$Kirkland Lake Gold Reports New Wide, High-Grade Intersections in Saddle Zone at Detour Lake, Confirms Continuity of Mineralization Between Main and West Pits March 15, 2021 Download this Press ReleasePDF Format (opens in new window)
Drilling in Central Saddle Zone intersects exceptional grades and widths; confirms continuity of mineralized corridor (800 m along strike and 800 m to depth) between Main and West pits; highlights potential to add significant new open-pit and underground Mineral Resources and Mineral Reserves Key intercepts: 13.95 grams per tonne (“gpt”) over 26.9 metres (“m”), including 108.94 gpt over 2.8 m; 3.63 gpt over 58.0 m, including 14.19 gpt over 10.2 m; 1.27 gpt over 80.3 m; 1.40 gpt over 64.0 m; 1.67 gpt over 50.8 m; 1.19 gpt over 50.0 m, including 17.11 gpt over 2.4 m; 0.98 gpt over 73.0 m; 0.99 gpt over 66.8 m; 2.68 gpt over 36.0 m;1.05 gpt over 23.8 m
Drilling in Eastern portion of Saddle Zone confirms continuity of mineralization to the west and below Main Pit reserve and resource pit shells Key intercepts: 1.21 gpt over 105.9 m, 1.10 gpt over 120.3 m; 1.01 gpt over 118.0 m; 1.09 gpt over 57.0 m, including 14.38 gpt over 2.0 m; 2.17 gpt over 39.0 m; 2.26 gpt over 27.0 m, including 13.83 gpt over 2.0 m
Drilling below West Pit reserve shell intersects broad zones of mineralization extending to depth Key intercepts: 1.47 gpt over 119.0 m; 0.92 gpt over 128.0 m; 0.82 gpt over 138.0 m; 1.49 gpt over 59.0 m; 1.09 gpt over 35.0 m and 0.99 gpt over 48.0 m
Drilling west of West Pit extends mineralization 300 m west of current Mineral Reserves Key intercepts: 2.34 gpt over 11.3 m, including 11.5 gpt over 2.0 m. (1) True widths are unknown at this time and intervals are reported using core lengths intersected in the holes.
TORONTO, March 15, 2021 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced results from 30 holes (21,928 m) of drilling at the Detour Lake property. The new holes being reported are the fourth batch of results from the recently announced 250,000 m exploration program, which is targeted for completion by the end of 2021. The program is being completed to collect information for an updated, and potentially expanded, Mineral Reserve and to support the completion of a new production plan, expected to be released in early 2022. The new holes announced today are mainly from drilling in the Saddle Zone, located between the Main 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 limited past drilling.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “With today’s results, we are increasingly confident that a large continuous deposit is situated along the Detour Mine Trend (“DMT”) that extends from the Main Pit, through the Saddle Zone and continues beyond the West Pit location. We are also extremely encouraged by the wide, high-grade intersections being reported at depth across the Saddle Zone, which confirm the potential for strong growth in Mineral Resources and Mineral Reserves in support of future open-pit and as well as underground mining. We are already introducing significant enhancements to the Detour Lake operation through re-interpretations of previous work and project improvements, with our progress to date highlighted in a new NI 43-101 technical report to be filed by the end of this month. This report will include production results consistent with our previously-released guidance of 680,000 – 720,000 ounces per year for 2021 – 2023, with production to increase to approximately 800,000 ounces in 2025. This report will not include any of the new drilling we have done since the acquisition. The exploration success we are achieving will be part of a completely new mine plan and technical report to be issued early next year, which we believe will clearly demonstrate the substantial value upside we have through our extensive commitment to exploration drilling at Detour Lake Mine.”
Central Portion of the Saddle Zone
Drilling in the central portion of the Saddle Zone included nine holes (7,672 m) and targeted the DMT approximately midway between, and 400 m below, the Main and West Mineral Reserve pit shells.
Significant results from the drilling include: 13.95 gpt over 26.9 m, including 108.94 gpt over 2.8 m, 2.43 gpt over 12.7 m, 0.83 gpt over 74.0 m, 1.26 gpt over 13.0 m, 1.53 gpt over 29.0 m, 1.02 gpt over 19.8 m and 23.19 gpt over 2.3 m from hole DLM-20-052A; 3.63 gpt over 58.0 m, including 14.19 gpt over 10.2m and 1.03 gpt over 49.5 m from hole DLM-20-057; 1.27 gpt over 80.3 m, 1.40 gpt over 64.0 m and 1.89 gpt over 19.0 m from hole DLM-20-070B; 1.67 gpt over 50.8 m, 2.68 gpt over 36.0 m and 1.78 gpt over 19.5 m from hole DLM-20-075; 1.19 gpt over 50.0 m, including 17.11 gpt over 2.4 m from hole DM-20-065; 0.99 gpt over 66.8 m, 0.92 gpt over 49.0 m, 1.06 gpt over 26.0 m and 2.21 gpt over 24.0 m from hole DLM 058C and 0.98 gpt over 73.0 m, 0.93 gpt over 67.0 m, 1.38 gpt over 18.0 m and 1.05 gpt over 23.8 m from hole DLM-20-033A which targeted the DMT between 200 and 400 m below surface. The new results from hole DLM-20-33A, DLM-20-52A and DLM-20-58C are located near the lower limit of the pit shell for current resources and between 75 and 100 m above previously reported results from hole DLM-20-016 which included 1.10 gpt over 142.0 m (see press release dated September 9, 2020). The new result from DLM-20-057 is centered 60 m below and to the east of DLM-20-016.
Results from all new 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. Particularly encouraging is the identification of wide, high-grade mineralization near the lower limits of the current resource pit shell, which indicates that a potential exists to expand the pit shell to depth and to add significant new open-pit resources as well as to define underground resources below the pit.
East Portion of Saddle Zone
Drilling in the east portion of the Saddle Zone included eight holes (8,105 m) and targeted areas along the Detour Mine Trend (“DMT”) directly below and to the west of the Main Pit Mineral Reserve shell.
Significant results from the drilling including: 1.21 gpt over 105.9 m, 1.10 gpt over 120.3 m, 2.17 gpt over 39.0 m, 1.61 gpt over 29.0 m, 1.61 gpt over 29.6 m and 0.80 gpt over 51.0 m, from hole DLM-21-089B; 1.01 gpt over 118.0 m and 0.83 gpt over 26.0 m, from hole DLM-20-47W2,1.09 gpt over 57.0 m, including 14.38 gpt over 2.0 m and 0.78 gpt over 26.8 mfrom hole DLM-20-062. All of these new holes were designed to intersect the DMT between 400 and 600 m below surface and strongly confirmed the continuation of the DMT to the west and below the current Main pit reserve and resource pit shells.
The new results from hole DLM-20-089B and DLM-20-47W2 are centered approximately 475 meters below surface and 75 to 125 meters below previously reported results from hole DLM-20-014A which included 1.42 gpt over 78.0 m, 1.08 gpt over 51.0 m, 1.21 gpt over 43.0 m and 0.90 gpt over 51.0 m (see press release dated September 9, 2020). Results from hole DLM-20-062 are centered near the 575 m level.
Below West Pit
Drilling below the west pit included five holes (4,059 m) which targeted the DMT directly east of the West pit between 350 and 500 m below surface.
Significant results from the drilling include: 1.47 gpt over 119.0 m, 0.71 gpt over 57.0 m and 1.64 gpt over 19.7 m from DLM-20-024A; 0.92 gpt over 128.0 m, 1.09 gpt over 35.0 and 9.14 gpt over 4.0 m from hole DLM-20-050B; 0.95 gpt over 100.1 m from hole DLM-20-056B and 0.99 gpt over 48.0 m, 1.73 gpt over 13.4 m and 13.92 gpt over 2.0 m from hole DLM-20-064. The new intercepts in DLM-20-24A, DLM-20-20-50B and DLM-20-56B are located approximately 180 m west of previously reported DLM-20-004 which included results of 1.41 gpt over 121.0 m and 1.03 gpt over 14.08 m (see press release dated June 29, 2020). The results for holes DLM-20-64 are 375 meters west of DLM-20-04.
Results from all four holes are considered very positive and continue to 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 seven new holes (2,092 m) which targeted areas of the DMT west of the West Pit Mineral Reserve up to 125 m below surface.
Significant results from the drilling include: 2.34 gpt over 11.3 m, including 11.5 gpt over 2.0 m from hole DLM-20-071; 1.76 gpt over 11.0 m in hole DLM-20-083 and 7.31 gpt over 5.0 m from hole DLM-20-045. All of the new holes intersected the DMT approximately 300 m west of the current Mineral Reserve between 25 and 125 m below surface and appear to have passed through the top of the main structure within this area.
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 hosted within 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 ongoing with twelve drills current working, and on track to complete approximately 270,000 m by the end of 2021.
Qualified Persons
The Company’s exploration programs at Detour Lake are conducted under the supervision of Eric Kallio, P.Geo., Senior Vice President, Exploration. Mr. Kallio, as well as Keith Green, P.Geo., Director, Exploration, Canada, and Steve Gray, P.Geo, 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.
QA/QC Controls
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 predominantly sawn in half with one half of the core prepared for shipment, the other half of core retained for future assay verification. Certified reference material (CRM) standards and coarse blank material are inserted every 20 samples. Core samples are shipped directly by courier, and tracked via a chain of custody from site to certified off-site analytical laboratories for preparation and assaying. Kirkland Lake Gold utilizes four accredited external laboratories to manage the significant volume of sample submissions. Each lab is 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: General Requirements for the Competence of Testing and Calibration Laboratories.
