Kirkland Lake Gold hits more Australian high-grade

A gold bar poured at the Fosterville Gold Mine in Victoria, Australia. Source: Kirkland Lake Gold Ltd.

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A gold bar poured at the Fosterville Gold Mine in Victoria, Australia. Source: Kirkland Lake Gold Ltd.

Kirkland Lake Gold Ltd. [KL-TSX; KLGDF-OTCQX] has released high-grade drill results at depth from underground drilling at the Fosterville Mine, the largest gold producer in the State of Victoria, Australia. Underground definition drilling continues to infill and target down-plunge extensions of the Swan Zone of the Lower Phoenix gold system to increase mineral resource confidence and assess the potential of further mineral reserve expansion.

Recent drill results returned from six underground holes totalling 2,652 metres into existing mineral resources and extensions of the Swan zone (previously referred to as the Lower Phoenix footwall) of the Lower Phoenix gold system continue to return intervals of extremely high grades with visible gold. Continuity of high-grade visible gold mineralization in the Swan zone has now been defined over a strike extent of 300 metres and vertical extent of 200 meters.

Recent drilling confirms that high-grade visible gold mineralization extends approximately 80 meters laterally to the south and 40 meters below Swan mineral reserves as reported in the July 27, 2017, Kirkland Lake Gold news release.

Tony Makuch, President and CEO, said, “Today’s drill results continue to demonstrate both the continuity and growth potential of the high-grade Swan Zone within the Lower Phoenix gold system. The Swan Zone is the highest-grade area of the Fosterville Mine, with a recently released mineral reserve including 532,000 ounces at an average grade of 58.8 g/t gold. Today’s results include two intercepts that are located between 70 and 90 meters down-plunge of the current Swan Zone mineral reserve, with additional high-grade mineralization being intersected to the south and at depth of the zone. The results we are seeing from the ongoing drilling program are increasing our confidence in the geological controls and continuity of grade within the Swan Zone. They are also supporting our view that the potential exists to significantly grow the Swan Zone mineral reserve, where the average grade is well in excess of Fosterville’s overall underground mineral reserve, which includes 1.03 million ounces averaging 17.9 g/t gold.

“We intend to accelerate progressive step-out extension drilling on the Swan Zone of Lower Phoenix gold system during the second half of 2017, which remains open down-plunge. Drilling will also continue to focus on the extensions of the Eagle and Lower Phoenix zones in the Lower Phoenix gold system, as well as on the Harrier gold system to potentially significantly expand mineral resources and mineral reserves at Fosterville.”

Results of the continuing underground resource drilling program at the Swan zone continue to demonstrate high-grade continuity down-plunge. Key intercepts are listed below, with further details provided in the commentary that follows.

Key intercepts

  • 338 g/t gold (1)(2) over 33.6 metres, including 4,177 g/t (1)(2) over 0.95 m, 3,079 g/t gold (1)(2) over 0.65 m and 1,037 g/t gold (1)(2) over 3.55 m in hole UDH2081A;
  • 9 g/t gold (1) over 49.5 m, including 1,856 g/t gold (1) over 0.6 m in hole UDH2084D;
  • 4 g/t gold (1) over 18.65 m, including 42.1 g/t gold (1) over 3.65 m in hole UDE138.

Since the May 3, 2017, Kirkland Lake Gold news release, underground diamond drilling has continued to focus on multiple targets, including further testing of the Swan mineralized zone. Reported drill results are from six holes (2,652 m), of which five have significant intercepts.

Drill hole UDH2081A is located within the Swan inferred mineral resource approximately 70 m down-plunge of the Swan mineral reserve. The drill hole is oriented subparallel to the Swan dip surface and returned a significant intercept of 338 g/t gold (1)(2) over 33.6 m (estimated true width (ETW): 4.6 m), including 4,177 g/t gold (1)(2) over 0.95 m (ETW: 0.1 m), 3,079 g/t gold (1)(2) over 0.65 m (ETW: 0.1 m), 1,037 g/t gold (1)(2) over 3.55 m (ETW: 0.5 m) and 714 g/t gold (1)(2) over 1.85 m (ETW: 0.3 m).

The drill intercepts for holes UDE138 and UDH2084D occur on 6,350 mN and 6,325 mN, respectively, and are 80 to 90 m down-plunge from the Swan mineral reserve. Significant results of 11.4 g/t gold (1) over 18.65 m (ETW: 18.0 m), including 42.1 g/t gold (1) over 3.65 m (ETW: 3.5 m), are reported in hole UDE138.

Drill hole UDH2084D is oriented subparallel to the Swan dip surface and returned 42.9 g/t gold (1) over 49.5 m (ETW: 3.6 m), including 244 g/t gold (1) over 6.25 m (ETW: 0.5 m), 1,856 g/t gold (1) over 0.6 m (ETW: 0.04 m) and 618 g/t gold (1) over 0.5 m (ETW: 0.04 m).

The results for the above three holes confirm that the approximate 40-degree west-dipping Swan zone is continuously mineralized southwards down-plunge, where high grades exist and are associated with observed disseminated visible gold in quartz.

Drill holes UDE136 and UDE145 were recently drilled and returned intercepts that fall between 4,090 mRL and 4,070 mRL and have the potential to support approximately 30 m of mineral reserve extension at these elevations. Significant results for these holes comprise 7.1 g/t gold over 13.8 m (ETW: 12.3 m), including 25.4 g/t gold over 2.85 m (ETW: 2.3 m), in hole UDE136 and 7.1 g/t gold (1) over 8.15 m (ETW: 7.9 m), including 16.6 g/t gold (1) over 1.45 m (ETW: 1.4 m), in hole UDE145.

NOTES: (1) Visible gold present in drill intercept.

(2) Results included in June 30, 2017, mineral resources and mineral reserves update.

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