FOR: KIRKLAND LAKE GOLD INC.
TSX, AIM SYMBOL: KGI
July 15, 2009
Kirkland Lake Gold Inc.: Substantial Increases in Reserves & Resources of the South Mine Complex
KIRKLAND LAKE, ONTARIO--(Marketwire - July 15, 2009) - Kirkland Lake Gold Inc. (TSX:KGI)(AIM:KGI) (the
"Company") is pleased to present its year-end (April 30, 2009) gold reserve and resource estimates for
its operations in Kirkland Lake, Ontario on both the historic Main Break and the recently discovered
South Mine Complex or SMC. The South Mine Complex consists of 15 or more mineralized zones, five of
which have been defined over strike lengths in excess of 1,000 feet.
During the fiscal 2009, the Company concentrated its exploration efforts on the SMC and realized
substantial increases in proven and probable reserves as well as measured and indicated resources.
These increases are attributable to drifting, definition diamond drilling as well as exploration
diamond drilling from both the 5000 and 5300 level cross cuts and the decision to focus drilling
resources on upgrading ounces from the inferred category in anticipation of increased future gold
production.
"The geology department delivered a 28% increase in proven and probable ounces in the SMC and a 28%
increase in measured and inferred resources, despite not having access during the fiscal year to
certain drill bays due to the ventilation project," said Company President, Brian Hinchcliffe. "An
increase in development projects this year will allow for greater flexibility and will enable more
strategic exploration."
/T/
SOUTH MINE COMPLEX RESERVES & RESOURCES
--------------------------------------------------------------------------
As at April 30, 2008 As at April 30, 2009 %
---------------------------------------------------- Change
(in
Grade Grade total
Tons opt Ounces Tons opt Ounces ounces)
--------------------------------------------------------------------------
Reserves:
--------------------------------------------------------------------------
Proven 93,000 0.79 73,000 118,000 0.70 83,000
----------------------------------------------------------------- +28%
Probable 603,000 0.78 470,000 817,000 0.75 613,000
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Resources:
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Measured 8,000 0.45 4,000 7,000 0.37 3,000
----------------------------------------------------------------- +28%
Indicated(i) 352,000 0.66 232,000 468,000 0.64 299,000
--------------------------------------------------------------------------
Inferred(i) 707,000 0.79 558,000 704,000 0.84 590,000 +6%
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(i) Includes 50% of resources estimated in the South Claims Joint Venture
Property
PROPERTY WIDE RESERVES & RESOURCES
(Including the South Mine Complex)
--------------------------------------------------------------------------
As at April 30, 2008 As at April 30, 2009 %
---------------------------------------------------- Change
(in
Grade Grade total
Tons opt Ounces Tons opt Ounces ounces)
--------------------------------------------------------------------------
Reserves:
--------------------------------------------------------------------------
Proven 1,200,000 0.44 528,000 1,137,000 0.44 499,000
----------------------------------------------------------------- +5%
Probable 1,303,000 0.62 804,000 1,426,000 0.63 897,000
--------------------------------------------------------------------------
Resources:
--------------------------------------------------------------------------
Measured 979,000 0.38 376,000 950,000 0.39 368,000
----------------------------------------------------------------- -2%
Indicated 1,471,000 0.43 632,000 1,309,000 0.47 619,000
--------------------------------------------------------------------------
Inferred 1,345,000 0.61 822,000 1,516,000 0.59 894,000 +9%
--------------------------------------------------------------------------
/T/
The above reserve and resource estimates have been audited and verified by the Company's independent
reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. He is
a 'qualified person' under National Instrument 43-101, Standards of Disclosure for Mineral Projects,
of the Canadian Securities Administrators. A report detailing the fiscal 2009 reserve and resource
estimates will be filed on SEDAR (www.sedar.com) within 45 days of this press release. See 'Notes for
Reserves and Resources' below for key assumptions, parameters and methods used to estimate the
foregoing reserves and resources.
Highlights of the Current Reserve and Resource Estimates
The highlights of the current reserve and resource estimates include:
- Proven and probable reserves and measured and indicated resources in the SMC both increased by 28%
and now stand at 1.41 million tons at a grade of 0.71 ounces of gold per ton (opt) for a total of
998,000 ounces. Inferred resources increased 6% to 704,000 tons at a grade of 0.84 opt or 590,000
ounces.
- Proven and probable reserves for the entire mine have increased by 5% since last reported at the end
of fiscal year 2008. Proven and probable reserves now stand at 2,563,000 tons at a grade of 0.54 opt
or 1,396,000 contained ounces. Measured and indicated resources showed a minor decrease (-2%) over the
same period and now stand at 2,259,000 tons at a grade of 0.44 opt or 987,000 contained ounces.
Inferred resources increased by 9% to 1,516,000 tons at a grade of 0.59 opt or 894,000 contained
ounces. The decrease in measured and indicated is due to the conversion from indicated resources to
probable ore in the SMC and re-classification of some of the historical resources.
- Drilling on the New South Zone between the 5300 and 5600 elevations has resulted in an 80%
conversion rate from inferred resources to probable ore (see the Company's news release dated June 23,
2009).
