Kirkland Lake Gold Ltd. (TSX:KL) (NYSE:KL) (ASX:KLA) is pleased to report continued high-grade results from drilling at the Fosterville Mine in Victoria, Australia. Underground drilling continues to target additional growth in Mineral Reserves and Mineral Resources at the high-grade Swan Zone, as well as potential new mineralized structures close to existing infrastructure and the identification of down-plunge extensions of the Lower Phoenix Gold System. The new results include 45 holes totaling 24,888 m that drilled the Lower Phoenix Gold System.

Recent drill results from 21 holes totaling 8,737 m outside of current Measured and Indicated Mineral Resources of the Swan Zone continue to return intervals of exceptionally high grade with visible gold, confirming that high-grade, visible-gold bearing quartz veins extend approximately 100 m down-plunge from current Mineral Reserves, with visible gold detected for another 110 m down-plunge. The results support the potential for high levels of Mineral Resource conversion into Mineral Reserves. Current Mineral Resources in the Swan Zone include 171,000 ounces at an average grade of 116 g/t (Indicated) and 671,000 ounces at an average grade of 36.6 g/t (Inferred). Recent mine development into Swan confirmed the high-grade tenor of the Mineral Resources, with extremely high-grades and abundant visible gold observed at the juncture of the Swan and Eagle structures.

In addition, drill results approximately 125 m footwall (east) of the Swan Zone identified a new, parallel mineralized structure, called Cygnet, which represents a significant opportunity for future Mineral Resource expansion. Results from deep underground drilling included nine holes totaling 7,901 m, which intersected the Lower Phoenix Gold System approximately 750 m down-plunge from the deepest Mineral Resources. The results highlight the considerable depth potential for future growth in Mineral Resources.  

Other components of the Company’s program to significantly grow Fosterville are also advancing. A new exploration drift at Harrier South, being driven to establish underground drill platforms to test for down-plunge extensions of the Harrier South Gold System, has advanced approximately 520 metres. Drilling from the drift is on track to commence later this year.  Previous drilling at Harrier South demonstrated a trend of increasing grades with visible gold in quartz-carbonate veins at depth, comparable to the well documented progression to higher grades in the Lower Phoenix Gold System at similar depths. The Company has also deployed two additional drills at Robbin’s Hill to accelerate testing of the down-plunge potential of recently-reported high-grade, visible-gold bearing quartz-carbonate veins. The Company also continues to test multiple district targets through its Large Ore Deposit Exploration, or LODE, program.

Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “The new drill results at Swan are encouraging and point to another solid increase in Mineral Reserves, at high-grades, when we release our December 31, 2018 Mineral Reserve and Resource estimates. We are also very encouraged by the identification of a new mineralized structure parallel to Swan, which offers the potential for additional growth in Mineral Resources with further drilling. In terms of depth extensions, the intersection of the Lower Phoenix Gold System 750 m down-plunge of our deepest Mineral Resources is a substantial step out that offers significant potential for future growth.

“We are also moving forward with other components of our exploration program. Deep underground drilling at Harrier South will commence later this year. The change in mineralization at  depth at Harrier South has many similarities to the Lower Phoenix Gold System, including increased occurrence of sulfide mineralization enriched with later-stage visible-gold, quartz-stibnite vein-hosted mineralization at depth. At Robbin’s Hill, we have added two additional surface drills, bringing the total to three rigs in operation. We are following up on recently reported high-grade, visible-gold bearing intersections, as well as testing high-potential targets to the south. As well, our $10 million LODE program is continuing, with a number of former open pits and other district targets being investigated as we continue our work to find the next Fosterville Mine.

“Another important area of progress is moving Swan towards production. We have now exposed the Swan mineralization on three levels and have extracted our first Swan ore production located at the intersection of the Swan and Eagle structures. Production from this area was a key contributor to Fosterville achieving record monthly production in June of 31,710 ounces, which resulted from processing 33,296 tonnes at an average grade of 30.4 g/t Au. Ramping up production from Swan over the next two years is a key component of our plan to increase annual production at Fosterville to over 400,000 ounces by 2020.”

Extensive exploration drilling is ongoing in the Fosterville area, with a total of 12 surface and underground drills in operation at both in-mine and regional targets.

