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TSX:KGI 1 klgold.com
TSX:KGI
JTVIR Conference | March 31, 2016
Presenter: George Ogilvie, P.Eng | President & CEO
GROWTH & VALUE
Creating an Ontario
Focused Intermediate
Gold Producer
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TSX:KGI 2 klgold.com TSX:KGI klgold.com 2
Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements.
This presentation contains statements which constitute ”forward-looking statements”, including statements regarding the plans, intentions, beliefs
and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words
“may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the
Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Presentation include, but may
not be limited to; statements regarding the Company’s combined production guidance for 2016, and guidance from the Macassa Mine
Complex for the financial years ended 2017 and 2018 the exploration programs and the results and timing thereof, the integration of the
East Timmins Operations resulting from the SAS acquisition, and the timing thereof.
In respect of the forward-looking information concerning the anticipated completion of the proposed Transaction and the anticipated timing thereof,
Kirkland Lake has provided them in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the time
required to prepare and mail shareholder meeting materials, including the required information circular; the ability of the parties to receive, in a
timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely
manner, the other conditions to the closing of the Transaction. These dates may change for a number of reasons, including unforeseen delays in
preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the
need for additional time to satisfy the other conditions to the completion of the Transaction. Accordingly, readers should not place undue reliance on
the forward-looking information contained in this news release concerning these times.
With respect to the forward looking information of Kirkland Lake and/or St Andrew, concerning the future gold production of Kirkland Lake and St
Andrew, future cash costs of production, the gold resources and reserves of Kirkland Lake and St Andrew, and the development of the Kirkland
Lake and St Andrew properties are subject to various key assumptions described in each party’s respective Annual Information Forms and
Technical Reports referred to herein and as filed on the SEDAR profiles of both companies at www.sedar.com.
Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date
the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company’s business, its ability to increase
its production capacity and decrease its production cost. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties
and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These
factors are discussed in length in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2015.
and the Company’s Management's Discussion and Analysis for the interim period ended October 31, 2015 filed with the securities regulatory authorities in certain
provinces of Canada and available at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect,
actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the
Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others
that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements except as otherwise required by applicable law.
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TSX:KGI 3 klgold.com
Creating A New Mid-Tier Gold Producer
STRONG LEADERSHIP
ROBUST PRODUCTION AND ASSET DIVERSIFICATION FROM 4 MINES
INCREASED FINANCIAL FLEXIBILITY AND SOLID BALANCE SHEET
EXPLORATION POTENTIAL IN TWO HISTORIC CAMPS WITHIN THE ABITIBI
SUSTAINABLE, PROFITABLE
MID-TIER GOLD PRODUCER
• Strong leadership from an experienced board of directors
and management team with proven results
• Ontario Focused Gold Producer targeting between
260-310Koz’s in 2016
• Asset diversification with 4 mines and 2 mills
• Healthy balance sheet with >$100 million in cash*
• Combined strong future cash flow generation
• Operational and corporate cost saving synergies
• Consolidation of large land holdings in the heart of two
Ontario gold camps
• Robust level of reserves and resources with 2.3 Moz’s of
P&P reserves, 4.7 Moz’s of M&I resources plus an
additional 3.9 Moz’s of inferred resources.
