hole DLM-20-025A, 1.99 g/t over 55.4 m, 1.35 g/t over 63.0 m, 1.26 g/t over 76.0 m, 1.67 g/t over 37.0 m, 1.49 g/t over 36.3 m and 0.94 g/t over 65.0 m from hole DLM-20-041, and 1.64 g/t over 62.8 m, including 2.43 g/t over 34.8 m, 0.80 g/t over 68.0 m, 0.81 g/t over 74.0 m and 2.30 g/t over 14.0 m, from hole DLM-20-039 which targeted the DMT between 200 and 450 m below surface. As with the new near-surface holes the drilling here strongly confirms the extension of mineralization westwards from the Main pit as well as results from previously reported from DLM-20-014A which intersected 1.42 g/t over 78.0 m, 1.08 g/t over 51.0 m, 1.21 g/t over 43.0 m and 0.90 g/t over 51.0 m (see press release dated Sept. 9, 2020) in the area approximately 75 m east of DLM-20- 025.

Central portion of the Saddle zone

Drilling in the central portion of the Saddle zone included five holes (4,563.5 m) and targeted the DMT approximately midway between the current reserve pits for the Main and West pits and between 100 and 500 m below surface.

Significant results from the drilling include: 1.10 over 67.0 m, 2.53 g/t over 18.0 m, 0.83 g/t over 27.7 m and 0.94 g/t over 24.0 m, including 15.91 g/t over 2.0 m, from hole DLM-20-022, 2.65 g/t over 24.0 m, including 9.14 g/t over 5.0 m, 0.80 g/t over 79.0 m, 1.94 g/t over 13.6 m, from hole DLM-20-046B, and 0.72 g/t over 76.0 m from hole DLM-20-44 which targeted the DMT between 100 and 250 m below surface. All of three of the new holes are considered highly successful and strongly demonstrate the continuity of mineralization along the DTM through the central part of the Saddle zone and its extension to surface. The new intersections in hole DLM-20-046B are located approximately 100 m above previously reported results from Hole DLM-20-016 which included 1.10 g/t over 142 m, including 9.39 g/t over 2.0 m, 2.15 g/t over 16.0 m and 1.23 g/t over 12.0 m (see press release dated Sept. 9, 2020).

Additional significant results from this area include: 8.13 g/t over 17.0 m, including 22.51 g/t over 5.9 m, 2.63 g/t over 21.3 m, including 20.39 g/t over 2.0 m, 2.34 g/t over 42.7 m, including 25.60 g/t over 2.5 m and 1.06 g/t over 40.0 m, from DLM-20-037, and 1.54 g/t over 13.0, 0.89 g/t over 49.8 m and 0.82 g/t over 54.7 m from DLM-20-19 which intersected the DMT between 400 and 550 m below surface, demonstrating strong potential for expansion of the system to depth.

Results from all holes in this area are considered extremely encouraging as they continue to confirm the presence of a broad corridor of mineralization extending between the West and Main pits (a distance of over 800 m) with the overall style of mineralization and gold tenor being very similar to that found in the West and Main pits.

West portion of Saddle zone

Drilling in the west portion of the Saddle zone included two holes (2,403 m) and one wedge hole (1,110 m) which targeted the DMT directly east of the West pit between 400 and 550 m below surface.

Significant results from the drilling include: 1.85 g/t over 24.7 m and 1.86 g/t over 37.9 m, including 13.30 g/t over 2.0 m, from DLM-20-027W; 1.00 g/t over 44.7 m, including 9.84 g/t over 2.1 m and 0.88 g/t over 34.0 m, from hole DLM-20-021B; and 0.88 g/t over 42.0 m, 0.81 g/t over 58.0 m and 3.13 g/t over 6.0 m, from hole DLM-20-018. Hole DLM-20-27W intersected the DMT approximately 325 m below surface and 75 m above previously reported DLM-20-004 which included results of 1.41 g/t over 121.0 m and 1.03 g/t over 14.08 g/t (see press release dated June 29, 2020), while DLM-20-21B and DLM-20-018 intersected the DMT approximately 75 and 150 m below DLM-20-004.

