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Kirkland Lake Gold Inc.: December 31st Reserve & Resources Update; Near Surface Discoveries Present Potential New Mining Front

KIRKLAND LAKE, ONTARIO -- (Marketwired) -- 04/28/14 -- Kirkland Lake Gold Inc. (the "Company") (TSX: KGI)(AIM: KGI) presents its annual gold reserve and resource estimates (as at December 31, 2013) for its operations in Kirkland Lake, Ontario on both the historic Main Break and the high grade South Mine Complex (SMC) discovered in 2005 that are currently being mined, and recently discovered near surface mineralization.

During 2013, the Company concentrated its exploration efforts on expanding the SMC on the properties previously held under a joint venture with Queenston Mining Inc. and continued to explore for potential near surface resources by surface exploration. In 2013, the Company completed 114,700 feet of underground exploration drilling and 166,500 feet of surface exploration drilling. This represents a planned 27% decrease in exploration drilling compared to 2012; the decrease was part of a broader cost saving initiative implemented by the Company in 2013. An additional 118,600 feet of underground production drilling was completed during this period as well.

Mr. George Ogilvie, Chief Executive Officer commented, "The highlight of this year's reserve update is a first-time resource calculation on near surface ounces, defined as ounces above 1,000-foot depth. This program was successful in identifying an indicated resource of 104,000 ounces contained in 310,000 tons at a grade of 0.34 opt and an inferred resource of 48,000 ounces contained in 131,000 tons at a grade of 0.36 opt. This potentially adds a new distinct area of mining for the Company which would be accessible from a new decline, produced at lower unit costs, and developed in the near-to-medium term. Current mill capacity of 2,200 tons per day would support production from this area without additional capital or expansion to the mill. Most of the exploration budget for next fiscal year will be allocated to the near-surface area; which will allow the resource to be expanded while in-fill drilling will also occur currently so that a mineable reserve can be estimated in the near future. Any mineable reserve would then act as the basis for a future near surface mine plan."

Exploration Manager Stewart Carmichael commented, "Our exploration over the past year has succeeded in replacing ounces mined during the same period as well as increasing resources both in the SMC and the new surface discovery along the Amalgamated Trend. The exploration department will continue to focus on both expanding the SMC east, and down-dip from the -5300 foot level where gold grades are higher and the mineralization remains open at depth and to the east. We plan to add one additional surface drill rig in fiscal 2015 to the one surface drill rig currently operating to focus on infill drilling on the near surface discoveries."

Highlights of the Current Reserve and Resource Estimates

The highlights of the reserve and resource estimates, as at December 31, 2013, include:


--  The Company achieved its goal for the past calendar year of replacing
    SMC and Main Break reserves while at the same time expanding the
    Company's resources. Proven and probable reserves in the SMC showed a
    minor increase of 0.5% after 78,074 ounces were recovered from the SMC.
    Mine-wide reserves decreased by 5% after a total of 120,004 ounces
    (78,074 ounces from the SMC, 41,931 ounces from Main Break) were
    recovered from January 2013 to December 2013. Most of the decreases in
    the mine-wide reserves were due to the reclassification of approximately
    70,000 ounces in the proven and probable category to measured and
    indicated resources from the deeper levels along the `04 Break at the
    Macassa mine.

--  SMC resource increases were due to successful exploration in extending
    the SMC east on ground previously held as a joint venture with Queenston
    Mining Inc. Indicated resources over the past year increased by 34.5%
    and inferred resources increased 30.8%. The strike length of the SMC is
    now in excess of 4,000 feet and remains open in this direction as well
    as down dip. The previous South Claims Joint Venture properties,
    including near surface mineralization, now includes an indicated
    resource of 386,000 tons at a grade of 0.82 ounces of gold per ton (opt)
    for 316,000 ounces and an inferred resource of 446,000 tons at a grade
    of 0.77 opt for 344,000 ounces.

--  The Company is very encouraged by the near surface (surface to -1,000
    feet) exploration results on the ABM and Amalgamated Trend as it may
    represent a second mining front, which would be accessible by a new
    decline. Current resources include an indicated resource of 310,000 tons
    at grade of 0.34 opt (104,000 ounces) and an inferred resource of
    131,000 tons at a grade of 0.36 opt (48,000 ounces). As mining and
    development costs are expected to be less than at the Macassa mine, a
    resource cutoff grade of 0.12 opt was used for the resource calculation.
    All individual assays are cut to 3.5 opt (cutting factor).

