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October 11, 2011
Vancouver, B.C. - Kaminak Gold Corporation (KAM: TSXV) today announced soil results from grid sampling of the Sugar area located approximately 20km southeast of the Supremo-Latte drill discoveries. The soil results from Sugar further reinforce the Company's belief that a district-scale gold system is present at Coffee. No previous drilling has been completed on the Sugar prospects. Additional widely-spaced reconnaissance soil sampling has also been completed on previously unexplored portions of the 150,000 acre Coffee property. Basic soil sampling is a reliable exploration tool at Coffee due to the lack of glacial influence and near surface nature of gold mineralization.
"These results continue to illustrate the excellent early-stage exploration potential of the Coffee property. The scale and intensity of the new Sugar soil results are strikingly similar to the original soil results that led to Kaminak's drill discoveries in 2010," stated Rob Carpenter, Kaminak's President and CEO. "The Sugar anomalies represent the most significant untested gold-in-soil trends in the Yukon and an extensive drill program is currently planned for early 2012."
Key Point Summary
- Several kilometer-scale long gold-in-soil trends identified in the "Sugar" area, including "Sugar North" (minimum 1km long) and "Sugar South" (minimum 2 km long)
- Geological setting and geochemical pathfinders suggest mineralized trends at Sugar are typical "Coffee-style" structurally controlled occurrences
- Widely-spaced ridge line samples within previously un-sampled portions of the Coffee property yield results as high as 3,086 ppb Au
- Ongoing drill program now exceeds 46,000m completed since April. Current focus is on the Supremo and Latte gold zones
Sugar Soil Results
The Sugar Trend was identified by a first pass ridge and spur sampling in 2010 comprising of a broad consistent zone of gold-in-soil located 20km from the Supremo-Latte zones at Coffee. A follow-up 100m by 50m grid soil sampling program was completed in July 2011. Soil assay results delineate a broad new gold-in-soil footprint measuring 4km by 1.8km. The Sugar zone is now directly comparable in scale and tenor to the original gold-in-soil anomaly over the Supremo-Latte-Double Double areas at Coffee that led to Kaminak's drill discoveries in 2010.
A total of 2,916 soil samples from Sugar were analyzed and 92 of these samples yielded results >100ppb Au. Overall, results ranged from background (<10ppb Au) to a high of 2,135ppb Au (2.135g/t Au). Gold-in-soil anomalies are also associated with high arsenic (As) and antimony (Sb), which is also identical to the Coffee geochemical suite. Two broadly east-west trending zones are identified: "Sugar North" and "Sugar South".
The core zone of "Sugar North" (consistent +50ppb Au gold-in-soil) measures 1km east-west by 500m north-south, with 27 +100ppb Au samples peaking at 522ppb Au. The Sugar North trend can be traced a further 900m to the west, across a section of north-facing slope where soil sampling is subdued by permafrost, to a zone measuring 600m x 300m containing an additional 4 +100ppb Au samples peaking at 255ppb Au.
"Sugar South" comprises an eastern and western zone, separated by a section of north-facing slope where soil sampling is subdued by permafrost. The eastern zone measures 900m east-west, by 350m north-south, with 23 +100ppb Au samples peaking at 1,142ppb Au (1.142g/t Au). The western zone measures 1200m east-west, by 600m north-south, with 19 +100ppb Au samples peaking at 1,450ppb Au (1.450g/t Au). The total combined strike length, if proven by future sampling to be a continuous alteration system, could be in excess of 2.3km east-west.
Preliminary interpretation of geophysical data suggests east-west trending structural zones marked by magnetite destruction at both Sugar North and Sugar South, plus additional possible structural trends in other orientations akin to those observed at Coffee. An initial trenching program was completed over the Sugar North and South zones in September 2011 with assay results currently pending. A follow-up drilling program is planned for 2012.
Several smaller +100ppb Au zones are located throughout the Sugar grid survey, and ridge and spur sampling returned an additional 6 +100ppb Au samples peaking at 3,086ppb Au located within an area measuring 7km by 5km to the east of the current Sugar grid. This zone will be targeted for follow-up grid soil sampling in 2012.
Maps are currently available on the Kaminak website, www.kaminak.com.
Subject to regulatory approval, the Board of Directors has granted an aggregate of 150,000 stock options under the Company's Stock Option Plan to newly appointed CFO, Jonathan Singh. The stock options have an exercise price of $2.82 per share, will vest according to schedules set by the Board of Directors and are exercisable for a period of five years.
QA / QC
Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Dr. Rob Carpenter, Ph.D., P.Geo., Kaminak's President and CEO, who serves as a Qualified Person under the definition of National Instrument 43-101. Samples were shipped to Acme Laboratories of Vancouver, B.C. for analyses. Samples were crushed and pulverized using a mild steel ring and puck mill. 30 gram aliquots were then weighed into fire assay crucibles and the samples are placed in a cupel and fired at 950 degrees Celsius. After cooling, 10 ml of HCl is added in order to dissolve gold particles. Solutions are analyzed for Au on a Varian 735 ICP-ES. Certified reference materials are inserted into the batch and results were verified by a British Columbia Certified assayer. The Coffee property represents an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.
On behalf of the Board of Directors of Kaminak
"Rob Carpenter"
Rob Carpenter, Ph.D., P.Geo.
President and CEO
Kaminak Gold Corporation
For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com or contact Tony Reda, Vice-President of Corporate Development, at toll free 1.888.331.2269, directly at 604.646.4534 or by email at info@kaminak.com. Kaminak is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. |