KIRKLAND MINERALS CORPORATION LIMITED INTERIM PROGRESS REPORT

Transcription

1 KIRKLAND MINERALS CRPRATIN LIMITED UITC 1D3 le BAY BTKCCT TRNT l CANADA liene0099 DAVIS-36-A1 DAVIS 010 INTERIM PRGRESS REPRT T THE SHAREHLDERS: ctber 1st, In view f recent imprtant develpments that culd have far reaching effect n the grwth and future success f the Cmpany the fllwing brief interim reprt has been prepared t keep sharehlders fully apprised f the Cmpany's prgress. PERATINS It is gratifying t reprt that peratins at the Cmpany's prducing gld mine in the Kirkland Lake camp are prgressing in an extremely satisfactry manner with a ttal perating prfit f )1 52, befre cst aid shwn fr the first seven mnths f During this perid a ttal f 4-4,877 tns were milled. Recvery averaged J17.40 per tn giving a ttal value f prductin t July 31st f ^780,0, Csts were kept t an average f J13.78 per tn. This greatly imprved picture is largely the result f a prgram f increased efficiency and cntrl f grade instituted at the Mine last autumn. This prgram invlved the raising f the re grade by cut ting dilutin t a minimum an J eliminating slpes nt f re grade; emplying mre careful mining methds while keeping mine crews and supervisin at a minimum; and reusing all salvageable supplies, has been a prnunced success as evidenced by the abve figures. NRSTAR ACQUISITIN Thrugh cnsummatin f negtiatins during the past few weeks yur Cmpany has been success ful in acquiring 650,000 shares f Nrstar Lake Mines which prvide effective cntrl f that Cmpany. This valuable acquisitin will prvide yur Cmpany with an imprtant new gld venture with the added advantage f diversificatin since the Nrstar hldings are in Davis Twnship, apprximately 25 miles east f Caprel, and apprximately the same distance frm Sudbury, ntari, the hme f Intei- i natinal Nickel Cmpany. Diamnd drilling and surface wrk n the Nrstar prperty has indicated the l pssibility f sme 275,000 tns f Cpper Gld mineralizatin with the prmise f a grade f 1.5*f Cpper and 0.41?.. Gld per tn. Yur Cmpany has let a cntract t Temiskaming-Inspiratin Mining fr the erectin f all min ing buildings necessary and the sinking f a new shaft t 275 feet. In additin 1,000 feet f lateral undergrund wrk will be carried ut t initiate the explratin f the prperty undergrund. MATTAGAMI BASE METALS CAMP In additin t the Nrstar prject the Cmpany has acquired ninety claims in Vezza Twnship in the Mattagami area f nrthwestern Quebec; Canada's httest new b,ise metal camp. This grund is cnsidered favrably lcated and gephysical wrk t pinpint the mst likely areas fr further expl ratin has already been started. N BEHALF F THE BARD, "S. G. TAYLR", President.

