Kodiak Exploration Limited

Kodiak Exploration Limited

August 18, 2010 14:54 ET

Kodiak Drilling Expands the Milestone Project: 38.2 Metres Grading 1.02 gpt Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce assay results for fifteen diamond drill holes from its planned 10,000 metre Phase Two exploration program at the Milestone Gold Project in the Beardmore-Geraldton gold camp in northern Ontario. The new drill holes confirm the continuity and grade of the Milestone gold system and expand the deposit to the east. The Milestone gold system has been drilled over a minimum 2,700 metre strike length, remains open at depth and has over 20 kilometres of prospective structure remaining to be tested. Highlights include:

  • MS10-27 cut 38.2 metres grading 1.02 gpt gold including 20.0 metres grading 1.82 gpt gold. This drill hole intercept also has a high grade section: 1.0 metre grading 24.60 gpt gold associated with visible gold in the core. The drill hole is located on the eastern edge of the drill pattern; the system is untested to the east and is open (please see map below).
  • MS10-30 cut 54.0 metres grading 0.56 gpt gold including 16.5 metres grading 1.02 gpt gold.
  • MS10-32 cut 32.3 metres grading 0.88 gpt gold including 23.0 metres grading 1.14 gpt gold.
  • MS10-33 cut 25.0 metres grading 0.72 gpt gold.
  • MS10-34 cut 25.5 metres grading 0.75 gpt gold.

Drill holes MS10-20 through MS10-27 are wide spaced exploration drill holes testing the eastern extent of the Milestone gold system. Drill holes MS10-28 through MS10-34 are in-fill drill holes that confirm gold grade continuity and provide data needed to begin the resource estimation process. These drill holes also verify the presence of higher grade gold zones within the Milestone system that may have a significant impact on potential project economics: Areas that could be exploited early in mine life, enhancing capital payback. Additional drilling is currently underway, assays are pending for an additional 13 holes. A complete drill results table is shown below.

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/KXL0818.pdf

Drill Hole From (m) To (m) Length (m) Gold (gpt) Zone
MS10-20 439.0 467.0 28.0 0.14 Pag N
MS10-20 495.0 506.0 11.0 0.23 Pag S
MS10-21 107.0 108.5 1.5 1.08 ?
MS10-21 192.8 202.3 9.5 1.00 Pag N
includes 194.9 199.6 4.7 1.08  
MS10-22 166.0 177.9 11.9 0.29 ?
MS10-22 215.0 222.8 7.8 2.02 Pag N
MS10-22 239.0 250.0 11.0 0.68 ?
includes 239.0 243.0 4.0 1.17  
MS10-23 167.0 180.0 13.0 1.07 Pag N
includes 167.0 175.0 8.0 1.42  
MS10-24 236.0 238.0 2.0 0.78 Pag N
MS10-25 228.0 232.9 4.9 0.74 Pag N
MS10-25 253.0 254.0 1.0 5.11  
MS10-26 123.0 152.0 29.0 0.24 Pag N
includes 123.0 134.5 11.5 0.38  
MS10-27 246.8 274.0 38.2 1.02 Pag N
includes 253.8 254.8 1.0 24.60  
includes 260.8 266.0 5.2 1.49  
MS10-28 Abandoned        
MS10-29 60.0 87.0 27.0 0.54 Pag N
includes 71.0 77.0 6.0 0.92  
MS10-29 171.0 181.0 10.0 0.44 ?
includes 177.0 179.0 2.0 1.11  
MS10-30 95.5 150.0 54.5 0.56 Pag N
includes 120.5 137.0 16.5 1.02  
MS10-31 77.0 119.2 42.2 0.46 Pag N
includes 86.0 93.0 7.0 1.26  
includes 110.0 112.4 2.4 1.04  
MS10-32 134.0 166.3 32.3 0.88 Pag N
includes 142.0 165.0 23.0 1.14  
and 263.0 264.5 1.5 1.77  
MS10-33 136.0 161.0 25.0 0.72 Pag N
includes 144.0 155.0 11.0 1.01  
MS10-34 89.0 116.0 25.5 0.75 Pag N
includes 93.5 104.0 10.5 0.97  

The geological information for the Beardmore-Geraldton regional exploration project has been reviewed and approved by Darren Lindsay, Kodiak's Vice President-Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Additional information about the Milestone gold project can be found on our web site: www.kodiakexp.com

Kodiak's 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 20 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.

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