Results from all three holes are considered very positive and strongly confirm the continuation of mineralization through the west portion of the Saddle zone and into the area under the West pit.

West pit extension

Drilling in the east portion of the Saddle zone included nine holes (4,971 m) and targeted areas along the DMT west of the West pit Reserve between surface and 400 m below.

Significant results from the drilling include: 2.19 g/t over 39.8 m, including 21.32 g/t over 2.7 m and 0.84 g/t over 21.0 m, from hole DLM-20-048B, 2.67 g/t over 21.0 m, including 17.67 g/t over 2.0 m and 1.57 g/t over 38.0 m, from hole DLM-20-045, 0.66 g/t over 90.0 m, 47.53 g/t over 2.0 m and 0.69 g/t over 15.0 m from hole DLM-20-023; and 1.19 g/t over 23.8 m from hole DLM-20-038B. These holes targeted the DMT west of the current mineral reserve between 200 and 400 m level and provide strong confirmation that DMT and associated mineralization continues for at least another 200 m in this direction and remains open for testing.

Additional significant results include: 1.44 g/t over 42.0 m from hole DLM-20-042, 1.79 g/t over 39.0 m, including 12.23 g/t over 3.0 m from hole DLM-20-032, 0.93 g/t over 19.3 m from DLM-20 -- 31 and 0.81 g/t over 18.0 m from hole DLM-20-029A. These holes targeted the westward extension between surface and 200 m below and demonstrate the continuity of mineralization in the new westward extension to surface.

Based on assay results and other observations obtained from the program to date, the outlook for the project continues to look encouraging with there being evidence of a broad and continuous corridor of mineralization extending between the West and Main pits and to a depth of at least 800 m below surface. The work also suggests that mineralization within the corridor is very similar to that found in the West and Main pits and is hosted mainly by broad zones containing variable amounts of quartz and pyrite, which are controlled mainly by east-west-trending, moderately north-dipping folds and shear structures which plunge at a shallow angle to the west. Given results to date, the potential to identify further extensions to mineralization as well as additions to mineral resources and mineral reserves between the Main and West pits through additional drilling is considered excellent.

Exploration work at Detour Lake is continuing with eight drills current working, and on track to complete approximately 70,000 m by the end of 2020. The company plans to increase the number of drills to between 10 and 12 drills early in the new year.

Qualified persons

The company's exploration programs at Detour Lake are conducted under the supervision of Eric Kallio, PGeo, senior vice-president, exploration. Mr. Kallio, as well as Keith Green, PGeo, director, exploration, Canada, and Steve Gray, PGeo, exploration superintendent, Detour Lake mine, are qualified persons for the purpose of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators, and have reviewed and approved the scientific and technical information in this news release.

Quality assurance/quality control

The company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with best practices. Samples are logged and sampled in a secure facility at the Detour mine site and under supervision of qualified geologists. NQ sized core is sawn in half with one-half of the core prepared for shipment, the other half of core retained for future assay verification. Preparations for shipment include placing individual samples with corresponding sample tag into sealed plastic bags, which are in turn placed into labelled and zip-tied rice bags, and subsequently placed onto pallets, shrink wrapped and couriered to ALS Laboratories in Timmins, Ont., by Manitoulin Transport. Sample preparation is completed by ALS Laboratories in Timmins then sent to its Vancouver lab for analysis.

Assaying of the samples is completed using fire assay techniques with samples less than 10 grams per tonne being analyzed with atomic absorption (AA) and samples greater than 10 grams per tonne with gravimetric finish. Selected high-grade samples are also analyzed using the screen metallics procedure. Internal laboratory checks conducted by ALS include the insertion of one blank, two certified reference standards and three duplicates for every 78 samples (per fusion furnace). ALS Laboratories are certified by the Standards Council of Canada (SCC) which conforms with ASB-RG Mineral Analysis Laboratory for the Accreditation of Mineral Analysis Testing Laboratories and CAN-P-4E ISO/IEC 17025.

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold is a growing gold producer operating in Canada and Australia that is on track to produce 1.35 million to 1.4 million ounces of gold in 2020. The production profile of the company is anchored by three high-quality operations, including the Macassa mine and the Detour Lake mine, both 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 expertise.

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