Editor
Infill drilling at Swan returned 6.4m at 598 grams per tonne gold (estimated true width 5.8m); 3.6m at 625gpt gold (ETW 3.3m); 5.6m at 218gpt gold (ETW 5.2m); and 16.5m at 144gpt (ETW 14.4m).
The 17,169m of drilling also showed that visible gold-bearing intercepts continue for up to 200m down-plunge of reserves.
Results from extensional drilling included 3.6m at 251gpt gold (ETW 3.2m); 5.3m at 246gpt gold (ETW 3.8m); 4.6m at 95.3gpt gold (ETW 4.1m); and 5.1m at 59.7gpt gold (ETW 3.7m).
The Swan Zone already has reserves of 1.16 million ounces at 61.2gpt gold and measured and indicated resources of 171,000oz at 116gpt gold.
Kirkland Lake flagged a "significant" increase in resources and reserves, with an update due in February.
President and CEO Tony Makuch said Fosterville continued to generate outstanding operating and exploration results.
"The infill drill results released today clearly demonstrate the continuity of wide, exceptionally high‑grade, visible-gold bearing mineralisation covering 75m down-dip, and extending 100m down-plunge from current Swan mineral reserves," he said.
"We also continue to generate encouraging drill results further down-plunge, with the release of multiple high-grade, visible-gold bearing drill intercepts in a zone extending up to 200m down-plunge of current reserves.
"These intercepts are significant as they increase our confidence that the Swan mineralisation continues for a significant distance down-plunge."
Kirkland Lake will spend US$100-120 million on exploration next year, with the bulk, or $85-100 million to be spent at Fosterville as well as the company's suspended Northern Territory operations.
"Among other key areas of exploration activity, we recently commenced underground drilling to test the down-plunge potential at Harrier South, following the establishment of an underground drill platform," Makuch said.
"Harrier South is a high-potential target, where earlier drill results demonstrated a trend of improving grades at depth with increasing amounts of visible gold, not dissimilar to drill results in the Lower Phoenix system prior to the discovery of the Swan Zone.
"In addition, we are also planning to accelerate resource definition drilling at Robbin's Hill, where we have also encountered an increasing grade profile with visible gold at depth, and continue work on our regional exploration program, with multiple targets being evaluated."
Fosterville's guidance for 2018 has been lifted three times this year, with the latest, released last month, forecasting 330,000oz of production.
Earlier this week, Kirkland Lake announced Fosterville would produce a record 390,000-430,000oz next year at operating costs of $200-220 an ounce, rising to more than 500,000oz in 2020 and more than 570,000oz in 2021.
Kirkland Lake shares closed at a new all-time high of C$33.39 in Toronto overnight, with its market capitalisation cracking the $7 billion-mark for the first time.
In Australia this morning, shares were at A$34.99 after reaching an all-time high of $35.01 during yesterday's session.
CYL Price at posting:
$1.76 Sentiment: Buy Disclosure: Held
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