Kirkland Lake Gold continues to extend high-grade mineralisation at Fosterville and Macassa

Miner Kirkland Lake Gold (ASX: KLA) has released a swathe of exploration results to the market for both its Victoria-based Fosterville and Canadian-based Macassa operations, with Fosterville results highlighting an opportunity for a second mine at the Robbin’s Hill deposit.

Drilling into the Robbin’s Hill deposit has confirmed the continuity of high-grade mineralisation at depth and extended known mineralisation outside of the current resource.

Key drill results confirming mineralisation at depth were 3.7m at 24.5 grams per tonne gold, including 1m at 82.3g/t gold; and 8.8m at 11.7g/t gold, including 0.5m at 81.7g/t gold.

Other notable results outside of the known resource were 5.5m at 10.4g/t gold, and 4.9m at 9.5g/t gold.

Kirkland Lake president and chief executive officer Tony Makuch said the company has been expecting to discover “more Fostervilles at Fosterville” for some time.

“With today’s results, Robbin’s Hill has clearly emerged as a second potential mining front to provide feed to our Fosterville mill.”

“Based on current drilling, we have already identified a large mineralised system at Robbin’s Hill that we expect will support substantially higher levels of mineral resources and that remains open at depth and along strike,” Mr Makuch explained.

Meanwhile, drilling at Fosterville’s Swan zone has confirmed continuity of mineralisation down plunge and adjacent to the existing reserves.

Better results at the Swan Zone were 7.6m at 87.6g/t gold and 5m at 59.1g/t gold.

Drilling has also extended the Lower Phoenix gold system which is 950m down-plunge of Swan Zone.

Notable intercepts at Lower Phoenix were 5.9m at 14.8g/t gold and 18m at 6.2g/t gold.

Additionally, expansion drilling at the Cygnet Zone has uncovered 58.7m at 4.8g/t gold and 1.2m at 239g/t gold.

Mr Makuch said the results were part of an extensive exploration program at Fosterville including Robbin’s Hill.

Drilling is ongoing at the deposit as well as a 3D seismic survey across 6 square kilometres to the north of the Fosterville mining licence.

Macassa gold mine

In addition to Fosterville, Kirkland Lake has been busy shoring up the future life of its Macassa mine in Ontario.

Underground drill rigs have been targeting the Amalgamated Break, SMC West and SMC East areas with the current program expected to continue until the end of the year.

Better results from Amalgamated Break and SMC West were 2m at 58.3g/t gold, including 0.9m at 128.2g/t gold; 2m at 49.1g/t gold, including 0.9m at 106.6g/t gold; and 12.8m at 12.1g/t gold.

Drilling at SMC East returned 2m at 30.1g/t gold, including 0.5m at 129.3g/t gold; and 2m at 47.7g/t gold, including 278.5g/t gold.

Mr Makuch said the drill results “further increase” the company’s confidence in growing the SMC zone, with known mineralisation now extending beyond the current resource.

He added Amalgamated Break represented “substantial exploration potential”.

December quarter dividend increases

In addition to the positive drill results, Kirkland Lake also revealed its dividend for the December quarter will be paid on 13 January 2020.

According to the company, the dividend of US$0.06 per common share is a 50% increase on the previous quarter’s payment of US$0.04 per common share.

Kirkland Lake is on track to produce between 950,000 ounces of gold and 1Moz of gold this year – boosting its already strong financial position.