• Enhanced market profile with extensive coverage
universe and increased trading liquidity
• Combined entity has stronger market positioning
• Benefits with all Canadian assets leveraged to the
Canadian dollar gold price
* $120 million in debt (convertible debentures)
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TSX:KGI 4 klgold.com
Experienced Team
Eric Sprott 2 Non-executive Chairman Barry Cooper, B.Sc., MBA 1 Non-executive Director
Michael Churchill, MBA 4 Non-executive Director Pamela Klessig, P.Geo. Non-executive Director
Barry Olson, M.Sc. 1 Non-executive Director Jeffrey Parr, CPA-CA, BA, MBA 1 Non-executive Director
Dawn Whittaker, LLB Non-executive Director George Ogilvie, P.Eng. Director
George Ogilvie, P.Eng. President & Chief Executive Officer
Perry Ing, CPA-CA, CPA (Ill), CFA 3 Chief Financial Officer
Chris Stewart, P.Eng. VP Operations
Doug Cater, P.Geo. 5 VP Exploration
Keyvan Salehi, P.Eng., MBA 5 VP Corporate Development
Jennifer Wagner, LL.B. Legal Counsel
Suzette N Ramcharan, CPIR Director, Investor Relations
Kevin Fearn, BA, CHRP, CHRL Director, Human Resources
Board of Directors
Senior Management
1 Appointed October 2014; 2 Appointed February 2015; 3 Appointed November 2015, 4 Appointed January 25, 2016, 5 Appointed
February 1, 2015
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TSX:KGI 5 klgold.com
KGI Relative Share Price Performance
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
250%
275%
300%
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
Kirkland Lake (TSX:KGI) Gold Price (US$ / oz)
3%
153%
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TSX:KGI 6 klgold.com
Financial Position
CASH C$109.5 million 1
DEBT C$119 million 3 convertible debentures
(principal amount owing)
KGI.DB: 6% coupon/ $15.00 strike
C$56.9MM mature Jun/2017
KGI.DB.A: 7.5% coupon/ $13.70 strike
C$62.1MM mature Dec/2017
NCIB allows KGI to purchase up to 10% of each issue within a 12
month period commencing April 3, 2015, and can be renewed
annually 3
ROYALTY 2.5% NSR Franco Nevada Corporation
Option to buyback 1% by October 31, 2016, at a cost of
US$36MM less any money paid against the 1%
52 Week Performance March 25, 2016
HIGH C$9.53
LOW C$4.49
Current Share Price C$8.52
Major Shareholders (~40%) 2
Resolute Funds (~7%)
Eric Sprott (~7%)
Columbia Asset Management LLC (~5%)
Abramson Family (~5%)
Van Eck Associates Corporation (~4%)
Harry Dobson (~3%)
Sprott Asset Management (~3%)
Sentry Select (~3%)
CAPITAL STRUCTURE 2
ISSUED SHARES 114.3 million
Stock Options ~4.5 million
FULLY DILUTED ~118.8 million
MARKET CAP ~860 million
1 As at February 19, 2016: 2 As at March 1, 2016
3 As of January 18, 2016, see press release dated April 1, 2015 for details on the NCIB
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TSX:KGI 7 klgold.com
Diversified Assets In A Prolific, Mining Friendly Region
East Timmins Assets
2015E Production 107 koz Au
Q3 2015 AISC* US$934/oz Au
Holt Mill 3,000 tpd (75% utilized)
Resources & Reserves*
Total P&P
(including Hislop Mine) 0.8 Mozs (5.3 g/t Au)
Measured & Indicated
(Property Wide) 2.7 Mozs (2.4 g/t Au)
Inferred
(Property Wide) 2.2 Mozs (4.5 g/t Au)
Holt Mine 591 kozs (4.8 g/t Au)
Taylor Mine 156 kozs (6.3 g/t Au)
Holloway Mine 40 kozs (5.4 g/t Au)
Macassa Mine Complex
SY 2015E Production 103 koz Au
SY2015 AISC* US$977/oz Au
Macassa Mill 2,000 tpd (50% utilized)
Reserves & Resources*
Total P&P Reserves
(Macassa Mine Complex) 1.5 Mozs (19.2 g/t Au)
Measured & Indicated
(Property Wide) 2.0 Mozs (16.8 g/t Au)
Inferred (Property Wide) 1.7 Mozs (19.2 g/t Au)
*Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure
(www.kllgold.com; www.sasgoldmines.com)
Assets in close proximity
within an 80km radius,
accessed by provincial
highways.
