click to edit master title style · 2020. 7. 9. · macassa mine complex kirkland lake gold canada...

Click to edit Master title style

• Click to edit Master

text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level

TSX:KGI 1 klgold.com

TSX:KGI

JTVIR Conference | March 31, 2016

Presenter: George Ogilvie, P.Eng | President & CEO

GROWTH & VALUE

Creating an Ontario

Focused Intermediate

Gold Producer



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level

TSX:KGI 2 klgold.com TSX:KGI klgold.com 2

Forward Looking Statements

Cautionary Note Regarding Forward Looking Statements.

This presentation 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”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the

Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Presentation include, but may

not be limited to; statements regarding the Company’s combined production guidance for 2016, and guidance from the Macassa Mine

Complex for the financial years ended 2017 and 2018 the exploration programs and the results and timing thereof, the integration of the

East Timmins Operations resulting from the SAS acquisition, and the timing thereof.

In respect of the forward-looking information concerning the anticipated completion of the proposed Transaction and the anticipated timing thereof,

Kirkland Lake has provided them in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the time

required to prepare and mail shareholder meeting materials, including the required information circular; the ability of the parties to receive, in a

timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely

manner, the other conditions to the closing of the Transaction. These dates may change for a number of reasons, including unforeseen delays in

preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the

need for additional time to satisfy the other conditions to the completion of the Transaction. Accordingly, readers should not place undue reliance on

the forward-looking information contained in this news release concerning these times.

With respect to the forward looking information of Kirkland Lake and/or St Andrew, concerning the future gold production of Kirkland Lake and St

Andrew, future cash costs of production, the gold resources and reserves of Kirkland Lake and St Andrew, and the development of the Kirkland

Lake and St Andrew properties are subject to various key assumptions described in each party’s respective Annual Information Forms and

Technical Reports referred to herein and as filed on the SEDAR profiles of both companies at www.sedar.com.

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 such as, without limitation, opinion, assumptions and estimates of management regarding the Company’s business, its ability to increase

its production capacity and decrease its production cost. Such opinions, assumptions and estimates, 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 statements. These

factors are discussed in length in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2015.

and the Company’s Management's Discussion and Analysis for the interim period ended October 31, 2015 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 to 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.



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Creating A New Mid-Tier Gold Producer

STRONG LEADERSHIP

ROBUST PRODUCTION AND ASSET DIVERSIFICATION FROM 4 MINES

INCREASED FINANCIAL FLEXIBILITY AND SOLID BALANCE SHEET

EXPLORATION POTENTIAL IN TWO HISTORIC CAMPS WITHIN THE ABITIBI

SUSTAINABLE, PROFITABLE

MID-TIER GOLD PRODUCER

• Strong leadership from an experienced board of directors

and management team with proven results

• Ontario Focused Gold Producer targeting between

260-310Koz’s in 2016

• Asset diversification with 4 mines and 2 mills

• Healthy balance sheet with >$100 million in cash*

• Combined strong future cash flow generation

• Operational and corporate cost saving synergies

• Consolidation of large land holdings in the heart of two

Ontario gold camps

• Robust level of reserves and resources with 2.3 Moz’s of

P&P reserves, 4.7 Moz’s of M&I resources plus an

additional 3.9 Moz’s of inferred resources.

• Enhanced market profile with extensive coverage

universe and increased trading liquidity

• Combined entity has stronger market positioning

• Benefits with all Canadian assets leveraged to the

Canadian dollar gold price

* $120 million in debt (convertible debentures)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Experienced Team

Eric Sprott 2 Non-executive Chairman Barry Cooper, B.Sc., MBA 1 Non-executive Director

Michael Churchill, MBA 4 Non-executive Director Pamela Klessig, P.Geo. Non-executive Director

Barry Olson, M.Sc. 1 Non-executive Director Jeffrey Parr, CPA-CA, BA, MBA 1 Non-executive Director