Exploration Plans for Fiscal 2010
The exploration plans for fiscal 2010 include:
- The fiscal 2010 exploration budget has been set at $7.4 million dollars and will include $2.5
million dollars of development to provide access for drilling on the SMC and $3.2 million dollars for
diamond drilling.
- Exploration drilling will target both the SMC as well as previously untested areas within the '04
Break system.
Notes for Reserves and Resources:
1. The reserves and resources are estimated using the polygonal method.
2. All intersections are calculated out to a 5.0 foot minimum horizontal mining width for structures
dipping greater than 45 degrees. The minimum mining height for structures dipping less than 45 degrees
is 6.5 feet.
3. Dilution is added to reserves at varying rates depending on mining method, and the width of the
ore. The average dilution of the reserves at April 2009 is 33.7% at 0.02 opt. Long-hole stopes are
diluted by 32-50%, mostly 50%. Cut and fill stopes 5-7 feet wide are diluted 15-50%. Most of the
narrower stopes are diluted by 50%. Cut-and-fill stopes that are greater than 7 feet wide are diluted
10-15%.
4. All higher grades are cut to 3.50 opt. Based on a statistical analysis completed by Scott Wilson
Roscoe Postle Associates Inc. in 2007, the Company has implemented various higher grade cutting
factors for four zones in the South Mine Complex. These four zones are the New South Zone (7.2 oz
gold/ton), Lower D North (9.3 opt), Lower D North Footwall (4.8 opt), and the #7 and #7 HW Zones (6.4
opt). The cut-off is 0.25-0.30 opt over the horizontal or vertical mining width. Cut-off grades of
0.25 opt and 0.35 opt are used for reserve and resource calculations, depending on the location, and
economics of the block. Generally, a cut-off of 0.31 opt is required on a whole-block basis to achieve
profitability. It is possible to have sub-blocks within an ore reserve block that assay less than any
cut-off which have been incorporated for mining or geotechnical reasons. Ore blocks that grade between
0.20 opt and the cut-off has been classified as resource.
5. The area of influence of the proven and measured categories are 30 feet from development chip
samples, probable and indicated categories are 50 feet of radius from a known sample point (drill
holes) and inferred is another 50 feet of influence.
6. A 94% tonnage recovery is used. Continuity of the veins appears very good.
7. The assumptions used include $761.59 U.S. per ounce of gold, and an exchange rate of $1.10 Canadian
equals U.S. $1.00 ($838.95 Canadian per ounce equals 3 year average).
8. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political,
marketing or other issue that may materially affect its estimate of mineral resources.
9. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
About the Company
The Company purchased the Macassa Mine and the 1,500 ton 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 some 22 million ounces of gold, extend over seven
kilometres between the Macassa Mine on the west and Wright Hargreaves on the east and, for the first
time, are being developed and explored under one owner. This camp is located in the Abitibi Southern
Greenstone Belt of Kirkland Lake, Ontario, Canada.
Other Reserve Reports
The Company's Macassa Mine Property is the subject of reserve reports prepared by:
- Glenn R. Clark, P. Eng., entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake,
Ontario dated July 15, 2008.
- Glenn R. Clark, P. Eng., entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake,
Ontario dated October 31, 2007.
Both of these technical reports have been filed on SEDAR (www.sedar.com).
Cautionary Note Regarding Forward Looking Statements
This Press Release may contain statements which constitute 'forward-looking, including statements
regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or
its officers with respect to the future business activities and operating performance of the Company.
The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions, as they relate to the Company, or its management, are intended to
identify such forward-looking statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future business activities or performance and involve risks and
uncertainties, and that the Company's future business activities may differ materially from those in
the forward-looking statements as a result of various factors. Such risks, uncertainties and factors
are described in the periodic filings with the Canadian securities regulatory authorities, including
the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis,
which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as intended, planned, anticipated, believed,
estimated or expected. Although the Company has attempted to identify important risks, uncertainties
and factors which could cause actual results to differ materially, there may be others that cause
results not be as anticipated, estimated or intended. The Company does not intend, and does not assume
any obligation, to update these forward-looking statements.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Kirkland Lake Gold Inc.
Brian Hinchcliffe
President
1 705 567 5208
1 705 568 6444 (FAX)
bhinchcliffe@klgold.com
OR
Kirkland Lake Gold Inc.
Scott Koyich
Investor Relations
1 403 215 5979
info@klgold.com
www.klgold.com
OR
Pelham Public Relations
Chelsea Hayes
+44 20 7743 6675
chelsea.hayes@pelhampr.com
OR
NOMAD: Panmure Gordon (UK) Limited
Katherine Roe / Ashton Clanfield
+44 20 7459 5744
katherine.roe@panmure.com
OR
Ocean Equities Ltd.
Guy Wilkes
+44 207 786 4370
guy.wilkes@oceanequities.co.uk
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and
neither accepts responsibility for the adequacy or accuracy of this news release.
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Kirkland Lake Gold Inc.