KL Gold Reports Record Q1 Gold Sales of 21,014; New Paste Fill Hole 60% Completed
02:00 EDT Tuesday, August 18, 2009
KIRKLAND LAKE, ONTARIO--(Marketwire - Aug. 18, 2009) - Kirkland Lake Gold Inc. (the "Company") (TSX:KGI)(AIM:KGI), an operating and exploration gold mining company located in Ontario, Canada, is pleased to report its gold sales and production performance for fiscal Q1, 2010, ending July 31, 2009.
During the quarter, the Company poured and sold 21,014 ounces of gold and produced 17,135 ounces of gold. This production was achieved despite the challenges faced by operations after the surface to 3400 Level pastefill system borehole blocked on June 23rd, as reported in the news releases dated July 7th, 2009 and July 21st, 2009. The sale of 21,014 ounces for the first quarter was a quarterly record for the Company.
Subsequent to the July 21st release, as the Company continued its efforts to clear the remaining blockage following the successful drilling of a three inch hole through the plug, large pieces of cave rock were found in the hole. It was determined that the twelve inch bore hole had collapsed after eighteen years of service, and that efforts to re-open and to continue to use the hole had a low probability for success.
In mid July, a replacement four inch paste hole was started from surface. The new hole has progressed on target and is 60% complete. The underground drifting required to intercept the hole and create a functioning paste system is underway. An early to mid September resumption of paste fill activities is now being targeted. Mining crews affected by the fill delay have been relocated to other production, exploration, or capital heading work.
A second four inch back up pastefill hole will be drilled after completion of the first hole (see diagram 1). The Company expects the new holes to generally improve the reliability of pastefilling operations as a four inch hole is easier to maintain and work with than a twelve inch hole.
"We thank our operations team for delivering a strong quarter working against the circumstances as they have," said Company Chairman Harry Dobson. "We look forward to putting production back on track in September and delivering our targeted quarterly production of 25,000 ounces on a consistent basis."
