🕐28.03.12 - 08:27 Uhr
KIRKLAND LAKE GOLD BUYS OUT JV PARTNER FOR C$60M
Kirkland Lake Gold (AIM & TSX: KGI) purchases the remaining 50pc stake
in the JV with Queesnton Mining, a neighbouring property.
- Purchase price is C$60m, paid in three tranches
o C$10m on signing of agreement
o C$20m at a closing schedule for August 30th, 2012
o C$30m on December 3rd, 2012.
- New territory is an extension of the mineralisation in the
South Mine Complex
- Allows for immediate exploration drilling to add approximately
5 million or more ounces of high grade mineral inventory
- See the map and announcement attached
- Shares can be put in an ISA
Kirkland Lake Gold to Purchase Queenston Minings 50% Stake in Joint
Venture Properties in Kirkland Lake Gold Camp
TORONTO, Canada, March 28, 2012, Kirkland Lake Gold Inc.
(the
Company), an operating gold mining company in Ontario, Canada,
announces it has signed an agreement to acquire Queenstons 50% interest
in the seven joint venture properties the two companies own in the
Kirkland Lake camp.
The acquisition price is $60 million (CAD) to be
paid in installments during calendar 2012 plus a potential production
royalty.
Mr.
Harry Dobson, Chairman commented "We are pleased to have reached a
flexible agreement with Queenston that allows exploration on the South
Claims to start immediately and long term helps advance the Company
towards its goal of developing a 5 million plus ounce high grade mineral
inventory.
This acquisition also strengthens the case for the recently
announced acceleration of our Phase III expansion to 2,220 tons of ore
per day in fiscal 2014.
Lastly, the Companys purchase obligations will
be met through a combination of its cash position, cash flow and various
funding alternatives."
Stew Carmichael, Exploration Manager for the Company commented, "For the
last six years the Companys underground exploration focus has been on
extending the South Mine Complex (SMC) where we have enjoyed success
outlining high grade gold in a large percentage of holes drilled on the
South Claims, HM, and Amalgamated Kirkland claims.
In the short term, we
plan to immediately begin exploration drilling from both underground and
surface on these properties.
Long term exploration plans will include
extending the Macassa -5300 foot level east and establishment of drill
bays for future exploration."
The purchase price of $60 million (CAD) to be paid in three tranches of
which $10 million was paid upon signing of the agreement and, following
the completion of a number of administrative matters, including the
severing of the North Amalgamated Kirkland property from the balance of
Queenstons Amalgamated Kirkland property, a further $20 million will be
paid at a closing scheduled for August 30th 2012.
The final $30 million
payment on December 3rd 2012.
In addition, there will be further
payments if and when the gold produced from these properties exceeds
1,300,000 ounces.
For the first 1,000,000 ounces produced above this
threshold the Company will pay to Queenston $15 an ounce and for any
gold produced above 2,300,000 ounces the Company will pay $20 an ounce.
In 2005 the Company drilled an exploration hole in a previously untested
area south of the historic mineralized area known as the Main Break on
its 100% owned Macassa property that assayed 90 feet of 2.4 ounces of
gold (core length).
Subsequent successful exploration drilling indicated
a trend of the mineralization towards the south onto a property owned by
a third party.
The Company and Queenston jointly acquired this property,
termed the "South Claims", and formed a joint venture to further explore
this trend, which resulted in the SMC gold zones being extended onto
this joint venture ground.
More recently, the trend was further extended
by underground drilling from the Macassa Mine onto the north portion of
Queenstons Amalgamated Kirkland Property.
(See the Companys and
Queenstons press releases dated August 24, 2010 and February 28, 2012).
Other smaller properties were also acquired by the Company and Queenston
on a joint venture basis.
The properties being purchased consist of the South, HM and East Claims
and the North Amalgamated Kirkland and the Kirkland Hudson Properties,
all of which are adjacent to the Companys land position.
The
acquisition also includes the Kirkland Lake West and the Gracie West
Properties to the west, as shown on the attached map (see Figure #1)
which are thought to contain the west extension of the Main Break.
On
completion of the purchase, the Company will have increased its 100%
land ownership to 10 kilometres of strike length in the camp.
Based on drilling through December 2010, the following resources have
been estimated on the South Claims.
Table of Mineral Resources on the South Claims JV Property
Mineral Resource
Category
As at January 1, 2011
Tons
(Tonnes)
Grade
(Au oz/ton)
(gms/tonne)
Ounces
Indicated
101,000
(92,000)
1.41
(48.3)
143,000
Inferred
113,000
(103,000)
1.35
(46.3)
153,000
These resource estimates were also included as part of a broader report
prepared for the Company by Glenn R.
Clark, P.Eng., dated April 4, 2011
entitled Review of Resources and Reserves of Macassa Mine, Kirkland
Lake, Ontario at January 1, 2011.
This report is available on SEDAR (
www.sedar.com ).
About the Company
The Company purchased the Macassa Mine and the 1,450 ton per day mill
along with four former producing gold properties - Kirkland Lake,
Teck-Hughes, Lake Shore and Wright Hargreaves - in December 2001.
These
properties, which have historically produced approximately 22 million
ounces of gold, extend over seven kilometres between the Macassa Mine to
the west and Wright Hargreaves to the east and, for the first time, are
being developed and explored under one owner.
This camp is located in
the Southern Abitibi Greenstone Belt of Kirkland Lake, Ontario, Canada.
--------------------------------------------------------------------------------
CONFIDENTIALITY NOTICE AND LEGAL LIABILITY WAIVER: The content of this email and any attachments are CONFIDENTIAL and may contain privileged information.
If you are not the addressee it may be UNLAWFUL for you to read, copy, distribute, disclose or otherwise use the information contained herein.
The content of the message and or attachments may not reflect the view and opinions of the originating company or any party it is representing.
If you are NOT the intended recipient then please email back to
------------------------------------------------------------------------------------