Kirkland Lake Gold Ltd (TSX/ NYSE: KL; ASX: KLA) has announced new high-grade drill intersections from underground exploration drilling within the SMC at the Macassa Mine, Kirkland Lake, Ontario.
The company reported the results from 73 drill holes and ~30,000m worth of underground drilling from the east and west exploration drifts on the mine’s 5300-foot and 5700-foot level.
Some of the high-grade intersections include 118.8g/t over a 2.0 metre core length, 4,772 g/t over a 2.0-metre core length, 2,458.6 g/t gold over 1.8-metres true width, and 429.1 g/t over 2.7 m true width. In addition, geologists also reinterpreted historic holes to the west and relogged core lengths which include 827.9 g/t gold over 2.0 metres.
The company reported that it is running underground development throughout 2019 to target new mineralized areas and expand the mine in all directions.
Macassa Gold Mine
The Macassa Mine located in the Town of Kirkland Lake, Ontario, is a high-grade gold producer with grade improving at depth, and a key valuation driver for Kirkland. With the discovery of the South Mine Complex (SMC), it has been able to increase its level of production significantly.
The SMC is associated with a cross-over structure which links the ’04 / Main Break with the Amalgamated Break. Kirkland’s recent underground exploration drilling efforts focus on four main target areas – SMC East, SMC West, Lower SMC, and the Amalgamated Break, utilizing three drill rigs.
High Grade Intercepts
Kirkland released some bonanza grade drill intercepts from the South Mine Complex (SMC). The 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 as well as from the 5700 Level Ramp Development.
The company reported that drilling east of the SMC returned 118.8 g/t over 2.0 m core length, 62.7 g/t over 1.9 m true width, and 73.8 g/t over 2.7 m true width.
Kirkland reported that drilling 250 metres west of the current SMC resources returned 4,772.2 g/t gold over 2.0-metres core length, 436.9 g/t over 2.8-metres core lengths in two separate zones, and 158.0 g/t over 2.4-metres true width.
The company reported that drilling expanded the Lower SMC to the east and at depth, returning 2,458.6 g/t gold over 1.8-metres true width, 523.2 g/t over 2.0-metres core length, and 20.0 g/t over 3.8-metres true width.
The company said that on Amalgamated Break, new drilling and reinterpretation of historic holes identified two new areas of high-grade mineralization.
The key intercepts from new drilling to the east included 429.1 g/t over 2.7 m true width, 164.8 g/t over 2.1 m true width, 26.7 g/t over 1.2 m true width. Meanwhile, historic holes to the west were reinterpreted and relogged core lengths of 827.9 g/t gold over 2.0m, 360.9 g/t over 2.0m , and 333.8 g/t over 2.0m.
What’s Next?
The company said that the underground development on the 5300 Level will be ongoing throughout 2019. This is scheduled to include 350 m of advancement to the east and 429 m of advancement to the west including all track development and the excavation of diamond drill bays.
Kirkland noted that this development is part of an ongoing effort to expand the SMC in all directions and to test for and define new target areas.
Kirkland’s President and CEO, Tony Makuch said: “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.
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.”
