ONTARIO - The Macassa gold mine in Kirkland Lake has had a rough first quarter of its 2007 fiscal year, reports owner KIRKLAND LAKE GOLD (KLG). Production for the quarter ending July 31 was 12,707 oz of gold rather than the 19,378 oz forecast. The shortfall was due to lowered ore production following a blockage of the paste fill system and dilution from the ore pass system. Both have now been addressed.
"The quarter's operational shortfalls occurred due to problems related to paste filling and longhole mining. To address these problems, management was added, departments were reorganized, and structural investment in the paste fill system was made," said Brian Hinchcliffe, KLG president. "On the other hand, it was the most successful exploration quarter that we have had, and are pleased to see the results from the decision to develop the exploration level to the south."
The company is currently preparing a new resource estimate for the Macassa mine. At the end of the last fiscal year (April 30, 2006), resources in the New Ore System were estimated to contain 411,000 oz of gold, most of which were found this year. The New Ore System, says KLG, is the geological structure that has produced 24 million oz of gold over the last almost 100 years.
Development is complete on the Upper D South sublevels and that area is now producing significant amounts of ore from longhole mining.
Financial highlights of the quarter are available at www.KLGold.com.
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