KIRKLAND LAKE, ONTARIO--(Marketwire - Aug. 30, 2012) - Kirkland Lake Gold Inc., (the 'Company') (KGI.TO)(KGI.L), an operating and exploration gold mining company located in Ontario, Canada, announces the completion of its acquisition of Queenston Mining Inc.'s 50% interest in the seven joint venture properties the two companies owned in the Kirkland Lake camp. The Company paid $20 million at completion, bringing the total paid to date to $30 million. Subject to satisfactory property title registrations being completed for some of the joint venture properties and obtaining governmental approvals for one of the joint venture properties, the final payment of $30 million is due to be paid by the Company on December 3, 2012.
Mr. Harry Dobson, Chairman commented, "We are delighted to have completed this strategically important acquisition. We can now press ahead with a more aggressive surface and underground exploration program that supports our vision to build a 5+ million ounce gold inventory."
About the Company
Kirkland Lake Gold Inc. is an operating and exploration gold company located in Kirkland Lake, ON in the Southern Abitibi gold belt. Its 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 increasing production to 250,000 - 300,000 ounces per year in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production rate.
Cautionary Note Regarding NI 43-101
The disclosure in this release has been reviewed, verified (including sampling, analytical and test data) and approved by Stewart Carmichael, P.Geo., the Company's Chief Exploration Geologist, a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. Mr. Carmichael also supervised the preparation of the information that forms the basis of the technical disclosure in this release. An updated resource estimate for the South Claims as at January 1, 2012 outlines an indicated resource of 132,000 tons grading 1.17 ounces per ton and an inferred resource of 174,000 tons grading 0.99; ounces per ton. These resource estimates were also included as part of the report prepared for the Company dated May 29, 2012 entitled Review of Resources and Reserves of Macassa Mine, Kirkland Lake, Ontario at January 1, 2012 prepared by Glenn R. Clark, P. Eng. This report is available on SEDAR (www.sedar.com) under the Company's filings.
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", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. 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, and 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 statement. 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, 2012 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 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.