Kirkland Lake Gold Intersects High-Grade Mineralization at Multiple Targets in Northern Territory, Results Support Potential Resumption of Operations

TORONTO, Dec. 18, 2019 (GLOBE NEWSWIRE) — Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced further exploration success in the Northern Territory, Australia at the Union Reefs project (Millars and Union North deposits), Lantern Deposit and Liberator target near Cosmo, and the Gandy’s Deposit in Pine Creek project area. Results continue to highlight the potential for long-term, profitable mining operations in a historic mining district with over 4.5 million ounces of gold produced over the past four decades. Kirkland Lake Gold owns 100% interests in most of the significant gold deposits.These results continue to advance the Northern Territory strategy of Kirkland Lake Gold to develop multiple mining centres to feed the central Union Reefs mill. Mining and underground development are underway across the Lantern Deposit at Cosmo. Also, the Company is continuing to advance the permitting of a portal and decline to support an underground exploration program into the Prospect mineralization at Union Reefs.Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “The new drill results in the Northern Territory confirm the existence of high-grade mineralization at multiple targets, which supports the potential for long-term, profitable production at our 2.4 million tonne per annum Union Reefs mill. Given the positive results at Lantern and Union Reefs, and new drill programs at Pine Creek and Liberator, we are increasingly confident that we can establish a significant mining centre in the Northern Territory. With continued progress, we could be in a position to resume commercial operations in the Northern Territory as early as late February when we release our December 31, 2019 Mineral Reserve and Mineral Resource estimates. Work is continuing with three underground drills currently working at the Lantern Deposit at Cosmo and mineralization continuing to be processed on a test basis at Union Reefs Mill.”Lantern DepositThe reported Lantern drilling includes 47 holes, totaling 12,875 m, since December 31, 2018, targeting the down-plunge extensions of the Indicated Mineral Resources. This drilling is focusing on the next levels of Mineral Reserves below the current mining horizons. Drilling from platforms on the 730 and 850 levels was completed during 2019 primarily focused on the western limb of the Lantern stratigraphy between 350 and 550 meter depths below surface and returned significant intercepts, including:578 g/t Au over 1.8 m (ETW 0.9 m), incl. 3,430 g/t Au over 0.3 m (ETW 0.2 m) in Lode 3600 in hole LU730169;67.6 g/t Au over 3.1 m (ETW 2.8 m), incl. 680 g/t Au over 0.3m (ETW 0.3 m) in Lode 3600 in hole LU730148;17.9 g/t Au over 6.4 m (ETW 5.9 m), incl. 196 g/t Au over 0.5m (ETW 0.4 m) in Lode 3500 in hole LU30140;13.7 g/t Au over 11 m (ETW 6.9 m), incl. 49.2 g/t Au over 1.2m (ETW 0.8m) in Lode 3500 in hole LU730105;25.5 g/t Au over 1.9 m (ETW 1.8 m), Incl. 126 g/t Au over 0.4 m (ETW 0.3 m) in Lode 3500 in hole LU730135;26.3 g/t Au over 2.2 m (ETW 1.4 m) in Lode 3600 in hole LU730131; and9.8 g/t Au over 6.3 m (ETW 3.9 m), incl. 46.6 g/t Au over 0.4m (ETW 0.3 m) in Lode 3400 in hole LU730144.These results demonstrate the high-grade potential of the Lantern mineralization beyond the current mining horizon. High-grade mineralization is mainly related to quartz veins, some of which occur at high angles to the overall broadly stratigraphic trend of the deposit. However, the deposit has significant local scale variation evident in underground development exposures.Further to the above reported drilling, diamond drilling also continued to define the down plunge potential of the Lantern deposit from deep within the Cosmo Mine Development during 2017, and the dedicated diamond drilling platform on the 610RL established in 2018.  