Kernow Resources & Developments Ltd.
TSX VENTURE : KRD

Kernow Resources & Developments Ltd.

January 23, 2007 20:21 ET

Kernow Resources & Developments Ltd.: Provisional Results of Drilling Completed at the Boticas Gold Property, Northern Portugal & Corporate Update

PORTO, PORTUGAL--(CCNMatthews - Jan. 23, 2007) - Mr. Alan Matthews, President of Kernow Resources & Developments Ltd. (TSX VENTURE:KRD), is pleased to provide provisional assay results from the recently completed 3 hole diamond drilling program on Kernow's 100% owned Boticas gold property located in the Tras-O-Montes region of Portugal.

The diamond drill holes were completed for a total of 376 meters. The holes were designed to test various aspects of the Limarinho deposit relative to its linear extent, its depth extent and to confirm the tenor of previous results obtained by COGEMA (Compagnie Generale des Matieres Nucleaires of France) in their 16 diamond drill hole program completed in 1990.

Mr. Matthews states, "The drilling has confirmed there is gold mineralisation outside of and beneath the previously mined zones at Limarinho. It has also confirmed that there is higher grade gold mineralisation associated with northeasterly trending vein swarms and that the east west trending vein swarms continue to depth. These observations serve to confirm Kernow's intent to continue the development of this important project."

Selected intervals from the drill holes are quoted as follows:



Hole KL003: Dip -45 degrees: Azimuth: 144 degrees: Depth 96.5 meters

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Gold grams Silver grams
From meters To meters Interval per tonne per tonne
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14.15 m 25.65 m 11.5 m 2.76 g/t 1.71 g/t
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The above is contained within an intercept of gold mineralisation extending from 9.85 meters to 41.5 meters (31.65 meters). The gold grade for this larger interval has not yet been fully determined as several assay results (Au 9) are still pending. The estimated true width of the main intercept is 8.5 meters.

Hole KL003 was drilled at an angle of -45 degrees to the South East at an azimuth of 145 degrees. The hole was designed to undercut a partially mined area of the Limarinho open pit. The hole intersected an extensive length (in excess of the 41.5 meters noted above) of altered mineralized two mica granite containing a swarm of sub vertical narrow mineralized quartz veins.



Hole KL002: Dip-48 degrees: Azimuth: 325 degrees: Depth: 130.115 meters

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Gold grams Silver grams
From meters To meters Interval per tonne per tonne
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23.25 m 25.65 m 2.45 m 2.11 g/t 3.4 g/t
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Due to the intensely altered nature of the granite, core recovery for the first 25.15 meters of this hole was measured at 35%. This zone was predicted to contain the continuation of a set of mineralised quartz veins intersected in prior drill holes. Fragments of quartz veins were observed in the material recovered from the core. The hole was seen to be mineralized along intermittent sections of its length although gold grades encountered were sub economic.

Deeper in the hole a set of mineralised quartz veins were intercepted between 113.6 meters to 121.35 meters (7.75 meters, estimated true width 5.0 meters) with a gold grade of 0.55 g/t gold and 2.2 g/t silver across this interval. Contained within this intercept from 114.90 meters to 119.25 meters (4.35 meters) sampling returned 0.92 g/t gold and 3.47 g/t silver. Recovery was higher (80% in this zone).



Hole KL001: Dip-51 degrees: Azimuth: 142 degrees Depth: 151.15 meters

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From To Interval Gold Silver
(meters) (meters) (meters) (grams per tonne) (grams per tonne)
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7.65 m 12.75 m 5.50 m 2.40 g/t 6.43 g/t
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This interval is highly influenced by two high grade narrow veins that strike N20E and occur at 7.65 meters (0.5 meters at 17.4 g/t gold) and at 10.75 meters (0.2 meters at 14.64 g/t gold). However there are assay values adjacent to these intercepts that show there is anomalous gold mineralisation between the two main intercepts. The estimated true width of the above intercept is 4.0 meters.

Mineralisation was seen to commence at surface from 0.00 meters to 4.45 meters (4.45 meters) returning assay values of 0.49 g/t gold and 1.04 g/t silver in weathered iron stained granite.

In addition a set of narrow mineralized quartz veins were encountered between 106.85 meters and 119.80 meters (12.85 meters, estimated true width of 9.0 meters). The most mineralised section here was from 114.75 meters to 118.65 meters (3.9 meters) of 1.41 g/t gold and 1.74 g/t silver.

A program of surface channel and chip sampling has been undertaken both within the old pit and at prospects up to one kilometre to the west of the Limarinho pit. Assay results from the surface sampling and final certified results from the drill program will be made available as and when they are received. A plan of the location of the drill holes will also be made available on Kernow's web site in the near future under the Boticas header.

