Kirkland Lake raises cash

Kirkland Lake Gold (KGI-V) (formerly Foxpoint Resources) has raised more than $4.7 million via a private placement of some 2.6 million common shares at $1.80 apiece.

That’s $765,000 more than initially expected, thanks to the strong demand, which enabled the company to boost the offering from 2.2 million shares.

Kirkland Lake plans to use a portion of the money for ongoing development of the Macassa gold mine in Kirkland Lake, Ont.

Kirkland Lake Gold’s second-quarter financial statement, President Brian Hinchcliffe said the dewatering campaign has been slower than planned and that, accordingly, management believes annual gold production will be at the lower end of the 50,000-70,000 oz. previously forecast.

Kirkland’s plan at Macassa calls for underground development and production on the uppermost levels on the 3,835-ft. and 4,250-ft. levels. Production from these levels was originally slated for September. The company also plans to de-water the mine down to the 5,700-ft. level.

Underground drilling has returned significant values from two parallel veins above the 3,835-ft. level. Results include 6 ft. (true width) running 1 oz. gold per ton (cut) in hole 104, 13.9 ft. of 0.32 oz. in hole 106, and 3.8 ft. grading 1.69 oz. in hole 103. The mineralization remains open above for 3,500 ft.

In December 2001, the company picked up the Macassa mine and mill, plus four contiguous former gold-producing properties: Kirkland Lake Gold, Teck-Hughes, Lake Shore and Wright-Hargreaves.