The reported exploration drilling conducted since the December 31, 2016 Lantern Mineral Resource, includes 50 holes totaling 23,472 m targeting the extension of mineralization below the 610RL and north of the 1550mN.Highlights of the drilling include the significant intercepts below:8.8 g/t Au over 7.7 m (ETW 6.2 m) in lode 3600 in hole LU64009;127 g/t Au over 0.6 m (ETW 0.6 m) in lode 3600 in hole LU61026;28.0 g/t Au over 2.0 m (ETW 2.0 m) in lode 3701 in hole LU61019A;21.6 g/t Au over 2.5 m (ETW 1.0 m) in lode 3701 in hole LU64011; and,21.5 g/t Au over 1.7 m (ETW 1.4 m) in lode 3729 in hole LU64005.The drilling results highlight significant potential of the Lantern Deposit at depth.  Mineralization occurs in close association with a sedimentary dolomitic unit, thought to be an altered carbonaceous shale, which provides an impermeable layer and geochemical reaction site to deposit mineralization (lodes 3600 & 3701).  A secondary deposition style has also been identified at depth, with a region of structural interaction between the F8 Fault and the folded Lantern stratigraphy in the Howley anticline (lodes 3700 & 3729). Exploration drilling continues at the Lantern Deposit, with three diamond drills targeting mineral resource conversion and down-plunge extension of resources.Liberator ProspectDrilling has been completed at Liberator prospect, located approximately 1.0 kilometre (km) to the south of the Lantern Deposit, where the Cosmo-Howley anticline continues to fold the Lower Koolpin Formation metasediments. These rocks are stratigraphically lower than the Lantern metasediments, and host brittle structures and quartz veining similar to those found at the Lantern Deposit. The mineralized zone occurs across the boundary of the Cosmo Mineral Lease (MLN993) and 100% KL-owned exploration license and was identified during a detailed regional review of the geological and mineralogical setting of the Cosmo mine, along with a review of historical drilling in the area.The Liberator Dolerite is situated stratigraphically lower than the Zamu and Phantom Dolerite units, which crop out in the Cosmo and Phantom pits, respectively. These units are folded within the regional scale Howley Anticline which at Cosmo to Liberator plunges north approximately 50o, and is commonly offset by regional S-SE to N-NW shears and faults The Liberator host rocks occur between the Liberator Dolerite and the Phantom Dolerite, and consist of repeating and banded, metamorphosed, mudstone and siltstone sedimentary sequences with common quartz carbonate and quart-sulfide veining throughout the units including the Liberator deposit itself.Nine diamond drill holes were drilled at Liberator for 4,154 m, with assay results still pending. During geological logging of hole LIBDD0001 visible-gold was noted in carbonate fracture filled vein-breccia, similar to a vein style within the Cosmo mineralization. The drill program has intersected numerous quartz veins with high pyrrhotite and arsenopyrite contents up to 60 % of some veins, across downhole lengths up to 10 m (no ETW).  Surface diamond drilling comprises four cross-sections covering a 500 m strike across the Liberator target to depths averaging 400 m from surface.Results from the drilling are expected during early 2020, with follow up work dependent on the success of the results.Exploration at Union ReefsSurface exploration diamond drilling is proceeding at Union Reefs, where up to two drills were active during 2019. Due to the significance of the Union Reefs project and the proximity to the Pine Creek project area, a regional exploration office and new core logging and processing shed were set up at the Union Reefs facility.The gold deposits at Union Reefs are hosted on two lines of lode, the Union Line to the west and the Lady Alice line to the east, both lines have had significant historical open-pit mining activities which extend over 3.6 km in length.  