2 t* ;. KIRKLAND MINERALS CRPRATIN LIMITED Suite Bay Street - TRNT l - CANADA PRGRESS REPRT T THE SHAREHLDERS? Yur Cmpany's Management is pleased t advise yu that prductin peratins at ur Kirkland Lake Area gld mine cntinue t shw very satisfactry imprvement. While year end figures are nt yet available, we fully expect that ur 1958 peratin will shw jn appreciable prfit, in refreshing cntrast t the lsses experienced in previus years. Anther prmising highlight in ur cntinuing effrt t lcate new re at this mine haj Wen the recent discvery f what may be a new re zne. Current drilling has intersected cmmercial grad; re at pints sme 300 feet apart, in which sme very excellent assays in gld were secured. A still further factr in yur Cm pany's accelerated activities is the prgress f undergrund develpment at the Davis Twnship gld-cpper prperty f Nrstar Lake Mines Limited, which is cntrlled and perated by Kirkland Minerals Limited. These and ther varius aspects f yur Cmpany's activities and achievements t date, are reviewed in greater detail in the fllwing, which is submitted fr yur further enlightenment. KIRKLAND LAKE AREA GLD MINING PRPERTY Bullin prductin fr the first ten mnths f 19 J 8 has already exceeded the utput fr the entire preceding year, with a grss value f SI,040, t the end f ctber, exclusive f E.G.M.A. payments, estimated t idd a further J135, This reflects the prgram f perating efficiencies initi?tcd late last year, which has brught abut clse cst cntrl; arid selective mining techniques which have increased mill-head recveries t an average increase f arund 50S& ver last year's figures. We are cnfident, therefre, that the end f the current fiscal year will see yur Cmpany well n the prfit side, reversing the trend f previus years. A m.it encuraging recent develpment at this prperty has been indicated in current drilling peratins, suggesting the pssibility f a new re zne, in which cmmercial grade re was intersected at tw separate pints, apprximately 300 feet apart, with sme assays running as high as S per tn (uncut) in gld, ver 0.5 feet. The signif ;,incc f this new re rne culd be cnfirmed within the next six weeks as further drilling is cmpleted. bviusly, if this meets expectatins, it might well materially enhance and lengthen the prductive life f the mine. NRSTAR LAKE MINES' UNDERGRUND PRGRAM Recently yur Cmpany acquired effective cntrl and directin f Nrstar I.nke Mines Limited, which is actively develping a gld-cpper prperty in Davis Twnship, Sudbury Mining District, ntari, where earlier dia mnd drilling and surface wrk indicated an re 7ne estimated t cntain 275,000 tns f glh-cpper bearing re, grading 0.41 '/, gld and J.5% cpper per tn. The zne is estimated t have a length f 225 feet and an average width f 25 feet within the presently explred area. Shaft-sinking, t pen up this indicated re zne n tw levels, Fas nw been cmpleted t the initial depth bjective at 275 feet. Lateral explratin at the!25 and 250 ft hrizns has made excellent prgress, with drifting prceeding bth east and vest alng the zm. simul taneusly n bth levels. n the 250 ft level bth headings are drifting in re, with assays received t date returning 10.8 feet assay ing S21.44 in cmbined gld and cpper per tn, S18.00 f which is attributable t the gli! cntent. Drifting n the upper 125 ft level has nt yet sufficiently advanced t place bth headings in re, but is expected t reach the 7nr very shrtly. MATTAGAMI AREA CLAIM-GRUP Yur Cmpany hlds a grup f 90 claims in Vezza Twnship in the Mattagami Area f nrthwestern Quebec, which was the scene f very extensive staking and explratry activity during The current explratry bm in the Mattagami Area, which embraces stakings thrughut an area cvering 40 twnships, was brn f the 1957 discvery f the large base metals depsit f the riginal Mattagami Syndicate, which has subsequently been cn firmed as a huge depsit estimated at arund 20,000,000 tns. This, and ther mre recent discveries thrughut an area f many miles, has blanketed upwards f 2,000 square miles, resulting in explratry activity at a pace equal t all ther Canadian mining camps cmbined. The large claim-grup held by yur Cmpany is cnsidered t be favrably lcated, and n the recmmen datin f ur Cnsulting Engineers, a preliminary prgram f gephysical investigatin was initiated, cripletin f which is expected after the first f the year. Sme wrk was cnducted prir t the "freeze-up" inu will be resumed as sn as weather cnditins permit. Yur Cmpany is adequately financed fr its presently-planned prgrams, with its treasury recently aug mented by an underwriting f treasury shares, netting 5120, In keeping with ur plicy f prviding Share hlders with infrmatin f Cmpany activities, further reprts n prgress will be issued frm time t time. n behalf f the Bard f Directr?. "S. G. TAYLR", Dated December 31 st, ^,*.,. '--- PrtsiJtnf. i^ff,*!'''

3 t r. Kirkland Minerals Crpratin Limited UITC 103 * 1*0 BAY TftECT. TRNT 1. CANADA * TCLIPHNK CMflI Sill MINK rrlcl: P.. BX B B. CHAPUT-HUQHM. NTARI ANNUAL MEETING President's Address t the Sharehlders at the Special and Annual General Meeting f the Cmpany, held at the Ryal Yrk Htel, Trnt, ntari, n the 3rd day f March, With adequate funds n hand r assured, Kirkland Minerals Crpratin is nw carrying ut the active and diversified mining prgram which was planned last year, sharehlders were tld at the Cmpany's Annual Meeting in Trnt this week. Sydney G. Taylr, President, said the Cmpany's gld mine at Kirkland Lake, ntari, was ding exceptinally well. He reprted that there is nw sufficient re available fr a full-scale peratin thrughut 1959 while "prspects fr 1960 lk better than ever". In 1958 this mine prduced gld valued at 31,209,620, a substantial increase ver the previus year. Mre efficient prductin methds, rigid cst-cutting and slightly better grades resulted in a net prfit f 328,412 fr the year, as cmpared with lsses in excess f 3100,000 in each f the tw previus years. NRSTAR PRGRESS Mr. Taylr als tld sharehlders that the Cmpany was definitely aiming at early prductin frm the Nrstar Lake gld-cpper prperty acquired frm Harrisn Minerals last August. He said wrk had prgressed t the pint f sending ut re fr mill tests and drawing up a flw sheet preparatry t designing a mill fr prductin. The pr gram f diamnd drilling t 400 feet has been cmpleted and engineers are nw cmputing results which shuld be knwn in abut a week. Previus drilling has indicated a minimum f 275,000 tns f re, but it is nw believed this figure will be increased cnsiderably when full results are tabulated. Individual drill hles shwed average grades frm the 125-ft level f gld-cpper, and frm the 250- ft level. W. P. McGill, P.Eng., reprted that an average f per tn r better can be expected, while sme sectins n the 125-ft level shwed well abve the value. Rib sampling in the west drift n the 125-ft level gave in gld cpper fr a length f 43.5 feet, it was reprted. Cst f prductin had been estimated at abut per tn.