Swan Mineralized Zone Drilling Program

Results from the ongoing underground resource drilling program at the Swan Zone continue to demonstrate high-grade continuity down-plunge from current Mineral Reserves. Key intercepts are listed below, with further details provided in the commentary that follows;

Key Gold Intercepts:

• 134 g/t Au⁽¹⁾ over 13.8 m (ETW 11.9m), including 3,441 g/t Au⁽¹⁾ over 0.3m (ETW 0.3m) in hole UDH2553;
• 167 g/t Au⁽¹⁾ over 3.85 m (ETW 3.6m), including 1,776 g/t Au⁽¹⁾ over 0.35m (ETW 0.3m)  in hole UDH2583;
• 191 g/t Au⁽¹⁾ over 2.55 m (ETW 2.2m) in hole UDH2588A;
• 39.1 g/t Au⁽¹⁾ over 9.0 m (ETW 7.4m), including 326 g/t Au⁽¹⁾ over 0.95m (ETW 0.8m)  in hole UDH2554; and
• 26.1 g/t Au⁽¹⁾ over 7.25 m (ETW 6.1m), including 54.0 g/t Au⁽¹⁾ over 2.6m (ETW 2.2m)  in hole UDH2586.

ETW – Estimated True Width, all drill results are presented in Table 1 and all drill collars are listed in Table 2.

(1) – Visible gold intercept.

Since the November 7, 2017 Kirkland Lake Gold News Release, underground diamond drilling has continued to further test the Swan Zone down-plunge from current Mineral Reserves. Reported drill results are from 21 holes (8,737 m), of which 8 contain visible gold mineralization and five intervals of greater than 100 gram-metres (i.e. gold grade x estimated true width)(Figure 2). All reported drill results are outside the December 31, 2017 Measured and Indicated Mineral Resources and highlight the continued significant Mineral Reserve growth potential of Swan, with visible-gold bearing mineralization confirmed to approximately 210 m down-plunge from current Mineral Reserves.

Cygnet Mineralized Zone Drilling Program

Exploration drilling footwall to Swan has intercepted significant sulphide mineralization on a newly-identified west southwesterly dipping structure, Cygnet.  Key intercepts into the Cygnet are listed below, with further details provided in the commentary that follows;

Key Gold Intercepts:

• 15.4 g/t Au over 2.2 m (ETW 2.1m) in hole UDE172;
• 17.2 g/t Au over 1.35 m (ETW 1.3m) in hole UDE169;
• 5.5 g/t Au over 3.45 m (ETW 3.4m) in hole UDE158; and
• 9.3 g/t Au over 2.1 m (ETW 2.0m) in hole UDE147.

ETW – Estimated True Width, all drill results are presented in Table 1 and all drill collars are listed in Table 2.

Drill results returned to date for this structure demonstrate strike continuity of mineralization over a distance of approximately 400 m and dip continuity of mineralization over a vertical distance of approximately 400 m (Figure 3).

The Cygnet structure parallels the Swan structure and is positioned approximately 125 m footwall (east) of the Swan Zone. The north northwest striking mineralized structure transects the eastern limb of an anticline and has an interpreted displacement of approximately 50 m (Figure 4).

Drilling further down‑plunge on the Lower Phoenix system on the 5550mN and 5650mN sections also demonstrates that mineralization exists approximately 700 m down‑plunge of the newly-identified Cygnet Zone.

Cygnet mineralization is untested both up and down‑plunge and presents a Mineral Resource growth opportunity in close proximity to planned infrastructure. Drilling will continue to target the Cygnet structure to increase the geological understanding of this attractive growth target over the remainder of 2018.  

Lower Phoenix South Drilling Program

Results of the ongoing underground growth projects drilling program of the Lower Phoenix South, down-plunge from the Swan Zone, have returned significant intercepts of gold mineralization indicating that the southerly down‑plunge extent of Lower Phoenix mineralization extends at least a further 750 m from existing Mineral Resources.

Key Gold Intercepts:

• 10.7 g/t Au over 16.0 m (ETW 9.4m), including 22.9 g/t Au over 2.2m (ETW 1.3m) in hole UDE175;
• 5.0 g/t Au over 10.3 m (ETW 8.9m), including 16.6 g/t Au over 1.3m (ETW 1.1m) in hole UDE174.

ETW – Estimated True Width, all drill results are presented in Table 1 and all drill collars are listed in Table 2.

