Kirkland Lake Gold (TSX: KL; NYSE; KL) has drilled high grade and visible gold mineralization on the down plunge extensions of the Swan zone at its Fosterville gold mine in Victoria, Australia.
The company says results from 47 new drill holes totaling more than 17,000 metres of underground drilling outside the current measured and indicated Swan resource are confirming its geological model. It has drilled gold mineralization 100 metres down plunge of current reserves. It believes that mineralization could continue to at least 200 metres down plunge of current reserves.
Highlights from the recent drilling include: 598 grams gold per tonne over 6.4 metres including 1,435 grams gold over 2.65 metres as well as 625 grams gold over 3.6 metres including 6,123 grams gold over 0.35 metres.
The company also recently began underground drilling to test down plunge extensions at Fosterville's Harrier South zone. It says earlier drilling has shown the possibility for higher grades at depth at Harrier South.
As of Dec. 31, 2017, Fosterville contained 2.29 million proven and probable tonnes grading 23.1 grams gold for 1.7 million oz. gold. It also contained 13.9 million measured and indicated tonnes at 4.8 grams gold for 2.1 million oz. gold as well as 8.2 million inferred tonnes at 7.1 grams gold for 1.9 million oz. gold.
The company expects to produce at least 330,000 oz. gold in 2018 at Fosterville.
Shares of Kirkland Lake Gold are currently trading at $32.75 with a 52-week range of $16.54 to $33.37. The company has a $6.68 billion market capitalization.