Ontario forest fires delay Kirkland Lake drilling plans

Kirkland Lake Discoveries Corp. [KLDC-TSXV] said it has delayed drilling activities at the Lucky Strike and Goodfish-Kirana projects due to increased fire risk in the Kirkland Lake, Ont., region.

“We have delayed mobilizing our drill to site until the situation improves,’’ said Kirkland Lake President and CEO Daniele Spethmann. “We are vigilantly monitoring the conditions and remain in communication with local stakeholders and our drilling team on the current status of the forest fire situation and will update the market with respect to any material changes.’’

However, Spethmann said the Kirkland Lake team is able to perform low-risk exploration activities, including mapping and sampling, but the operation of heavy machinery is not permitted currently.

Kirkland Lake Discoveries has consolidated a district-scale and prospective land package in the Kirkland Lake gold camp. The assembled properties include the 100%-owned Lucky Strike property, Goodfish-Kirana, the Arnold property, the optioned KL West and KL Central. The company’s land position covers approximately 38,000 hectares over 1,338 claims and 29 patented claims in the Kirkland Lake region. The Lucky Strike property is located immediately east of the land package and consists of 653 unpatented mining claims covering 11,367 hectares.

Back in February 22, 2023, Kirkland Lake closed an asset purchase agreement with New Found Gold Corp. [NFG-TSXV] related to the Lucky Strike property.

Under an agreement, Kirkland Lake issued 28.6 million common shares to New Found as well as a 1.0% net smelter return royalty on the Lucky Strike property. The Kirkland Lake share issued to New Found were worth $5.7 million. As a result, New Found now holds 49% of the issued and outstanding Kirkland shares.

In connection with the transaction, New Found President Denis Laviolette joined the board of Kirkland. New Found may nominate two additional directors at a later date.

Kirkland also completed a private placement offering of 18.7 million non-flow-through subscription receipts priced at 25 cents each, as well as 11.5 million flow-through subscription receipts priced at 27.5 cents each.  Total aggregate proceeds amount to $7.8 million.

Private placement proceeds were earmarked for an initial planned exploration program at the combined Kirkland Lake/Lucky Strike property and for general working capital purposes.

“The completion of this transaction and the consolidation of this highly prospective land package in a renowned mining district is a rare and very exciting opportunity,’’ Spethmann said.

On June 27, 2023, Kirkland Lake Discoveries shares closed at 18 cents Friday and currently trade in a 52-week range of 28 cents and 10 cents.

New Found is working to advance Canada’s newest high grade gold discovery on its 100%-owned Queensway project in central Newfoundland.