QUÉBEC
* AISC is a non-GAAP measure, see SY2015 MDA for reconciliation of non-GAAP measures;
* Last public reported financials for St Andrew Goldfields was for Q3, 2015
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TSX:KGI 8 klgold.com
A Corner Stone
High-Grade Asset
MACASSA MINE
COMPLEX
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TSX:KGI 9 klgold.com
One of the Highest Grade Gold Mines In The World Select Group of Producing Assets with +1Moz’s in Reserves
Mine Operator Location Gold Grade Reserves Reserve Update
g/t Au Date
Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) 19.2 1.5 Moz Dec/2014
Turquoise Ridge Barrick USA (Nevada) 16.9 4.2 Moz Dec/2015
Dvolnye Kinross Russia 15.0 1.0 Moz Dec/2015
Moab Khotsong AngloGold Ashanti South Africa 10.1 5,5 Moz Dec/2014
Mponeng AngloGold Ashanti South Africa 9.6 12.1 Moz Dec/2014
Red Lake Goldcorp Canada 9.1 2.1 Moz Dec/2015
Kupol Kinross Russia 8.5 2.1 Moz Dec/2015
TauTona AngloGold Ashanti South Africa 8.1 1.2 Moz Dec/2014
19.2
15.3 15.0
10.1 9.6 9.1 8.5 8.1
0.0
5.0
10.0
15.0
20.0
25.0
Macassa MineComplex
Turquoise Ridge Dvolnye Moab Khotsong Mponeng Red Lake Kupol Tau Tona
Gra
de g
/t
Reserve Grades
Company Source – This is a select group of Companies that illustrate producing mines only with mineral reserves in excess of 1Moz’s (gold only, no equivalent Au ounces shown)
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TSX:KGI 10 klgold.com
Robust Level of Reserves & Resources Resources are Exclusive of Reserves
See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.
Based on current level of reserves and a
conservative 70% conversion of M&I
resources (@ 200,000 oz p.a),
KGI has a 14 year mine life.
Property Wide SMC
Mineral Reserves (P&P)
Includes the ’04/ Main Break
and SMC
1.5 Moz’s
2.6M tons @ 0.56 opt
(19.2 g/t )
0.9 Moz’s
1.5M tons @ 0.65 opt
(22.3 g/t)
Mineral Resources (M&I)
Includes the ’04/ Main Break,
SMC, Near Surface and other
2.0 Moz’s
4.2M tons @ 0.49 opt
(16.8 g/t )
0.9 Moz’s
1.4M tons @ 0.66 opt
(22.6 g/t)
Mineral Resources (Inferred)
Includes the ’04/ Main Break,
SMC, Near Surface and other
1.7 Moz’s
2.1M tons @ 0.56 opt
(19.2 g/t)
0.9 Moz’s
1.4M tons @ 0.65 opt
(22.3 g/t)
Breakout of
SMC only
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TSX:KGI 11 klgold.com
5025 Level
P+P 28,000 Tons @ 0.48 oz/ton 14,000 Oz’s M+I 74,000 Tons @ 0.42 oz/ton 32,000 Oz’s
5300 Level
P+P 561,000 Tons @ 0.47 oz/ton 261,000 Oz’s M+I 245,0000 Tons @ 0.43 oz/ton 107,000 Oz’s
5400 Level
P+P 370,000 Tons @ 0.61 oz/ton 226,000 Oz’s M+I 174,000 Tons @ 0.42 oz/ton 72,000 Oz’s
5600 Level
P+P 239,000 Tons @ 0.77 oz/ton 183,000 Oz’s M+I 186,000 Tons @ 0.63 oz/ton 117,000 Oz’s
5700 Level
P+P 202,000 Tons @ 1.03 oz/ton 208,000 Oz’s M+I 164,000 Tons @ 0.91 oz/ton 96,000 Oz’s
South Mine Complex
Access from 5400L
and 5600L allows
delineation drilling of
resources, especially
below 5600L
Remains Open at
Depth and Across
Strike OPEN
*Drawing not to scale
5800 to 6600 Level
P+P 50,000 Tons @ 0.83 oz/ton 41,000 Oz’s M+I 551,000 Tons @ 0.91 oz/ton 499,000 Oz’s
OPEN
OPEN
16.5 g/t
16.1 g/t
20.9 g/t
26.4 g/t
35.3 g/t
28.5 g/t
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TSX:KGI 12 klgold.com
-
50,000
100,000
150,000
200,000
250,000
14 15 SY15 16 17 18
Go
ld O
un
ce
s
OzRecovered
Guidance
Linear (OzRecovered)
April 30th Fiscal Year End Calendar Year End 8 Month Stub Year
Growing Production Profile
The Stub Year (SY) 8 month period runs from May 1 – December 31, 2015. Recovered 102,597 ounces at a head
grade of 0.42 opt (14.1 g/t), recoveries of 97.1% and achieved an average throughput of 1,016 tpd.
2016, 2017 and 2018 guidance based on stated head grade and average throughput of 1,130, 1,140 and 1,145 stpd
respectively.
