LONDON (ShareCast) - Canada based mining company Kirkland Lake Gold said it has made a new high-grade discovery at its South Mine Complex and has started production from a second level at the complex.

Drill hole 50-915 returned 10.99 ounces of gold per ton over an estimated 2.8 feet true width in an area located 4,000 yards west of the South Mine Complex (SMC) in the Kirkland Lake region of Ontario, the company said.

Stewart Carmichael, chief exploration geologist, said it was too early to draw any conclusions regarding the size of the discovery but said “this intersection is well outside of the current known extent of the SMC” and “proves there is considerable potential for expansion of the SMC along the strike."

The company is now producing ore from two levels accessing the SMC, with work on the 5000 foot level on the lower D zone adding to the work on the 5300 foot level.

The first 314 feet of advance on the 5000 level has yielded 3,146 tons of ore grading 22 grams per tonne since work started on the level in January.

“This development work on the 5000 level will compliment the mining on the 5300 foot level which has produced 18,400 tons at a recovered grade of 0.68 ounces of gold per ton or 23.3 grams per tonne since May 2007," said Steve Gray, Kirkland’s chief production geologist.

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