Kirkland Lake Gold (KGI) – Quarterly Results

Kirkland Lake Gold Inc, an operating and exploration gold mining company located in Ontario, Canada, has announced its second quarter results for the three months ended October 31st, 2008.  

Operational highlights for fiscal Q2 2009
• Gold production was 8,327 ounces in the quarter; a decrease of 9% compared to the previous quarter (Q1/09 9,193 oz) due lower ore tons hoisted caused by a shortage of developed mining stopes.  Management is working actively to increase the number of developed stopes available for mining in the ’04 Break and bring the South Mine Complex (‘SMC’) into production.
• The amount of capital development increased from the previous quarter by 24% to 1,116 feet of vertical and lateral development (Q1/09 898 feet) which is required to bring the SMC into production.
• Kirkland Lake signed a Letter of Intent with J.S. Redpath to bring the SMC into production on a seven day a week basis. (Press release dated Oct 29 2008).
• The exploration programme is well underway with 35,500 feet of drilling taking place during the quarter (Q1/09 30,000 feet). High-grade intersections in a new zone related to the Lower D North Zone included drill holes 53-1028 (4.14 opt over 13.3 feet true width) and 53-1027 (1.24 opt over 8.4 feet true width). New intersections on the YYZ Zone included drill holes 53-1030 (3.05 opt over 7.4 feet true width) and 53-1144 (0.61 opt over 4.4 true width).
• Drilling on the South Claims (joint venture with Queenston Mining Inc.) during the quarter returned 2.42 opt over a true width of 3.0 feet (drill hole 53-1085) and 1.82 opt over a true width of 4.7 feet (drill hole 53-1087).  These intersections have further expanded the New South Hanging wall Zone west towards the 100% owned KGI property.
• Compared to the previous quarter, the number of full time employees rose by 4% from 224 to 234. The recruitment included Mark Tessier being appointed as Vice President of Operations, a new Chief Mine Engineer and other engineering staff including junior mine planners and surveyors to facilitate the next stage of project development. 

Financial highlights for fiscal Q2 2009
• Gold revenues achieved were $8.8 million, an 18% increase compared to last quarter (Q1/09: $8.0 million), reflecting a 10% increase in ounces sold and 1% increase in the realized gold price in Canadian dollars.
• There was an operating loss of $4,8 million or $0.09 per share, which compares with a loss of $3,4 million the previous quarter and a loss of $2,4 million for the same quarter in fiscal 2008.
• Operating expenses increased 18% compared to last quarter to $11.9 million (Q1/09: $10.1 million). The increase in expenses was largely due to an a change in levels of gold in inventory of $1.3 million, as well as increases in general expenses ($214,279), mining ($77,071) and milling ($79,676) costs. 
• Cash resources as at October 31, 2008 were $23 million.  These funds are expected to be sufficient to fund the Company’s planned exploration and development activities for the next 12-18 months.

Harry Dobson, Kirkland Lake’s Chairman, commented;
“There have been some significant corporate developments over the past quarter. The hiring of key staff demonstrates the Company’s commitment to bringing the high grade SMC into production as quickly as possible and we are in the fortunate position in these difficult times of having sufficient cash resources available to fully fund our 2009 exploration and development programme.”