Dawn Whittaker, LLB Non-executive Director George Ogilvie, P.Eng. Director

George Ogilvie, P.Eng. President & Chief Executive Officer

Perry Ing, CPA-CA, CPA (Ill), CFA 3 Chief Financial Officer

Chris Stewart, P.Eng. VP Operations

Doug Cater, P.Geo. 5 VP Exploration

Keyvan Salehi, P.Eng., MBA 5 VP Corporate Development

Jennifer Wagner, LL.B. Legal Counsel

Suzette N Ramcharan, CPIR Director, Investor Relations

Kevin Fearn, BA, CHRP, CHRL Director, Human Resources

Board of Directors

Senior Management

1 Appointed October 2014; 2 Appointed February 2015; 3 Appointed November 2015, 4 Appointed January 25, 2016, 5 Appointed

February 1, 2015



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


KGI Relative Share Price Performance

0%

25%

50%

75%

100%

125%

150%

175%

200%

225%

250%

275%

300%

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Kirkland Lake (TSX:KGI) Gold Price (US$ / oz)

3%

153%



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Financial Position

CASH C$109.5 million 1

DEBT C$119 million 3 convertible debentures

(principal amount owing)

KGI.DB: 6% coupon/ $15.00 strike

C$56.9MM mature Jun/2017

KGI.DB.A: 7.5% coupon/ $13.70 strike

C$62.1MM mature Dec/2017

NCIB allows KGI to purchase up to 10% of each issue within a 12

month period commencing April 3, 2015, and can be renewed

annually 3

ROYALTY 2.5% NSR Franco Nevada Corporation

Option to buyback 1% by October 31, 2016, at a cost of

US$36MM less any money paid against the 1%

52 Week Performance March 25, 2016

HIGH C$9.53

LOW C$4.49

Current Share Price C$8.52

Major Shareholders (~40%) 2

Resolute Funds (~7%)

Eric Sprott (~7%)

Columbia Asset Management LLC (~5%)

Abramson Family (~5%)

Van Eck Associates Corporation (~4%)

Harry Dobson (~3%)

Sprott Asset Management (~3%)

Sentry Select (~3%)

CAPITAL STRUCTURE 2

ISSUED SHARES 114.3 million

Stock Options ~4.5 million

FULLY DILUTED ~118.8 million

MARKET CAP ~860 million

1 As at February 19, 2016: 2 As at March 1, 2016

3 As of January 18, 2016, see press release dated April 1, 2015 for details on the NCIB



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Diversified Assets In A Prolific, Mining Friendly Region

East Timmins Assets

2015E Production 107 koz Au

Q3 2015 AISC* US$934/oz Au

Holt Mill 3,000 tpd (75% utilized)

Resources & Reserves*

Total P&P

(including Hislop Mine) 0.8 Mozs (5.3 g/t Au)

Measured & Indicated

(Property Wide) 2.7 Mozs (2.4 g/t Au)

Inferred


Holt Mine 591 kozs (4.8 g/t Au)

Taylor Mine 156 kozs (6.3 g/t Au)

Holloway Mine 40 kozs (5.4 g/t Au)

Macassa Mine Complex

SY 2015E Production 103 koz Au

SY2015 AISC* US$977/oz Au

Macassa Mill 2,000 tpd (50% utilized)

Reserves & Resources*

Total P&P Reserves

(Macassa Mine Complex) 1.5 Mozs (19.2 g/t Au)

Measured & Indicated


Inferred (Property Wide) 1.7 Mozs (19.2 g/t Au)

*Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure

(www.kllgold.com; www.sasgoldmines.com)

Assets in close proximity

within an 80km radius,

accessed by provincial

highways.