Each line is dominated by quartz-sulfide veins that occur within a Proterozoic turbiditic sequence composed of interbedded greywackes and siltstones. The sequence is folded into a series of anticlines with smaller scale parasitic folds on their limbs. The gold-bearing veins are present as vertical linear sheets oriented along the center of folds, which have an approximate NNE-SSW axial plane direction. Large-scale veining occurs in the mineralized zones and is typified by 0.3 m to ≥1 m quartz veins containing sulfides (such as pyrite, arsenopyrite, galena and sphalerite), and have margins of moderate to intense chlorite and sericite alteration. The quartz veins commonly host visible-gold.Drilling during 2019 comprised of 53 diamond drill holes for 24,539m and focused on the Millars deposit, on the southern portion of the Union Reefs Mineral Lease (MLN1109). Drilling is also underway at the Union North deposit, which is approximately 150 m along-strike from the Prospect Mineral Reserves. The Millars mineralization is located within the Lady Alice mineralized corridor with Prospect located further to the north on the Union Line (see Figure 9). The Millars mineralization is similar to that identified in Prospect deposit with narrow higher-grade intercepts related to quartz veining.Some of the more significant Millars intercepts include:7.0 g/t Au over 5.6 m (ETW 2.9 m) ), incl. 68.7 g/t Au over 0.4m (ETW 0.2 m)  in lode 200 in hole URSDD0042;26.3 g/t Au over 3.0 m (ETW 1.4 m), incl. 57.4 g/t Au over 1.3 m (ETW 0.6 m) in lode 300 in hole URSDD0022;530 g/t Au over 0.4 m (ETW 0.2 m) in lode 610 in hole URSDD0070;17.5 g/t Au over 2.0 m (ETW 1.5 m), incl. 113 g/t Au over 0.3 m (ETW 0.2 m) in lode 910 in hole URSDD0037; and,53.4 g/t Au over 2.0 m (ETW 1.4 m), incl. 89.0 g/t Au over 0.7 m (ETW 0.5 m) in lode 910 in hole URSDD0074.Exploration drilling at Union Reefs is planned to continue into 2020 at the Millars deposit to potentially define sufficient Mineral Resources and Mineral Reserves to support an expanded mine plan. There is potential for a second decline to be constructed to access the Millars Deposit, which is approximately 2.0 km from the Union Reefs Mill.An EIA was submitted for the Union Reefs North decline that will be used to access the Prospect Mineral Reserves with a potential commencement date of mid-2020, pending statutory approvals. The EIA covers the first two years of mining focusing on the Mineral Reserves of 276,000 tonnes @ 4.4 g/t Au for 39,200 ounces (see NI 43-101 technical report on the NT Operations effective December 31, 2016 and filed on SEDAR on March 30, 2017).The Prospect decline will be the first foray into underground mining on the Union Reefs site, which has a historic mining production of approximately 1.0 million ounces from open-pit mining. Previously reported deep diamond drilling at the Prospect Deposit (see KL press release dated April 30, 2018) has intersected high-grade mineralization approximately 1,000 m below surface with an intercept of 95.0 g/t Au over 1.1 m (ETW 1.0 m), including 161 g/t Au over 0.6 m (ETW 0.5 m) in hole URNDD0097. This highlights the potential for significant depth projections of mineralization below the current Mineral Reserve base.The Union Reefs deposits all remain open at depth, and there continues to be a significant portion of the site’s strike length that hasn’t been tested outside of an open-pit style exploration target.Exploration at Pine CreekThe Pine Creek project area, adjacent to the small but regionally significant town of Pine Creek, is approximately 60 km to the southeast of the Cosmo, and 15 km to the south of the Union Reefs Mill.  The area has eight Mineral Resource areas centered about a series of historical open pits mined in the 1980’s to mid-1990’s which the company believes has potential to increase Mineral Resources at depth beneath the existing open pits, especially the shallower Gandy’s North deposit.The gold mineralization at Pine Creek is hosted in quartz-sulfide veins following an umbrella-shaped ‘saddle reef’ model where the gold bearing veins are located along bedding slip planes at the center of folds hinges.  The folding and faulting in Pine Creek is oriented in a NNE-SSW direction, with occasional cross-cutting NW-SE orientated structures which offset stratigraphy and fold hinges. The mineralized bedding slip veins are hosted between interbedded massive greywackes and siltstones. Smaller scale strike slip faulting appears to utilize axial planer weaknesses to accommodate further N-S regional shortening within the Pine Creek deposits.  