Miner Extends High-Grade Gold Zone With Major Step-Out in Kirkland Lake

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Kirkland Lake Discoveries Corp. (KLDC:TSXV; KLKLF:OTC) announced assay results from its 2026 diamond drilling program at the historically productive Mirado property, situated 20 kilometers southeast of Kirkland Lake in Ontario, according to a May 25 release.

The results from drill holes KLM26-005 and KLM26-006, along with visual observations from KLM26-010, are reinforcing the company's developing geological model at Mirado. These findings underscore the expanding scope of both the South and North Zone systems and offer a regional perspective for the ongoing exploration of KL South.

"These latest drill results continue to demonstrate the continuity and scale of the Mirado hydrothermal system," Chief Executive Officer Stefan Sklepowicz said. "Hole KLM26-006, in particular, returned multiple broad mineralized intervals with embedded higher-grade zones, reinforcing our interpretation that the South Zone hosts a robust structurally controlled gold system with significant expansion potential."

Some highlights of the results:

• Hole KLM26-005: 0.25 grams per tonne gold (g/t Au) over 11.8 meters from 16.8 meters to 28.5 meters; including 14.72 g/t Au over 0.8 meters from 72.2 meters to 73 meters, 0.4 g/t Au over 8.8 meters from 123.4 meters to 132.2 meters, and 1.35 g/t Au over 4.2 meters from 158.5 meters to 162.7 meters.
• Hole KLM26-006: 0.82 g/t Au over 240 meters from 160 meters to 184 meters; including 0.76 g/t Au over 13 meters from 286.3 meters to 299.3 meters, 2.46 g/t Au over 14.7 meters from 345.1 meters to 359.8 meters, and 12.52 g/t Au over 1.8 meters from 345.1 meters to 346.9 meters.
• Hole KLM26-010: Visible gold observed at 257 meters downhole; this drill hole is a step-out of 180 meters from historical resource limits. Drilling resumes at KL South with the program expanded to 30,000 meters due to under-budget winter program efficiencies.

Specifically, results from drill hole KLM26-005, which is located about 40 meters southeast of KLM26-004, have confirmed the lateral continuity of the South Zone mineralized system, the release said. This hole has revealed the presence of high-grade shoots within the broader mineralized envelope, demonstrating geological continuity.

Drill hole KLM26-006, which tests the upper portion of the North Zone while also undercutting the South Zone, has successfully extended the stacked North Zone mineralized structures by approximately 125 meters vertically, Kirkland Lake said. This hole encountered multiple broad intervals of gold mineralization characterized by quartz-carbonate veining and sulfide mineralization within altered volcanic units.

A notable discovery was made in drill hole KLM26-006 at a depth of 345 meters, associated with the Mirado fault, indicating that both sides of the fault and the fault itself are mineralized, the company said. Meanwhile, drill hole KLM26-010, the southernmost hole drilled to date, marks a significant advancement for the South Zone model. It intersected visible gold at approximately 257 meters downhole within quartz-carbonate-pyrite veining and strongly altered volcanic rocks. This intersection aligns with KLDC's updated model for the plunging South Zone mineralized system, situated about 180 meters south of the historical resource boundary, thus validating the company's interpretation and enhancing confidence in the potential to expand the system both along plunge and at depth.

Winter Drilling Done Under Budget

Drill core samples from these intervals have been or will be sent to a certified laboratory for gold content analysis, and assay values will be announced once available. It should be noted that all reported intervals represent downhole depths, and true widths are yet to be determined.

The winter drilling operations at KL West and KL South were completed under budget at CA$200 per meter all-in, prompting the company to expand the drilling program at KL South by an additional 5,000 meters, bringing the total to 30,000 meters. With favorable conditions during the spring melt, drilling activities at KL South have recommenced, focusing on the western expansion of mineralization and areas beneath the historical deposit.

"Equally important is the observation of visible gold in KLM26-010, approximately 180 meters south of the historical resource shell," Sklepowicz said. "This represents one of the largest step-outs completed to date and strongly supports our belief that mineralization remains open well beyond the historically constrained footprint."

KLDC cautioned that the presence of visible gold is not necessarily indicative of high-grade gold assays.

As drilling has resumed following a brief pause due to spring breakup conditions, the focus remains on expansion drilling along the South Zone trend. The ongoing work aims to test the down-plunge continuity beneath the historical resource, evaluate a deep IP anomaly beneath the South Zone, and increase drill density to enhance future resource modeling and geological interpretation. Assay results for multiple completed drill holes are pending and will be released once they have been received, compiled, and validated.

'A Strong Pipeline of Drill-Ready Targets'

Kirkland Lake Discoveries has assembled a 420-square-kilometer exploration portfolio in the Kirkland Lake region of Ontario's Abitibi Greenstone Belt, one of the most prolific mining districts in the world, according to a report in May by Resource World. The company's properties span key fault zones, geophysical anomalies, and volcanic-sedimentary contacts within the Blake River Group, a highly prospective assemblage known to host both gold and polymetallic massive-sulfide deposits.