QUÉBEC

* AISC is a non-GAAP measure, see SY2015 MDA for reconciliation of non-GAAP measures;

* Last public reported financials for St Andrew Goldfields was for Q3, 2015



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


A Corner Stone

High-Grade Asset

MACASSA MINE

COMPLEX



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


One of the Highest Grade Gold Mines In The World Select Group of Producing Assets with +1Moz’s in Reserves

Mine Operator Location Gold Grade Reserves Reserve Update

g/t Au Date

Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) 19.2 1.5 Moz Dec/2014

Turquoise Ridge Barrick USA (Nevada) 16.9 4.2 Moz Dec/2015

Dvolnye Kinross Russia 15.0 1.0 Moz Dec/2015

Moab Khotsong AngloGold Ashanti South Africa 10.1 5,5 Moz Dec/2014

Mponeng AngloGold Ashanti South Africa 9.6 12.1 Moz Dec/2014

Red Lake Goldcorp Canada 9.1 2.1 Moz Dec/2015

Kupol Kinross Russia 8.5 2.1 Moz Dec/2015

TauTona AngloGold Ashanti South Africa 8.1 1.2 Moz Dec/2014

19.2

15.3 15.0

10.1 9.6 9.1 8.5 8.1

0.0

5.0

10.0

15.0

20.0

25.0

Macassa MineComplex

Turquoise Ridge Dvolnye Moab Khotsong Mponeng Red Lake Kupol Tau Tona

Gra

de g

/t

Reserve Grades

Company Source – This is a select group of Companies that illustrate producing mines only with mineral reserves in excess of 1Moz’s (gold only, no equivalent Au ounces shown)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Robust Level of Reserves & Resources Resources are Exclusive of Reserves

See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.

Based on current level of reserves and a

conservative 70% conversion of M&I

resources (@ 200,000 oz p.a),

KGI has a 14 year mine life.

Property Wide SMC

Mineral Reserves (P&P)

Includes the ’04/ Main Break

and SMC

1.5 Moz’s

2.6M tons @ 0.56 opt

(19.2 g/t )

0.9 Moz’s


(22.3 g/t)

Mineral Resources (M&I)

Includes the ’04/ Main Break,

SMC, Near Surface and other

2.0 Moz’s


(16.8 g/t )

0.9 Moz’s


(22.6 g/t)

Mineral Resources (Inferred)

Includes the ’04/ Main Break,

SMC, Near Surface and other

1.7 Moz’s


(19.2 g/t)

0.9 Moz’s


(22.3 g/t)

Breakout of

SMC only



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


5025 Level

P+P 28,000 Tons @ 0.48 oz/ton 14,000 Oz’s M+I 74,000 Tons @ 0.42 oz/ton 32,000 Oz’s

5300 Level


5400 Level


5600 Level


5700 Level


South Mine Complex

Access from 5400L

and 5600L allows

delineation drilling of

resources, especially

below 5600L

Remains Open at

Depth and Across

Strike OPEN

*Drawing not to scale

5800 to 6600 Level


OPEN

OPEN

16.5 g/t

16.1 g/t

20.9 g/t

26.4 g/t

35.3 g/t

28.5 g/t



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


-

50,000

100,000

150,000

200,000

250,000

14 15 SY15 16 17 18

Go

ld O

un

ce

s

OzRecovered

Guidance

Linear (OzRecovered)

April 30th Fiscal Year End Calendar Year End 8 Month Stub Year

Growing Production Profile

The Stub Year (SY) 8 month period runs from May 1 – December 31, 2015. Recovered 102,597 ounces at a head

grade of 0.42 opt (14.1 g/t), recoveries of 97.1% and achieved an average throughput of 1,016 tpd.

2016, 2017 and 2018 guidance based on stated head grade and average throughput of 1,130, 1,140 and 1,145 stpd

respectively.

0.38/ 13.0 0.37/ 12.7 0.43/ 14.7 0.44/ 15.1 0.45/ 15.4 0.46/ 15.8 Guided Head Grades (OPT/ GPT)

0.33/ 11.3 0.43/ 14.7 0.42/ 14.4 - - - Actual Head Grades Achieved (OPT/ GPT)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


AICC by Quarter

$0

$500

$1,000

$1,500

$2,000

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/SY15 Q2/SY15 Q3/SY15

Royalties

Exploration(including surface)

Corporate (incl.Finance & Interest)

PP&E

CapitalDevelopment (incl.Sustaining and New)

Operating Costs

Co

st

in C

$ p

er

Ou

nce P

rod

uced

Fiscal Year

FISCAL 2015

AICC C$1,338/ Oz

Average Sales Price C$1,483/ Oz



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Exploration Potential In A Historic Camp

Currently mining and

exploring on one of the

five mine targets.

