Mr. Anthony Makuch reports
KIRKLAND LAKE GOLD REPORTS CONTINUED EXPLORATION SUCCESS IN NORTHERN TERRITORY, NEW MINERALIZATION IDENTIFIED AT UNION REEFS
Kirkland Lake Gold Ltd. has had further exploration success at Union Reefs (UR) and the continued development advance into the Lantern deposit at Cosmo mine. UR is the location of the company's processing plant in the Northern Territory.Mining at the Cosmo mine and processing operations at the UR mill were suspended on June 30, 2017, with exploration drilling and development work since then focusing on establishing a five-year production plan that is sufficiently attractive to support a resumption of operations.
Highlights:
High-grade, visible-gold bearing mineralization identified at shallow depths at Lady Alice deposit, Union Reefs: Key intercepts:8.9 grams per tonne gold grams per tonne gold over 7.2 metres (estimated true width of 3.4 metres) (including 86.0 grams per tonne gold over 0.45 metre (estimated true width of0.2 metre)); 7.5 grams per tonne gold over 7.5 metres (estimated true width of 4.1 metres); and 23.8 grams per tonne gold over 0.9 metre (estimated true width of 0.5 m); Discovery of high-grade mineralization at depth to the south of existing mineral resources at Union Reefs: Key intercept: 60.4 grams per tonne gold over 0.6 metre (estimated true width of 0.3 metre) from 547 metres downhole; Underground exploration development into Lantern deposit at Cosmo mine continuing with future bulk sampling planned; Exploration activities at Lantern and Union Reefs supporting efforts to resume mining operations in Northern Territory.
At UR, new drilling is reported for 40 holes, comprising 30 diamond and 10 reverse circulation (RC) percussion holes for a total of 15,192 metres. The results successfully defined the continuation of the Prospect deposit to the south of the Prospect pit, discovered high-grade near-surface mineralization to the south of Lady Alice pit and confirmed the downplunge continuity of the Crosscourse deposit mineralization. Mineralization was also identified at depth to the southern end of UR, where two holes intersected mineralization associated with the Lady Alice structural trend over a 250-metre dip extent below the 320-metre depth.The Lady Alice mineralization, approximately 250 metres to the east of the identified Prospect mineral reserve (see Dec. 31, 2016, technical report on the mineral resources and mineral reserves of the Northern Territory operations, dated March 30, 2017 and filed on SEDAR), has the potential to be accessed from the planned Prospect underground ramp infrastructure at depth. The proposed underground infrastructure will be less than 100 metres from the Lady Alice mineralization.
Tony Makuch, president and chief executive officer of Kirkland Lake Gold, commented: "The new results at UR are encouraging as they demonstrate the continuity of mineralization to the south of the Prospect pit and identify new areas of mineralization at the southern end of the UR land position. We are also making progress with underground drilling and development into the Lantern deposit at Cosmo and are working towards commencing a bulk-sampling program in the near future. The continued exploration success we are achieving at UR as well as with underground drilling at the Lantern deposit is increasing our confidence that an attractive five-year mine plan can be established, which could lead to the resumption of operations in the Northern Territory in 2019."
Lantern underground development update
Lantern underground development commenced during April, 2018, and has successfully established drilling platforms to the south from the 920 level and to the west of the Lantern deposit on the 610 level. Drilling commenced from both locations, known as the 880 diamond drill drive and the 610 drill platform,respectively, during the third quarter of 2018.Two diamond drill rigs are operating from the 610 drill platform, where they are targeting the downplunge extension of the Lantern mineralization. A third drill rig has been operating within the advancing 920-level development, which has now completed the 880 diamond drill drive.A fourth rig recently moved into the most southern platform within the 880 diamond drill drive and is testing the southern extents of the known Lantern mineralization.
Additional underground development is under way from the existing Cosmo Deeps 730-level drill drive to drift along and across the Eastern Lantern stratigraphy. The development is currently progressing south within the Howley anticline axial plane to establish additional drilling locations with further development set to commence along the mineralized structures on the 920 level for bulk sampling as part of continued exploration of the Lantern deposit.
Union Reefs drilling highlights
Surface drilling at UR was accelerated after the discovery of gold mineralization at depth, as reported in the company's news release dated April 30, 2018, and two surface diamond drill rigs continue to operate at UR, where they are testing several targets. Since the April 30, 2018,news release, an additional 40 drill holes, comprising 30 diamond and 10 RC percussion holes have targeted the Prospect, Crosscourse and Lady Alice deposits as well as exploration of southern extensions of the major structures at depth.
