Kodiak Exploration Limited

Kodiak Exploration Limited

October 01, 2007 13:50 ET

Kodiak Drills 1.6m Grading 38.47 gpt Gold, Cuts 11.6m Grading 32.96 gpt Gold

Uncovers Over 5km of Gold-Bearing Structures at Hercules

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Kodiak Exploration Ltd. (TSX VENTURE:KXL) is pleased to announce assay results from the 2007 exploration program on its Hercules project in the Beardmore-Geraldton gold camp, where over five kilometers of newly discovered, gold-bearing structures have now been exposed on surface. At the Golden Mile, excavation of overburden has exposed a previously unknown gold-bearing structure which has been traced along strike for over 2 km. Every drill hole completed to date at the 100% controlled Hercules project has intersected gold mineralization, as shown in the tables below.

These intersections and the gold grades obtained are considered by our geological team to be very significant in the geological environment of the Beardmore-Geraldton gold camp. The Golden Mile in particular is a strongly mineralized structure with pyrite, base metal sulfides and frequent visible gold occurring on surface and in drill core. High grades (greater than 30gpt gold) are common in channel and grab samples. Continuous gold mineralization has been traced over a strike length of 365 m, with channel samples averaging 20.20 gpt gold over an average width of 3.8 m. Forty-one percent of grab samples collected along the Golden Mile contain in excess of 10 gpt gold. This structure remains open in all directions and will be the focus of the expanded drilling program described below.

Highlights of the first results from Kodiak's 2007 program include drill holes from both the Marino zone and the Golden Mile. Hole HR07-16 intersected 1.6m grading 38.47 gpt gold on the Marino vein. On the Golden Mile, a channel sample (AMX-01) cut 11.6m grading 32.96 gpt gold. Drill hole HR07-09, drilled below that channel sample, intersected 0.8m grading 20.55 gpt gold. Drill hole HR07-10, drilled still deeper in the same section, intersected 4.0m grading 6.89 gpt gold, showing that gold mineralization is continuous from the surface to a depth of at least 40 meters and remains open. Highlights from other channel samples collected over a 365m segment of the Golden Mile include AMX-04 which cut 9.55m grading 27.04 gpt gold, channel AMX-07 which cut 4.8m grading 24.91 gpt gold and channel AMX-16 which cut 2.3m grading 28.64 gpt gold. These channels samples confirm continuous gold mineralization over a strike length of 365m with an average sample grade of 20.20 gpt gold and an average width of 3.8m. Additional channel samples and drill hole intercepts containing strong gold mineralization indicated by visible gold have been submitted for rush analysis and will guide further drilling on the Golden Mile. These drill and channel results confirm the strong upside potential of the Hercules project and the potential magnitude of the gold bearing system. All drill hole and channel assays are uncut.

Numerous other quartz vein structures have been uncovered in the one km interval between the original Wilkinson Lake/Yellow Brick Road zones and the recently discovered Golden Mile, all running parallel to each other within an area of approximately 2 kilometres by 1.5 kilometres. Many of these structures remain open and additional surface showings which may represent additional quartz vein structures in that area have yet to be explored. The significance of Kodiak's findings to date lies in the nature of the mineralization in the local geological environment. In the Red Lake, Kirkland Lake and Beardmore-Geraldton gold camps, quartz vein structures similar on surface in width and grade to those identified to date at Hercules, but with much smaller surface expressions, have been found to extend to depths of 1 to 2 km and to contain economic mineral resources. Initial results from Kodiak's wide spaced shallow drilling at the Golden Mile in particular confirm that the high grade gold mineralization that has been exposed on surface remains open at depth as well as along strike. Kodiak is mobilizing two additional drill rigs to more quickly test the Golden Mile structure along strike and, ultimately, at greater depths.

Mr. Bill Chornobay, President of Kodiak comments: "New gold discoveries of this magnitude are extremely rare. In spite of the tremendous amount of work done this summer, we have barely scratched the surface. We may only be seeing the tip of the iceberg. The Beardmore-Geraldton gold camp has already produced an estimated 4.1 million ounces of gold, is highly prospective and has seen very little exploration over the past several decades. These are very early days, yet we are seeing high-grade gold in almost every structure we uncover. The frequency with which we get samples containing high gold grade from grabs, channels and drill core bodes well for this project. The team is extremely optimistic and we look forward to the future with much anticipation"

Golden Mile 2007 Drilling Summary

Hole ID From To Interval Au g/t Au o/t Zone
HR07-09 30.2 31.0 0.8 20.55 0.60 GM
32.3 32.5 0.2 1.50 0.04
35.6 36.5 0.9 1.04 0.03
HR07-10 35.5 35.9 0.4 1.20 0.04 GM
36.3 40.3 4.0 6.89 0.20
including 39.3 39.8 0.5 25.9 0.76 GM
43.3 43.8 0.5 1.30 0.04
HR07-11 29.4 30.2 0.8 5.57 0.16 GM
including 29.4 29.7 0.3 12.93 0.38
33.2 33.7 0.5 8.40 0.25
HR07-12 34.5 35.0 0.5 1.39 0.04 GM
40.8 41.0 0.2 1.70 0.05
HR07-13 23.4 23.8 0.4 1.32 0.04 GM
26.0 26.6 0.6 1.02 0.03
28.9 29.2 0.3 1.93 0.06
HR07-14 25.8 26.2 0.4 1.52 0.04 GM
34.4 35.1 0.7 3.57 0.10