Current Underground

Drilling Targets: Two

main areas currently

being explored from

underground.

Regional Surface

Drilling Program:

Regional exploration to

test eastwards along

strike.



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


‘04 Break Underground Drilling

See press release dated February 23, 2015

SELECTED

HIGHLIGHTS

DH 34-666

86.8 g/t / 0.7 metres (2.53 opt/ 2.4 feet)

DH 34-668

27.4 g/t / 1.3 metres 0.80 opt/ 4.4 feet



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


The SMC Continues To Grow

See press releases dated June 9, 2015 and October 20, 2015, as filed on SEDAR

Area’s currently

being mined

Recent drilling has extended and confirmed the continuity of the SMC at depth and further to the east

on the HM Claim.

Will continue to drill from underground to find new mineralization, and in order to move mineralization

from inferred into the measured and indicated categories for future resource and reserve expansion.

SELECTED

HIGHLIGHTS

DH 53-2881 (NSZ)

67.9 g/ 5.0 metres 1.98 opt/ 16.7 feet

DH 53-2882 (NSZ)

14.7 g/ 3.5 metres 0.43 opt/ 11.0 feet

DH 53-2883 (NSZ)

16.5 g/t 2.7 metres 0.48 opt/ 9.0 feet

DH 53-2886 (FWZ)

383.3 g/ 2.6 metres 11.18 opt/ 8.5 feet



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Investing In Our Future

• Initial results from our regional program do not appear to be Main Break related (Phase 1)

• Geophysics anomalies identified and follow-up targeting exercise completed as part of Phase 1a

• Phase 1a program has 2 remaining holes in progress.

• Phase 2 will target the Main Break at depth and consist of infill drilling.

Kirkland

Minerals



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Regional Drilling – Section Looking East

SELECTED HIGHLIGHTS

AB-15-12

11.7 g/ 0.3 metres

0.34 opt/ 1.0 feet

AB-15-23 3,241.4 g/ 0.7 metres

94.54 opt/ 2.3 feet

11.7 g/ 0.3 metres

0.34 opt/ 1.0 feet

AB-15-53 12.3 g/ 0.5 metres

0.36 opt/ 1.7 feet

AB-15-91 646.3 g/ 0.9 metres

18.85 opt/ 2.8 feet

including 1,783.2 g/ 0.3 metres

52.01 opt/ 1.0 feet

And 89.5 g/ 0.3 metres

2.61 opy/ 1.0 feet

See press release dated November 3, 2015, as filed on SEDAR



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Sustainable Assets

EAST TIMMINS

ASSETS



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


East Timmins Assets

Holt, Holloway, Taylor Producing Assets

Hislop Care & Maintenance

Ludgate, Aquarius Exploration Targets with existing resources

Garrison Creek Exploration Target

120km strike of contiguous land straddling the Porcupine-Destor Fault Zone

Blackfox Mine & Greyfox

Deposit (Primero Mining)

Aquarius

Hislop

Ludgate

Garrison

Creek

120km

N

Fenn-Gibb Deposit

(Lake Shore Gold)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


East Timmins Operations

Holt Mine

• ~1,200 tpd operation

• Reserves of 591 koz’s at 4.75 g/t

• ~ 7 year mine life based on current level of reserves

• Exploration potential further to the west and down-dip of main zone

Taylor Mine

• ~550 tpd operation

• Declared commercial production in November 2015


• ~ 4-5 year mine life based on current level of reserves

• Exploration potential at depth and along strike

Holloway Mine

• ~500 tpd operation


• ~ 2 year mine life based on current level of reserves

• Exploration potential further to the east and down-plunge of main zone



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Holt Mine – Long Section

All figures are rounded.