Key intercepts include with further details provided in the commentary that follows:
8.9 grams per tonne gold over 7.2 metres (estimated true width of3.4 metres), including 86.0 grams per tonne gold over 0.45 metre (estimated true width of 0.2 metre) in hole URNDD0122 (Lady Alice);7.5 grams per tonne gold over 7.5 metres (estimated true width of 4.1 metres) in hole URNDD0163 (Lady Alice);60.4 grams per tonne gold over 0.6 metre (estimated true width of 0.3 metre) in hole URSDD0029 (Union South);23.8 grams per tonne gold over 0.9 metre (estimated true width of 0.5 metre) in hole URNDD0167 (Lady Alice).
The key highlights of the new drill results is the discovery of high-grade mineralization associated with Lady Alice to the south of the existing Lady Alice pit and high-grade mineralization at depth at Union South.
High-grade diamond drill intercepts associated with Lady Alice occur in 26 (three RC and 22 diamond) drill holes. There are 102 drill intercepts above 2.0 grams per tonne gold (with 15 intercepts over 10.0 grams per tonne gold) recorded for the Lady Alice drilling. The gold mineralization occurs across multiple closely spaced, near-vertical shear structures, located along axial planes of parasitic fold closures on the Lady Alice anticline.
The completed drilling has also indicated the continuation of the prospect mineralization to the south of the existing Prospect pit, where the RC drilling program focused on delineating and further defining the mineralized trends of the Prospect mineralization. Deeper diamond drilling also confirmed the depth extent of the Prospect deposit, returning several narrow, high-grade intercepts associated with the subvertical Prospect shears.
Two deep diamond drill holes were completed, with one (URNDD0147) targeting the Crosscourse mineralization beneath the Crosscourse pit and up plunge of the drill holes previously reported in the company's news release, dated April 30, 2018. The second hole, URNDD0120, targeted up dip of the drilling previously reported. The Crosscourse mineralization was successfully intersected in URNDD0147 with 17 results over 2.0 grams per tonne gold over an approximate 190-metre downhole length, which is indicative of the very wide, stockwork quartz style of the Crosscourse mineralized corridor. Both deep drill holes also intersected the Lady Alice deposit and the Prospect deposit at depth.
Two further deep diamond drill holes were completed in the southern part of the UR project, beneath the historical Millar's pit. Drilling has identified the continuation of shear-hosted high-grade mineralization associated with the Lady Alice anticline at depth.The successful identification of mineralization extends the known depth of mineralization to over 500-metre depth over a strike length of 1.8 kilometres from Lady Alice pit in the north to south of Millar's pit in the south.
Lantern mineralization -- background
Studies in early 2016 revealed potential for the underlying Lantern metasediments in the core of the Cosmo-Howley fold to host gold mineralization similar to the Callie deposit in the Tanami region of the Northern Territory. On March 6, 2017, the company announced the discovery of the Lantern deposit based on historical information as well as the result of 25 underground drill holes completed in 2016 to test the downplunge extension of the Cosmo open pit (see Kirkland Lake Gold's news release dated March 6, 2017).
The Lantern mineralization is hosted within iron-rich, weakly carbonaceous, siltstones and dolomitic siltstones with common intense carbonate, sericite-pyrite-chlorite and blood-red iron-oxy-hydroxide hypogene alteration associated with quartz-carbonate veining.Geological studies strongly suggest most gold was introduced to the rock after the metamorphic peak, which has produced a chlorite-biotite-magnetite-tourmaline-garnet mineral assemblage. Although partly stratabound, gold mineralization occurs in a quartz-sulphide-carbonate vein network of steeply dipping sublinear shear veins and associated subhorizontal dipping tensile vein arrays.
The mineralization for most lodes is still untested and down plunge (deeper) to the north. Study of the Lantern and Cosmo alteration zoning suggests that the western fold limb acted as the main conduit for gold-bearing fluids to become trapped in the fold hinge and eastern limb effectively against a blanket of thick and highly-sulphidic carbonaceous black mudstone.
The Lantern sequence is structurally thickened by local folding and shears with a moderate 40-degree-to-55-degree plunge to the north for the overall mineralized zone and hosts internal local steeply plunging high-grade corridors where quartz veins are locally at an oblique angle to overall Lantern structure and are likely to have high gold content.