A total of nine mineralized drill intercepts over three drill sections define a significant zone of sulphide mineralization associated with a north-northwest striking, west-southwest dipping fault. True widths of sulphide mineralization vary between 0.7 m and 9.4 m and the extent of the mineralized zone extends 300 m laterally and 300 m vertically. The identified mineralization aligns with the down-plunge projection of the Swan Zone and the Company believes there is high potential for connectivity of mineralization between the two zones (Figure 1 and 2). Drilling for the remainder of 2018 is planned to infill drill the gap between this newly- identified Lower Phoenix South mineralization and the Swan Zone. This drilling can be undertaken from the Harrier Exploration Drill Drift link development, which has now advanced from south the north to approximately 6250mN, providing a suitable platform to undertake this drilling.

Swan Zone Underground Development

The Swan Zone has now been accessed on the 4160, 4140 and 4120 m levels with the first stoping ore extracted at the intersection of the Swan and Eagle structures in June 2018 (Figure 5) contributing to the record monthly production of 31,710 ounces of gold produced (Kirkland Lake Gold News Release, July 10, 2018).  High-grade material containing abundant visible-gold has been particularly prevalent at the intersection zones between the Swan and the Eagle structures. The average widths of high-grade mineralization in these intersection zones have exceeded expectations. In Figure 6 of this News Release, a laser scan image along the P4140SFW looking towards the northeast illustrates the Swan Fault and the extent and grade tenor of high-grade hangingwall mineralization.

To view the figures referenced in this News Release, visit the links below.  

http://www.globenewswire.com/NewsRoom/AttachmentNg/650a2ad2-8744-4fcd-b223-a9ef6482be28 – Figure 1

http://www.globenewswire.com/NewsRoom/AttachmentNg/a73cd6c7-24ce-44c3-a8e9-45d60ef96981 – Figure 2

http://www.globenewswire.com/NewsRoom/AttachmentNg/79670f7c-c521-4df3-ba61-deff5364a9cb – Figure 3

http://www.globenewswire.com/NewsRoom/AttachmentNg/f3b0d2c3-c367-4331-b6aa-a9125c0017ab – Figure 4

http://www.globenewswire.com/NewsRoom/AttachmentNg/22c1efce-42d0-4630-b1a2-b6b6020951d4 – Figure 5

http://www.globenewswire.com/NewsRoom/AttachmentNg/7b448cc4-1acc-4030-ab7a-261e53dad787  – Figure 6

Qualified Persons

Troy Fuller, MAIG, Geology Manager, Fosterville Gold Mine, 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 Underground Sampling Assay QAQC

Kirkland Lake Gold has in place quality-control systems to ensure best practice in drilling, sampling and analysis of drill core. All diamond drill hole collars (Table 2) are accurately surveyed using a Topcon HiPer SR GPS instrument and down-hole deviations are measured by electronic multi-shot cameras.

Sampling consisted of diamond drill core that was half core sampled. Half core samples were cut longitudinally in half with a diamond saw; one-half of the drill core was sent to an independent laboratory for analysis and the other drill core half retained for reference. Sample pulps are returned from the assay laboratory for reference and future geological or metallurgical studies. Drill core sample intervals vary between 0.3 and 1.2m in length and were determined from logging of sulfide and visible gold to geological boundaries.

Samples containing visible-gold or considered likely to contain visible-gold were separated from sulfide gold samples and dispatched independently for assaying. At the laboratory “visible-gold” jobs were processed through a single pulverizer and material barren of gold (‘quartz wash’) was crushed before and after each sample to minimize the potential for gold to contaminate successive samples.  

Assay results are based on 25-gram charge fire assays. Mean grades are calculated using a variable lower grade cut-off (generally 2 g/t Au) and maximum 2m internal dilution. No upper gold grade cut is applied to the data. However, during future Mineral Resource studies the requirement for assay top cutting will be assessed.

Underground face/wall chip sampling is conducted to gain representative gold grades of underground mining faces.  Sample lines are approximately 1.5 m from the floor with sample lengths varying from 0.1 to 1.5m, as determined by major structures, secondary structures, changing rock types and strength of visible mineralization. Individual rock fragments in samples are no larger than a clenched fist. Samples are collected in calico bags and weigh between 1 to 3 kilograms.   

All drilling and underground chip samples were assayed at On Site Laboratories, an independent laboratory in Bendigo, Victoria. The facility is registered ISO 9001:2008 (CERT-C33510).

About Kirkland Lake Gold Ltd.

Kirkland Lake Gold Ltd. is a mid-tier gold producer with 2018 production targeted at over 620,000 ounces of gold from mines in Canada and Australia. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northeastern 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 and operational expertise.