P&P Reserves M&I Resources Inferred Resources

Holt Mine (All Zones) 591 koz

3.9Mt @ 4.8 g/t Au

957 koz

7.6Mt @ 3.9 g/t Au

1.2 Moz

7.9Mt @ 4.7 g/t Au

Zone 4

(includes Zone 4 East)

201 koz

1.5Mt @ 4.3 g/t Au

544 koz

4.4Mt @ 4.0 g/t Au

23 koz

0.2Mt @ 4.0 g/t Au

Zone 4 West Extension - - 861 koz

5,552,000 @4.82g/t Au

Zone 6 147 koz

0.8Mt @ 6.0 g/t Au

48 koz

0.2Mt @ 7.6 g/t Au

28 koz

0.1Mt @ 7.9 g/t Au

Ghost Zone 152 koz

1.0Mt @ 4.5 g/t Au

159 koz

1.4Mt @ 3.4 g/t Au

92 koz

0.8Mt @ 3.7 g.t Au

500 m

Surface

Shaft Bottom (1.2km)

Ghost Zone

Zone 6

Zone 4

Zone 4 West

Extension

• Current production is derived

from Zone 4 (~1,000tpd) and

Zone 6 (~250tpd)

• Ore is crushed underground and

skipped to surface for processing

at the Holt Mill

View looking north



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Holloway Mine – Long Section

Surface

P&P Reserves M&I Resources Inferred Resources

Holloway Mine

(All Zones)

40 koz

0.2Mt @ 5.4 g/t Au

117 koz

0.8Mt @ 4.6 g/t Au

389 koz

0.2Mt @ 4.9 g/t Au

Smoke Deep Zone 24 koz

0.1Mt @ 5.3 g/t Au N/A N/A

Blacktop Zone 16 koz

89kt @ 5.5 g/t Au N/A N/A

Middle Zone - 24 koz

0.2Mt @ 4.2 g/t Au N/A

Deep Thunder/

Canamax - -

350 koz

2.2Mt @ 4.9 g/t Au



500 m

Shaft Bottom (867m)

Smoke Deep Zone

Blacktop Zone

Canamax Zone

Deep Thunder

Zone

View looking north

Middle Zone

• Current production is derived predominantly from the Smoke Deep Zone, with a small contribution from the Blacktop Zone (~550tpd)

• Ore is crushed underground, skipped to surface, and trucked 1km to the Holt Mill for processing

Lightning Zone



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


150m

Taylor Mine – Long Section

Zone P&P Reserves M&I Resources Inferred Resources

WPZ 156 koz’s

0.8Mt @ 6.3 g/t Au

239 koz’s

1.6Mt @ 4.6 g/t Au

222 koz’s

1.7Mt @ 4.0 g/t Au

Shoot Zone - 116 koz’s

0.7Mt @ 5.2 g/t Au

3 koz’s

20kt @ 5.2 g/t Au

Shaft Zone - - 32 koz’s

205kt @ 5.0 g/t Au

Surface

Bourgois Claim Shoot Zone



• St Andrew declared commercial production at Taylor in November 2015

• Estimated annual production of between 30 - 40 koz’s of gold (~550tpd run rate)

• Ore is trucked approximately 70km to the Holt Mill for crushing and processing

• Mineralization remains open at depth and along strike

Bulk Sample

#1

Bulk Sample

#2 1004 Lens

1006-1 Lens

1008-1 Lens

1008-2 Lens

100m

250m

350m 1006-2 Lens

500m

View looking north

OPEN

Underexplored Area



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


2016 Outlook and Expectations

Initial Guidance

Consolidated 2016 Production 260,000 – 310,000 ounces

Cash Costs Per Ounce US$600-$690

All-In Sustaining Costs Per Ounce ~US$950

2016 News Flow

Stub Year 2015 YE Earnings March 10

Q1/2016 Consolidated Production April 14

Updated Guidance April (on or before April 15)

Q1/2016 Consolidated Earnings May 16



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


APPENDIX

Notes, additional disclosure

and other information



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Macassa Mine Complex - Capital Expenditures

22.4 30.9

45.8 46.9 55.0

41.5

26.5

9.7

28.9

24.5

44.0 29.6

6.0

7.1

0

10

20

30

40

50

60

70

80

90

100

F2010 F2011 F2012 F2013 F2014 F2015 SY2015

Capital Expenditures (Mineral Properties) PP&E

C$

Mill

ions

Project Capital was Completed in January 2014

C$9M in Capital Development of 5400L and SMC Main Decline to 5600L Spent in FY15

SY2015 Mineral Properties Expenditure guidance reduced from $18MM to $11MM, due to

delayed delivery of new equipment purchases.