Sample preparation includes crushing drill core up to 80% passing 2 mm, riffle splitting 500 grams and pulverizing to 95% passing 105 µm followed by both scheduled and specifically requested silica sand cleaning. Gold Analysis involves Fire Assay – Atomic Absorption (AA) technique from a 50-gram pulp sample with grade ranges between 5 to 10,000 ppb. Samples greater than 10,000 ppb are analyzed with a gravimetric finish. Selected high grade samples are also analyzed using the screen metallics procedure.
Contracted laboratories for the Kirkland Lake Gold’s Detour Project include; ALS Global (sample preparation completed in Timmins, Ontario with pulps sent to Vancouver, BC for analysis), Activation Laboratories (sample preparation and analysis completed in Timmins, Ontario), SGS Laboratories (sample preparation and analysis completed in Cochrane, Ontario) and AGAT Laboratories (sample preparation in Timmins and analysis in Mississauga).
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and 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.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website at
Cautionary Note Regarding Forward-Looking Information
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to planned the exploration program at the Detour Lake Mine, costs and expenditures, the ability to potentially expand Mineral Reserves, changes in Mineral Resources and conversion of Mineral Resources to proven and probable reserves, the ability to expand the current pit design of the mine, the new mine plan and anticipated timing of the updated technical report with respect to the Detour Lake Mine and the anticipated benefits thereon, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These forward-looking statements include, but are not limited to, statements with respect to future exploration potential, project economics, timing and scope of future exploration, anticipated costs and expenditures, changes in Mineral Resources and conversion of Mineral Resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "Inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others, risks related to international operations, risks related to obtaining the permits required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Annual Information Form for the year ended December 31, 2019 and other disclosures of "Risk Factors" by the Company and its predecessors, available on SEDAR. Although Kirkland Lake Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Cautionary Note to U.S. Investors - Mineral Reserve and Resource Estimates
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101-Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”)-CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in SEC Industry Guide 7 under the United States Securities Act of 1993, as amended (the “Securities Act”).
The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934 (“Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”) and, following a two-year transition period, the SEC Modernization Rules will replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Following the transition period, as a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system, then the Company will be subject to the SEC Modernization Rules which differ from the requirements of NI 43-101 and the CIM Definition Standards. The SEC Modernization Rules include the adoption of terms describing mineral reserves and mineral resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be “substantially similar” to the corresponding CIM Definitions. U.S. investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.
U.S. investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director Phone: +1 416-840-7884, E-mail: tmakuch@kl.gold
Hole Number UTM NAD83 Hole Length (m) Azimuth (°) Dip (°) From (m) To (m) Length (m) Au (gpt) Target Easting Northing DLM-20-024A 588886 5541683 822.0 178 -60 565.9 623.0 57.1 0.71 West Saddle AND 663.0 782.0 119.0 1.47 INCL. 724.0 738.0 14.0 7.21 AND 802.4 822.0 19.7 1.64 DLM-20-033A 589333 5541319 996.0 178 -55 204.0 277.0 73.0 0.98 Central Saddle AND 310.2 334.0 23.8 1.05 AND 408.0 475.0 67.0 0.93 AND 778.0 796.0 18.0 1.38 DLM-20-040A 589768 5541543 1275.0 181 -56 675.0 700.0 25.0 0.95 East Saddle AND 856.0 882.0 26.0 1.32 AND 945.0 972.0 27.0 2.26 INCL. 962.0 964.0 2.0 13.83 AND 1003.0 1005.0 2.0 7.62 DLM-20-043A 587289 5541525 384.0 177 -54 nsv West Extension DLM-20-047W2 589607 5541630 708.0 180 -53 399.0 425.0 26.0 0.83 East Saddle AND 572.0 690.0 118.0 1.01 INCL. 629.0 631.0 2.0 12.28 DLM-20-049 589849 5541500 663.0 181 -55 489.0 491.0 2.0 9.82 East Saddle AND 628.0 651.0 23.0 1.70 INCL. 648.0 650.0 2.0 10.78 DLM-20-050B 588887 5541621 818.0 178 -58 151.0 153.0 2.0 10.13 West Saddle AND 499.0 534.0 35.0 1.09 INCL. 506.0 508.0 2.0 11.79 AND 594.0 722.0 128.0 0.92 INCL. 663.0 722.0 59.0 1.49 INCL. 705.0 709.0 4.0 9.14 AND 781.3 806.7 25.4 0.86 DLM-20-051 589254 5541278 885.0 180 -52 66.0 86.0 20.0 2.09 Central Saddle AND 198.0 218.1 20.1 1.60 AND 323.0 325.6 2.6 22.60 DLM-20-052A 589330 5541435 726.0 179 -55 231.3 244.0 12.7 2.43 Central Saddle INCL. 239.0 243.0 4.0 6.48 AND 303.2 323.0 19.8 1.02 AND 375.3 402.2 26.9 13.95 INCL. 389.0 391.0 2.0 28.84 INCL. 398.6 401.4 2.8 108.94 AND 463.0 476.0 13.0 1.26 AND 519.0 548.0 29.0 1.53 INCL. 519.0 524.0 5.0 5.12 AND 574.0 576.3 2.3 23.19 AND 597.0 671.0 74.0 0.83 DLM-20-053A 589929 5541511 1245.0 181 -62 191.0 193.0 2.0 9.31 East Saddle AND 692.3 747.2 54.9 0.57 DLM-20-054W 589647 5541591 1332.0 180 -62 779.0 805.8 26.8 0.76 East Saddle AND 878.0 902.0 24.0 0.82 DLM-20-055A 587208 5541548 618.0 177 -55 157.0 162.0 5.0 7.31 West Extension DLM-20-056B 588884 5541771 873.0 180 -58 627.0 727.1 100.1 0.95 West Saddle INCL. 627.0 665.0 38.0 1.76 INCL. 627.0 632.0 5.0 6.62 AND 746.0 765.0 19.0 0.77 DLM-20-057 589330 5541435 990.0 180 -62 338.0 352.8 14.0 0.80 AND 467.0 496.0 29.0 0.70 Central AND 516.5 566.0 49.5 1.03 Saddle AND 623.0 681.0 58.0 3.63 INCL. 624.3 634.5 10.2 14.19 AND 816.0 860.0 44.0 2.73 AND 834.0 848.3 14.3 6.70 DLM-20-058C 589292 5541339 951.0 180 -56 146.0 172.0 26.0 1.06 Central Saddle AND 239.2 306.0 66.8 0.99 AND 437.0 486.0 49.0 0.92 INCL. 438.0 444.0 6.0 3.98 AND 684.0 686.0 2.0 8.03 AND 784.0 808.4 24.4 2.21 INCL. 801.0 804.0 3.0 13.10 DLM-20-061 590009 5541503 1007.0 183 -57 555.0 567.0 12.0 0.54 East Saddle AND 586.0 602.0 16.0 0.57 AND 633.1 640.0 6.9 1.15 AND 652.1 669.8 17.7 0.58 AND 692.0 697.0 5.0 1.99 AND 795.7 803.2 7.4 0.56 AND 939.0 949.0 10.0 1.23 DLM-20-062 589647 5541591 1050.0 182 -57 656.0 713.0 57.0 1.09 East Saddle INCL. 668.0 670.0 2.0 14.38 AND 723.2 750.0 26.8 0.78 AND 994.0 1038.0 44.0 0.65 DLM-20-064 588726 5541668 753.0 180 -55 182.0 184.0 2.0 13.92 West Saddle AND 407.0 420.4 13.4 1.73 AND 579.0 629.0 50.0 0.60 AND 672.0 720.0 48.0 0.99 DLM-20-065 589334 5541270 450.0 180 -55 31.0 33.0 2.0 8.13 Central Saddle AND 62.0 112.0 50.0 1.19 INCL. 89.6 92.0 2.4 17.11 INCL. 149.0 192.0 43.0 0.82 DLM-20-066 589336 5541124 813.0 179 -53 30.0 57.0 27.0 0.82 Central Saddle 595.7 598.0 2.3 8.22 DLM-20-069AW 588645 5541736 793.0 180 -60 542.0 545.0 3.0 4.06 West Saddle AND 609.0 629.0 20.0 0.72 AND 641.0 655.0 14.0 0.82 AND 666.0 680.0 14.0 1.07 AND 724.9 752.0 27.1 0.73 AND 777.0 790.0 13.0 1.85 INCL. 788.0 790.0 2.0 10.21 DLM-20-070B 589291 5541389 621.0 180 -57 282.0 362.3 80.3 1.27 Central Saddle AND 482.0 546.0 64.0 1.40 INCL. 489.9 492.0 2.1 11.75 AND 559.0 578.0 19.0 1.89 INCL. 564.9 567.0 2.1 13.10 DLM-20-071 587210 5541478 312.0 177 -54 119.7 131.0 11.3 2.34 West Extension including 129.0 131.0 2.0 11.50 DLM-20-072 587211 5541419 186.0 179 -56 Nsv DLM-20-074 589336 5541170 432.0 180 -54 252.6 274.0 21.4 0.69 Central Saddle DLM-20-075 589170 5541447 808.0 181 -55 223.5 243.0 19.5 1.78 Central Saddle INCL. 233.9 236.0 2.1 12.85 AND 259.0 295.0 36.0 2.68 INCL. 270.5 272.6 2.1 34.87 AND 387.0 454.0 67.0 0.72 AND 578.3 629.1 50.8 1.67 INCL. 618.0 620.0 2.0 18.31 INCL. 627.0 629.1 2.1 36.50 AND 643.0 697.0 54.0 0.78 DLM-20-076A 587372 5541357 186.0 179 -56 29.0 31.0 2.0 7.92 West Extension DLM-20-080 587332 5541381 216.0 179 -63 Nsv DLM-20-083 587292 5541380 190.0 179 -56 28.0 39.0 11.0 1.76 DLM-21-089B 589611 5541321 825.0 180 -65 194.0 245.0 51.0 0.80 East Saddle AND 403.8 524.1 120.3 1.10 INCL. 477.0 479.0 2.0 10.08 AND 587.6 693.5 105.9 1.21 INCL. 682.0 685.5 3.5 11.57 AND 728.0 767.0 39.0 2.17 INCL. 746.0 749.0 3.0 10.35 AND 795.4 825.0 29.6 1.61 Notes:
Assays are reported uncut Assay intervals are reported as drill thickness. Hole DLM-20-22 from 624 m to 987 m was drilled as a wedge. True widths are unknown at this time and intervals are reported using core lengths intersected in the holes. Figure 1. Detour Lake Mine – Property Plan View is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/919a67fb-4eec-4d1f-9524-f37f0b194e98
$Kirkland Lake Gold Reports New Wide, High-Grade Intersections in Saddle Zone at Detour Lake, Confirms Continuity of Mineralization Between Main and West Pits March 15, 2021 Download this Press ReleasePDF Format (opens in new window)
Drilling in Central Saddle Zone intersects exceptional grades and widths; confirms continuity of mineralized corridor (800 m along strike and 800 m to depth) between Main and West pits; highlights potential to add significant new open-pit and underground Mineral Resources and Mineral Reserves
Key intercepts:
13.95 grams per tonne (“gpt”) over 26.9 metres (“m”), including 108.94 gpt over 2.8 m; 3.63 gpt over 58.0 m, including 14.19 gpt over 10.2 m; 1.27 gpt over 80.3 m; 1.40 gpt over 64.0 m; 1.67 gpt over 50.8 m; 1.19 gpt over 50.0 m, including 17.11 gpt over 2.4 m; 0.98 gpt over 73.0 m; 0.99 gpt over 66.8 m; 2.68 gpt over 36.0 m;1.05 gpt over 23.8 m
Drilling in Eastern portion of Saddle Zone confirms continuity of mineralization to the west and below Main Pit reserve and resource pit shells Key intercepts: 1.21 gpt over 105.9 m, 1.10 gpt over 120.3 m; 1.01 gpt over 118.0 m; 1.09 gpt over 57.0 m, including 14.38 gpt over 2.0 m; 2.17 gpt over 39.0 m; 2.26 gpt over 27.0 m, including 13.83 gpt over 2.0 m
Drilling below West Pit reserve shell intersects broad zones of mineralization extending to depth Key intercepts: 1.47 gpt over 119.0 m; 0.92 gpt over 128.0 m; 0.82 gpt over 138.0 m; 1.49 gpt over 59.0 m; 1.09 gpt over 35.0 m and 0.99 gpt over 48.0 m
Drilling west of West Pit extends mineralization 300 m west of current Mineral Reserves Key intercepts: 2.34 gpt over 11.3 m, including 11.5 gpt over 2.0 m. (1) True widths are unknown at this time and intervals are reported using core lengths intersected in the holes.
TORONTO, March 15, 2021 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced results from 30 holes (21,928 m) of drilling at the Detour Lake property. The new holes being reported are the fourth batch of results from the recently announced 250,000 m exploration program, which is targeted for completion by the end of 2021. The program is being completed to collect information for an updated, and potentially expanded, Mineral Reserve and to support the completion of a new production plan, expected to be released in early 2022. The new holes announced today are mainly from drilling in the Saddle Zone, located between the Main 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 limited past drilling.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “With today’s results, we are increasingly confident that a large continuous deposit is situated along the Detour Mine Trend (“DMT”) that extends from the Main Pit, through the Saddle Zone and continues beyond the West Pit location. We are also extremely encouraged by the wide, high-grade intersections being reported at depth across the Saddle Zone, which confirm the potential for strong growth in Mineral Resources and Mineral Reserves in support of future open-pit and as well as underground mining. We are already introducing significant enhancements to the Detour Lake operation through re-interpretations of previous work and project improvements, with our progress to date highlighted in a new NI 43-101 technical report to be filed by the end of this month. This report will include production results consistent with our previously-released guidance of 680,000 – 720,000 ounces per year for 2021 – 2023, with production to increase to approximately 800,000 ounces in 2025. This report will not include any of the new drilling we have done since the acquisition. The exploration success we are achieving will be part of a completely new mine plan and technical report to be issued early next year, which we believe will clearly demonstrate the substantial value upside we have through our extensive commitment to exploration drilling at Detour Lake Mine.”
Central Portion of the Saddle Zone
Drilling in the central portion of the Saddle Zone included nine holes (7,672 m) and targeted the DMT approximately midway between, and 400 m below, the Main and West Mineral Reserve pit shells.
Significant results from the drilling include: 13.95 gpt over 26.9 m, including 108.94 gpt over 2.8 m, 2.43 gpt over 12.7 m, 0.83 gpt over 74.0 m, 1.26 gpt over 13.0 m, 1.53 gpt over 29.0 m, 1.02 gpt over 19.8 m and 23.19 gpt over 2.3 m from hole DLM-20-052A; 3.63 gpt over 58.0 m, including 14.19 gpt over 10.2m and 1.03 gpt over 49.5 m from hole DLM-20-057; 1.27 gpt over 80.3 m, 1.40 gpt over 64.0 m and 1.89 gpt over 19.0 m from hole DLM-20-070B; 1.67 gpt over 50.8 m, 2.68 gpt over 36.0 m and 1.78 gpt over 19.5 m from hole DLM-20-075; 1.19 gpt over 50.0 m, including 17.11 gpt over 2.4 m from hole DM-20-065; 0.99 gpt over 66.8 m, 0.92 gpt over 49.0 m, 1.06 gpt over 26.0 m and 2.21 gpt over 24.0 m from hole DLM 058C and 0.98 gpt over 73.0 m, 0.93 gpt over 67.0 m, 1.38 gpt over 18.0 m and 1.05 gpt over 23.8 m from hole DLM-20-033A which targeted the DMT between 200 and 400 m below surface. The new results from hole DLM-20-33A, DLM-20-52A and DLM-20-58C are located near the lower limit of the pit shell for current resources and between 75 and 100 m above previously reported results from hole DLM-20-016 which included 1.10 gpt over 142.0 m (see press release dated September 9, 2020). The new result from DLM-20-057 is centered 60 m below and to the east of DLM-20-016.
Results from all new 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. Particularly encouraging is the identification of wide, high-grade mineralization near the lower limits of the current resource pit shell, which indicates that a potential exists to expand the pit shell to depth and to add significant new open-pit resources as well as to define underground resources below the pit.
East Portion of Saddle Zone
Drilling in the east portion of the Saddle Zone included eight holes (8,105 m) and targeted areas along the Detour Mine Trend (“DMT”) directly below and to the west of the Main Pit Mineral Reserve shell.
Significant results from the drilling including: 1.21 gpt over 105.9 m, 1.10 gpt over 120.3 m, 2.17 gpt over 39.0 m, 1.61 gpt over 29.0 m, 1.61 gpt over 29.6 m and 0.80 gpt over 51.0 m, from hole DLM-21-089B; 1.01 gpt over 118.0 m and 0.83 gpt over 26.0 m, from hole DLM-20-47W2,1.09 gpt over 57.0 m, including 14.38 gpt over 2.0 m and 0.78 gpt over 26.8 mfrom hole DLM-20-062. All of these new holes were designed to intersect the DMT between 400 and 600 m below surface and strongly confirmed the continuation of the DMT to the west and below the current Main pit reserve and resource pit shells.
The new results from hole DLM-20-089B and DLM-20-47W2 are centered approximately 475 meters below surface and 75 to 125 meters below previously reported results from hole DLM-20-014A which included 1.42 gpt over 78.0 m, 1.08 gpt over 51.0 m, 1.21 gpt over 43.0 m and 0.90 gpt over 51.0 m (see press release dated September 9, 2020). Results from hole DLM-20-062 are centered near the 575 m level.
Below West Pit
Drilling below the west pit included five holes (4,059 m) which targeted the DMT directly east of the West pit between 350 and 500 m below surface.
Significant results from the drilling include: 1.47 gpt over 119.0 m, 0.71 gpt over 57.0 m and 1.64 gpt over 19.7 m from DLM-20-024A; 0.92 gpt over 128.0 m, 1.09 gpt over 35.0 and 9.14 gpt over 4.0 m from hole DLM-20-050B; 0.95 gpt over 100.1 m from hole DLM-20-056B and 0.99 gpt over 48.0 m, 1.73 gpt over 13.4 m and 13.92 gpt over 2.0 m from hole DLM-20-064. The new intercepts in DLM-20-24A, DLM-20-20-50B and DLM-20-56B are located approximately 180 m west of previously reported DLM-20-004 which included results of 1.41 gpt over 121.0 m and 1.03 gpt over 14.08 m (see press release dated June 29, 2020). The results for holes DLM-20-64 are 375 meters west of DLM-20-04.
Results from all four holes are considered very positive and continue to 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 seven new holes (2,092 m) which targeted areas of the DMT west of the West Pit Mineral Reserve up to 125 m below surface.