--  The ABM and Amalgamated Trend are mineralized zones located 2,000 to
    4,000 feet south of the historic Main Break and are unrelated to the
    Main Break. Potential mining of these zones would require driving a new
    decline to access the mineralization as there is no infrastructure at
    either #2 or #3 shaft, such as drifting or an ore pass waste pass
    system, capable of supporting near surface mining.

--  The Company has increased the underground reserve cutoff grade from 0.18
    opt to 0.22 opt. This has resulted in an approximate decrease of 3% of
    the reserve tons, but only a 2% decrease in reserve ounces.

SOUTH MINE COMPLEX RESERVES & RESOURCES


----------------------------------------------------------------------------
           As at December 31, 2012         As at December 31, 2013
          ----------------------------------------------------------
                                                                           %
                                                                      Change
                        Grade                        Grade               (in
                  Tons    opt                 Tons     opt             total
              (Tonnes)  (g/t)  Ounces     (Tonnes)   (g/t)    Ounces ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------
               321,000   0.43              328,000    0.45
Proven       (291,000) (14.7) 139,000    (298,000)  (15.4)   147,000   +0.5%
--------------------------------------------------------------------
             1,220,000   0.55            1,164,000    0.57
Probable   (1,106,000) (18.9) 669,000  (1,056,000)  (19.5)   665,000
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------
                23,000   0.25               24,000    0.30
Measured      (21,000)  (8.6)   6,000     (22,000)  (10.3)     7,000   +4.5%
--------------------------------------------------------------------
             1,435,000   0.67            1,440,000    0.70
Indicated  (1,302,000) (23.0) 962,000  (1,306,000)  (24.0) 1,005,000
----------------------------------------------------------------------------

             1,223,000   0.67  824,00    1,205,000    0.67
Inferred   (1,110,000) (23.0)       0  (1,093,000)  (23.0)   808,000     -2%
----------------------------------------------------------------------------
    Due to rounding there may be some small discrepancies in the numbers.
----------------------------------------------------------------------------

                                South Claims
             (Previous Joint Venture With Queenston Mining Inc.)

----------------------------------------------------------------------------
              As at December 31, 2012     As at December 31, 2013
              (Company's wholly owned     (Company's wholly owned
             interest in South Claims)   interest in South Claims)
           --------------------------------------------------------
                                                                           %
                                                                      Change
                         Grade                       Grade               (in
                  Tons     opt                Tons     opt             total
              (Tonnes)   (g/t)   Ounces   (Tonnes)   (g/t)   Ounces  ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------

Proven               -       -        -          -       -        -      n/a
-------------------------------------------------------------------

Probable             -       -        -          -       -        -
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------

Measured             -       -        -          -       -        -   +34.5%
-------------------------------------------------------------------
               219,000    0.94             273,000    1.01
 Indicated   (199,000)  (32.2)  206,000  (248,000)  (34.6)  277,000
----------------------------------------------------------------------------
               285,000    0.89             408,000    0.81
 Inferred    (258,000)  (30.5)  253,000  (370,000)  (27.8)  331,000   +30.8%
----------------------------------------------------------------------------
     Near Surface (above -1,000 foot elevation, Amalgamated Break Trend)
----------------------------------------------------------------------------

 Indicated                                 113,000    0.35
  Resource           -       -        -  (103,000)  (12.0)   39,000       nm
----------------------------------------------------------------------------
 Inferred                                   38,000    0.35
  Resource           -       -        -   (34,000)  (12.0)   13,000       nm
----------------------------------------------------------------------------
    Due to rounding there may be some small discrepancies in the numbers.
The Company completed the acquisition of the remaining 50% interest in South
 Claims in August 2012.

MACASSA NEAR SURFACE ZONES (ABOVE -1,000 FOOT ELEVATION)


----------------------------------------------------------------------------
                         ABM ZONE                AMALGAMATED BREAK TREND
             ---------------------------------------------------------------
                              Grade                          Grade
                     Tons       opt                 Tons       opt
                 (Tonnes)     (g/t)    Ounces   (Tonnes)     (g/t)    Ounces
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------
Measured                -         -         -          -         -       n/a
----------------------------------------------------------------------------
                  122,000      0.25              188,000      0.40
Indicated       (110,000)     (8.6)    30,000  (171,000)    (13.7)    74,000
----------------------------------------------------------------------------
                   51,000      0.31               80,000      0.40
Inferred         (46,000)    (10.6)    16,000   (73,000)    (13.7)    32,000
----------------------------------------------------------------------------
    Due to rounding there may be some small discrepancies in the numbers.
There are no reserves at this time. Resource cut off grade of 0.12 opt used.
                         All assays cut to 3.5 opt.
    Includes Near Surface Indicated and Inferred Resources from Previous
                     Queenston Joint Venture table above
----------------------------------------------------------------------------