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


Regional Exploration – Plan View



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


East Timmins Assets – Holloway Mine, Smoke Deep Zone

Holloway

Exploration Program: • Smoke Deep Zone –

Open at Depth Plunging

to the East

View looking north



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


East Timmins Assets – Hislop North Project



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


KGI Reserve & Resource Estimates Resources are exclusive of Reserves

Grade Grade Au Grade Grade Au Grade Grade Au

opt g/t (000's) opt g/t (000's) opt g/t (000's)

'04 & Main Break 545 0.43 494 14.7 236 583 0.48 529 16.5 278 1,128 0.46 1023 15.8 514

South Mine Complex 346 0.51 314 17.5 177 1,120 0.69 1016 23.7 773 1,467 0.65 1,331 22.3 949

Macassa Mine Complex 891 0.46 808 15.8 412 1,703 0.62 1,545 21.3 1,051 2,595 0.56 2,354 19.2 1,463

Proven

Tonnes

(000's)

Tons

(000's)

Tonnes

(000's)

ZoneProbable Proven & Probable

Tons

(000's)

Tonnes

(000's)

Tons

(000's)

MINERAL RESERVES - As at December 31, 2014

Note: Columns may not add due to rounding. Macassa Mine Complex reserves the ’04 & Main Break and the SMC.

MINERAL RESOURCES - As at December 31, 2014

Grade Grade Au

opt g/t (000's)

04 & Main Break 485 0.41 440 14.1 201

SMC 1,358 0.65 1,232 22.3 876

Near Surface Target 100 0.42 91 14.4 42

Property Wide 2,114 0.56 1,918 19.2 1,777

ZoneTons (000's) Tonnes (000's)

InferredNote: Columns may not add due to rounding. Property Wide resources include the ’04 &

Main Break, SMC, Near Surface Target, as well as peripheral resources blocks (such as

the Lakeshore Ramp).

Grade Grade Au Grade Grade Au Grade Grade Au

opt g/t (000's) opt g/t (000's) opt g/t (000's)

04 & Main Break 1063 0.4 964 13.7 430 1148 0.42 1041 14.4 483 2,211 0.41 2006 14.1 913

SMC 33 0.37 30 12.7 12 1377 0.67 1249 23.0 917 1,410 0.66 1279 22.6 929

Near Surface Target - - - - - 330 0.34 299 11.7 112 330 0.34 299 11.7 112

Property Wide 1106 0.4 1003 13.7 447 3,096 0.52 2,809 17.8 1,599 4,202 0.49 3,812 16.8 2,047

Measured

Tons

(000's)

Tonnes

(000's)

ZoneIndicated Measured & Indicated

Tons

(000's)

Tonnes

(000's)

Tons

(000's)

Tonnes

(000's)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


QP Info and Notes to Reserves & Resources

The reserve and resource estimates have been audited and verified, and the technical disclosure in the press release dated April 13, 2015, has been

approved, by the Company’s independent reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. Mr. Clark

is a ‘qualified person’ under National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. The

report detailing the December 31, 2014, reserve and resource estimates is available on SEDAR (www.sedar.com). See ‘Notes for Reserves and

Resources’ below for key assumptions, parameters and methods used to estimate the foregoing reserves and resources.

Notes for Reserves and Resources:

The reserves and resources have been classified according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral

Resources and Reserves: Definition and Guidelines (December 2005).

1. The reserves and resources are estimated using the polygonal method.

2. Resources do not include reserves.

3. All intersections are calculated to a 6.0 foot minimum horizontal mining width for structures dipping at greater than 45 degrees. The minimum

mining height for structures dipping less than 45 degrees is 9.0 feet.

