page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84

Businessexcellence May 07 46 Mine manager Duncan Middlemiss tells Linda Seid Frembes how Kirkland Lake Gold has invested in people and technology to revive dormant mines Since its inception in 2001, Kirkland Lake Gold (KLG) has grown to 250 employees and $40 million in revenue from fi ve mining sites in Ontario. The company owns and operates the fi ve major gold properties in Kirkland Lake, Ontario— the Macassa, Kirkland Minerals, Teck-Hughes, Lake Shore and Wright Hargreaves mines—which were purchased from Kinross in 2001 by Harry Dobson and Brian Hinchcliffe. Although the westernmost mines’ infrastructure was relatively sound, several years of dormancy was taking its toll. The mines were in need of dewatering prior to any exploration or mining work. Luckily, KLG’s strength in converting aging assets was a perfect fi t. It took approximately one year before the Gold vision

May 07 Businessexcellence 47 company could begin underground diamond drilling (core sampling) at the Macassa mines. In 2002, when Duncan Middlemiss, mine manager of all five KLG properties, first joined the company as chief engineer, they were dewatering Macassa’s number three shaft. “At the starting point of dewatering the most westernmost working shaft, the water level was just above 3,400 feet and by the time I arrived eight months later it was at the 3,800 level,” he noted. In his current role, Middlemiss is responsible for underground production, which includes operations personnel, engineering, and production geology. Overall, he manages 140- 150 people in total who work at the KLG mines. Historically, the area has produced 24 million ounces of gold with the entire region accounting for total gold production of approximately 40 million ounces. Currently, the company is producing 60,000 ounces a year and with plans to increase production to 100,000 ounces. “Kirkland Lake was a prime example of narrow vein mining along the Main Break, which was the major structure mined for over 80 years. This vertical structure was typically very evident and lent itself to conventional mining methods,” said Middlemiss. “Now there are new significant discoveries to the south that are not the same style of ore as the Main Break. Our potential is vast considering the great success we’ve had in one small area.” So much success that the company recently announced that the Prospector of the Year award for 2006 was given to KLG’s exploration team of Mike Sutton and Stewart Carmichael by the Ontario Prospectors Association. The award recognizes the most significant new discovery made in the province of Ontario. Specifically, the company was awarded for the discovery of a new system of high grade sulphide hosted gold zones, including the New South, White Zone and the Lower D found to the south of the historic quartz vein Main Break in the Kirkland Lake Camp. After exploration discoveries, the mining process for gold begins with further definition of the ore by a geologist who will log the core and map any development. 3-D block models of ore are created based on the results. Using these 3-D models, engineers design how to extract the ore using the most efficient method. Engineering will propose a mining method that suits the ore; conduct a feasibility analysis and then send the plans to the operations department who will look at access development and ore extraction. Once the site is accessed and the ore is mined, the ore travels to the 1,500 ton per day on-site mill where it is crushed and ground to 45 microns. With a combination of reagents the gold is leached into a solution form, carbon is then added to absorb the gold in the solution. The gold is then stripped off the carbon to later be refined and poured into gold bars that are approximately 82 percent pure. “The gold bars are sent to Johnson Mathey for further refining, and that’s when it leaves our hands,” said Middlemiss. Although “hard rock” mining is usually portrayed in the movies as men with picks and shovels, technology and new exploration techniques have brought modernization into the mining industry. Middlemiss added: “Our newly-discovered ore was flatter-lying (less than 45°) so we had to move away from conventional methods. We had to use more modern, mechanized equipment like scoop trams and longtom drill rigs.” Another technology investment has come in the form of the Varis leaky feeder radio system, a multi-channel, two-way voice and data system for real-time communications across the property and into the mines. The leaky feeder radios are an integral part of each miner’s personal protective equipment so each miner has a communications device on them. KLG mines were retrofitted with this technology in addition to the traditional hardwired telephone line. “It is portable and can be used as long as you are in range of an antenna. I have one on my desk so I can keep in touch,” said Middlemiss. Because of the explosion of regional mining activity in Ontario and the resurgence of the metal market, there has been a big shortage of qualified manpower. In addition to the use of machinery, a hands-on approach is sometimes needed. Narrow vein mining (with veins one to two feet wide and up to six feet wide) requires different miners and more conventional methods. Training is of the utmost importance at KLG since the hands-on approach is quickly becoming a lost skill. Most people who already know the conventional mining techniques no Kirkland Lake Gold