A more comprehensive listing of the assay results for each of the holes follows.



Hole KL001: Dip-51 degrees: Azimuth: 142 degrees Depth: 151.15 meters

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Gold Silver
Sample From To Interval Assay (grams per (grams per
No (meters) (meters) (meters) method tonne) tonne)
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KL001 0.00 0.50 0.50 Au 4 2.564 4.7
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KL002 0.50 1.00 0.50 Au 3 0.627 1.8
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KL003 1.00 1.60 0.60 Au 3 0.026 0.4
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KL004 1.60 2.50 0.90 Au 3 0.42 0.4
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KL005 2.50 3.60 1.10 Au 3 -0.002 -0.2
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KL006 3.60 4.00 0.40 Au 3 0.173 1.8
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KL007 4.00 4.45 0.45 Au 3 0.261 0.6
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KL008 4.45 5.45 1.00 Au 1 -0.002 -0.2
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KL009 5.45 6.45 1.00 Au 1 -0.002 -0.2
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KL010 6.45 6.85 0.40 Au 1 0.023 -0.2
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KL011 6.85 7.65 0.80 Au 1 0.004 0.3
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KL012 7.65 8.15 0.50 Au 4 17.40 28.0
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KL013 8.15 9.05 0.90 Au 3 0.01 -0.2
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KL014 9.05 10.00 0.95 Au 4 0.25 0.4
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KL015 10.00 10.75 0.75 Au 3 0.004 -0.2
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KL016 10.75 10.95 0.20 Au 4 14.64 82.7
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KL017 10.95 12.15 1.20 Au 3 0.043 0.4
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KL018 12.15 12.75 0.60 Au 3 0.472 3.2
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There were minor mineralized intersections between 12.75 m and 106.85 m.
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KL078 106.85 107.85 1.00 Au 4 0.960 2.3
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KL079 107.85 108.45 0.60 Au 4 0.140 0.3
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KL080 108.45 108.85 0.40 Au 4 0.400 0.2
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KL081 108.85 109.25 0.40 Au 3 0.058 0.2
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KL082 109.25 110.55 1.30 Au 3 0.530 -0.2
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KL083 110.55 111.40 0.85 Au 3 0.004 -0.2
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KL084 111.40 112.40 1.00 Au 3 0.002 -0.2
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KL085 112.40 113.20 0.80 Au 3 -0.002 -0.2
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KL086 113.20 114.05 0.85 Au 3 0.032 -0.2
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KL087 114.05 114.75 0.70 Au 4 0.190 5.3
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KL088 114.75 115.15 0.40 Au 4 2.140 1.4
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KL089 115.15 115.80 0.65 Au 3 0.224 -0.2
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KL109 115.80 116.55 0.75 Au 3 0.160 0.7
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KL110 116.55 118.30 1.75 Au 3 0.033 -0.2
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KL111 118.30 118.65 0.35 Au 3 12.400 17.0
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KL129 132.05 133.15 1.10 Au 3 -0.002 -0.2
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KL130 133.15 133.75 0.60 Au 3 -0.002 -0.2
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KL131 133.75 134.10 0.35 Au 4 1.750 2.4
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Hole KL002: Dip-48 degrees: Azimuth: 325 degrees: Depth: 130.15 meters

