Vancouver, B.C., Kaminak Gold
Corporation (KAM: TSX-V) and project
partner Corsa Capital Ltd. (CSO: TSX-V) today announced the 2008 exploration
program for the SY Gold Property, Nunavut, Canada. The property consists of
44 mineral claims totaling 460 sq km, and is situated 870 km east of
Yellowknife and 300 km southwest of Rankin Inlet. Corsa has an option to earn
up to a 60% interest in the SY Project by spending $2.0 million and issuing
Kaminak 400,000 Units prior to December 31, 2011. This year�s exploration
program is solely funded by Corsa and focused on identifying potential drill
targets for the 2009 field season.
�The SY Gold property is one of nine properties in
the Kaminak portfolio that is under joint venture,� stated Rob Carpenter,
President & CEO of Kaminak. �Kaminak continues to execute the prospect
generator business model and successfully creates shareholder value through
strategic acquisitions that expose the shareholders to opportunities for
discovery.�
Exploration
work at the SY Project is set to commence in August and will consist of
prospecting and soil/till sampling. GeoVector Management Inc. of Ottawa,
Ontario will manage the exploration program. Corsa�s exploration budget
for this year�s program is currently set at CDN $350,000. Supply, logistical
and operating costs have been substantially reduced through the use of a
nearby operator�s exploration camp and some common geotechnical personnel.
Corsa
completed a small exploration program in 2007 on the SY Property. Assay
results confirmed historic work done on the property by previous operators
and identified several new gold and base metals targets. (See Prospectus on
www.sedar.com)
One
advantage Kaminak and Corsa have over previous operators is the possession of
a comprehensive geophysical dataset from an airborne survey which was flown
over the SY Property in 2006 by Kaminak. Fieldwork in 2007 proved that the
new geophysical data works very effectively as an exploration tool; target
areas for 2008 were generated from this data. Five such target areas
will be the focus of the 2008 prospecting and geochemical sampling work.
About
the SY Property
The geology
of the �SY Greenstone Belt� is similar to other gold-bearing greenstones in
the Kivalliq Region of Nunavut, including the greenstone belts that host the
Meadowbank and Meliadine gold deposits. Each of these belts contains abundant
gold-bearing banded iron formation that has undergone significant shearing
and deformation. The SY greenstones have seen only minor exploration compared
to these adjacent belts-only about 1% of the belt has been evaluated due to
poor outcrop exposure.
Limited
historical exploration by Homestake Ltd. in this poorly exposed belt resulted
in the discovery of at least 20 individual high grade gold occurrences over a
strike length of 30 km. Known mineralization is related to sheared and
altered iron formation. Historical surface samples from the �SY-13 Grid�
returned assays as high as 38.8 g/t Au. Approximately 3000 m of
drilling in 1986/87 confirmed the continuity of gold mineralization and
yielded intercepts of 3.38 g/t Au over 3.50 m and 3.18 g/t Au over 7.00
m. Visible gold was noted in both these holes and described in detail
on drill logs. Significantly anomalous, historical, surface samples and historical
drill intercepts (>5.0 g/t Au) were also reported from the �SY-4�,
�KR-10�, and �WAD Grids�. Visible gold was also noted from each of
these occurrences.
Disclosure
of a technical nature contained in this release has been reviewed and
approved by Mr. Joe Campbell, P.Geo. of Geovector Management Inc. who serves
as the Qualified Person under the definition of National Instrument 43-101.
Historical exploration information and assay results were collected before
the introduction of NI 43-101. The Company has no way of verifying the
results, thus the historical data should not be relied upon.
The
SY Property Agreement
As part of a
Letter Agreement signed on July 20, 2007, Corsa can earn a 51% interest in
the SY Property from Kaminak by making $1,000,000 in exploration expenditures
on the SY Property and issuing 300,000 Units of Corsa to Kaminak before
December 31, 2010. As part of this Agreement, Corsa has now issued Kaminak
100,000 Corsa �Units.� (See Kaminak news release on April 22, 2008). Each
Unit consists of one common share and one common share purchase warrant. Each
warrant is exercisable for a 12 month period following the date of issuance
at a price per common share determined by the weighted average closing price
of the common shares of Corsa for the 20 consecutive trading days immediately
prior to issuance, or such other price which is acceptable to the pertinent
regulatory authorities.
To earn a
total cumulative project interest of 60% in the SY Property, Corsa has the
option to make additional exploration expenditures of $1,000,000 on the
property and issue an additional 100,000 Units of Corsa to Kaminak prior to
December 31, 2011.
If Corsa
meets its $1,000,000 expenditure obligation and issues 300,000 Units to
Kaminak by December 31, 2010, a Joint Venture will be formed with Corsa
holding a 51% working interest and Kaminak holding a 49% interest. Corsa then
has the option to increase its working interest in the Joint Venture to 60%,
leaving Kaminak with a 40% working interest in the SY Project. The parties
will contribute to Joint Venture expenditures pro rata in accordance with
their interests held. Non-contribution by either party will result in
pro rata dilution of interest down to a minimum of 5%, which will then be
converted to a 5% net profits interest (�NPI�). The mineral rights to the SY
Property do not include diamond rights, which are held by Indicator Minerals
Inc. and Hunter Exploration Group. There is a 2% net smelter royalty/gross
over-riding royalty (�NSR/GOR�) payable to Hunter Exploration Group. Corsa
will be project operator for exploration programs at the SY Property.
About
Kaminak
Kaminak Gold
Corporation is a prospect generator employing a joint venture strategy that
maximizes opportunities for discovery while attempting to minimize
exploration risk to the company. A critical component of Kaminak�s
business model is working with strong project partners to advance Kaminak�s
exploration projects. Covering several million acres, Kaminak holds one of
the largest land positions in Canada devoted to metallic mineral exploration.
Kaminak�s projects offer world-class exploration potential and present
exposure to strategic commodities, including gold, uranium and nickel.
On behalf of
the Board of Directors
�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, Investor
Relations, at 604.646.4534.
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
Certain
disclosures in this release, including without limitation future intended
exploration programs and management's assessment of Kaminak�s plans and
projects, constitute forward-looking statements. Such forward-looking
statements are subject to numerous risks, uncertainties and other factors
relating to Kaminak�s operation as a mineral exploration company, including
without limitation the timing and success of intended exploration programs
that may cause future results to differ materially from those expressed or
implied in such forward-looking statements. 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.