These smaller scale structures appear to allow the propagation of mineralizing fluids up the anticline hinge creating the umbrella shape often described in historic reporting.Exploration drilling commenced in Q2-2019 at Gandy’s North deposit with the two holes totaling 514 m completed in May.  This drilling targeted potential down-plunge high-grade gold mineralization at Gandy’s North deposit as part of the company’s strategy to develop the Pine Creek project area to supply feed to the Union Reefs mill.The significant intercepts reported for the preliminary Gandy’s North holes are:9.7 g/t Au over 4.1 m (ETW 3.3 m), incl. 26.7 g/t Au over 0.7m (ETW 0.6 m) in Lode 100 in hole PCGDD0001;16.1 g/t Au over 3.0 m (ETW 2.8 m), incl. 36.1 g/t Au over 0.8 m (ETW 0.8 m) in Lode 100 in hole PCGDD0002;9.1 g/t Au over 3.5 m (ETW 3.2 m), incl. 19.5 g/t Au over 0.8 m (ETW 0.8 m) in Lode 100 in hole PCGDD0002;5.6 g/t Au over 2.9 m (ETW 2.7 m), incl. 15.4 g/t Au over 0.7 m (ETW 0.7 m) in Lode 200 in hole PCGDD002; and14.4 g/t Au over 1.3 m (ETW 1.2 m) in Lode 300 in hole PCGDD002.Both holes intersected the main Gandy’s North mineralized structure and returned encouraging drilling results, with further 11 diamond drill holes of a further 3,539m of diamond drilling completed between September and November 2019, with final results pending.Significant results from the first 2 holes of the second round of drilling include:5.4 g/t Au over 8.0 m (ETW 7.6 m) incl. 31.7 g/t Au over 0.3m (ETW 0.3 m) in hole PCGDD0003; and,2.3 g/t Au over 2.4 m (ETW 2.1 m) in lode 300 in h ole PCGDD004The grades and widths of mineralization noted in the results above highlight the potential for a significant gold­­­ grades and scale of mining area. Drilling will continue in 2020, after the wet season, to test the down-plunge potential for the Gandy’s North deposit as well as testing for the underground potential below the Gandy’s South open pit.2020 Exploration plans for the Northern TerritoryCurrently plans for 2020 include drilling at the Cosmo project area within the Lantern deposit as well as drilling within the Union Reefs projects around Union North and Millars in the South. There will also be programs completed at the Pine Creek project area with focus on the Gandy’s deposits. Attention will remain on these three project areas as a more detailed Life of Mine Plan is developed for the Northern Territory to fulfil the strategy of filling the Union Reefs mill with the highest-grade available.To view a PDF of the figures as referenced in this News Release, visit the links below.Figure 1: Northern Territory Tenement Location Plan:
Figure 2: Cosmo Plan & Longitudinal Projection:
Figure 3a: Lantern Longitudinal Projection of Lode 3400:
Figure 3b: Lantern Longitudinal Projection of Lode 3500:
Figure 3c: Lantern Longitudinal Projection of Lode 3600:
Figure 3d: Longitudinal Projection of Lantern Down-Plunge Extension Lode 3600:
Figure 3e: Longitudinal Projection of Lantern Down-Plunge Extension Lode 3601:
Figure 3f: Longitudinal Projection of Lantern Down-Plunge Extension Lode 3609:
Figure 3g: Longitudinal Projection of Lantern Down-Plunge Extension Lode 3700:
Figure 4: Lantern Geological Cross Section 1,375mN:
Figure 5: Union Reefs Plan and Cross Section:
Figure 6a: Union Reefs South Longitudinal Projection of Lode 300:
Figure 6b: Union Reefs South Longitudinal Projection of Lode 400:
Figure 6c: Union Reefs South Longitudinal Projection of Lode 610:
Figure 6d: Union Reefs South Longitudinal Projection of Lode 620:
Figure 6e: Union Reefs South Longitudinal Projection of Lode 910:
Figure 7: Pine Creek Projection Location Plan:
Figure 8: Gandy’s Geological Cross Section 13,200mN:

Figure 9: Gandy’s Longitudinal Projection:
Qualified PersonOwen Greenberger, MAIG, Exploration Manager, Northern Territory Operations, is a “Qualified Person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this News Release.Drilling and Assay QAQCKirkland Lake Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All drill hole collars are accurately surveyed using a Leica Total Stations instrument and diamond drill hole down hole deviations are measured using a down-hole gyro instrument.All reported drill intercepts are from NQ2 or HQ sized diamond drill core. Drill core was either full-core sampled or cut longitudinally in half with a diamond saw, whereupon one-half of the drill core was assayed and the other half retained for reference. Drill core sample lengths are between 0.15 m and 1.4 m in length as determined from logging of sulfide and visible gold and conforming to lithological and alteration boundaries.Assays are based on 25 gram charge fire assay. Reported intercepts are calculated based on mineralization envelopes using an approximate 2 g/t Au outer boundary, within which there is a maximum 2 m internal dilution. The minimum intercept width is 0.3 m. No upper gold grade cap is applied to the reporting of the drilling results.Drill samples are routinely assayed at North Australian Laboratories Pty Ltd (independent laboratory in Pine Creek, Northern Territory) or Intertek Australia Pty Ltd (independent laboratory in Darwin, East Arm, Northern Territory). Site audits and reviews of the laboratories are conducted from time to time as well as routine assessment of intra-laboratory analyzes to ensure quality of reported results. Both laboratories operate under contract to Kirkland Lake Gold.About Kirkland Lake Gold Ltd.Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 723,701 ounces in 2018 and is on track to achieve significant production growth in 2019, to  950,000 – 1,000,000 ounces. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold’s solid base of quality assets is 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 Note Regarding Forward-Looking InformationThis News Release includes certain “forward-looking statements”. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to planned exploration programs, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These forward-looking statements include, but are not limited to, statements with respect to future exploration potential, project economics, timing and scope of future exploration, anticipated costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as “inferred” or “indicated” has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, among others, risks related to international operations, risks related to obtaining the permits required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold, as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form and other disclosures of “Risk Factors” by the Company and its predecessors, available on SEDAR.Cautionary Note to U.S. Investors – Mineral Reserve and Resource EstimatesAll resource and reserve estimates included in this news release or documents referenced in this news release have been prepared 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”). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. These definitions differ materially from the definitions in SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Act of 1933, as amended, and the Exchange Act.In addition, the terms “Mineral Resource”, “measured Mineral Resource”, “indicated Mineral Resource” and “Inferred Mineral Resource” are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. Securities and Exchange Commission (the “SEC”). Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into reserves. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of a Mineral Resource exists, will ever be converted into a Mineral Reserve or is or will ever be economically or legally mineable or recovered.FOR FURTHER INFORMATION PLEASE CONTACTAnthony Makuch, President, Chief Executive Officer & Director
Phone: +1 416-840-7884
E-mail: [email protected]
Mark Utting, Vice-President, Investor Relations
Phone: +1 416-840-7884
E-mail: [email protected]
Table 1: Drill Assay Intercepts for Northern Territory Exploration Notes:Drill intercepts greater than 10 Gram-Metres (gold grade x estimated true width) are shown in bold text.   Table 2: Diamond Drill Hole Collar Locations for Northern Territory ExplorationNotes: 
Lantern and Liberator drill collar locations are in Cosmo Mine local grid coordinate system
Union Reefs drill collar locations are in Union Reefs local grid coordinate system
Pine Creek drill collar locations are in Pine Creek local grid coordinate system

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