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Gold Silver
Sample From To Interval Assay (grams per (grams per
No (meters) (meters) (meters) method tonne) tonne)
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KL154 2.64 3.35 0.71 Au 3 0.224 0.5
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KL155 3.35 3.95 0.60 Au 3 0.012 -0.2
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3.95 4.45 No recovery
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KL156 4.45 5.65 1.20 Au 3 0.031 -0.2
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5.65 7.15 1.50 No recovery
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KL157 7.15 8.95 1.80 Au 4 3.04 0.9
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KL158 8.95 10.15 1.20 Au 3 0.384 -0.2
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KL169 21.65 23.25 1.60 Au 3 0.080 -0.2
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KL170 23.25 25.15 1.90 Au 3 1.818 3.3
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KL171 25.15 25.65 0.50 Au 3 3.24 3.6
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KL172 25.65 26.35 0.70 Au 3 0.013 -0.2
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KL178 34.25 35.15 0.90 Au 3 0.435 1.2
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KL179 35.15 35.85 0.70 Au 4 0.29 -0.2
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KL180 35.85 36.55 0.70 Au 3 0.126 -0.2
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KL181 36.55 37.15 0.60 Au 3 0.023 -0.2
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KL182 37.15 39.15 2.00 Au 4 0.55 0.5
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KL183 39.15 40.15 1.00 Au 4 1.13 0.4
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KL184 40.15 41.35 1.20 Au 3 0.216 0.9
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KL198 58.60 59.60 1.00 Au 3 0.021 -0.2
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KL199 59.60 60.60 1.00 Au 3 0.005 -0.2
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KL200 60.60 61.50 0.90 Au 3 0.022 -0.2
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KL201 61.50 62.45 0.95 Au 4 0.660 2.5
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KL202 62.45 63.25 0.80 Au 3 0.030 1.5
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KL203 63.25 63.55 0.30 Au 3 0.170 0.3
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KL204 63.55 64.45 0.90 Au 3 0.024 -0.3
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KL205 64.45 65.35 0.90 Au 1 0.005 -0.3
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KL206 65.35 67.15 1.80 Au 3 0.040 1.2
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KL207 67.15 68.30 1.15 Au 4 0.025 -0.2
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KL208 68.30 69.15 0.85 Au 4 0.129 -0.2
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KL209 69.15 70.15 1.00 Au 4 0.03 -0.2
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KL210 70.15 70.75 0.60 Au 4 0.006 -0.2
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KL231 70.75 71.65 0.90 Au 3 0.036 0.5
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KL232 71.65 72.65 1.00 Au 3 0.025 0.3
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KL233 72.65 73.55 0.90 Au 3 0.041 0.6
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KL213 113.60 114.30 0.70 Au 4 0.32 2.5
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KL214 114.30 114.90 0.60 Au 4 0.04 -0.2
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KL215 114.90 115.30 0.40 Au 4 5.36 6.7
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KL216 115.30 116.05 0.75 Au 4 0.03 0.7
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KL217 116.05 116.85 0.80 Au 4 0.28 10.3
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KL218 116.85 117.45 0.60 Au 4 0.87 2.2
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KL219 117.45 118.15 0.70 Au 4 0.46 0.8
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KL220 118.15 118.70 0.55 Au 4 0.68 1.4
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KL221 118.70 119.25 0.55 Au 4 0.70 1.8
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Hole KL003: Dip -45 degrees: Azimuth: 144 degrees: Depth 96.5 meters

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Gold Silver
Sample From To Interval Assay (grams per (grams per
No (meters) (meters) (meters) method tonne) tonne)
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KL274 9.85 10.15 0.30 Au 3 2.628 1.5
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KL275 10.15 11.20 1.05 Au 3 0.569 0.4
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KL276 11.20 11.65 0.45 Au 4 0.07 0.5
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11.65 12.25 0.60 No recovery
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KL277 12.25 12.95 0.70 Au 4 1.00 1.8
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12.95 14.15 1.20 No recovery
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KL278 14.15 15.15 1.00 Au 4 1.98 0.8
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KL279 15.15 15.95 0.80 Au 4 2.44 0.7
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KL280 15.95 16.10 0.15 Au 4 0.04 -0.3
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KL281 16.10 16.90 0.80 Au 3 0.481 0.6
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KL282 16.90 17.50 0.60 Au 4 2.29 3.6
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KL283 17.50 18.50 1.00 Au 4 3.46 0.5
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KL284 18.50 19.50 1.00 Au 3 3.465 -0.3
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KL285 19.50 20.25 0.75 Au 3 0.04 -0.3
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KL286 20.25 21.25 1.00 Au 4 3.54 1.6
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KL287 21.25 22.10 0.85 Au 3 5.823 1.0
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KL288 22.10 23.00 0.90 Au 4 3.35 4.4
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KL289 23.00 23.90 0.90 Au 3 1.386 1.0
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KL290 23.90 24.55 0.65 Au 3 6.012 11.3
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KL291 24.55 25.65 1.10 Au 3 2.061 0.5
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KL292 25.65 26.65 1.00 Au 3 0.080 0.5
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KL293 26.65 27.80 1.15 Au 3 0.104 -0.3
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KL294 27.80 28.80 1.00 Au 1 0.016 -0.3
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KL295 28.80 29.35 0.55 Au 1 -0.002 0.3
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KL296 29.35 30.15 0.80 Au 4 1.080 4.2
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KL297 30.15 30.75 0.60 Au 4 0.235 -0.3
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KL298 30.75 31.45 0.70 Au 3 0.280 -0.3
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KL299 31.45 32.45 1.00 Au 3 0.494 -0.3
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KL300 32.45 33.45 1.00 Au 4 0.610 -0.3
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KL301 33.45 34.45 1.00 Au 4 0.340 -0.3
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KL302 34.45 35.05 0.60 Au 3 0.003 -0.3
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KL303 35.05 35.85 0.80 Au 3 0.218 6.0
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KL304 35.85 36.15 0.30 Au 9 Not avail 0.6
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KL305 36.15 36.35 0.20 Au 9 Not avail 1.8
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KL306 36.35 37.35 1.00 Au 3 0.031 -0.3
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KL307 37.35 38.05 0.70 Au 3 0.037 -0.3
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KL308 38.05 38.90 0.85 Au 4 0.530 -0.3
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KL309 38.90 39.55 0.65 Au 4 0.580 -0.3
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KL310 39.55 40.20 0.65 Au 9 Not avail -0.3
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KL311 40.20 41.15 0.95 Au 4 0.44 -0.3
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KL312 41.15 42.15 1.00 Au 3 0.049 -0.3
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KL313 42.15 43.15 1.00 Au 3 0.077 -0.3
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KL333 64.45 65.25 0.80 Au 3 0.086 -0.3
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KL334 65.25 65.45 0.20 Au 3 4.230 24.6
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KL335 65.45 66.40 0.95 Au 3 0.138 -0.3
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KL336 66.40 67.45 1.05 Au 1 0.020 -0.3
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KL337 67.45 68.40 0.95 Au 3 Not avail Not avail
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KL338 68.40 69.25 0.85 Au 3 1.530 0.5
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KL339 69.25 69.85 0.60 Au 3 0.257 0.5
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KL340 69.85 70.45 0.60 Au 3 0.137 -0.3
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KL341 70.45 71.50 1.05 Au 3 0.193 -0.3
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Discussion of the results of KL001