"With exploration permits now in place, KLDC is positioned to advance a strong pipeline of drill-ready targets at KL South, KL West and KL East, supported by multiple anomalous soil trends, historical mineral showings, and structurally controlled intersections," the site said.

The Mirado system is characterized by two distinct and complementary styles of gold mineralization, with recent drilling results reinforcing the understanding of the South Zone, according to Resource World. This zone is marked by high-grade, structurally controlled gold mineralization encapsulated within quartz-carbonate/chlorite vein arrays, surrounded by lower-grade envelopes. Conversely, the North Zone features semi-conformable, stratigraphically controlled sulfide mineralization within felsic volcaniclastics, which is currently being explored through ongoing drilling efforts.

The latest drilling results not only reaffirm the presence and continuity of the historically defined gold mineralization but also clearly demonstrate the continuity of this mineralization downhole, the piece said. These findings bolster the company's evolving geological model and underscore the substantial growth potential of the Mirado system, with several zones still open for further expansion. The presence of both wide intervals and consistent mineralization suggests a strong potential for developing a bulk-tonnage system, which is further enhanced by higher-grade zones that could improve the project's economics.

"Initial results from the 2026 drill program demonstrate meaningful progress across several of the company's stated objectives, including the confirmation of historical mineralization, successful infill of key zones, and the extension of gold mineralization both laterally and at depth," Resource World said. "Drilling to date has validated the presence of high-grade mineralization within the South Zone while also supporting the continuity of stratigraphically controlled mineralization in the North Zone. These results are contributing to an increasingly robust geological dataset and are being actively integrated into a developing 3D model, refining the company's understanding of structural controls and mineralization trends."

Ongoing drilling will continue to focus on step-out targeting along strike and at depth, while systematically testing newly identified structural and geophysical targets, the site said. Ongoing work will also prioritize further data density to support future resource modeling, as the company advances Mirado's broader growth potential.

Expert Says Results Are 'Great'

On April 24, Bob Moriarty of 321Gold.com told Streetwise Reports, "Kirkland Lake Discoveries' shares exploded higher a little over a week ago when the company announced a home run on their very first hole. The shares shot higher when KLDC announced hole KLM26-001 with 1.10 g/t gold over 15.1 meters, 5.66 g/t gold over 18.2 meters, and 3.30 g/tau over 18.7 meters."

Moriarty continued, "The second interval reported for hole 001 gave a gram/meter of over 103. Anything over 100 is a great hole. As a result, the shares went from CA$0.195 on April 15 to a high of CA$0.63 on April 23 for a 220% higher move."

The Catalyst: Gold's Bulls Not Done Running?

According to A.G. Thorson of FX Empire on June 5, gold's current trajectory mirrors its behavior in 2006, suggesting that prices might dip to around US$4,000 by July. Thorson anticipates that following this decline, gold prices will rebound and continue an upward trend, potentially reaching US$7,500 sometime next year. Looking further into the future, Thorson's extended analysis predicts that the ongoing bull market in gold could last for approximately five more years, with prices possibly soaring to US$14,000 by 2031.

This forecast follows a period of consolidation in the metals and mining stocks after their significant gains in 2025, a common occurrence in strong bull markets. Thorson also expects a brief downturn in July before the market resumes its broader upward trends, with gold and silver miners likely offering the most substantial upside potential during this bull market phase projected to continue until 2031.

In related news, gold and silver prices saw a notable decline on Friday following the release of unexpectedly strong U.S. jobs data, as reported by BullionVault on June 5. This robust employment growth has increased expectations that the Federal Reserve, under the leadership of Trump appointee Kevin Warsh, might raise interest rates, countering the inflationary pressures from the ongoing Iran war's impact on oil prices. Despite a dip in oil prices on Friday, Brent crude still posted a weekly gain of 3.9% on the ICE derivatives exchange for August futures.

In contrast, the price of London gold bullion dropped sharply by 3.9% from the previous Friday's close, a decrease of over US$100 per troy ounce, primarily driven by the strong U.S. employment data. This pushed gold to its lowest London 3 p.m. auction price since the beginning of the year. The financial markets reacted quickly, with traders in CME interest-rate futures now viewing a November rate hike by the Fed as a 50-50 possibility. Consequently, the market's consensus on year-end interest rates has risen to 3.87%, the highest since a mid-March spike pushed rates towards 4.00% and led to gold's fastest fall since the 2013 crash.

Ownership and Share Information¹

Kirkland Lake Discoveries Corp. has a market cap of CA$83.23 million, with 205.63 million shares outstanding. The stock's 52-week range is CA$0.04 and CA$0.67.

Management and Insiders own 0.26% of shares, while Strategic Corporate Entities own 37.54%. The remaining 62.2% of shares are held by Retail.