Kirkland Lake Gold Announces 10.1 Million Ounce Increase in Measured and Indicated Mineral Resources at Detour Lake Mine
September 02, 2021 at 06:30 AM EDT
TORONTO, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced the release of new Mineral Resource estimates for the Detour Lake Mine (“Detour Lake”) as at June 30, 2021 (“Mid-Year 2021”). Included in the Mid-Year 2021 Mineral Resource estimates are total Measured and Indicated (“M&I”) Mineral Resources, exclusive of Mineral Reserves, of 14,718,000 ounces (572.0 million tonnes (“MT”) at an average grade of 0.80 grams per tonne “g/t”)), an increase of 10,061,000 ounces or 216% from the previous estimate of 4,657,000 ounces (131.2MT at an average grade of $1.10 g/t) as at December 31, 2020 (See 2020 Technical Report filed on SEDAR) as well as Inferred Mineral Resources totalling 1,1155,000 ounces (48.3MT at an average grade of 0.81 g/t). The Mid-Year 2021 Mineral Resource estimates were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, issued by the Canadian Securities Administrators ("NI 43-101"). The new Mineral Resource estimates are being released as a result of a material increase in M&I Mineral Resources that was identified as part of the Company’s mid-year internal Mineral Resource progress update. The Company plans to release a new NI 43-101 Report to support the Mid-Year 2021 Mineral Resources for the Detour Lake Mine, to be filed within the next 45 days.
The Mid-Year 2021 Mineral Resource estimates were calculated based on the results of 365 holes for 185,000 metres of surface diamond drilling completed since the Company acquired Detour Lake on January 31, 2020. The Company is targeting approximately 100,000 metres of additional drilling by the end of 2021.
Of the 14,718,000 ounces of M&I Mineral Resources included in the Mid-Year 2021 estimates, the majority are located within the Saddle Zone, an area between the existing Main Pit and planned West Pit locations, which had previously been underexplored and had no Mineral Reserves and only limited Mineral Resources. M&I Mineral Resources within the Saddle Zone are allocated to the Main and West pits based on their proximity to the two pit locations. As outlined in the tables below, M&I Mineral Resources within the Main Pit are estimated at 7,103,000 ounces based on 205.6MT at an average grade of 1.07 g/t (0.50 g/t cut-off grade), with an additional 973,000 ounces based on 71.9MT at an average grade of 0.42 g/t of low-grade M&I Mineral Resources (0.35 g/t cut-off grade). The West Pit M&I Mineral Resource estimates include 5,096,000 ounces based on 180.4MT at an average grade of 0.88 g/t (0.50 g/t cut-off grade), with low-grade M&I Mineral Resources totalling 1,530,000 ounces based on 113.5MT at an average grade of 0.42 g/t (0.35 cut-off grade).
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “When we acquired Detour Lake, we saw many opportunities to optimize the operation and generate value, including increasing production to 800,000 ounces per year, improving all-in sustaining costs (“AISC”) to $800 – $900 per ounce and significantly growing Mineral Resources and Mineral Reserves through an extensive exploration program. As outlined in the technical report and life-of-Mine Plan (“2021 LOMP”) filed in March 2021, we now expect Detour Lake to reach 800,000 ounces of production in 2025, and to ultimately grow to over 900,000 ounces per year, with average AISC targeted at $775 per ounce over the next five years. With today’s results, we have now clearly demonstrated both the tremendous exploration potential at Detour Lake as well as the considerable success being achieved through our drilling programs. Based on drilling to date, we have more than tripled M&I Mineral Resources, with more to come as we work to complete another 100,000 metres of drilling by the end of 2021. Our new M&I Mineral Resource estimates include significant growth in Mineral Resources established using a 0.5 g/t cut-off grade, as well as low-grade Mineral Resources, which under previous plans would have been mined as waste, whereas in the new estimate these will be stockpiled and processed in later years. Everything we see tells us that we are on track for solid growth in Mineral Reserves as part of our December 31, 2021 Mineral Reserve and Mineral Resource statement.
“In addition to the excellent progress being achieved with our exploration program and the completion of our first updated Mineral Resource model since acquiring Detour Lake, we are also advancing efforts to optimize the 2021 LOMP. Based on ongoing work, we are targeting further operational improvements that, in aggregate, are expected to deliver between $750 million and $1.0 billion of value enhancement benefits over the next two to five years. These include a variety of initiatives that should improve mill availability and throughput, metallurgical recovery, grade control, automation, innovation and site optimization.”
DETOUR LAKE MEASURED & INDICATED MINERAL RESOURCES (EFFECTIVE JUNE 30, 2021)(1)(2)
DETOUR LAKE INFERRED MINERAL RESOURCES (EFFECTIVE JUNE 30, 2021)(1)(2)
The Mid-Year 2021 Mineral Resources estimates involve Mineral Resources considered amenable to open pit mining methods. Mineral Resources considered amenable to underground mining methods have not been updated from the December 31, 2020 estimates, which included M&I Mineral Resources of 534,000 ounces (2.9MT at an average grade of 5.8 g/t) and Inferred Mineral Resources totalling 136,000 ounces (1.0MT at an average grade of 4.35 g/t).
Technical Report and Qualified Persons
A Technical Report prepared in accordance with NI 43-101 for Detour Lake will be filed on SEDAR (www.sedar.com) before October 15, 2021. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
The Mineral Resource estimates for Detour Lake included in this press release were prepared under the supervision of Eric Kallio, P.Geo., Senior Vice President, Exploration and Andre Leite, P.Eng., AUSIMM CP (MIN), MEng., Vice President, Technical Service. Mr. Kallio and Mr. Leite are “qualified persons” as defined in National Instrument 43-101 and have reviewed and approved disclosure of the scientific and technical information and data in this press release.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the Company is anchored by three high-quality operations, including the Macassa Mine and Detour Lake Mine, both located in Northern Ontario, and the complemented by district scale exploration potential, supported by a strong financial position with extensive management expertise.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
Footnotes Related to Mineral Resource Calculations
Risks and Uncertainties
Cautionary Note Regarding Forward-Looking Statements
Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for eventual economic extraction. Measured and indicated resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that Measured or Indicated mineral resources can be upgraded to mineral reserves through continued exploration and positive economic assessment.
Information Concerning Estimates Of Mineral Reserves And Measured, Indicated And Inferred Resources
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). These definitions differ significantly from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “SEC”) applicable to domestic reporting companies. Investors are cautioned that information contained in this Annual Information Form may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the SEC thereunder.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Anthony Makuch, President, Chief Executive Officer & Director
Mark Utting, Senior Vice President, Investor Relations