Significant results from the drilling include: 2.34 gpt over 11.3 m, including 11.5 gpt over 2.0 m from hole DLM-20-071; 1.76 gpt over 11.0 m in hole DLM-20-083 and 7.31 gpt over 5.0 m from hole DLM-20-045. All of the new holes intersected the DMT approximately 300 m west of the current Mineral Reserve between 25 and 125 m below surface and appear to have passed through the top of the main structure within this area.
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 hosted within 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 ongoing with twelve drills current working, and on track to complete approximately 270,000 m by the end of 2021.
Qualified Persons
The Company’s exploration programs at Detour Lake are conducted under the supervision of Eric Kallio, P.Geo., Senior Vice President, Exploration. Mr. Kallio, as well as Keith Green, P.Geo., Director, Exploration, Canada, and Steve Gray, P.Geo, 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.
QA/QC Controls
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 predominantly sawn in half with one half of the core prepared for shipment, the other half of core retained for future assay verification. Certified reference material (CRM) standards and coarse blank material are inserted every 20 samples. Core samples are shipped directly by courier, and tracked via a chain of custody from site to certified off-site analytical laboratories for preparation and assaying. Kirkland Lake Gold utilizes four accredited external laboratories to manage the significant volume of sample submissions. Each lab is 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: General Requirements for the Competence of Testing and Calibration Laboratories.
Sample preparation includes crushing drill core up to 80% passing 2 mm, riffle splitting 500 grams and pulverizing to 95% passing 105 µm followed by both scheduled and specifically requested silica sand cleaning. Gold Analysis involves Fire Assay – Atomic Absorption (AA) technique from a 50-gram pulp sample with grade ranges between 5 to 10,000 ppb. Samples greater than 10,000 ppb are analyzed with a gravimetric finish. Selected high grade samples are also analyzed using the screen metallics procedure.
Contracted laboratories for the Kirkland Lake Gold’s Detour Project include; ALS Global (sample preparation completed in Timmins, Ontario with pulps sent to Vancouver, BC for analysis), Activation Laboratories (sample preparation and analysis completed in Timmins, Ontario), SGS Laboratories (sample preparation and analysis completed in Cochrane, Ontario) and AGAT Laboratories (sample preparation in Timmins and analysis in Mississauga).
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and 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.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website at
Cautionary Note Regarding Forward-Looking Information
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to planned the exploration program at the Detour Lake Mine, costs and expenditures, the ability to potentially expand Mineral Reserves, changes in Mineral Resources and conversion of Mineral Resources to proven and probable reserves, the ability to expand the current pit design of the mine, the new mine plan and anticipated timing of the updated technical report with respect to the Detour Lake Mine and the anticipated benefits thereon, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These forward-looking statements include, but are not limited to, statements with respect to future exploration potential, project economics, timing and scope of future exploration, anticipated costs and expenditures, changes in Mineral Resources and conversion of Mineral Resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "Inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others, risks related to international operations, risks related to obtaining the permits required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Annual Information Form for the year ended December 31, 2019 and other disclosures of "Risk Factors" by the Company and its predecessors, available on SEDAR. Although Kirkland Lake Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Cautionary Note to U.S. Investors - Mineral Reserve and Resource Estimates
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101-Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”)-CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in SEC Industry Guide 7 under the United States Securities Act of 1993, as amended (the “Securities Act”).
The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934 (“Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”) and, following a two-year transition period, the SEC Modernization Rules will replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Following the transition period, as a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system, then the Company will be subject to the SEC Modernization Rules which differ from the requirements of NI 43-101 and the CIM Definition Standards. The SEC Modernization Rules include the adoption of terms describing mineral reserves and mineral resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be “substantially similar” to the corresponding CIM Definitions. U.S. investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.
U.S. investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director Phone: +1 416-840-7884, E-mail: tmakuch@kl.gold
Hole Number UTM NAD83 Hole Length (m) Azimuth (°) Dip (°) From (m) To (m) Length (m) Au (gpt) Target Easting Northing DLM-20-024A 588886 5541683 822.0 178 -60 565.9 623.0 57.1 0.71 West Saddle AND 663.0 782.0 119.0 1.47 INCL. 724.0 738.0 14.0 7.21 AND 802.4 822.0 19.7 1.64 DLM-20-033A 589333 5541319 996.0 178 -55 204.0 277.0 73.0 0.98 Central Saddle AND 310.2 334.0 23.8 1.05 AND 408.0 475.0 67.0 0.93 AND 778.0 796.0 18.0 1.38 DLM-20-040A 589768 5541543 1275.0 181 -56 675.0 700.0 25.0 0.95 East Saddle AND 856.0 882.0 26.0 1.32 AND 945.0 972.0 27.0 2.26 INCL. 962.0 964.0 2.0 13.83 AND 1003.0 1005.0 2.0 7.62 DLM-20-043A 587289 5541525 384.0 177 -54 nsv West Extension DLM-20-047W2 589607 5541630 708.0 180 -53 399.0 425.0 26.0 0.83 East Saddle AND 572.0 690.0 118.0 1.01 INCL. 629.0 631.0 2.0 12.28 DLM-20-049 589849 5541500 663.0 181 -55 489.0 491.0 2.0 9.82 East Saddle AND 628.0 651.0 23.0 1.70 INCL. 648.0 650.0 2.0 10.78 DLM-20-050B 588887 5541621 818.0 178 -58 151.0 153.0 2.0 10.13 West Saddle AND 499.0 534.0 35.0 1.09 INCL. 506.0 508.0 2.0 11.79 AND 594.0 722.0 128.0 0.92 INCL. 663.0 722.0 59.0 1.49 INCL. 705.0 709.0 4.0 9.14 AND 781.3 806.7 25.4 0.86 DLM-20-051 589254 5541278 885.0 180 -52 66.0 86.0 20.0 2.09 Central Saddle AND 198.0 218.1 20.1 1.60 AND 323.0 325.6 2.6 22.60 DLM-20-052A 589330 5541435 726.0 179 -55 231.3 244.0 12.7 2.43 Central Saddle INCL. 239.0 243.0 4.0 6.48 AND 303.2 323.0 19.8 1.02 AND 375.3 402.2 26.9 13.95 INCL. 389.0 391.0 2.0 28.84 INCL. 398.6 401.4 2.8 108.94 AND 463.0 476.0 13.0 1.26 AND 519.0 548.0 29.0 1.53 INCL. 519.0 524.0 5.0 5.12 AND 574.0 576.3 2.3 23.19 AND 597.0 671.0 74.0 0.83 DLM-20-053A 589929 5541511 1245.0 181 -62 191.0 193.0 2.0 9.31 East Saddle AND 692.3 747.2 54.9 0.57 DLM-20-054W 589647 5541591 1332.0 180 -62 779.0 805.8 26.8 0.76 East Saddle AND 878.0 902.0 24.0 0.82 DLM-20-055A 587208 5541548 618.0 177 -55 157.0 162.0 5.0 7.31 West Extension DLM-20-056B 588884 5541771 873.0 180 -58 627.0 727.1 100.1 0.95 West Saddle INCL. 627.0 665.0 38.0 1.76 INCL. 627.0 632.0 5.0 6.62 AND 746.0 765.0 19.0 0.77 DLM-20-057 589330 5541435 990.0 180 -62 338.0 352.8 14.0 0.80 AND 467.0 496.0 29.0 0.70 Central AND 516.5 566.0 49.5 1.03 Saddle AND 623.0 681.0 58.0 3.63 INCL. 624.3 634.5 10.2 14.19 AND 816.0 860.0 44.0 2.73 AND 834.0 848.3 14.3 6.70 DLM-20-058C 589292 5541339 951.0 180 -56 146.0 172.0 26.0 1.06 Central Saddle AND 239.2 306.0 66.8 0.99 AND 437.0 486.0 49.0 0.92 INCL. 438.0 444.0 6.0 3.98 AND 684.0 686.0 2.0 8.03 AND 784.0 808.4 24.4 2.21 INCL. 801.0 804.0 3.0 13.10 DLM-20-061 590009 5541503 1007.0 183 -57 555.0 567.0 12.0 0.54 East Saddle AND 586.0 602.0 16.0 0.57 AND 633.1 640.0 6.9 1.15 AND 652.1 669.8 17.7 0.58 AND 692.0 697.0 5.0 1.99 AND 795.7 803.2 7.4 0.56 AND 939.0 949.0 10.0 1.23 DLM-20-062 589647 5541591 1050.0 182 -57 656.0 713.0 57.0 1.09 East Saddle INCL. 668.0 670.0 2.0 14.38 AND 723.2 750.0 26.8 0.78 AND 994.0 1038.0 44.0 0.65 DLM-20-064 588726 5541668 753.0 180 -55 182.0 184.0 2.0 13.92 West Saddle AND 407.0 420.4 13.4 1.73 AND 579.0 629.0 50.0 0.60 AND 672.0 720.0 48.0 0.99 DLM-20-065 589334 5541270 450.0 180 -55 31.0 33.0 2.0 8.13 Central Saddle AND 62.0 112.0 50.0 1.19 INCL. 89.6 92.0 2.4 17.11 INCL. 149.0 192.0 43.0 0.82 DLM-20-066 589336 5541124 813.0 179 -53 30.0 57.0 27.0 0.82 Central Saddle 595.7 598.0 2.3 8.22 DLM-20-069AW 588645 5541736 793.0 180 -60 542.0 545.0 3.0 4.06 West Saddle AND 609.0 629.0 20.0 0.72 AND 641.0 655.0 14.0 0.82 AND 666.0 680.0 14.0 1.07 AND 724.9 752.0 27.1 0.73 AND 777.0 790.0 13.0 1.85 INCL. 788.0 790.0 2.0 10.21 DLM-20-070B 589291 5541389 621.0 180 -57 282.0 362.3 80.3 1.27 Central Saddle AND 482.0 546.0 64.0 1.40 INCL. 489.9 492.0 2.1 11.75 AND 559.0 578.0 19.0 1.89 INCL. 564.9 567.0 2.1 13.10 DLM-20-071 587210 5541478 312.0 177 -54 119.7 131.0 11.3 2.34 West Extension including 129.0 131.0 2.0 11.50 DLM-20-072 587211 5541419 186.0 179 -56 Nsv DLM-20-074 589336 5541170 432.0 180 -54 252.6 274.0 21.4 0.69 Central Saddle DLM-20-075 589170 5541447 808.0 181 -55 223.5 243.0 19.5 1.78 Central Saddle INCL. 233.9 236.0 2.1 12.85 AND 259.0 295.0 36.0 2.68 INCL. 270.5 272.6 2.1 34.87 AND 387.0 454.0 67.0 0.72 AND 578.3 629.1 50.8 1.67 INCL. 618.0 620.0 2.0 18.31 INCL. 627.0 629.1 2.1 36.50 AND 643.0 697.0 54.0 0.78 DLM-20-076A 587372 5541357 186.0 179 -56 29.0 31.0 2.0 7.92 West Extension DLM-20-080 587332 5541381 216.0 179 -63 Nsv DLM-20-083 587292 5541380 190.0 179 -56 28.0 39.0 11.0 1.76 DLM-21-089B 589611 5541321 825.0 180 -65 194.0 245.0 51.0 0.80 East Saddle AND 403.8 524.1 120.3 1.10 INCL. 477.0 479.0 2.0 10.08 AND 587.6 693.5 105.9 1.21 INCL. 682.0 685.5 3.5 11.57 AND 728.0 767.0 39.0 2.17 INCL. 746.0 749.0 3.0 10.35 AND 795.4 825.0 29.6 1.61 Notes:
Assays are reported uncut Assay intervals are reported as drill thickness. Hole DLM-20-22 from 624 m to 987 m was drilled as a wedge. True widths are unknown at this time and intervals are reported using core lengths intersected in the holes. Figure 1. Detour Lake Mine – Property Plan View is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/919a67fb-4eec-4d1f-9524-f37f0b194e98
Kirkland Lake Gold Announces Filing of Detour Lake Technical Report, Including New Life-Of-Mine Plan Download this Press ReleasePDF Format (opens in new window) Highlights of the 2021 Life-of-Mine Plan (“LOMP”):
Production of 680,000 – 720,000 ounces from 2021 – 2024, growing to 800,000 ounces in 2025 and reaching over 900,000 ounces in 2032 Low unit costs, including average operating cash costs of $524/oz and AISC/oz of $775 in first five years (2021 – 2025) Large Mineral Reserve provides 22-year production life with potential for further growth Encouraging exploration results supporting substantial growth in Mineral Reserves, higher production levels and further improvements to unit costs not included in 2021 LOMP (to be superseded by new mine plan in 2022). TORONTO, March 31, 2021 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced the filing of a technical report (the “ 2021 Detour Lake Technical Report” or the “Report”) for the Company’s Detour Lake Mine, entitled “Detour Lake Operation, Ontario, Canada, NI 43-101 Technical Report.” The Report was prepared in compliance with National Instrument 43-101 – Standards for Disclosure of Mineral Projects (“NI 43-101”) and is effective as at December 31, 2020. The Report is available under Kirkland Lake Gold’s profile on SEDAR at www.sedar.com and on the Company’s website at www.kl.gold. All dollar amounts in this press release are expressed in US dollars, unless otherwise indicated.
The 2021 Detour Lake Technical Report includes a new life-of-mine plan (“2021 LOMP”) that supports the scientific and technical disclosure in the updated Mineral Resource and Mineral Reserve estimates as at December 31, 2020 contained in the Company’s press release dated February 25, 2021. In addition, results published in the Report are consistent with, and confirm, the multi-year production guidance (2021 – 2023) and unit cost and capital expenditure guidance for 2021 included in the Company’s press release dated December 10, 2020. The Report does not include any of the exploration success achieved since the Company acquired Detour Lake Mine on January 31, 2020; nor does it include the full impact of business improvement initiatives undertaken since the acquisition. The results of the Company’s exploration program will be included in a new mine plan to be issued in 2022 (“2022 LOMP”), which the Company expects will lead to significant value enhancement opportunities for the Detour Lake operation.
Under the 2021 LOMP, production is expected to average 680,000 – 720,000 ounces from 2021 – 2024, before increasing to 800,000 ounces in 2025. Production would then decline for three years during a period of increased stripping before reaching over 900,000 ounces beginning in 2032. As the Company continues its exploration drilling and works to factor the significant drilling success it is achieving into the 2022 LOMP, an important objective will be to achieve growth in reserves and changes to the production profile such that there is not a drop off in production after 2025, and to achieve 900,000 ounces of production, or higher, as early in the mine life as possible, leading to further improvements in unit costs and free cash flow.
The Detour Lake Technical Report was prepared by following Kirkland Lake Gold employees, all of whom are qualified persons as defined in NI 43-101, Standards of Disclosure for Mining Projects and in compliance with Form 43-101F1: Mr. Andre Leite, P.Eng, Detour Lake Mine Technical Service Manager; Mr. Jean Francois Dupont, P.Eng, Detour Lake Chief Metallurgist; Dr. Veronika Raizman, P.Geo., Manager, Reclamation & Geochemistry; and Mr. Paul Andrew Fournier, P.Eng, Manager, Cost Accounting.
2021 Detour Lake Technical Report and LOMP
Among the key results included in the 2021 Detour Lake Technical Report and LOMP are the following:
Significant production growth in first five years compared to previous results driven by a lower strip ratio and expanded levels of mill throughput, with production targeted at 680,000 – 720,000 ounces from 2021 – 2024 and reaching 800,000 ounces in 2025 Low unit costs in the first five years (2021 – 2025) with operating cash costs per ounce sold(1)(2) averaging US$524 and all-in sustaining costs (“AISC”) per ounce per ounce sold(1)(2) averaging $775 Long Production Life of 22 years based on 13.8 million ounces of Mineral Reserves (at or above a 0.50 g/t cut-off grade) and 2.0 million ounces of low-grade stockpile Mineral Reserves (below 0.50 g/t cut-off grade) to mainly be processed at the end of the mine life; potential exists for extended life with updated resource model incorporating 2020 and 2021 exploration drilling Capital expenditures that support expanded production levels and a long mine life; sustaining capital expenditure estimates based on actual operating experience; growth capital expenditure estimates reflect the impact of multiple new growth projects aimed at maximizing after-tax cash flow over the life of mine and positioning Detour Lake to take advantage of additional growth opportunities once the results of exploration drilling are factored into the mine plan. (1) See “Non-IFRS Measures” in this press release and in the MD&A for the three and twelve months ended December 31, 2020. (2) Unit costs determined using a gold price of $1,500/oz and an exchange rate of CAD/USD of 1.31.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “The 2021 LOMP represents an important interim report on our progress advancing the Detour Lake Mine, defining a highly profitable operation that is well positioned to benefit from our ongoing exploration success and other value creation opportunities. Based on the new mine plan, Detour Lake is poised to become Canada’s largest gold producer and, with the potential for substantial growth in Mineral Reserves as our drilling programs continue, could very well become one of the largest and most profitable gold mines in the world.
“The 2021 LOMP includes significant production growth and improved unit costs compared to past operating experience. Production growth is driven by higher levels of mill throughput, reflecting increased ore tonnes mined, lower stripping ratios, better ore fragmentation and improved productivity in the mill based on a number of key business improvement initiatives. Sustaining capital estimates, which account for about half of total capital expenditures in the first five years, are based on actual experience over the last several years and extensive engineering work. Growth capital expenditures over this period mainly relate to new growth projects aimed at maximizing returns and positioning the operation to benefit fully from additional value creation opportunities.
“A key factor driving our interest in acquiring Detour Lake Mine was the belief that we could substantially grow Mineral Reserves through extensive drilling. Results to date support our view that there is a large, continuous corridor of mineralization along the Detour Mine Trend that extends from the Main Pit, through the Saddle Zone and continues beyond the West Pit location. With continued drilling success, we anticipate transitioning to a much larger pit design as we grow our Mineral Reserve base leading to further increases in production at better unit costs.”
Key Assumptions
The Economic analysis of the operation was completed using a gold price of US$1,500 per ounce and a CAD$/US$ exchange rate of 1.31. The current gold price provided for Mineral Reserve estimation is US$1,300/oz, with US$ 1,500/oz being used for Mineral Resource estimation. Both Mineral Resource and Mineral Reserve estimates use an exchange rate assumption of CAD/US $1.31. The project start date is January 1, 2021 with mining conducted over a period of 18 years and processing activities extending over 22 years, with the final three years of processing reflecting the milling previously stockpiled low-grade Mineral Reserves.
