Kent Exploration Inc.
TSX VENTURE : KEX

Kent Exploration Inc.

August 27, 2009 12:01 ET

Kent Receives Gnaweeda Gold Project Independent NI-43-101 Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2009) - Kent Exploration Inc. (the "Company" or "Kent") (TSX VENTURE:KEX) reports that it has received an independent NI-43-101 Report (the "Report") on the Gnaweeda Gold Project. Kent has executed an exclusivity letter with Teck Australia Pty. Ltd ("Teck") to enter into an Option Agreement to earn 100% of Teck's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia.

The Report was commissioned by the Company to qualify Gnaweeda as a listing property by the TSX Venture Exchange (the "TSX-V"). The Company proposes, through a Plan of Arrangement (the "Plan"), to split the Company into two distinct geographical regions, Kent Exploration in North America and a new, gold-focused, listed company ("Newco") to advance and develop projects in Australia and New Zealand.

With the receipt of this Report, the Company will commence preparing the proposed Plan, under which, upon shareholder approval the Company intends to distribute to shareholders, on a record day yet to be determined, one common share in Newco for every four common shares held of Kent. Upon completion of the proposed Plan, Newco will fund and advance exploration on the Australian and New Zealand properties, while Kent will continue advancing exploration on its North American properties.

The Gnaweeda property is an under-explored gold property within the Archean Gnaweeda greenstone belt, similar to the adjacent Archean Meekatharra-Wydgee greenstone belt, which has produced in excess of 3.5 million ounces of gold from a number of gold districts, including the Reedy, Mount Magnet, Meekatharra and Yaloginda. The Gnaweeda property covers the majority of the entire Gnaweeda greenstone belt.

The Gnaweeda Gold property includes the Turnberry, St. Anne's and Bunarra prospects, of which the Turnberry is the most advanced. Historic drilling by Newcrest returned intercepts including 1m @ 21.07 g/t Au from 144m depth, 1m @ 13.22 g/t Au from 294m depth and 2m @ 6.50 g/t from 319m. Limited deep (less than or equal to 300m) RC drilling by Teck returned significant gold intersections including 4m @ 17.77g/t including 1m @ 59.27g/t, 5m @ 13.49g/t, 5m @ 11.64g/t, 3m @ 11.87g/t, 3m @ 4.52g/t, 3m @ 4.85g/t and 3m @ 4.39g/t.

Although there are several significant gold intercepts at Gnaweeda, only a small portion of the gold anomalies and prospects have been drilled, and only a limited amount of the drilling exceeded 200m depth. Although over 50,000 metres of rotary drilling have been completed at Gnaweeda, only four of the holes drilled were diamond core. The property requires diamond drilling to gain an understanding of the structural controls and geometry of gold mineralization, which is present in several prospects over several kilometres of strike length across the property.

The NI-43-101 Report recommends, among other things, a diamond drill program, which the Company is currently in the process of permitting, to target the down-dip and on-strike extensions of the mineralized zones at Turnberry and Bunarra Bore and in-fill diamond drilling between reverse circulation drill holes that show significant gold intersections.

Ms. Nancy Reardon, M.Sc. P.Geol., a Qualified Person as defined by National Instrument NI-43-101, is the Company's Senior Geological Consultant for the Company's New Zealand and Australian exploration activities.

Kent Exploration Inc is a junior exploration company that has a 100% interest in a mining lease option on the Flagstaff Mountain property, a gold/silver/zinc/barite prospect in eastern Washington state, 50% of a 100% interest in the mining lease option on the Ivanhoe Creek property, a Midas-style gold/silver target in Nevada's Carlin Trend, 50% of a 100% interest in the Ivanhoe Creek placer claims covering a bentonite deposit, 100% interest in the Courtney Lake property, a silver/lead/zinc prospect in north-east Saskatchewan.

The Company has an option to earn a 100% interest in the Silver Hills property, a silver/lead/zinc prospect in south-eastern British Columbia, 100% interest in Coal Prospecting Permits covering approximately 92,000 ha in east-central Saskatchewan, has a 100% interest in the Alexander River and Lyell gold projects and an option to acquire a 70% interest in the Reefton gold project in New Zealand. The Company has executed a proposal with Teck Australia Pty, Ltd, to enter into an Option Agreement to earn 100% of Teck's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia.

This News Release has been prepared on behalf of the Kent Exploration Inc Board of Directors, which accepts full responsibility for its contents.

ON BEHALF OF THE BOARD

Graeme O'Neill, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Kent Exploration Inc.
    Graeme O'Neill
    President
    604-684-3394or Toll free: 1-866-399-6539
    1-888-282-7763 (FAX)
    www.kent-exploration.com