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Kirkland Lake Gold reports new high-grade zones at Macassa and SMC

An aggressive exploration program might be paying off for Kirkland Lake Gold Ltd. (TSX:KL).

The company reported on Thursday, May 2 the discovery of new high-grade drill intersections from underground exploration drilling within the SMC (South Mine Complex) at the Macassa Mine, Kirkland Lake, Ontario. The company is calling it a “whole new chapter in exploration” for the Kirkland Lake gold camp.

Results reported include 73 drill holes for 29,643 m of underground drilling from the east and west exploration drifts on the 5300-foot level (“5300 Level”) as well as from the 5700 Level Ramp Development (“5700 Ramp”).

Underground drilling from the 5300 Level and 5700 Ramp will continue throughout the remainder of 2019. The Company’s recent underground exploration drilling efforts have utilized three drill rigs to focus on four main target areas – SMC East, SMC West, Lower SMC and the Amalgamated Break.

A total of 14 drill holes for 6,940 m drilled to the east of the SMC from the 5300 Level exploration drift intersected high-grade mineralization up to 60 m outside of existing Mineral Resources (Figure 1). A total of 11 drill holes for 5,396 m of drilling were completed from the 5300 Level west exploration drift targeting the New South and Lower SMC zones.

This drilling intersected a mineralized zone, interpreted to be the Lower SMC, approximately 250 m west of the current Mineral Resources. An additional 40 drill holes for 15,990 m were completed from the 5700 Level ramp development, which intersected high-grade mineralization and successfully expanded the Lower SMC Zone. Refer to Table 1 for a completed list of drill hole results.

The Amalgamated Break provides areas of substantial exploration potential for Macassa that are largely untested with past drilling.  In Q1 2019, preliminary drilling from the 5700 Level ramp development (8 holes for 1,317 m) successfully intersected a previously unidentified area of high-grade mineralization tightly associated with the Amalgamated Break. In addition, a reinterpretation of intercepts from 15 previously drilled holes (2,953 m) from the 5700 Level ramp and five previously drilled holes (1,494 m) from the 5300 Level drift has resulted in the identification of a new, steep north-dipping mineralized zone north of, and likely associated with, the Amalgamated Break.  This new zone remains open and represents a highly prospective target area for the addition of new resource ounces.

“Today’s results highlight what we have often said, that while it is a historic mine, Macassa is a modern operation, with high-grade, low-cost production and substantial exploration potential that will support mining well into the future,” said company president and CEO Tony Makuch.

“Early drilling in 2019 has successfully identified high-grade mineralization to the east, west and well below our existing Mineral Resource base in the SMC. In addition, areas running along the Amalgamated Break are extremely high-potential targets, the exploration of which will be enhanced immensely once we can drive underground exploration drifts off the #4 Shaft following its completion,” Makuch continued.

“While not generally well understood, these areas represent a whole new chapter for exploration in the Kirkland Lake camp. At the surface, the Amalgamated Break is a fault that runs parallel to the Main/’04 Break, the source for most of Kirkland Lake’s 25 million ounces of historic gold production. Unlike the Main/’04 Break, the Amalgamated Break is largely unexplored. The SMC is the first major high-grade zone discovered that is associated with the Amalgamated Break, and we are confident that there could be many more. In fact, with limited drilling, we have already identified two new areas of high-grade mineralization along the Break near our current mining operations. We will follow up on these results over the balance of this year and plan to expand our exploration efforts going forward.”


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