Review of Operations
During the Life of Mine (“LOM”), a total of 14,499,000 ounces of gold is produced at an average grade of 0.82 g/t and an average recovery rate of 91.9%. The production profile assumes the mining of 593.9 million tonnes of ore with an average strip ratio of 1.90 and an ex-pit ore grade of 0.82 g/t over a period of 18 years, including 1,954,000 ounces of low-grade stockpiled Mineral Reserves, which will mainly be processed over a four year period at the end of the mine life. Over the first five years of operation, starting at January 1, 2021, 3,618,000 ounces of gold are produced in aggregate (an average of 723,600 ounces per year) from processing 132.8 million tonnes at an average grade of 0.92 g/t and at an average recovery rate of 92.0%. A total of 186.4 million tonnes of ore is projected to be mined during this five-year period at an average grade of 0.78 g/t and at an average strip ratio of 2.08.
On a per ounce sold basis, average unit costs over the LOM are expected to include operating cash costs per ounce sold of $619 and AISC per ounce sold of $821. Unit costs in the first five years of the operation are expected to be better than the LOM averages and clearly establish Detour Lake Mine as a low-cost gold mining operation with operating cash costs of $524 and AISC per ounce sold of $775.
Table 1. Operating Summary1
2021 – 2025 Mining Ore Mined (Mt) 186.4 Waste Mined (Mt) 386.9 Ex-Pit Mined (Mt) 573.3 Strip Ratio (waste/ore) 2.08 Ex-Pit Ore Grade (g/t) 0.78 Processing Tonnes Milled (Mt) 132.8 Head Grade (g/t) 0.92 Recovery (%) 92.0 Gold Recovered (Koz) 3,618 Gold Poured (Koz) 3,618 Gold Sales (Koz) 3,618 Unit Costs Operating Cash Cost ($/oz)2 524 AISC ($/oz)2 775 (1) Tonnes and ounces are based on Mineral Reserves and Mineral Resources as at December 31, 2020. (2) Note: See “Non-IFRS Measures” set out below and as further set out on page 40 of the Company’s MDA for the three and twelve months ended December 31, 2020 for further details.
(1) For the twelve months ended December 31, 2020; Reduction from 2019 largely related to impact reduced operations and other components of the Company’s COVID-19 response (2) Included in Company’s production guidance for 2021 (see press release dated December 10, 2020)
Note: See “Non-IFRS Measures” set out below and as further set out on page 40 of the Company’s MDA for the three and twelve months ended December 31, 2020 for further details.
Note: See “Non-IFRS Measures” set out below and as further set out on page 40 of the Company’s MDA for the three and twelve months ended December 31, 2020 for further details.
The economic analysis included a discounted cash flow assessment using a gold price of US$1,500 per ounce and a discount rate of 5%. The currency used to calculate cash flow in the 2021 Detour Lake Technical Report is the Canadian dollar. For the purpose of this press release, amounts have been converted to US dollars using an exchange rate of CAD/US 1.31. Operating costs were prepared based on recent operating history and technical assumptions associated with the production profile. Capital expenditures were prepared based on engineering estimates, vendor quotes, maintenance strategies, or estimated long-term requirements based on current asset value. The economic evaluation assumes the continued payment of a 2% net smelter royalty to Franco-Nevada Corporation and the continuation of existing payment obligations to First Nations groups.
As outlined in Table 2 below, the pre-tax cumulative cash flow is estimated at $8,505 million. The post-tax cumulative cash flow is estimated at $6,377 million. At a 5% discount rate, the Net Present Value of pre-tax cash flows is $5,049 million and of post-tax cash flows is $3,792 million.
Over the first five years of the project total pre-tax cumulative cash flow is estimated at $1,602 million, for an average of $320.3 million per year. The post-tax cumulative cash flow is estimated at $1,299 million over the five-year period.
Table 2. Cash Flow Analysis1
$ Millions unless otherwise stated LOM 2021 – 2025 Sales Gold Sold (Koz) 14,519 3,618 Gold Price (US$/oz) 1,500 1,500 Gross Revenue 21,778 5,427 Refining and Transport Costs (25) (6) Net Revenue 21,754 5,421 Operating Costs – Mining (3,526) (931) Operating Costs – Processing (3,976) (827) Operating Costs – Site Adm. (1,458) (388) Operating Costs (8,690) (2,146) Royalties and First Nation Payments (584) (152) Changes in Inventory (27) 250 Operating Margin 12,183 3,373 Capital Expenditures (3,621) (1,510) Reclamation (79) (7) Lease Payments (9) (2) Less: Changes in W/C 32 (252) Free Cash Flow Before Taxes 8,505 1,602 Taxes (2,127) (303) Free Cash Flow After Taxes 6,377 1,299 Net Present Value Before Tax (5%) 5,049 1,405 Net Present Value After Tax (5%) 3,792 1,149 Note: See “Non-IFRS Measures” set out below and as further set out on page 40 of the Company’s MDA for the three and twelve months ended December 31, 2020 for further details.
Capital Expenditures
Total capital expenditures for the project $3,621 million over the LOM and $1,510 million from 2021 – 2025, for an average over the first five years of $302.0 million. Contributing to the level of capex in the first five years are a number of key projects, including $65 – $75 million for projects aimed at increasing throughput in the mill to 28 million tonnes per year. Capital expenditures for mining includes equipment replacement, planned component replacements, and capitalized maintenance of 795 haul trucks. Expenditures related to the tailings management areas (“TMA”) include construction of Cell 2 and Cell 3, while G&A costs are largely related to environmental permitting for the West Detour project and the Mine Water Pond.
Mineral Reserve estimates included in the 2021 Detour Lake Technical Report and LOMP are as at December 31, 2020 and were previously reported in a press release dated February 25, 2021. Mineral Reserves at Detour Lake as at December 31, 2020 were estimated at 13,821,000 ounces at an average grade of 0.96 g/t at an average cut-off grade at or above 0.50 g/t. In addition, the Company also established low-grade Mineral Reserves of 1,954,000 ounces at an average grade of 0.41 g/t. These Mineral Reserves will mainly be processed at the end of the mine life and, under previous mine planning, would have been mined as waste. Measured and Indicated (“M&I”) Mineral Resources as at December 31, 2020 were estimated at 5,191,000 ounces at an average grade of 1.21 g/t. Inferred Mineral Resources totaled 1,606,000 ounces at an average grade of 0-.94 g/t.
Notes: Readers are referred to the footnotes set out at the end of this press release.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and 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.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
Qualified Persons
The technical contents related to the Detour Lake Mine in this press release, have been reviewed and approved by Andre Leite, P. Eng., Detour Lake Mine Technical Service Manager. Mr. Leite is a “qualified person” as defined in National Instrument 43-101 and have reviewed and approved disclosure of the technical information and data in this press release.
Footnotes Related to Mineral Reserve Calculations:
The mineral reserves have an effective date of December 31, 2020. The Qualified Person for the estimate is Mr. Andre Leite Mineral reserves amenable to open pit mining methods were estimated using a gold price assumption of US$1,300/oz, an exchange rate of 1.31 C$/US$, a 2% net smelter return royalty, refining charge of 0.05%, variable metallurgical recoveries based on a formula, inter-ramp pit slope angles that range from 25.1–56.3º, mining cost of C$3.42/t mined, incremental haulage costs of C$0.019/7.25 m bench at Detour Lake and C$0.15/5 m bench at West Detour and North Pit, process costs of C$9.75/t milled, general and administrative costs of C$3.59/t milled, non-mining sustaining capital costs of C$3.42/t milled, and mining sustaining capital costs of C$0.35/t mined. The estimate is reported above variable optimized cut-off and a minimum cut-off grade of 0.35 g/t Au. Estimates were rounded in accordance with reporting guidelines. Totals may not sum due to rounding. Totals may not add up due to rounding. Footnotes Related to Mineral Resource Calculations:
The mineral resources have an effective date of December 31, 2020. The Qualified Person for the estimate is Mr. Andre Leite, P.Eng., a Kirkland Lake Gold employee. Mineral resources are reported exclusive of those mineral resources converted to mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resources are reported using the 2014 CIM Definition Standards. Mineral resources considered amenable to open pit mining methods were estimated using a gold price of US1,500/oz, an exchange rate of 1.31 C$/US$, variable metallurgical recovery assumptions based on formulae, refining and transport costs of C$5/oz Au, mining costs of C$3.42/t mined, process costs of C$9.75/t milled, tailings management costs of C$1.50/t milled, general and administrative costs of C$3.59/t milled, non-mining sustaining capital costs of $2.44/t milled, mining sustaining capital costs of C$0.35/t mined, incremental bench cost of $0.019/t/bench, and variable pit slope angles that range from 25–56º. The estimate is reported above a cut-off grade of 0.5 g/t Au. Mineral resources considered amenable to underground pit mining methods were estimated assuming long-hole and transverse stoping methods. The estimates used a gold price of US1,300/oz, metallurgical recovery assumption of 97%, refining and transport costs of C$5/oz Au, average mining cost of C$75/t mined, process and tailings costs of C$9/t milled, general and administrative costs of C$11.50/t, assumed dilution average of 12%. The estimate is reported above a cut-off grade of 2.2 g/t Au. Estimates have been rounded in accordance with reporting guidelines. Totals may not sum due to rounding. Non-IFRS Measures
The Company has included certain non-IFRS measures in this document, as discussed below. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Free Cash Flow In the gold mining industry, free cash flow is a common performance measure with no standardized meaning. The Company calculates free cash flow by deducting cash capital spending (capital expenditures for the period, net of expenditures paid through finance leases) from net cash provided by operating activities. The Company discloses free cash flow as it believes the measure provides valuable assistance to investors and analysts in evaluating the Company’s ability to generate cash flow after capital investments and build the cash resources of the Company.