4. Dilution is added to reserves at varying rates depending on the mining method, and the width of the ore. The average dilution of the reserves at

December 31, 2014, is 27% at 0.02 opt, marginally up from an average of 24.0% the previous year. Long-hole stopes are diluted by anywhere

between 50-100% (mostly 50%). Cut and fill stopes are diluted by anywhere between 10-50%.

5. All higher grades are cut to 3.50 opt. Based on a statistical analysis completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the

Company has implemented various higher grade cutting factors for four zones in the South Mine Complex. These four zones are the New South

Zone (7.20 opt), Lower D North (9.30 opt), Lower D North Footwall (4.80 opt), and the #7 and #7 HW Zones (6.40 opt). Cut-off grades of 0.22 opt

and 0.18 opt are used for reserve and resource calculations respectively, depending on the location, and economics of the block. Generally, a cut-

off of 0.22 opt is required on a whole-block basis to achieve profitability and reserve classification. It is possible to have sub-blocks within an ore

reserve block that assay less than any cut-off which have been incorporated for mining or geotechnical reasons. Ore blocks that grade between

0.18 opt and the cut-off of 0.22 opt have been classified as resource. The cut-off grade for near-surface resources (surface to -1,000 foot

elevation) is 0.12 opt. An internal report completed by Roscoe Postle and Associates in October 2014, suggest that the cutting factor for

mineralization on the Amalgamated Trend be set at 2.50 opt. This grade capping was implemented by the Company and incorporated in the

estimates for 2014.

6. The area of influence of the proven and measured categories are 30 feet from development chip samples, probable and indicated categories are

50 feet of radius from a known sample point (drill holes) and inferred is another 50 feet of influence (between 50 – 100 feet).

7. A 94.2% tonnage recovery is used. Continuity of the veins appears very good.

8. The assumptions used include CAD$1,350.00 (US$1,200) per ounce of gold.

9. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect

its estimate of mineral resources.

10. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

http://www.sedar.com/



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


East Timmins Assets – Mineral Reserves & Resources

Total Reserves Measured Indicated Measured +

Indicated Inferred

Tonnes

('000)

Grade

(g/t Au)

Ounces Au

('000 oz)

Tonnes

('000)

Grade

(g/t Au)

Ounces Au

('000 oz)

Tonnes

('000)

Grade

(g/t Au)

Ounces Au

('000 oz)

Tonnes

('000)

Grade

(g/t Au)

Ounces Au

('000 oz)

Tonnes

('000)

Grade

(g/t Au)

Ounces Au

('000 oz)

Holt 3,866 4.75 591 3,702 3.97 473 3,861 3.90 485 7,563 3.94 957 7,866 4.67 1,181

Holloway 233 5.35 40 310 4.71 47 482 4.54 70 792 4.61 117 2,479 4.88 389

Taylor 774 6.27 156 0 0.00 0 2,323 4.76 356 2,323 4.76 356 1,951 4.10 257

Hislop 280 5.16 46 0 0 0 983 4.01 127 983 4.01 127 690 4.16 92

Aquarius - 0 0.00 0 22,300 1.29 926 22,300 1.29 926 9 0.79 0

Clavos - 0 0.00 0 503 4.81 78 503 4.81 78 318 4.73 48

Ludgate - 0 0.00 0 522 4.06 68 522 4.06 68 1,396 3.60 162

Canamax - 0 0.00 0 240 5.09 39 240 5.09 39 170 4.26 23

Total 5,153 5.03 833 4,012 4.03 520 31,214 2.14 2,149 35,227 2.36 2,668 14,879 4.50 2,154

As at December 31, 2014 - See website for notes and additional 43-101 disclosure (www.sasgoldmines.com)



text styles

– Second level

• Third level

– Fourth level

» Fifth level


text styles

– Second level

• Third level

– Fourth level

» Fifth level


www.klgold.com

Suzette N Ramcharan, CPIR

Director of Investor Relations

+1-647-361-0200

[email protected]

TSX:KGI
mailto:[email protected]

click to edit master title style · 2020. 7. 9. · macassa mine complex kirkland lake gold canada...

Documents