0.38/ 13.0 0.37/ 12.7 0.43/ 14.7 0.44/ 15.1 0.45/ 15.4 0.46/ 15.8 Guided Head Grades (OPT/ GPT)
0.33/ 11.3 0.43/ 14.7 0.42/ 14.4 - - - Actual Head Grades Achieved (OPT/ GPT)
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TSX:KGI 13 klgold.com
AICC by Quarter
$0
$500
$1,000
$1,500
$2,000
Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/SY15 Q2/SY15 Q3/SY15
Royalties
Exploration(including surface)
Corporate (incl.Finance & Interest)
PP&E
CapitalDevelopment (incl.Sustaining and New)
Operating Costs
Co
st
in C
$ p
er
Ou
nce P
rod
uced
Fiscal Year
FISCAL 2015
AICC C$1,338/ Oz
Average Sales Price C$1,483/ Oz
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TSX:KGI 14 klgold.com
Exploration Potential In A Historic Camp
Currently mining and
exploring on one of the
five mine targets.
Current Underground
Drilling Targets: Two
main areas currently
being explored from
underground.
Regional Surface
Drilling Program:
Regional exploration to
test eastwards along
strike.
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TSX:KGI 15 klgold.com
‘04 Break Underground Drilling
See press release dated February 23, 2015
SELECTED
HIGHLIGHTS
DH 34-666
86.8 g/t / 0.7 metres (2.53 opt/ 2.4 feet)
DH 34-668
27.4 g/t / 1.3 metres 0.80 opt/ 4.4 feet
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TSX:KGI 16 klgold.com
The SMC Continues To Grow
See press releases dated June 9, 2015 and October 20, 2015, as filed on SEDAR
Area’s currently
being mined
Recent drilling has extended and confirmed the continuity of the SMC at depth and further to the east
on the HM Claim.
Will continue to drill from underground to find new mineralization, and in order to move mineralization
from inferred into the measured and indicated categories for future resource and reserve expansion.
SELECTED
HIGHLIGHTS
DH 53-2881 (NSZ)
67.9 g/ 5.0 metres 1.98 opt/ 16.7 feet
DH 53-2882 (NSZ)
14.7 g/ 3.5 metres 0.43 opt/ 11.0 feet
DH 53-2883 (NSZ)
16.5 g/t 2.7 metres 0.48 opt/ 9.0 feet
DH 53-2886 (FWZ)
383.3 g/ 2.6 metres 11.18 opt/ 8.5 feet
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TSX:KGI 17 klgold.com
Investing In Our Future
• Initial results from our regional program do not appear to be Main Break related (Phase 1)
• Geophysics anomalies identified and follow-up targeting exercise completed as part of Phase 1a
• Phase 1a program has 2 remaining holes in progress.
• Phase 2 will target the Main Break at depth and consist of infill drilling.
Kirkland
Minerals
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TSX:KGI 18 klgold.com
Regional Drilling – Section Looking East
SELECTED HIGHLIGHTS
AB-15-12
11.7 g/ 0.3 metres
0.34 opt/ 1.0 feet
AB-15-23 3,241.4 g/ 0.7 metres
94.54 opt/ 2.3 feet
11.7 g/ 0.3 metres
0.34 opt/ 1.0 feet
AB-15-53 12.3 g/ 0.5 metres
0.36 opt/ 1.7 feet
AB-15-91 646.3 g/ 0.9 metres
18.85 opt/ 2.8 feet
including 1,783.2 g/ 0.3 metres
52.01 opt/ 1.0 feet
And 89.5 g/ 0.3 metres
2.61 opy/ 1.0 feet
See press release dated November 3, 2015, as filed on SEDAR
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TSX:KGI 19 klgold.com
Sustainable Assets
EAST TIMMINS
ASSETS
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TSX:KGI 20 klgold.com
East Timmins Assets
Holt, Holloway, Taylor Producing Assets
Hislop Care & Maintenance
Ludgate, Aquarius Exploration Targets with existing resources
Garrison Creek Exploration Target
120km strike of contiguous land straddling the Porcupine-Destor Fault Zone
Blackfox Mine & Greyfox
Deposit (Primero Mining)
Aquarius
Hislop
Ludgate
Garrison
Creek
120km
N
Fenn-Gibb Deposit
(Lake Shore Gold)
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TSX:KGI 21 klgold.com
East Timmins Operations
Holt Mine
• ~1,200 tpd operation
• Reserves of 591 koz’s at 4.75 g/t
• ~ 7 year mine life based on current level of reserves
• Exploration potential further to the west and down-dip of main zone
Taylor Mine
• ~550 tpd operation
• Declared commercial production in November 2015
• Reserves of 156 koz’s at 6.27 g/t
• ~ 4-5 year mine life based on current level of reserves
• Exploration potential at depth and along strike
Holloway Mine
• ~500 tpd operation
• Reserves of 40 koz’s at 5.35 g/t
• ~ 2 year mine life based on current level of reserves
• Exploration potential further to the east and down-plunge of main zone
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TSX:KGI 22 klgold.com
Holt Mine – Long Section
All figures are rounded.