Operating Cash Costs and Operating Cash Costs per Ounce Sold Operating cash costs and operating cash cost per tonne and per ounce sold are non-IFRS measures. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under IFRS. Operating cash costs include mine site operating costs such as mining, processing and administration, but exclude royalty expenses, depreciation and depletion and share based payment expenses and reclamation costs. Operating cash cost per ounce sold is based on ounces sold and is calculated by dividing operating cash costs by volume of gold ounces sold.
The Company discloses operating cash costs and operating cash cost per tonne and per ounce as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company’s operational performance and ability to generate cash flow. The most directly comparable measure prepared in accordance with IFRS is total production expenses. Operating cash costs and operating cash cost per ounce of gold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Sustaining and Growth Capital Sustaining capital and growth capital are Non-IFRS measures. Sustaining capital is defined as capital required to maintain current operations at existing levels. Growth capital is defined as capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations. Both measurements are used by management to assess the effectiveness of investment programs.
AISC and AISC per Ounce Sold AISC and AISC per ounce are Non-IFRS measures. These measures are intended to assist readers in evaluating the total costs of producing gold from current operations. While there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the definition of AISC as set out by the World Gold Council in its guidance note dated June 27, 2013. The Company defines AISC as the sum of operating costs (as defined and calculated above), royalty expenses, sustaining capital, corporate expenses and reclamation cost accretion related to current operations. Corporate expenses include general and administrative expenses, net of transaction related costs, severance expenses for management changes and interest income. AISC excludes growth capital expenditures, growth exploration expenditures, reclamation cost accretion not related to current operations, interest expense, debt repayment and taxes.
Average Realized Price per Ounce Sold In the gold mining industry, average realized price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is revenue from gold sales. Average realized price per ounce sold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating the total revenues realized in a period from current operations.
Risks and Uncertainties
The exploration, development and mining of mineral deposits involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. Kirkland Lake Gold is subject to several financial and operational risks that could have a significant impact on its cash flows and profitability. The most significant risks and uncertainties faced by the Company include: the price of gold; the uncertainty of production estimates (which assume accuracy of projected grade, recovery rates, and tonnage estimates and may be impacted by unscheduled maintenance, labour and other operating, engineering or technical difficulties with respect to the development of its projects, many of which may not be within the control of the Company), including the ability to extract anticipated tonnes and successfully realizing estimated grades; the threat of outbreaks of viruses or other infectious disease, including COVID-19; changes to operating and capital cost assumptions; the inherent risk associated with project development and permitting processes; the uncertainty of the mineral resources and their development into mineral reserves; the replacement of depleted reserves; foreign exchange risks; changes in applicable laws and regulations (including tax legislation); reclamation obligations; regulatory; tax matters and foreign mining tax regimes, as well as health, safety, environmental and cybersecurity risks. For more extensive discussion on risks and uncertainties refer to the “Risks and Uncertainties” section in the December 31, 2020 Annual Information Form and the Company’s MD&A for the period ended December 31, 2020 filed on SEDAR and on EDGAR.
Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release constitute ‘forward looking statements’, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, among others, the development of the Company’s properties and the anticipated timing thereof, expected production from, and the further potential of the Company’s properties, the potential to increase the levels of mineral resources and mineral reserves and potential conversion of mineral resources; the anticipated timing and commencement of exploration programs on various targets within the Company’s land holdings and the implication of such exploration programs (including but not limited to any potential decisions to proceed to commercial production), the anticipated overall impact of the Company’s COVID19 response plans, including measures taken by the Company to reduce the spread of COVID19, including but not limited to the rapid testing implemented at the Company’s sites, the ability to lower costs and gradually increase production, the ability of the Company to successfully achieve business objectives, the ability of the Company to achieve its longer-term outlook and the anticipated timing and results thereof, statements made with respect to our guidance for production, assumptions relating to revenues, operating cash flow and other metrics set out in the Company’s disclosure materials, the optimization of the Company’s mine plans, including the updated mine plan for the Detour Lake mine expected in 2022, the Company’s continuous improvement initiatives and the potential impacts thereof, the performance of the Company’s equity investments and the ability of the Company to realize on its strategic goals with respect to such investments, the effects of unexpected costs, liabilities or delays, the potential benefits and synergies and expectations of other economic, business and or competitive factors, including the ability of the Company to realize on certain planned synergies associated with the acquisition of Detour Gold Corporation, the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the US dollar), mark-to-market derivative variances, possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, risks related to information technology and cybersecurity, timing and costs associated with the design, procurement and construction of the Company’s various capital projects, including but not limited to potential future impacts and effects of COVID19, including but not limited to potential future delays and unanticipated suspension or interruption of operations, the #4 Shaft project at the Macassa Mine, the ventilation, paste plant, transformer and water treatment facility at the Fosterville Mine, the ability to obtain all necessary permits associated with the Detour Lake Mine, the ability to obtain the necessary permits in connection with all of its various capital projects, including but not limited to the rehabilitation of the Macassa tailings facility and the development of a new tailings facility and the anticipated results associated therewith, the West Detour project, processing plant expansion at the Detour Lake Mine, the ability to obtain renewals of certain exploration licences in Australia, native and aboriginal heritage issues, including but not limited to ongoing negotiations and consultations with the Company’s First Nations partners, risks relating to infrastructure, permitting and licenses, exploration and mining licences, government regulation of the mining industry, risks relating to foreign operations, uncertainty in the estimation and realization of mineral resources and mineral reserves, quality and marketability of mineral product, environmental regulation and reclamation obligations, including but not limited to risks associated with reclamation and closure obligations relating to the Northern Territory projects, risks relating to the Northern Territory wet season, risks relating to litigation and unanticipated costs to assume the defence of such litigation, risks relating to applicable tax and potential reassessments thereon, risks relating to changes to tax law and regulations and the Company's interpretation thereof, foreign mining tax regimes and the potential impact of any changes to such foreign tax regimes, competition, currency fluctuations, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the AIF of the Company for the year ended December 31, 2019 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for eventual economic extraction. Measured and indicated resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that Measured or Indicated mineral resources can be upgraded to mineral reserves through continued exploration and positive economic assessment.
Information Concerning Estimates Of Mineral Reserves And Measured, Indicated And Inferred Resources
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). These definitions differ significantly from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “SEC”) applicable to domestic reporting companies. Investors are cautioned that information contained in this Annual Information Form may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the SEC thereunder.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director Phone: +1 416-840-7884 E-mail: tmakuch@kl.gold
bigone thanks; Kirkland Lake Gold Announces Details of Annual General Meeting and First Quarter 2021 Conference Call and Webcast TORONTO, April 21, 2021 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced details of the Company’s upcoming Annual General Meeting (the “Meeting”) to be held on May 6, 2021 at 4:30 pm Eastern Time (“ET”).
Password: kirkland2021 (case sensitive), as well as on the Company’s website at http://www.kl.gold.ca
In addition, the Company also announced today that it will release its financial and operating results for the first quarter of 2021 on the same day, Thursday, May 6, 2021, before the market opens.
The Company will then host a conference call to review the results that afternoon at 2:00 pm ET.
Those wishing to join the call can do so using the telephone numbers listed below. The call will also be webcast and available on the Company’s website.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of gold production in 2021.
The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and 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.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director Phone: +1 416-840-7884 E-mail: tmakuch@kl.gold
$Kirkland Lake Gold Reports New Wide, High-Grade Intersections at Detour Lake May 04, 2021
$Results Highlight Significant Potential for Mineral Resource Growth Between the Existing Main Pit and Planned West Pit Location, at Depth and to the West
$New high-grade intersections near bottom of Mineral Resource pit shell in Saddle Zone highlight potential for growth in open-pit and underground Mineral Resources
Key intercepts(1): 1.13 gpt(2) over 155.1 metres (“m”); 9.02 gpt over 13.0 m; 1.56 gpt over 70.2 m, incl. 7.49 gpt over 5.3 m; 1.37 gpt over 43.1 m, incl. 12.17 gpt over 3.0 m; 31.91 gpt over 5.0 m; 2.21 gpt over 26.0 m, incl. 5.15 gpt over 8.0 m; 1.9 gpt over 32.7 m, incl. 15.07 gpt over 2.1 m; 1.01 gpt over 42.6 m Drilling in Central Saddle Zone continues to intersect exceptional grades and widths at shallow depths, further demonstrates continuity of mineralized corridor connecting Main Pit and planned West Pit location Key intercepts: 1.08 gpt over 56.0 m, incl.13.01 gpt over 2.0 m; 1.34 gpt over 40.0 m; 3.38 gpt over 10.0 m, incl. 14.76 gpt over 2.0 m; 0.94 gpt over 56.2 m; 1.42 gpt over 19.9 m; 1.01 gpt over 15.0 m Drilling in Eastern portion of Saddle Zone confirms continuity of mineralization to the west and below Main Pit Mineral Reserve pit shell Key intercepts: 0.81 gpt over 131.0 m; 1.49 gpt over 64.8 m, incl. 23.95 gpt over 2.0 m; 1.96 gpt over 64.0 m; incl. 4.83 gpt over 54.0 m; 2.96 gpt over 36.3 m, incl. 21.45 gpt over 2.2 m; 1.08 gpt over 75.0 m; 2.54 gpt over 35.1 m, incl. 27.77 gpt over 2.0 m; 3.91 gpt over 23.0, incl. 35.66 gpt over 2.0 m Drilling below West Pit Mineral Reserve intersects broad zones of mineralization extending to depth Key intercepts: 2.94 gpt over 51.9 m, incl. 29.37 gpt over 4.0 m; 31.97 gpt over 2.0 m; 1.41 gpt over 47.2 m; 2.37 gpt over 36.0 m; 1.04 gpt over 46.9 m, incl 15.46 gpt over 2.0 m; 2.26 gpt over 21.0 m Drilling west of planned West Pit intersects mineralization up to 425 m west of existing Mineral Reserves Key intercepts: 10.66 gpt over 13.0 m, including 34.51 gpt over 3.0; 23.92 gpt over 2.3 m; 1.14 gpt over 78.4 m; 0.75 gpt over 41.5 m
(1) True widths are unknown at this time and intervals are reported using core lengths intersected in the holes. (2) Grams per tonne (“gpt”); Metres (“m”); Including (“incl.”). TORONTO, May 04, 2021 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced results from 38 holes and two wedge holes (23,911 m) of drilling along the Detour Mine Trend (“DMT”) at the Detour Lake property. The new holes being reported are the fifth batch of results from the recently announced 270,000 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 and to support the completion of a new production plan, expected to be released in early 2022. Most of the new holes announced today are from drilling in the Saddle Zone, located between the existing Main Pit and planned 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 Mineral Reserves, which also contains limited past drilling.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “We continue to have a great deal of success drilling along the DMT. New wide, high-grade intersections continue to confirm the continuity of the mineralized corridor connecting the Main Pit and planned West Pit. We are also having success intersecting high-grade mineralization near the bottom of the Mineral Resource pit shell in the Saddle Zone, which highlights the potential to add significant new open-pit, and possibly underground, Mineral Resources. We also continue to expand mineralization to the west of the planned West Pit, indicating that we have yet to determine the full expanse of the deposit running along the DMT. We are continuing our extensive drill program at Detour Lake, following up on each of the key targets, with 12 drills currently working and plans to complete 270,000 m of drilling during 2021.