                     PROPERTY WIDE RESERVES & RESOURCES
                     (Including the South Mine Complex)

----------------------------------------------------------------------------
              As at December 31, 2012      As at December 31, 2013
          ----------------------------------------------------------
                                                                           %
                                                                      Change
                        Grade                        Grade               (in
                  Tons    opt                  Tons    opt             total
              (Tonnes)  (g/t)    Ounces    (Tonnes)  (g/t)    Ounces ounces)
----------------------------------------------------------------------------
Reserves:
----------------------------------------------------------------------------
             1,361,000   0.39               941,000   0.43
Proven     (1,235,000) (13.4)   530,000   (854,000) (14.7)   401,000     -5%
--------------------------------------------------------------------
             1,869,000   0.49             1,843,000   0.53
Probable   (1,696,000) (16.8)   924,000 (1,672,000) (18.2)   984,000
----------------------------------------------------------------------------
Resources:
----------------------------------------------------------------------------
             1,094,000   0.39             1,133,000   0.39
Measured     (992,000) (13.4)   430,000 (1,028,000) (13.4)   436,000   +9.8%
--------------------------------------------------------------------
             2,719,000   0.53             3,019,000   0.54
Indicated  (2,467,000) (18.2) 1,441,000 (2,739,000) (18.5) 1,619,000
----------------------------------------------------------------------------
             2,238,000   0.52             2,092,000   0.54
Inferred   (2,030,000) (17.8) 1,157,000 (1,898,000) (18.5) 1,133,000   -2.1%
----------------------------------------------------------------------------
    Due to rounding there may be some small discrepancies in the numbers.
----------------------------------------------------------------------------

The Company wholly owns the properties on which the above reserve and resource estimates have been calculated and are therefore shown as both gross and net attributable to Kirkland Lake Gold.

The above reserve and resource estimates have been audited and verified, and the technical disclosure in this press release has been approved, 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. His report detailing the December 31, 2013 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.

Exploration Plans for Fiscal 2015

Although reserves and resources for the Company will be based on a calendar year end, the exploration budget will continue to be based on the Company's fiscal year end (April 30th). The Company's discretionary exploration budget for fiscal 2015 includes C$1.9 million in underground exploration (approximately 58,000 feet drilling) utilizing two rigs and C$3.2 million on surface exploration utilizing (approximately 144,000 feet drilling) utilizing two rigs. Surface exploration will continue to test near surface mineralization along the Amalgamated Trend. Underground exploration will continue to test the eastward extension and down dip component of the South Mine Complex.

Notes for Reserves and Resources:


1.  The reserves and resources have been classified according to the
    Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards
    on Mineral Resources and Reserves: Definition and Guidelines (December
    2005).
2.  The reserves and resources are estimated using the polygonal method.
3.  Resources do not include mineral reserves.
4.  All intersections are calculated out to a 6.0 foot minimum horizontal
    mining width for structures dipping greater than 45 degrees. The minimum
    mining height for structures dipping less than 45 degrees is 9.0 feet.
5.  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 December 2013 is 24% at 0.02 opt, down from an average of 31.0% the
    previous year. Long-hole stopes are diluted by 50-100%, mostly 50%. Cut
    and fill stopes are diluted 15-50%.
6.  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). Cut-off grades of 0.18 opt
    and 0.22 opt are used for reserve and resource calculations, depending
    on the location, and economics of the block. Generally, a cut-off of
    0.22 opt is required on a whole-block basis to achieve profitability and
    reserve classification. 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 0.18 opt and the cut-off of 0.22 opt have been classified as
    resource. The cut-off grade for near-surface resources (surface to
    -1,000 foot elevation) is 0.12 opt.
7.  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.
8.  A 94% tonnage recovery is used. Continuity of the veins appears very
    good.
9.  The assumptions used include CAD $1,350.00 per ounce of gold.
10. 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.
11. Mineral resources which are not mineral reserves do not have
    demonstrated economic viability.

About the Company

Kirkland Lake Gold's corporate goal is to create a self-sustaining and long-lived intermediate gold mining company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by mining to the reserve grade, generating profits and free cash flow for the shareholders. The Company will also look to take advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years.

Over the last several years the Company has invested significant capital to improve the infrastructure of the business including upgrading the production hoist, skips, mill, underground mobile equipment and capital development.

From initial discovery to present day there have been over 24 million ounces of gold mined from the Kirkland Lake camp while the current reserve and resource provides for potentially 10 years of mining with significant exploration upside.