See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.
P&P Reserves M&I Resources Inferred Resources
Holt Mine (All Zones) 591 koz
3.9Mt @ 4.8 g/t Au
957 koz
7.6Mt @ 3.9 g/t Au
1.2 Moz
7.9Mt @ 4.7 g/t Au
Zone 4
(includes Zone 4 East)
201 koz
1.5Mt @ 4.3 g/t Au
544 koz
4.4Mt @ 4.0 g/t Au
23 koz
0.2Mt @ 4.0 g/t Au
Zone 4 West Extension - - 861 koz
5,552,000 @4.82g/t Au
Zone 6 147 koz
0.8Mt @ 6.0 g/t Au
48 koz
0.2Mt @ 7.6 g/t Au
28 koz
0.1Mt @ 7.9 g/t Au
Ghost Zone 152 koz
1.0Mt @ 4.5 g/t Au
159 koz
1.4Mt @ 3.4 g/t Au
92 koz
0.8Mt @ 3.7 g.t Au
500 m
Surface
Shaft Bottom (1.2km)
Ghost Zone
Zone 6
Zone 4
Zone 4 West
Extension
• Current production is derived
from Zone 4 (~1,000tpd) and
Zone 6 (~250tpd)
• Ore is crushed underground and
skipped to surface for processing
at the Holt Mill
View looking north
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TSX:KGI 23 klgold.com
Holloway Mine – Long Section
Surface
P&P Reserves M&I Resources Inferred Resources
Holloway Mine
(All Zones)
40 koz
0.2Mt @ 5.4 g/t Au
117 koz
0.8Mt @ 4.6 g/t Au
389 koz
0.2Mt @ 4.9 g/t Au
Smoke Deep Zone 24 koz
0.1Mt @ 5.3 g/t Au N/A N/A
Blacktop Zone 16 koz
89kt @ 5.5 g/t Au N/A N/A
Middle Zone - 24 koz
0.2Mt @ 4.2 g/t Au N/A
Deep Thunder/
Canamax - -
350 koz
2.2Mt @ 4.9 g/t Au
All figures are rounded.
See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.
500 m
Shaft Bottom (867m)
Smoke Deep Zone
Blacktop Zone
Canamax Zone
Deep Thunder
Zone
View looking north
Middle Zone
• Current production is derived predominantly from the Smoke Deep Zone, with a small contribution from the Blacktop Zone (~550tpd)
• Ore is crushed underground, skipped to surface, and trucked 1km to the Holt Mill for processing
Lightning Zone
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TSX:KGI 24 klgold.com
150m
Taylor Mine – Long Section
Zone P&P Reserves M&I Resources Inferred Resources
WPZ 156 koz’s
0.8Mt @ 6.3 g/t Au
239 koz’s
1.6Mt @ 4.6 g/t Au
222 koz’s
1.7Mt @ 4.0 g/t Au
Shoot Zone - 116 koz’s
0.7Mt @ 5.2 g/t Au
3 koz’s
20kt @ 5.2 g/t Au
Shaft Zone - - 32 koz’s
205kt @ 5.0 g/t Au
Surface
Bourgois Claim Shoot Zone
All figures are rounded.
See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.