“When we issued the new technical report for Detour Lake at the end of March, we described it as an important milestone for the project that included expanded production, low unit costs, a long mine life and attractive economics. We also indicated that it was very much an interim report, that we fully expect to improve upon when we factor the substantial exploration success we are achieving into a new technical report and life-of-mine plan next year. The drilling results we have announced today provide us with even greater confidence that the 2022 technical report will clearly establish Detour Lake as one of the world’s premier gold mines.”
Central Portion of the Saddle Zone
Drilling in the central portion of the Saddle Zone included nine holes and one wedge hole (6,445 m) and targeted the DMT approximately midway between the existing Main Pit and Mineral Reserves in the planned West Pit.
Significant results from the drilling include: 1.13 gpt over 155.1 m, 1.90 gpt over 32.7 m, incl. 15.07 gpt over 2.1 m, 3.98 gpt over 9.3 m, 1.0 gpt over 29.2 m, 18.87 gpt over 2.6 m and 2.0 gpt over 10.0 m from hole DLM-21-103; 9.02 gpt over 13.0 m, 2.21 gpt over 26.0 m, incl. 5.15 gpt over 8.0 m, 1.84 gpt over 11.0 m and 9.99 gpt over 2.0 m from hole DLM-20-079BW; 1.56 gpt over 70.2 m, 31.91 gpt over 5.0 m, 3.18 gpt over 10.0 m, 18.45 gpt over 2.3 m, 17.40 gpt over 3.2 m 15.10 gpt over 2.0 m and 3.35 gpt over 9.0 m from hole DLM-20-092; 1.37 gpt over 43.1 m, incl. 12.17 gpt over 3.0 m, 1.37 gpt over 19.2 m, 1.33 gpt over 11.0 m, 0.71 gpt 67.2 m and 9.28 gpt over 2.0 m from hole DLM-20-078 and 1.10gpt over 42.6 m from hole DM-21-144 which targeted the DMT between 200 and 400 m below surface as well as at depth.
Additional significant results include: 1.08 gpt over 56.0 m, incl. 13.01 gpt over 2.0 m and 3.38 gpt over 10.0 m, incl. 14.76 gpt over 2.0 m from hole DLM-20-79B, 1.34 gpt over 40.0 m, 0.71 gpt over 81.6 m and 0.86 gpt over 37.2 m from hole DLM-21-098A; 0.94 gpt over 56.2 m and 0.99 gpt 18.1 m from hole DLM-20-085A and 1.42 gpt over 19.9 mand 0.73 gpt over 15.0 m from hole DLM-21-106 which targeted the DMT between 100 and 200 m below surface.
Results from all new holes in this area are considered extremely encouraging as they continue to confirm the presence of a broad corridor of mineralization extending between the Main Pit and Mineral Reserve in the planned West Pit (a distance of over 800 m) with the overall style of mineralization and gold tenor being very similar to that found in existing Mineral Reserves. Particularly encouraging is the identification of wide, high-grade mineralization near the lower limits of the current Mineral Resource pit shell, which indicates that a potential exists to expand the pit shell to depth and to add significant new open-pit Mineral Resources as well as to define underground Mineral Resources below the pit.
East Portion of Saddle Zone
Drilling in the east portion of the Saddle Zone included fourteen holes (8,703 m) and targeted areas along the DMT directly below and to the west of the Main Pit Mineral Reserve shell.
Significant results from the drilling including: 1.96 gpt over 60.4 m and 2.12 gpt over 36.3 m, incl. 21.45 gpt over 2.0 m from hole DLM-21-111; 0.90 gpt over 103.0 m and 90.03 gpt over 2.5 m from hole DLM-20-099; 0.81 gpt over 131.0m from hole DLM-21-151; 1.49gpt over 64.8 m, including 23.95 gpt over 2.0 m and 2.54 gpt over 35.1 m, incl. 27.77 gpt over 2.0 m from hole DLM-21-126, 1.08 gpt over 75.0 and 1.04 gpt over 33.8 m from hole DLM-21-090 and 3.91 gpt over 23.0 m, including 35.66 gpt over 2.0 m from hole DLM-21-127.
All of these new holes were designed to intersect the DMT between 150 and 250 m below surface and continue to confirm the continuation of this structure to the west of the current Main Pit Mineral Reserve and Mineral Resource pit shells.
West Pit (Undeveloped)
Drilling below the planned west pit included nine holes and one wedge hole (6,294 m) which targeted the DMT in the central part of the planned West Pit between 350 and 400 m below surface.
Significant results from the drilling include: 2.94 gpt over 51.9 m, including 29.37 gpt over 4.0 m, 1.41 gpt over 47.2 m and 0.92 gpt over 46.2 from DLM-21-122; 2.37 gpt over 36.0 m, 2.58 gpt over 10.0m and 095 gpt over 30.7 m from hole DLMa-21-102A. The new results are located approximately 25 to 50 m below the current West Pit Mineral Resource pit shell where there is very limited past drilling.
Results from all four holes are considered very positive and continue to confirm the continuation of mineralization through the west portion of the Saddle Zone and into the area under the planned West Pit.
West Pit Extension
Drilling in the east portion of the Saddle Zone included six new holes (2,970 m) which targeted areas of the DMT west of the Mineral Reserve located in the planned West Pit up to between 200 and 300 m below surface.
Significant results from the drilling include: 0.75 gpt over 41.5m from hole DLM-21-135 which intersected the DMT approximately 100 m west of the current Mineral Reserve pit shell in the planned West Pit, as well as 10.66 gpt over 13.0 m, including 34.51 gpt over 3.0 m, 23.92 gpt over 2.3 m, 3.52 gpt over 5.0 m and 0.65 gpt over 47.8 m from hole DLM-21-119A and 1.14 gpt over 78.4 m from hole DLM-20-060 which intersected this structure between 200 to 400 m to the west.
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 from the Main Pit through the Saddle Zone to the planned West Pit 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 existing Mineral Reserves and is hosted within 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 through additional drilling is considered excellent.
Exploration work at Detour Lake is ongoing with twelve drills current working and on track to completing 270,000 m by the end of 2021.
Qualified Persons
The Company’s exploration programs at Detour Lake are conducted under the supervision of Eric Kallio, P.Geo., Senior Vice President, Exploration. Mr. Kallio, as well as Keith Green, P.Geo., Director, Exploration, Canada, and Steve Gray, P.Geo, 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.
QA/QC Controls
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 predominantly sawn in half with one half of the core prepared for shipment, the other half of core retained for future assay verification. Certified reference material (CRM) standards and coarse blank material are inserted every 20 samples. Core samples are shipped directly by courier, and tracked via a chain of custody from site to certified off-site analytical laboratories for preparation and assaying.
Kirkland Lake Gold utilizes four accredited external laboratories to manage the significant volume of sample submissions. Each lab is 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: General Requirements for the Competence of Testing and Calibration Laboratories.
Sample preparation includes crushing drill core up to 80% passing 2 mm, riffle splitting 500 grams and pulverizing to 95% passing 105 µm followed by both scheduled and specifically requested silica sand cleaning. Gold Analysis involves Fire Assay – Atomic Absorption (AA) technique from a 50-gram pulp sample with grade ranges between 5 to 10,000 ppb. Samples greater than 10,000 ppb are analyzed with a gravimetric finish. Selected high grade samples are also analyzed using the screen metallics procedure.
Contracted laboratories for the Kirkland Lake Gold’s Detour Project include; ALS Global (sample preparation completed in Timmins, Ontario with pulps sent to Vancouver, BC for analysis), Activation Laboratories (sample preparation and analysis completed in Timmins, Ontario), SGS Laboratories (sample preparation and analysis completed in Cochrane, Ontario) and AGAT Laboratories (sample preparation in Timmins and analysis in Mississauga).
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and 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.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
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