Kirkland Lake Gold (KGI-T, KGI-L) and Queenston Mining (QMI-T) have intersected high-grade gold mineralization within the South Mine Complex at Kirkland Lake in northern Ontario.
Highlights of the drill holes at their 50-50 South Claims joint venture included Hole 909, with intersections of 2.54 oz. gold (uncut) over a core length of 6.6 metres, or 3.3 metres true width.
Hole 901 yielded intersections of 0.75 oz. gold (uncut) over a core length of 15 metres, or 6.5 metres true width.
Hole 908 hit 4.42 oz. gold (uncut) over a core length of 1.2 metres, and 0.30 oz. gold (uncut) over a core length of 6.5 metres.
All drill holes were spaced about 395 metres apart.
The news lifted the share prices of both companies on the Toronto Stock Exchange.
In mid-day trading, Kirkland Lake was up 36 a share to $10.96, with 44,995 shares changing hands, while Queenston was up 24 to $3.35 on a trading volume of 321,200.
The two companies bought South Claims in April 2007 to cover the potential down-dip extension of the South Mine Complex, south of Kirkland Lake Gold’s Macassa mine.
The drill holes confirm that the South Mine Complex and in particular the new south zone extends onto and across the South Claims, noted Stewart Carmichael, Kirkland Lake Gold’s chief exploration geologist, in a press release.
“The results of the preliminary drilling, particularly in holes 50-901 and 53-909, support current thinking that the structure/structures controlling the gold mineralization is significant in size and maintains strength to the south, east and west,” noted Charles Page, president and CEO of Queenston, in a prepared statement.
The two companies are now pushing ahead with a program that will include extending the 5300 cross cut an additional 61 metres south onto the South Claims, with 305 metres of lateral drifting initially to the east to provide platforms for exploration drilling.
The 2008 exploration program will also involve diamond drilling of holes up to 1,219 metres in length to the south to explore for parallel structures and mineralization.
Kirkland Lake Gold purchased the Macassa mine and the 1,360 tonne per day mill along with four former producing gold properties (Kirkland Lake, Teck-Hughes, Lake Shore and Wright Hargreaves) in December 2001.
These properties, which have historically produced about 22 million oz. gold, extend over 7 km between the Macassa mine on the west and Wright Hargreaves on the east.
The camp is in the southern Abitibi Greenstone belt of Kirkland Lake.
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