Kirkland cuts new gold South of Macassa mine

Underground drilling by Kirkland Lake Gold (KGI-T) has turned up three new mineralized zones south of the 4700 level at the Macassa mine. All three zones were cut by hole 47-994B, which was drilled from the 4700 level.

The first zone stretches over 5.5 ft. of core length beginning at a depth of 798 ft., and comprises silicified tuff mineralized with pyrite. Visible gold was also noted in the core. The zone assayed 2.94 oz. gold per ton (uncut). When high assays are cut to 3.5 oz. per ton the intervals grade drops to 1.79 oz. per ton.

A second zone, encountered another 561.5 ft. downhole, comprises quartz vein mineralized with massive pyrite; the 2.7-ft. interval returned 0.77 oz. gold (uncut).

Beginning at a depth of 1,618.8 ft., the hole intersected silicified feldspar porphyry mineralized with pyrite and molybdenum. A 62.2-ft. section averaged 0.16 oz. gold, including 3 ft. of 1.89 oz. (uncut).

The three zones are located 800 ft., 1,365 ft. and 1,617 ft. south of the 4700 level. Kirkland says it has now identified at least four hangingwall vein systems between 600 and 1,600 ft. south of the main mine workings.

Kirkland Lake says the hole was terminated 3 ft. beyond the 1.89-oz.-per-ton intersection, still in mineralized porphyry. The company has large electric drill on its way to the 4700 level.

Hole 45-254, some 3,000 ft. to the east and 1,000 ft. ft. below hole 47-994B, also encountered a wide zone of highly altered porphyry with anomalous gold values. Assays results include 86.7 ft. grading 0.03 oz. gold and 1 ft. of 0.19 oz.

The company believes the hydrothermally altered porphyry body cut by hole 47-994B may represent a “plumbing” system for a southern mineralized part of the camp parallel to the Main Break. Gold mineralization of the Main Break at Kirkland Lake is believed to be centred over a large porphyry body at depth.

Aside from the past producing Lake Shore mine, no mining has taken place to the south of the main ore horizon in the Kirkland Lake camp.

In August, Kirkland boosted proven and probable reserves at Macassa to 1.05 million tonnes running 0.47 oz. gold. Measured and indicated resources grew to 3.3 million tons of 0.32 oz., whereas inferred resources were pegged at 558,900 tons grading 0.35 oz.

In early October, mining began at the high-grade 4247 stope following the completion of the alimak raise. The first face, which lies outside of the reserve block assayed 0.6 oz. over 9.2 ft. The 300-ft.-long block hosts a probable reserve of 30,070 tons running 0.75 oz. per ton.

The company also wrapped up re-commissioning of the 4,600-ft. no. 2 shaft . Formerly used for egress only, the shaft is now capable of hoisting 800 tons of ore per day. The shaft provides access to 16 reserve stopes and 71 resource stopes on six different levels. Definition drilling is planned. Of particular interest is an unexplored 2,500 ft. of strike length on the Main Break on the Kirkland Minerals property.

Kirkland Lake acquired the Macassa mine and mill in December 2001, along with four contiguous former gold-producing properties: Kirkland Lake Gold, Teck-Hughes, Lake Shore and Wright-Hargreaves. The company agreed to pay $5 million to Kinross Gold (K-T). The company also assumed $2 million in closure bonds, plus all rehabilitation and environmental liabilities.