Kirkland Lake Gold boosts reserves

Within six months, Kirkland Lake Gold (KGI-T) has increased its proven and probable reserves by 28% at its properties in the Kirkland Lake area of northern Ontario.

Reserves increased by about 139,000 oz., or 244,720 tonnes grading 16.1 grams gold per tonne.

At the end of April, the company had proven and probable reserves of 1.2 million tonnes grading 16.46 grams gold, as well as a measured and indicated resource of 2.95 million tonnes at 10.97 grams gold. The estimates are based on a cutoff grade of 8.57 grams gold per tonne, with high-grade gold cut to 120 grams.

Since December 2002, reserves have increased by 78%. In the year ending April 30, 2004, the company drilled 70,575 metres, almost half of which was exploratory.

Kirkland Lake Gold owns and operates five major gold properties in the area: Macassa, Kirkland Minerals, Teck-Hughes, Lake Shore and Wright Hargreaves. Historically, these have produced 22 million oz. gold.

The company bought the properties, which extend over 7 km between Wright Hargreaves in the west and the Macassa mine in the east, at the end of 2001. The 1,360-tonne-per-day Macassa mill was also bought then.

Gold is being produced from the no. 2 and no. 3 shafts on the Macassa property and from the Lake Shore ramp. About 125 miners and mechanics are employed at the company’s projects.

South of the Macassa mine, Kirkland Lake Gold has discovered the South and D zones. These run in a northerly direction, at 90 to the structures that have traditionally produced gold.

The D zone has been divided into two areas, the North and South. Definition drilling is occurring on the former (also known as stope 3824), since the first hole intersected 46.6 grams gold per tonne over a true width of 3.8 metres.

The D zone South, between the 3800 and 3400 levels, has a probable reserve of 68,750 tonnes grading 30.9 grams gold per tonne. In calculating this, the mining dilution was set at 35% (at 0.68 gram gold per tonne).

Previously, the area between the 4200 level and surface was believed to be barren. However, this has been found not to be the case: one hole cut 113.8 grams gold per tonne (cut) over a true width of 0.7 metre within 23 metres of the 38 level. The D zone is mineralized for 335 metres along strike and has been intersected for 400 metres downdip. It is still open in most directions.

The 3400 level is being developed along the D zone north toward the primary Macassa mine structures.

The company’s chief exploration geologist, Stew Carmichael, says that as a result of the last fiscal year’s discoveries “resources were quickly converted to reserves.” The newest discoveries have cost about $6.44 per oz. of gold found.

High grade gold has been intersected to the south in a mineralized feldspar porphyry that was cut from the 4,500-ft. level. A 1.8-metre intercept at a down-hole depth of 628 metres graded 898 grams gold per tonne, and this included a 0.46-metre intercept of 3,513 grams gold. The true width is not known. Visible gold is associated with quartz-molybdenum-pyrite veins in a 12-metre-wide altered zone.

The company has also intersected significant gold in the South Porphyry zone — an easterly striking structure that dips 70 to the south. Highlighting the drilling of this zone is a 6.5-metre intercept grading 24.7 grams gold. This was drilled from the 4700 level. The zone is a pyrite-bearing silicified tuff and porphyry. Another hole cut 21.2 grams gold over 3 metres, about 26 metres above the aforementioned hole.

Kirkland Lake Gold began a planned $21-million exploration campaign last October.