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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

Businessexcellence May 07 48 longer mine for a living. As such, the company has taken to recruiting local people for training. “We are currently training another six-person training group. In total, we have about 34 people trained through our formal training program in all,” said Middlemiss, “and scores more who have upgraded their skills through the successful completion of mining modules” Once they have completed training, the miners receive modules that count towards the Miners’ Common Core program under the Ontario Ministry of Training University and Colleges. Miners receive different modules depending on the type of job for which they are trained. The modules are universally recognized in the Canadian mining industry. “Mining is on its way to becoming a recognized trade like an electrician or a plumber,” said Middlemiss. “And we are evolving into a new type of company. The Kirkland Lake gold camp was an older, tired asset. No one saw a future here but the company had the vision. We invested in people and technology to great success. You fi nd gold where there is gold.” The company has recently produced a fl urry of announcements touting its success in the southern region of Kirkland Lake, and, said Middlemiss, “there is so much more to explore.” “No one saw a future here but the company had the vision. We invested in people and technology to great success” Kirkland Lake Gold HEATH & SHERWOOD is one of Canada’s most established and well respected drilling contractors. The Company was established in 1927 and has been engaged in diamond drilling continually since its inception. In Canada, the Company has been involved in projects in the Sudbury Basin, the Labrador Iron Range, the Arctic islands. and the base metal and gold belts of Ontario, Manitoba and Quebec. Extensive experience in diamond drilling both on surface and underground for customers in Africa, Central America, South America and the Caribbean has played a large part in making H&S an international leader in diamond drilling. The Company has set deep drilling records internationally in diamond drilling and continues to seek methods and technology to produce faster and maintain or enhance recovery at the same time. The Company has operations in Canada, the Caribbean, Brazil and South Africa. In addition to these bases of operation H&S has undertaken drilling activity in Belize, Bolivia, Honduras, Liberia, Panama, and Chile. Heath & Sherwood is a subsidiary of Cabo Drilling Corp Contact Heath & Sherwood Drilling 34 Duncan Avenue North Kirkland Lake, Ontario 705-567-9311 www.heathandsherwood.com www.cabo.ca