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Kirkland Lake Gold Project, Ontario
Overview |
Highlights |
2010 Program | Objective
| Background |
Setting |
Assets |
Production and Resource Tables
Project Overview
| Advancing 4 gold deposits towards production in the
eastern portion of the camp (Gauthier Township)
|
| Five joint ventures with Kirkland Lake Gold Inc. in the
western portion of camp (Teck Township) |
| New joint venture with Newstrike Resources Ltd. In the
central portion of the camp (Lebel Township) |
| 23 properties, 967 mineral claims (15,700 ha)
|
| Past production: 3.4 million ounces
|
| Current-historic mineral resources: 7 deposits, 2.1
million oz.
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2008-09 Highlights
- new NI 43-101 mineral resource at Upper Beaver
- new NI 43-101 mineral resource at McBean - Anoki
- new NI 43-101 mineral resource on South Claims JV
- deep drilling at Upper Beaver intersects high-grade
- drilling identifies open pit potential outlined at Upper
Canada
- deep drillilng intersects high-grade on AK property
adjacent to Macassa mine
- new joint venture formed with Newstrike Resources on
Commodore property
2010 Program
- $15 million exploration budget with drilling on 8
properties employing 12 drill rigs
- advance Upper Beaver, McBean, Anoki, Upper Canada
projects towards pre-feasibility stage over next 2 years
- prepare NI 43-101 resources at Upper Canada and AK
properties
- continue underground JV exploration and resource
development on South Claims and HM joint venture properties
with Kirkland Lake Gold
Objective
The
Company is advancing four of its 100% owned gold deposits in the eastern
portion of the camp located in Gauthier Township towards production. The
goal is to outline a collective mineral resource of 2 million ounces of gold
at the Upper Beaver, McBean, Anoki and Upper Canada deposits and feed a
central milling facility to be constructed on the Upper Canada mine site.
All four deposits are within 6 km of the planned central mill facility all
accessible by an existing road network. In addition to the production
senario, in 2010 exploration will continue to be a prime focus of the
Company both to enlarge our existing deposits as well as targeting the
potential for new discoveries.The Company will also continue the
underground, advanced exploration on the South Claims property with Kirkland
Lake Gold on the new South Mine Complex where we could begin to see
production within the next two years.
Background
Kirkland Lake is one of the most prolific gold camps in North America. This
mining and lumbering community of 10,000 people is located 500 km north of
Toronto and is assessable by paved highways and roads. From 1910 to 1999 the
camp has produced 37.3 million oz. of gold from 25 mines and collectively
amounts to 100 million tonnes mined at a recovered grade of 12.74 g/t. The
camp ranks second in Canada only next to Timmins with respect to total
ounces of gold produced. Gold was first discovered in 1906, in Swastika and
Larder Lake and the first gold was produced from the Swastika mine in 1910.
Production was continuous for 90 years, when in 2000 the Macassa Mine was
closed. In 2002, Kirkland Lake Gold Inc. re-opened Macassa where they are
producing gold at a rate of 100,000 oz/year and is forecast to increase to
200,000 oz in 2011.

Regional and Camp Setting
The Kirkland Lake Gold Camp is located in the south central portion of the
Abitibi greenstone belt and extends east-west along a regional gold
structure (the Larder Lake Break) for 50 km across five townships (Teck,
Lebel, Gauthier, McVittie and McGarry).
The Kirkland Lake Gold Camp is essentially defined by a five-kilometer
corridor around the Larder Lake Break. This major regional structure has
juxtaposed Tisdale assemblage (also known locally as the Larder Lake Group)
mafic to ultramafic rocks against much younger alkalic volcanic and
sedimentary rocks of the Timiskaming assemblage. The Kinojevis (Blake River)
package of mafic volcanics and an isolated package of Upper Tisdale felsic
volcanic rocks, known locally as the Gauthier Group lies north of the
Timiskaming assemblage.