4 Page 2 Mr. Taylr als annunced that Kirkland Minerals had taken an ptin t purchase anther gld prperty frm Reyfrd Mines. This prperty in the Gwganda area f Nrthern ntari is, accrding t cnsulting engineer J. J. Harris, "ne f great merit". Sharehlders were tld that Mr. Harris had infrmed the Cmpany that previus wrk, which included the sinking f a shaft, shws "nt just a prspect but a prmising yung mine". Mr. Taylr added that the Cmpany intended t carry ut a prgram f under grund and surface drilling immediately. ADEQUATE FUNDS AVAILABLE Kirkland has signed a cntract with Inspiratin Mining t carry ut diamnd drilling n the Mnd Twnship nickel prperty adjining Beauvale Mines, a whlly wned subsidiary f Kirkland. Previus wrk n this prperty, which lies 45 miles suth f Timmins, ntari, had indicated 210,000 tns f nickel plus 400,000 tns f lwer grade in tw znes. Tlie Cmpany's Mattagani prperty in Vezza Twnship, Quebec, acquired in August, 1958, has shwn enugh t warrant further wrk, Mr. Taylr said. Kirkland wrking capital psitin at the end f 1958 shwed $185,726 available. Mr. Taylr said the Cmpany had been assured by its financial backers that there will be n shrtage f funds t carry ut all the activities planned. "In shrt," the President cncluded, "1959 shapes up as ne f the mst imprtant years in ur histry. ur Kirkland Lake Mine shuld cntinue t shw a prfit. The Nrstar gld-cpper prperty is mre than measuring up t expectatins and prmises t be anther prfitable prducer. In additin t these, we have very high hpes fr the Reyfrd prperty in the Gwganda area, while the drilling prgram n the grund adjining the Beauvale nickel prperty culd prve t be f majr imprtance. The future fr Kirkland Minerals lks very bright indeed."

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8 DETAIL F SHAFT AREA SCAL E : l " ' PRE - CAMBRIAN GABBR 4S*/ '...- ^ -s CBALT SERIES GWGANDA ' G REYWACKE c CNGLMERATE ^ f *!f CHERT MARSH RAD -V ;,*y ^, i* l l f ABANDNED R AD 75 '. UTCRP CNTACT 'x. *C' Q JDMP -^r^ ^ r4 " -PIT CNTACT CNTACT P RJECTED ASSUMED ' Y ^ ADIT MINERAL PRSPECT STRIKE a VERTICAL DIP STRIKE 8 DIP NRSTAR LAKEIMINES LIMITED DAVIS JWNSHIP N T! R l SCALE : 4 JULY I 959 SURVEf BY 41l1*NEaa99 DAVIS-36-A1 DAVIS 200 SULMAC EXPLRATIN SERVICES LIMITED l

9 N 66 * 00 N QCI,C2 LD BASE LINE A9 64 * 0 0 N MW t 00 C8,C9:" 60 t 00 N TRENCH C5 C6 C3,l N C7 LEGEND GELGICAL P LAN - ADIT AREA DRILL HLE LCATIN GREYWACKE CHERT NRSTAR LAKE MINES LIMITED DAVIS TWNSHIP, NTARI SCALE : l" : 50' JULY 1959 BY SULMAC EXPLRATIN SERVICES LIMITED 41I16NEW99 DAVIS-36-A1 DAVIS

10 r r ' '-J t* r t* T * w i". N * M Q * N * t l! 5 EAST 0 l? M w t EAST n m x r 71 t r r z c -i c g z > r C/) m ṉ i z x t Ul te H rn r 01 r m < R 6 ' 01 -* w * t :

11 IIN *** f*^ 1 ' LAICE M (NES LTD GEILGV P N-I25 LEVEL 411

12 IN JN * i -j*. 98N ' 't sf. M WAKE MINES LTD tj LI GELGY PLAN-250 LEVEL l INCH -2 FEET UJ 0 ; (M UJ ; 97N FES M0NE0099 DAVIS-36-A1 DAVIS 240