Kodiak Drills 2.6m Grading 13.4 gpt Au at Hercules, Samples Up to 163 gpt Au Over 0.25m at Brenbar
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/01/10 -- Kodiak Exploration Ltd. (TSX VENTURE: KXL)(FRANKFURT: KX3) is pleased to provide the following update on its regional gold exploration program in the Beardmore-Geraldton gold belt in northern Ontario. At Kodiak's Hercules project, recent infill drilling designed to expand the known gold resource has intercepted significant gold mineralization on the Lucky Strike vein system including 2.6 metres grading 13.4 gpt gold between 46.8 and 49.4 metres in drill hole HR10-452. Data from this ongoing exploration program will be used to update the existing NI 43-101 compliant gold resource in the future (see press release date April 13, 2010).
Brenbar: Detailed rock grab and channel sampling at Brenbar has returned very high gold grades, ranging from nil to 163 gpt gold (see highlight table below). Trenching and road clearing on the northern portion of the Brenbar claim group has just been completed. Grab and channel samples from the No. 8 vein have returned up to 16.2 gpt gold with multiple samples assaying greater than 10 gpt gold. Drilling has recently commenced at Brenbar targeting both high grade vein gold mineralization and thicker zones of lower grade rock that envelope the high grade structures.
Brenbar Gold Assay Results
Sample No. Sample Type Zone Gold gpt Sample Length (m)
G29750 Grab 15 Vein 112.0
G28108 Grab 15 Vein 73.9
G28012 Grab 15 Vein 48.5
G28106 Grab 15 Vein 33.1
G28107 Grab 15 Vein 22.4
G28109 Grab 15 Vein 19.8
C56496 Channel 15 Vein 163.0 0.25
C56497 Channel 15 Vein 46.8 0.25
C56499 Channel 15 Vein 39.2 0.25
C60001 Channel 15 Vein 29.8 0.30
C60133 Channel 14 Vein 22.2 0.37
GK Target: On the GK target at West Geraldton, where Kodiak recently intercepted thick high-grade gold mineralization in drill hole GK10-40 (24.9 metres grading 9.31 gpt gold including 8.1 metres grading 27.8 gpt gold, see press release dated September 7, 2010), the company has recently completed 28 kilometres of dipole-dipole IP and ground magnetic surveys. The ground surveys, coupled with borehole IP, have identified a northwest trending geophysical anomaly that appears to be an extension to the sulfide-rich gold mineralization cut by drill hole GK10-40 ('Argon vein'). Two thousand metres of diamond drilling are scheduled to begin shortly to test this extension to the Argon vein.
To view the map, GK drill targets on Total Magnectic Intensity base, please click on the following link: http://media3.marketwire.com/docs/1101kxl.jpg
Castlewood Lake: At Castlewood Lake, Kodiak has recently completed a ten hole 2,975 metre diamond drilling program targeting strongly deformed, folded, and sheared mafic volcanic rocks and associated metasedimentary rocks that exhibit strong carbonate, silica and pyrite alteration occurring in the deformed interflow sediments. Gold values from surface grab and channel samples range from nil to 37.6 gpt gold (please see highlight table below). The better values occur in the thickened sedimentary units in the hinges of the folds. Assay results for the drill holes will be reported when received.
Castlewood Lake Gold Assay Results
Sample/Composite No. Sample Type Zone Gold gpt Sample Length (m)
G30161 Grab Centurion 37.6
G30188 Grab Leopard 5.14
G30163 Grab Centurion 3.89
G30160 Grab Centurion 3.65
G30181 Grab Leopard 2.95
C56630-C56631(i) Channel Centurion 8.72 0.95
C56642-C56643(i) Channel Centurion 7.28 0.95
CEN-001(i) Channel Centurion 6.94 1.45
CEN-001A(i) Channel Centurion 4.05 3.65
CEN-003(i) Channel Centurion 6.57/3.75 1.15
(i) Composite channel Samples
Shields: Mapping and sampling have recently been completed at the Shields property, located immediately east of Premier Gold's Hardrock project. Prospecting, mapping, trenching and geophysical surveys (magnetics and induced polarization) have identified five targets at Shields. The Ferraro Zone has a limited surface expression as a quartz veined pyritic shear in mafic volcanic rocks. The zone returned assays ranging from nil to 23.84 gpt gold (Fer001). The Stinger Zone is a polymetallic zone that has returned grab samples and channel samples with values in the following ranges; gold: 0.14 to 14.40 gpt, silver: 9.7 to greater than 123 gpt, copper: 0.34 % to greater than 7.15%. The Gladiator and Maximus Zones are steeply dipping narrow shear zones cutting gabbroic rocks that host gold mineralized quartz. The Titus Zone is interpreted to be the folded limb of the Maximus zone which together form a closure that has been exposed by trenching. Assay highlights from surface samples are shown in the table below. Kodiak recently completed four shallow drill holes at Shields, assay results are pending.