Majority of the gold mines in the camp are located on or near the Larder
Lake Break or subsidiary splays and shears. A characteristic of the gold
bearing structures in the camp is their lateral and vertical extent. At the
Lakeshore mine, operations extended to 2.3 km with ore intersections to 3 km
and at the Upper Canada mine ore was mined to a depth of 1.8 km.
There are three major ore types in the Kirkland Lake camp. In terms of
importance these include “break/vein/breccia type” associated to fault and
shear zones in Timiskaming rocks, “flow ore type” associated to altered
mafic Fe-tholeiitic flow rocks and “green carbonate ore” associated to
altered and deformed ultramafic komatiitic flow rocks.
Property and Assets
With a combination of approximately 1,226 patented, leased and unpatented
mineral claims (19,000 ha) comprising 30 properties the Company controls the
single largest, land package ever assembled in this historic camp covering
30 km along the Larder Lake – Cadillac Break. On 23 properties (1,064 claim
units) the Company owns a 100% interest and on 7 others (162 claim units)
holds joint venture interests.

On the combined property 4 mines (Sylvanite, Upper Canada, McBean and Upper
Beaver) which have produced 3.4 million ounces of gold and where there
exists 7 gold deposits (Upper Beaver, Upper Canada, McBean, Anoki, AK, South
Claims and 180 East) with combined current resources (NI 43-101 compliant)
measured + indicated resources of 2,852,500 t averaging 7.2 g/t (657,200
oz.) and current inferred resources of 2,679,300 t grading 6.8 g/t (582,500
oz). The historic measured + indicated resources are 2,226,560 t grading 6.5
g/t (465,000 oz.) and historic inferred resources of 2,639,378 t grading 4.5
g/t (382,000 oz.). In addition to the deposits there are 50 gold showings on
the property, 14 shafts with underground workings, an exploration office and
a tailings impoundment facility.
Past Production
| Deposit |
Years
|
Tonnes Mined |
Grade Recovered (g/t)
|
Gold
Production
(oz) |
| Upper Canada |
1936-1972 |
4,294,873 |
11.0 |
1,520,503 |
|
Sylvanite |
1927-1961 |
4,580,786 |
11.4 |
1,674,808 |
|
McBean |
1984-1986 |
505,866 |
3.0 |
48,513 |
| Upper Beaver |
1913-1972 |
526,678 |
8.3 |
140,7709 |
| Anoki |
1987 |
24,494 |
4.0 |
3,134 |
| Golden Gate |
1913-1947 |
94,011 |
10.3 |
31,089 |
|
|
|
10,026,708 |
10.6 |
3,418,756 |
Historic Mineral Resources (Non-Compliant NI 43-101)
| Deposit |
Measured + Indicated
Resources |
Ounces
|
Inferred
Resources |
Ounces
|
| Upper Canada ¹ |
1,899,973 t @
6.9 g/t |
422,000 |
|
|
| AK ² |
|
|
2,639,338 t @
4.5 g/t |
382,000 |
| 180 East ³
|
326,587 t @
4.1 g/t |
43,000 |
|
|
| Total |
2,226,560 t @
6.5 g/t |
465,000 |
2,639,378 t @ 4.5 g/t |
382,000 |
¹ RPA/Inco/Queenston :1996/1990/1997
² Cyprus/Queenston : 1995/1997
³ Inco/RPA : 1989/1996
Current Mineral Resources (NI 43-101 Compliant)
| Deposit |
Measured + Indicated Resources |
Ounces
|
Inferred Resources |
Ounces |
| Upper Beaver¹ |
1,373,500 t @
8.5 |
375,000 |
1,061,300 t @
7.7 |
263,000 |
| McBean² |
705,300 t @
4.7 |
105,000 |
1,220,800 t @
4.7 |
185,000 |
| Anoki² |
727,700 t @
4.8 |
111,200 |
337,200 t @
4.8 |
52,000 |
| SMC³ |
44,000 t @ 47.0 |
66,000 |
60,000 t @ 42.5 |
82,500 |
| Total |
2,852,500 T @ 7.2 |
657,200 |
2,679,300 t @
6.8 |
582,500 |
¹ Watts, Griffis and McOuat Limited: 2008
² P&E Mining Consultants: 2009
³ Clarke & Associates Ltd.: 2009, 2010
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