Union Reefs region -- background
Union Reefs is hosted in the regionally significant Pine Creek shear zone as a northwest-trending strongly gold-mineralized structure. Gold mineralization at Union Reefs is focused within two subparallel quartz reef and shear zone systems, known as the Lady Alice line (eastern line) and the Union line (western line). Both lines have extensive gold mineralization that trends north-northwest through tightly folded siliciclastic rocks of the Burrell Creek formation.
Gold mineralization along the Lady Alice line is hosted within subvertical axial, planar shear zones along the western limb of the Lady Alice anticline. Important gold deposits along the Lady Alice line include Millar's, Ping Que, Big Tree and Lady Alice. The Union line dips steeply east and hosts several significant gold deposits, including Union South, Prospect, Union North and Alta.Crosscourse, the largest known deposit at Union Reefs, occurs between the Union and Lady Alice lines.A crosscutting mineralized shear zone and complex vein system links the locally shorter distance between the Union and Lady Alice lines at Crosscourse, creating a large dilatational damage zone exploited by mineralizing fluids.
The Union Reefs region was a centre of significant gold mining between 1994 and 2004, with approximately one million ounces of gold extracted from 11 open pits.Mining was generally from shallow oxide pits (under 80 metres), with the exception of the Crosscourse pit, which was mined to a depth of approximately 240 metres and produced approximately 880,000 ounces of gold.Mining has not occurred at Union Reefs since 2004; however, the processing facility at the site continued operation until mining at the Cosmo mine was suspended, effective June 30, 2017.
Qualified person
Owen Greenberger, MAIG, geology, manager, Northern Territory operations, is a qualified person as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this news release.
Drilling and assay quality assurance/quality control
Kirkland Lake Gold has in place quality control systems to ensure best practice in drilling, sampling and analysis of drill core. All drill hole collars are accurately surveyed using a Leica Total Stations instrument and diamond drill hole downhole deviations are measured using a downhole gyro instrument. Downhole deviations of RC drill holes were surveyed using a Globaltech Pathfinder Electronic Single Shot tool.
All reported drill intercepts are from RC percussion chips and NQ2- or HQ-sized diamond drill core. RC percussion chips were subsampled using a two-third-to-one-third sampling cyclone, with one-third split sent for assay and the two-thirds retained for reference. Diamond drill core was either full core sampled or cut longitudinally in half with a diamond saw, where one-half of the drill core was sent for assay and the other half retained for reference. Drill core sample lengths are between 0.15 metre and 1.4 metres in length as determined from logging of sulphide and visible gold and conform to logged lithological and alteration boundaries.
Assay results are based on 25-gram charge fire assay. Union Reefs intercepts calculated based on a two-gram-per-tonne-gold lower cut-off and having a maximum two-metre internal dilution with a minimum width of 0.3 metre. No upper gold grade cap has been applied to the data. However, during any mineral resource work, the requirement for capping assay grades will be assessed.
Drill samples from Union Reefs are routinely assayed at North Australian Laboratories Pty. Ltd., an independent laboratory in Pine Creek, Northern Territory. Site audits and reviews of the laboratory are conducted from time to time as well as routine assessment of intralaboratory analyses to ensure quality of reported results.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold is a mid-tier gold producer with 2018 production targeted at 655,000 to 670,000 ounces of gold from mines in Canada and Australia. The production profile of the company is anchored by two high-grade, low-cost operations, including the Macassa mine located in Northeastern Ontario and the Fosterville mine located in the state of Victoria, Australia.