• St Andrew declared commercial production at Taylor in November 2015
• Estimated annual production of between 30 - 40 koz’s of gold (~550tpd run rate)
• Ore is trucked approximately 70km to the Holt Mill for crushing and processing
• Mineralization remains open at depth and along strike
Bulk Sample
#1
Bulk Sample
#2 1004 Lens
1006-1 Lens
1008-1 Lens
1008-2 Lens
100m
250m
350m 1006-2 Lens
500m
View looking north
OPEN
Underexplored Area
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2016 Outlook and Expectations
Initial Guidance
Consolidated 2016 Production 260,000 – 310,000 ounces
Cash Costs Per Ounce US$600-$690
All-In Sustaining Costs Per Ounce ~US$950
2016 News Flow
Stub Year 2015 YE Earnings March 10
Q1/2016 Consolidated Production April 14
Updated Guidance April (on or before April 15)
Q1/2016 Consolidated Earnings May 16
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APPENDIX
Notes, additional disclosure
and other information
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Macassa Mine Complex - Capital Expenditures
22.4 30.9
45.8 46.9 55.0
41.5
26.5
9.7
28.9
24.5
44.0 29.6
6.0
7.1
0
10
20
30
40
50
60
70
80
90
100
F2010 F2011 F2012 F2013 F2014 F2015 SY2015
Capital Expenditures (Mineral Properties) PP&E
C$
Mill
ions
Project Capital was Completed in January 2014
C$9M in Capital Development of 5400L and SMC Main Decline to 5600L Spent in FY15
SY2015 Mineral Properties Expenditure guidance reduced from $18MM to $11MM, due to
delayed delivery of new equipment purchases.
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Regional Exploration – Plan View
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East Timmins Assets – Holloway Mine, Smoke Deep Zone
Holloway
Exploration Program: • Smoke Deep Zone –
Open at Depth Plunging
to the East
View looking north
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East Timmins Assets – Hislop North Project
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KGI Reserve & Resource Estimates Resources are exclusive of Reserves
Grade Grade Au Grade Grade Au Grade Grade Au
opt g/t (000's) opt g/t (000's) opt g/t (000's)
'04 & Main Break 545 0.43 494 14.7 236 583 0.48 529 16.5 278 1,128 0.46 1023 15.8 514
South Mine Complex 346 0.51 314 17.5 177 1,120 0.69 1016 23.7 773 1,467 0.65 1,331 22.3 949
Macassa Mine Complex 891 0.46 808 15.8 412 1,703 0.62 1,545 21.3 1,051 2,595 0.56 2,354 19.2 1,463
Proven
Tonnes
(000's)
Tons
(000's)
Tonnes
(000's)
ZoneProbable Proven & Probable
Tons
(000's)
Tonnes
(000's)
Tons
(000's)
MINERAL RESERVES - As at December 31, 2014
Note: Columns may not add due to rounding. Macassa Mine Complex reserves the ’04 & Main Break and the SMC.
MINERAL RESOURCES - As at December 31, 2014
Grade Grade Au
opt g/t (000's)
04 & Main Break 485 0.41 440 14.1 201
SMC 1,358 0.65 1,232 22.3 876
Near Surface Target 100 0.42 91 14.4 42
Property Wide 2,114 0.56 1,918 19.2 1,777
ZoneTons (000's) Tonnes (000's)
InferredNote: Columns may not add due to rounding. Property Wide resources include the ’04 &
Main Break, SMC, Near Surface Target, as well as peripheral resources blocks (such as
the Lakeshore Ramp).
Grade Grade Au Grade Grade Au Grade Grade Au
opt g/t (000's) opt g/t (000's) opt g/t (000's)
04 & Main Break 1063 0.4 964 13.7 430 1148 0.42 1041 14.4 483 2,211 0.41 2006 14.1 913
SMC 33 0.37 30 12.7 12 1377 0.67 1249 23.0 917 1,410 0.66 1279 22.6 929
Near Surface Target - - - - - 330 0.34 299 11.7 112 330 0.34 299 11.7 112
Property Wide 1106 0.4 1003 13.7 447 3,096 0.52 2,809 17.8 1,599 4,202 0.49 3,812 16.8 2,047
Measured
Tons
(000's)
Tonnes
(000's)
ZoneIndicated Measured & Indicated
Tons
(000's)
Tonnes
(000's)
Tons
(000's)
Tonnes
(000's)
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QP Info and Notes to Reserves & Resources
The reserve and resource estimates have been audited and verified, and the technical disclosure in the press release dated April 13, 2015, has been
approved, by the Company’s independent reserve and resource engineer, Glenn R. Clark, P. Eng., of Glenn R. Clark & Associates Limited. Mr. Clark
is a ‘qualified person’ under National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators. The
report detailing the December 31, 2014, reserve and resource estimates is available on SEDAR (www.sedar.com). See ‘Notes for Reserves and
Resources’ below for key assumptions, parameters and methods used to estimate the foregoing reserves and resources.