Shields Gold Assay Results
Sample
Sample/Composite No. Sample Type Zone Gold gpt Length (m)
G27752 Grab Ferrara 292.0
G27814 Grab Maximus Extension 18.2
G27817 Grab Maximus Extension 17.3
G27753 Grab Ferrara 15.7
G27819 Grab Maximus Extension 9.4
G30308 Grab 8.4
MAX-006(i) Channel Maximus 17.2 1.20
including 53.2 0.35
FER-001(i) Channel Ferrara 23.8 1.25
including 37.2 0.80
and 196.0 0.15
(i) Composite channel Samples
GK Option Payment: The TSX Venture Exchange has accepted a supplemental filing made by the Company in respect of a June 9, 2008 option agreement (the 'Agreement') between the Corporation of the Municipality of Greenstone and the Company in respect of the Kenogamisis mineral property which hosts the GK target area.
On July 17, 2008, the Exchange accepted the Company's original filing in respect of the Agreement, pursuant to which the Company was granted an option to acquire an undivided 100% interest in 29 mineral claims located in Errington and Ashmore Townships, Thunder Bay Mining Division, subject to a 2% net smelter returns royalty. The original acceptance notice stipulated that the Company could exercise the option by making payments totaling $750,000 in cash over a four year period. However, the Agreement itself provides that the Company may issue shares in lieu of making cash option payments at that price which is the greater of: the volume weighted average closing price of the Company's shares over the 20 trading days prior to the date of issue of such shares; and $2.61, which was the closing price on June 6, 2008, the last trading day preceding the date of the Agreement.
The Company paid $25,000 in cash during 2008 and issued 47,893 shares of the Company at $2.61 each to satisfy the $125,000 Option payment due on October 31, 2009. Due to administrative inadvertence, the Company did not seek the consent of the Exchange to issue shares to satisfy the 2009 option payment. The Exchange has now accepted the Company's supplemental filing in respect of the Agreement, and the $150,000 payment due October 31, 2010 has now been made by issuing 57,472 shares at $2.61 each.
Any shares issued in connection with the exercise of the Option will be priced at the time of issue in accordance with the formula set forth above and will be subject to a four month hold period. The Company may purchase one-half (i.e. 1%) of the royalty for $1,000,000 at any time.
The geological information reported has been reviewed and approved by Paul Dunbar, Kodiak's Beardmore-Geraldton Regional Exploration Manager, who is a qualified person under the definitions established by National Instrument 43-101. Kodiak QA/QC procedures are as follows: Kodiak channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 10 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Kodiak drill cores are split down the center with a typical table feed circular rock saw. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Kodiak logging and sample preparation facilities by Kodiak personnel. Kodiak angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Kodiak samples are currently being assayed by Activation Laboratories Ltd., Ancaster, ON L9G 4V5 and Accurassay Laboratories Inc., Thunder Bay, ON, P7B 5X5. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Screened metallic assays are routinely run on all anomalous gold results as a check on nugget effects. Samples are routinely sent to other labs for additional checks.
On behalf of the Board of Directors
Brian J. Maher, President and Chief Executive Officer
This release may contain forward-looking statements or statements that relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
Neither 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.
Contacts:
Kodiak Exploration Limited
Brian J. Maher
President and Chief Executive Officer
1-604-688-9006
1-604-688-9029 (FAX)
ir@kodiakexp.com
www.kodiakexp.com