DRILL ASSAY INTERCEPTS FOR SURFACE DIAMOND AND RC PERCUSSION DRILLING AT UNION REEFSHole ID FromToDownhole Gold grade Estimated true(m) (m)interval (m) (g/t Au)width (m)CrosscourseURNDD0120509.4 509.8 0.43.10.2URNDD0120675.2 678.3 3.12.91.9URNDD0147503.9 504.2 0.3 11.10.2URNDD0147505.2 506.4 1.22.80.8URNDD0147511.0 511.7 0.74.30.5URNDD0147513.9 518.0 4.13.62.8URNDD0147526.0 527.0 1.02.90.7URNDD0147543.0 543.9 0.97.30.6URNDD0147547.5 548.3 0.84.70.5URNDD0147553.0 553.3 0.32.30.2URNDD0147554.5 554.8 0.36.30.2URNDD0147557.0 557.4 0.42.00.3URNDD0147577.6 579.4 1.87.91.2URNDD0147583.5 585.4 1.94.71.3URNDD0147639.8 640.2 0.44.50.3URNDD0147662.2 663.3 1.1 12.50.8URNDD0147665.7 666.2 0.54.50.4URNDD0147667.7 668.0 0.33.90.2URNDD0147677.7 678.0 0.32.70.2URNDD0156553.2 553.5 0.34.00.2URNDD0157 636.75638.05 1.34.70.8URNDD0157643.0 643.6 0.65.40.4URNDD0157 696.35696.75 0.43.70.3Lady AliceURNDD0122 77.678.0 0.42.30.2URNDD0122 154.75155.420.672.70.3URNDD0122 161.15 161.60.454.20.2URNDD0122167.0 167.9 0.92.20.4URNDD0122168.8175.977.178.93.4Including168.8169.250.45 86.00.2URNDD0122202.6 203.0 0.43.60.2URNDD0122258.2258.880.685.00.4URNDD0139216.1 216.6 0.53.40.2URNDD0139 220.35220.970.625.20.2URNDD0139271.0271.950.95 18.10.4URNDD0139 291.25 291.60.352.40.1URNDD0139320.8321.250.45 20.50.2URNDD0139 323.05 324.00.953.60.4URNDD0139336.1336.450.353.20.1URNDD0144 76.777.1 0.4 18.30.1URNDD0144184.3 185.2 0.94.60.3URNDD0144248.0 249.0 1.03.10.4URNDD0144286.0 287.2 1.22.70.5URNDD0145 56.557.0 0.52.00.2URNDD0145219.0 220.0 1.02.20.3URNDD0145292.8 293.1 0.3 19.60.1URNDD0145317.6 318.6 1.03.10.4URNDD0146222.1 222.4 0.34.70.1URNDD0146234.8 235.1 0.32.60.1URNDD0146252.9 254.2 1.32.30.5URNDD0146264.0 265.0 1.0 16.90.4URNDD0146276.0 276.7 0.74.60.2URNDD0146303.8 304.1 0.32.10.1URNDD0146334.2 334.5 0.3 39.40.1URNDD0146337 337.9 0.92.80.3URNDD0147758.0 759.0 1.03.80.7URNDD0147760.7 761.0 0.32.90.2URNDD0147769.5 770 0.52.40.4URNDD0148 15.016.0 1.02.10.2URNDD0149 63.865.0 1.25.80.0URNDD0151 82.082.5 0.52.00.2URNDD0153 88.288.5 0.39.30.2URNDD0153139.6 142.0 2.45.81.6URNDD0153179.1 180.3 1.22.80.8URNDD0153241.2 242.0 0.8 13.40.5URNDD0153242.9 243.3 0.42.40.3URNDD0154233.0 234.1 1.14.70.4URNDD0154331.0 332.1 1.12.10.5URNDD0155250.6 251.0 0.48.40.2URNDD0156470.2 470.9 0.73.00.4URNDD0156511.7 512.1 0.46.10.2URNDD0157 320.35320.75 0.43.80.2URNDD0157365.0366.351.352.20.7URNDD0157 549.15549.45 0.3 11.30.2URNDD0157553.5554.150.655.10.4URNDD0157606.0606.550.553.60.3URNDD0158 11.812.4 0.6 14.40.2URNDD0158287.4 288.0 0.62.90.2URNDD0158329.1 329.8 0.75.20.2URNDD0158344.0344.750.752.50.2URNDD0158352.2 353.0 0.8 10.40.2URNDD0158376.7 377.0 0.34.20.1URNDD0158392.8 393.2 0.44.30.1URNDD0159158.3 159.6 1.34.60.4URNDD0159169.0 169.9 0.93.60.3URNDD0159282.5 282.8 0.3 10.00.1URNDD0159286.0 286.6 0.6 11.40.2URNDD0159314.4314.950.555.10.2URNDD0159323.0 324.2 1.23.70.4URNDD0160251.0 251.4 0.49.00.1URNDD0160276.1 276.4 0.32.10.1URNDD0162 22.423.6 1.23.40.6URNDD0162 37.038.8 