Notes for Reserves and Resources:
The reserves and resources have been classified according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral
Resources and Reserves: Definition and Guidelines (December 2005).
1. The reserves and resources are estimated using the polygonal method.
2. Resources do not include reserves.
3. All intersections are calculated to a 6.0 foot minimum horizontal mining width for structures dipping at greater than 45 degrees. The minimum
mining height for structures dipping less than 45 degrees is 9.0 feet.
4. Dilution is added to reserves at varying rates depending on the mining method, and the width of the ore. The average dilution of the reserves at
December 31, 2014, is 27% at 0.02 opt, marginally up from an average of 24.0% the previous year. Long-hole stopes are diluted by anywhere
between 50-100% (mostly 50%). Cut and fill stopes are diluted by anywhere between 10-50%.
5. All higher grades are cut to 3.50 opt. Based on a statistical analysis completed by Scott Wilson Roscoe Postle Associates Inc. in 2007, the
Company has implemented various higher grade cutting factors for four zones in the South Mine Complex. These four zones are the New South
Zone (7.20 opt), Lower D North (9.30 opt), Lower D North Footwall (4.80 opt), and the #7 and #7 HW Zones (6.40 opt). Cut-off grades of 0.22 opt
and 0.18 opt are used for reserve and resource calculations respectively, depending on the location, and economics of the block. Generally, a cut-
off of 0.22 opt is required on a whole-block basis to achieve profitability and reserve classification. It is possible to have sub-blocks within an ore
reserve block that assay less than any cut-off which have been incorporated for mining or geotechnical reasons. Ore blocks that grade between
0.18 opt and the cut-off of 0.22 opt have been classified as resource. The cut-off grade for near-surface resources (surface to -1,000 foot
elevation) is 0.12 opt. An internal report completed by Roscoe Postle and Associates in October 2014, suggest that the cutting factor for
mineralization on the Amalgamated Trend be set at 2.50 opt. This grade capping was implemented by the Company and incorporated in the
estimates for 2014.
6. The area of influence of the proven and measured categories are 30 feet from development chip samples, probable and indicated categories are
50 feet of radius from a known sample point (drill holes) and inferred is another 50 feet of influence (between 50 – 100 feet).
7. A 94.2% tonnage recovery is used. Continuity of the veins appears very good.
8. The assumptions used include CAD$1,350.00 (US$1,200) per ounce of gold.
9. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue that may materially affect
its estimate of mineral resources.
10. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
http://www.sedar.com/
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East Timmins Assets – Mineral Reserves & Resources
Total Reserves Measured Indicated Measured +
Indicated Inferred
Tonnes
('000)
Grade
(g/t Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces Au
('000 oz)
Tonnes
('000)
Grade
(g/t Au)
Ounces Au
('000 oz)
Holt 3,866 4.75 591 3,702 3.97 473 3,861 3.90 485 7,563 3.94 957 7,866 4.67 1,181
Holloway 233 5.35 40 310 4.71 47 482 4.54 70 792 4.61 117 2,479 4.88 389
Taylor 774 6.27 156 0 0.00 0 2,323 4.76 356 2,323 4.76 356 1,951 4.10 257
Hislop 280 5.16 46 0 0 0 983 4.01 127 983 4.01 127 690 4.16 92
Aquarius - 0 0.00 0 22,300 1.29 926 22,300 1.29 926 9 0.79 0
Clavos - 0 0.00 0 503 4.81 78 503 4.81 78 318 4.73 48
Ludgate - 0 0.00 0 522 4.06 68 522 4.06 68 1,396 3.60 162
Canamax - 0 0.00 0 240 5.09 39 240 5.09 39 170 4.26 23
Total 5,153 5.03 833 4,012 4.03 520 31,214 2.14 2,149 35,227 2.36 2,668 14,879 4.50 2,154
As at December 31, 2014 - See website for notes and additional 43-101 disclosure (www.sasgoldmines.com)
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www.klgold.com
Suzette N Ramcharan, CPIR
Director of Investor Relations
+1-647-361-0200
TSX:KGI
mailto:[email protected]