Kirkland Lake Gold
Kirkland Lake Gold Inc - Substantial Increases in Reserves and Resources of South Mine Complex
Following its continued drilling programmes, Kirkland Lake Gold Inc. (TSX:KGI)(AIM:KGI) has reported increased reserve and resource estimates for its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered South Mine Complex (SMC). The latter consists of 15 or more mineralized zones, five of which have been defined over strike lengths in excess of 1,000 feet.
Since April 2007 reserve estimates for SMC, the Company has focused its exploration efforts on the SMC and has realized substantial increases in all categories of reserves and resources. These increases are attributable to drifting, definition diamond drilling as well as exploration diamond drilling from both the new 5000 and 5300 level cross cuts which have now accessed some of the zones comprising the SMC.
The exploration team has added more than 900,000 oz of high grade gold reserves and resources since the last property wide presentation of reserves and resource two years ago according to the
Company President, Brian Hinchliffe. This represents a 52% increase in Proven and probable reserves for the SMC to 696,000 tons 0.79 oz of gold per ton (oz/t) or 543,000 contained ounces. Measured and indicated resources also increased by 63% to reach 360,000 tons at 0.66 oz/t or 236,000 contained ounces. Inferred resources increased by 6% to 707,000 tons at 0.79 oz/t or 558,000 contained ounces.
Since last reported for the fiscal year 2006, proven and probable reserves for the entire mine have
increased by 23% to reach 2.5 million tons at 0.53 oz/t or 1,332,000 contained ounces. Measured and indicated resources increased by 63% and now stand at 2.45 million tons at 0.41 oz/t or 1,008,000 contained ounces. Inferred resources increased by 5% to 1.345 million tons at 0.61 oz/t or 822,000 contained ounces. The higher grading SMC is now beginning to impact the overall mine-wide grade, in particular the probable ore which increased in grade from 0.50 oz/t (FY 2006) to 0.62 oz/t (FY 2008).
Meanwhile the average cost per ounce found (based on direct drilling costs) for the fiscal year 2008 has been C$4.10 compared to $3.20 in 2007. The cost differential is attributable to an increase in the contract price for drilling as well as slightly longer holes required to define resources and reserves.
Encouraged by improved resource and reserve estimates, KGI has increased the exploration budget for 2009 by 40% to $6.3 million and will include $1.7 million of development to provide access for drilling on the SMC and $3.2 million dollars for diamond drilling.