1.85.20.9URNDD0162 51.352.2 0.9 16.50.5URNDD0162150.8 151.3 0.52.30.3URNDD0163 33.734.7 1.0 16.30.5URNDD0163 36.837.7 0.93.40.5URNDD0163 40.047.5 7.57.54.1URNDD0163131.4 132.0 0.66.00.4URNDD0163150.5 151.7 1.22.30.7URNDD0167155.4 155.9 0.52.80.3URNDD0167175.0 175.6 0.64.00.4URNDD0167215.2 216.1 0.9 23.80.5URNDD0170132.7 133.9 1.23.10.7URNDD0170135.2 136.2 1.02.00.6URNDD0170189.0 189.6 0.62.20.4URNDD0170203.8 205.1 1.32.40.8URNDD0170209.7 210.0 0.33.10.2URNDD0172124.8 125.2 0.43.50.3URNDD0172140.2 141.6 1.42.10.9URNDD0172142.3 143.3 1.03.60.6URNDD0172202.6 202.9 0.3 62.30.2URNDD0173A 111.9 113.0 1.12.50.7URNDD0173A 116.6 117.0 0.42.80.2URNDD0173A 150.8 151.9 1.14.80.7URNDD0173A 169.0 170.9 1.92.91.2URNRC01024.0 5.0 1.02.10.5URNRC0102 32.033.0 1.02.30.5URNRC0102 97.098.0 1.04.30.5URNRC0102 99.0 100.0 1.02.70.5URNRC0115 58.059.0 1.02.10.5URNRC0115126.0 128.0 2.05.91.0URNRC0115145.0 146.0 1.02.70.5URNRC0115148.0 149.0 1.02.60.5URNRC0115159.0 160.0 1.02.00.5URNRC0117181.0 183.0 2.02.51.1URNRC0117189.0 191.0 2.02.91.1ProspectURNDD0100138.3 139.0 0.72.60.4URNDD0100 276.45 277.00.555.40.3URNDD0100 282.36 282.70.34 15.10.2URNDD0105240.0 242.0 2.02.90.9URNDD0105278.1279.451.352.40.6URNDD0105282.9 283.5 0.64.20.3URNDD0105288.9289.360.462.00.2URNDD0105290.0 290.5 0.53.00.2URNDD0105299.0300.251.252.30.6URNDD0105362.6363.180.582.10.3URNDD0120739.0740.751.759.81.1URNDD0120764.0 765.3 1.35.90.9URNDD0120785.9 787.3 1.46.90.9URNDD0120790.1790.450.352.50.2URNDD0138 60.060.6 0.63.30.1URNDD0138 326.11 337.0 10.892.52.7URNDD0138 347.85348.230.384.30.1URNDD0138 442.11442.950.842.40.2URNDD0138 449.95450.280.332.40.1URNDD0138 451.95452.25 0.37.70.1URNDD0138 470.55 471.00.452.30.1URNDD0138 481.45 482.00.554.60.2URNDD0138 492.28492.750.479.10.1URNDD0138 535.26535.56 0.32.30.1URNDD0147407.2 407.6 0.42.40.3URNDD0147418.2 418.6 0.49.60.3URNDD0147422.0 422.8 0.86.70.5URNDD0152132.8 133.1 0.34.30.1URNDD0152316.0 316.3 0.33.60.1URNDD0152317.7 318.1 0.44.20.2URNRC0106105.0 107.0 2.02.50.9URNRC0109189.0 190.0 1.03.30.6URNRC0109191.0 192.0 1.03.80.6URNRC0109229.0 230.0 1.02.10.6URNRC0110 67.070.0 3.02.11.4URNRC0110125.0 126.0 1.06.00.5URNRC0110155.0 156.0 1.02.20.4URNRC0110157.0 158.0 1.03.60.4URNRC0114194.0 195.0 1.02.30.7URNRC0114200.0 201.0 1.03.00.7URNRC0114203.0 204.0 1.03.20.7URNRC0114229.0 230.0 1.09.50.7URNRC0114244.0 245.0 1.04.30.7URNRC0114256.0 257.0 1.02.10.7URNRC0116131.0 132.0 1.02.30.6URNRC0119174.0 175.0 1.02.10.5URNRC0120235.0 236.0 1.07.40.4URNRC0120253.0 254.0 1.02.10.5Union SouthURSDD0027 295.75 296.50.752.10.4URSDD0027420.0 420.3 0.3 11.90.2URSDD0027427.1 428.0 0.95.20.6URSDD0027 455.25 456.31.052.80.7URSDD0027458.0461.753.752.82.4URSDD0029547.0 547.6 0.6 60.40.3URSDD0029671.0 672.2 1.24.00.6Note: The results are an update to the Dec. 31, 2016, technical report onthe mineral resources and mineral reserves of the Northern Territory operations, dated March 30, 2017, and available on SEDAR.
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