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.

Cautionary Note Regarding Forward Looking Statements

This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Press Release include, but may not be limited to, statements regarding the Company's production capacity and its exploration program. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company's business, its ability to increase its production capacity and decrease its production cost.

Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2013 and the Company's Management's Discussion and Analysis for the interim period ended January 31, 2014 filed with the securities regulatory authorities in certain provinces of Canada and available 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 to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

Glossary of Terms

National Instrument 43-101 Definitions of Resources and Reserves

The Reserve and Resource estimation classifications as prescribed in National Instrument 43-101 are given here for clarity.

Mineral Resource

Mineral Resources are sub-divided into 3 categories depending on the geological confidence. The highest level with the most confidence is the `Measured' category. The next level of confidence is the `Indicated' category and the lowest level, or the resource with the least confidence, is the `Inferred' category.

Inferred Mineral Resource

An `Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling, gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Indicated Mineral Resource

An `Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

Measured Mineral Resource

A `Measured Mineral Resource' is that part of a Mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

Mineral Reserve

Mineral Reserves are sub-divided into 2 categories. The highest level of Reserves or the level with the most confidence is the `Proven' category and the lower level of confidence of the Reserves is the `Probable' category. Reserves are distinguished from resources as all of the technical and economic parameters have been applied and the estimated grade and tonnage of the resources should closely approximate the actual results of mining. The guidelines state "Minerals Reserves are inclusive of the diluting material that will be mined in conjunction with the Mineral Reserve and delivered to the treatment plant or equivalent facility." The guidelines also state that, "The term `Mineral Reserve' need not necessarily signify that extraction facilities are in place or operative or that all government approvals have been received. It does signify that there are reasonable expectations of such approvals."

Probable Mineral Reserve

A `Probable Mineral Reserve' is the economically mineable part of an Indicated and in some circumstances a Measured Mineral Resource demonstrated by a least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Proven Mineral Reserve

A `Proven Mineral Reserve' is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

A more detailed list of technical terms can be found at http://klgold.com/cmsAssets/docs/pdfs/2013/2013%20Annual%20Information%20Form.pdf

Macassa Mine Calculation Method:

Basic Information

All of the assay data is plotted on plans and sections to be used for zone interpretations.

The ore reserves are calculated on 20 scale (imperial measurements) longitudinal sections or plan views in the case of veins dipping less than 45 degrees. Some calculations are done on 10 scale longitudinal using a modified polygon method of blocking.

Each stope and resource area has a section or plan and a work sheet that is kept on file.

The calculated grade, zone width, area of influence and resource or reserve category for each data set (ie. Drill hole or chip sample assays) is entered into a spread sheet. For reserves the expected dilution based on the assumed mining method is included. A separate page for each stope area is maintained.

Minimum Width

The minimum mining width for steep-dipping structures has been increased in 2011 from 5.0 feet to 6 feet.

The minimum mining height for flat structures dipping less than 45 degrees has been increased in 2011 from 8.0 feet to 9.0 feet.

Minimum Strike Length

The minimum strike length for a block is 21 ft (3 sets of chip assays).

Areas of Influence

The radius of influence from a sampled heading is 30 feet for Measured Resource/Proven Reserve (MR/PV).

A MR/PV Block must be exposed by at least one drift and tested between drifts by drilling in a 25 to 30 foot pattern. Where continuity is proven with the drilling, the intervening polygons that are based on the 25 to 30 foot drill pattern may be considered as MR/PV blocks. Drill holes that are only used for MR/PV blocks when the block is otherwise very well defined. This only occurs below the 57 level where there is development on all 4 sides of a massive sheet of continuous ore.

For an Indicated Resource/Probable Reserve (IR/PB) block the radius of influence is an additional 50 feet (30-80 feet from the data). This applies to blocks sampled on two sides by workings a maximum of 150 feet apart where no drilling exists, or above and below a drift where drill hole spacing is greater than 100 feet. For blocks with only drilling a 50 foot radius is used.

Inferred Resource blocks are an additional 50 feet from the IR/PB block (from 80 to 130 ft. from the data). This applies to blocks bounded on one side by a MR/PV or IR/PB. Blocks on a proven mineralized trend that are drilled on a spacing of greater than 100 feet but less than 200 feet are included as an Inferred Resource.

Raises that have been bored are usually ignored in the calculations. Most of the raises are only 42-60" in diameter, and are not representative of the ore width.

Test hole and drift muck data is not used for ore reserve calculations.