Assay results and geological interpretation from the first 20 meters of the hole show that mineralisation exists outside of the old Limarinho pit area. It is associated with narrow veins that strike N20E and anomalous gold mineralisation is seen between the vein sets.

Assay results from and geological interpretation of the hole between 106.85 meters and 118.65 meters (13.85 meters core length) show that the mineralisation continues at depth and beyond the internal limit of the old pits.

Discussion of the results of KL002 and KL003

Holes KL002 and KL003 were drilled from within the old Limarinho pit, both from the same platform in opposite directions. They were designed to in-fill data generated by COGEMA Holes PF2, PF9, PF10 and PF11. Both of Kernow's holes were drilled at a dip of approximately 45 degrees and in the direction of N322 degrees and N142 degrees respectively. The directions were chosen to intersect as much of the interpreted mineralized areas as possible. Much of the ground encountered was highly altered and, as a result, recoveries were low in Hole KL002.

Assay Procedures and Quality Assurance and Control

Sample preparation and analytical work is undertaken at OMAC Labs. Ltd. in County Galway, Ireland using standard industry practices and conventional atomic absorption and fire assay methods for gold (Au 3 is a Geochem Gold Fire Assay using Lead Collection and AA finish and Au 4 has a gravity finish, Au 1 is a Standard geochemical assay to detect low levels of gold). Samples believed to contain higher gold grades are assayed by process Au 9 (Screen Metallic assay). Base metal and silver analysis is carried out using Aqua Regia Digestion and Flame AA finish. Assay method Au 1 is a standard geochemical has been used where no apparent mineralisation is seen in the core.

For quality control purposes, analytical standards with known metal values were included with Kernow's samples and show acceptable reproducibility. In addition, duplicate analyses, on selected drill samples will also be carried out by a second independent assay laboratory. Zero value blanks were also inserted into the sample stream and provided excellent confirmation. Repeat assays will be undertaken along with check assays completed by a different assayer.

To allow planning of a broader drilling campaign, Kernow is in the process of completing a topographical survey of the Limarinho area. This will allow the positioning of future drill holes, the estimation of resources and to delineate the areas previously worked.

The complete set of results from Kernow's recent drilling program and historical results will be posted on Kernow's web site following receipt and verification of all assays.

The data contained in this News Release has been reviewed and verified to the extent possible by Kernow's President Alan F. Matthews C.Eng. a "qualified person" for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Corporate Update - Change of director

Mr. William Murray has resigned from the Board of Directors and has been replaced by Mr. Donn Burchill. Kernow is grateful to Mr. Murray for his years of guidance and expertise provided to it.

About Kernow

Kernow is a mineral exploration company based in Porto, Portugal, with a portfolio of prospective gold and copper/gold projects in Portugal. The Boticas property is wholly owned by Kernow. In addition, it has the right to earn an initial 60% in two prospective properties under an Option Agreement with Rio Narcea Gold Mines Ltd. (see news Release October 18, 2006) and has a 49% interest in the Jales / Gralheira gold property.

For further information concerning Kernow's activities please visit Kernow's web site at www.kernowresources.com.

Alan F. Matthews, President

This news release contains forward looking statements regarding the ongoing and upcoming exploration work and expected geometry of geological formations and structures. Actual results may differ materially from those currently anticipated in such statements.

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

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