Density of Ore

The density or tonnage factor used to convert the volume of the blocks to tons is 11.7 cu ft/ton for all the zones except the Lower D.

The Lower D Zone volumes were converted at a density of 11.5 cu ft/ton due to the additional sulphides that are present.

The density traditionally used in the camp was 12.0 cu ft/ton. There have been a number of studies that suggest that the traditional number was too high and consequently gave an underestimated tonnage. The difference in the tonnage estimate is only about 2.5% between the density used in the past and the current density being used. As this has been applied to all blocks the changed density does not affect the reserve grades.

In 2007 a total of 95 samples was used to measure the density of the SMC zones. These samples confirmed that the density used for the Lower D of 11.5 cu ft/ton was realistic. The other SMC zones varied and it appears that the 11.7 cu ft/ton used overall at Macassa is reasonable. The tonnage difference between 11.5 and 11.7 is less than 2%. This difference is well within the estimation accuracy of the resources and reserves.

The assays of the samples varied from 0.1 ounces of gold per ton (opt) to 42.6 opt and the densities varied from 12.1 cu ft/ton to 10.5 cu ft/ton, however there was no correlation between the grade and the density.

Gold Price

The gold price used for these estimates is CAD $1,350.00.

Cut-Off Grade


1.  Cut-off grades of both 0.18 opt and 0.22 opt are used for resources and
    reserve calculations depending on the location and economics of the
    block. Generally a cut-off of 0.22 opt is required on a whole-block
    basis to achieve profitability. This cut-off is based on a chosen gold
    price and the operating cost forecast. For mining or geotechnical
    reasons some sub-blocks below the cut-off may be included. Blocks that
    grade between 0.18 and the cut-off of 0.22 opt are classified as
    resource blocks. The cut-off grade for near-surface resources (surface
    to -1,000 foot elevation) is 0.12 opt.

The resources at the #2 Shaft are blocks greater than 0.25 opt.

Capping of Assays

Macassa previously used to use a more complex system for cutting assays. The capping system currently in use, is based on a Kinross report by B. Davis (1995). It appears that this simpler single cap method gives much the same results as the old system. It is probably not the final answer. As new ore is found in different settings the capping procedure may need to be modified.

The effect of grade capping can only be truly examined when a large tonnage has been mined and the recovered gold can be compared with forecast for that period.

Grade capping or cutting is necessary at Macassa. The capping practise for the main zones has been used on some of the zones in the SMC. Assays higher than 3.5 opt are cut to 3.5 oz. This capping practise appears to be reasonable.

Some of the zones in the SMC have increased grades much higher than has been normally found in the main zones. This increased grade is also associated with a different style of mineralization. Initial investigation by the Company's geological staff indicated that the historic cutting factor of 3.5 opt was understating the grade of mineralization for the SMC.

The consulting firm of Scott Wilson Roscoe Postle Associates Inc. (SWRPA) was retained in 2007 to investigate, by statistical analysis, 10 of the larger mineralized zones forming part of the SMC. They concluded that there were sufficient data points for a statistical analysis of seven of the 10 zones viewed. As a result, the Company has implemented various higher grade cutting factors for four of the seven zones. These four zones are the New South Zone (7.2 opt ), Lower D North (9.3 opt), Lower D North Footwall (4.8 opt), the #7 and #7 HW Zones (6.4 opt). These new capping levels are now being used on both drill hole assays and underground chip assays.

These revised cutting factors, based on the mean of the assays in the zone plus one standard deviation, are considered to be conservative and are lower than those recommended by SWRPA. Accordingly, the factors may be subject to upward revision as more data points are generated.

Dilution of Reserves

The dilution applied to the reserves depends on the type of stope that is anticipated for the mining blocks. The dilution is added on a stope basis. All dilution is assigned a grade of 0.02 opt.

Dilution has not been added to the resource blocks.

The average dilution included in the Reserves of December 30, 2013 is 24%.

Long hole stopes are diluted by 50-100%, mostly 50%.

Cut-and-fill stopes are diluted 15-50%.

These dilution factors are based on a comprehensive study by Barrick in 1994 and modified on the recent mining experience at Macassa.

Mining Recovery

The recovery of the ore blocks is anticipated at 94.2% of the diluted reserve.

This figure has been applied to all of the reserve blocks but not to the resource blocks.

December 31, 2013 Resources and Reserve:

The resource estimates do not include the reserves.

The reserve estimates are recoverable, diluted and in-situ.

The resources and reserves include previous joint venture partner Queenston Mining Inc. share of resources.

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The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today BZ Media LLC has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and Commercial Drone markets.
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...