Marino 2007 Drilling Summary

Hole ID From To Interval Au g/t Au o/t Zone
HR07-15 Anom Au MARINO
HR07-16 43.1 44.7 1.6 38.47 1.12 MARINO
including 43.1 43.7 0.6 93.18 2.72
45.2 45.7 0.5 1.03 0.03
HR07-17 Anom Au MARINO
HR07-18 47.0 47.5 0.5 3.70 0.11 MARINO
68.8 69.2 0.4 1.00 0.03

Mr. Brian J. Maher, Kodiak Vice President - Exploration comments: "The discovery of new gold-bearing structures of this scale and geometry, in a proven Archean gold camp with great access and infrastructure, is an extremely rare opportunity. This gold system clearly ranks as one of the most impressive the geological team has seen in their careers. The early drill results and sampling have confirmed the magnitude of the Golden Mile, Marino, Penelton and Yellow Brick Road zones. These structures have now been exposed along strike for over 5 km in the aggregate within a three square kilometre area that remains open. Because shallow exploration drilling has been completed on less than 10% of the structures, the vast majority of the strike length remains untested and open. This truly expands the magnitude of the entire Hercules project. The Golden Mile, Yellow Brick Road, Marino and other new vein systems at Hercules exhibit numerous geological similarities to the multi-million ounce Red Lake and Kirkland Lake gold districts, where mineralization typically extends to depths well in excess of 1.5km. We intend to explore the Hercules structures to much greater depth in order to further test the high grade potential of the project. The drilling program has been expanded and will continue at an even faster pace with the two additional drill rigs. Given the scale and geometry of the vein systems discovered to date, and the evidence of additional untapped parallel gold bearing structures between the Golden Mile and the Yellow Brick Road systems, we believe the Hercules project has strong potential to host a significant new gold resource."

Golden Mile 2007 Channel Sample Summary

Channel Width Channel Width
ID Au g/t Au o/t Metres ID Au g/t Au o/t Metres
AMX-01 32.96 0.96 11.6 AMX-08 6.62 0.19 6.0
AMX-01 119.63 3.49 3.1 including 13.80 0.40 2.0
AMX-02 0.62 0.02 4.9 AMX-09 13.98 0.41 3.6
AMX-03 19.25 0.56 1.6 AMX-10 3.64 0.11 0.8
AMX-04 27.04 0.79 9.6 AMX-11 1.93 0.06 1.2
including 57.62 1.68 4.5 AMX-12 2.00 0.06 1.6
AMX-05 3.60 0.11 1.3 AMX-13 1.70 0.05 2.0
AMX-06 11.90 0.35 2.4 AMX-14 5.35 0.16 1.6
AMX-07 24.91 0.73 4.8 AMX-15 83.84 2.45 0.7
including 58.82 1.72 2.0 AMX-16 28.64 0.84 2.3

Marino 2007 Channel Sample Summary

MRN-01 0.77 0.02 2.8 MRN-04 1.11 0.03 2.8
MRN-02 0.78 0.02 2.8 MRN-05 5.11 0.15 0.4
MRN-03 4.86 0.14 1.3 MRN-06 0.77 0.02 1.4

The Golden Mile is a plus 2,000 metre long gold mineralized structure that remains open in both directions along strike. Gold bearing quartz veining within the structure averages 2 to 3 metres in thickness and can locally exceed ten metres. Continuous quartz veining 1-3 metres thick occurs over intervals of greater than 1,000 meters and is accompanied by pyrite, base metal sulfides and frequent visible gold. Gold occurs as blebs in quartz, along fractures, and intimately associated with pyrite and base metal sulfides. Channel samples, routinely collected on systematic 20m intervals, have confirmed the gold mineralization identified by grab samples. Parallel to the Golden Mile are the Marino, 7 to 9, Yellow Brick Road, and Penelton zones. These are large gold-bearing vein systems that also contain base metal sulfides. These veins, including the original Wilkinson Lake discovery, have been exposed over a cumulative strike length in excess of 5 kilometres. Prospecting has identified several additional gold bearing vein outcrops in the one kilometre interval between the Golden Mile and the Yellow Brick Road-Marino-Penelton area, confirming the potential to discover additional gold mineralized veins.

In-fill drilling in the Wilkinson Lake zone, located 900m northeast of Marino and the site of the original gold discovery at Hercules (9.7m grading 15.9 gpt gold true width, HR06-03, previously reported), intersected multiple zones of gold mineralization: 2.6m grading 5.8 gpt gold (HR07-04) and 0.4m grading 62.89 gpt gold (HR07-04). The Yellow Brick Road, Marino and Wilkinson Lake vein systems are part of a parallel series of gold mineralized structures which extend for at least 1,200m along strike in a zone approximately 400m wide. All the structures remain open along strike and at depth. The interval between these veins remains largely unexplored to date, and will be the subject of ongoing prospecting and removal of overburden from outcrops.

Maps, cross sections, photographs and a new power point presentation on the drilling can be found on Kodiak's web site: www.kodiakexp.com

Wilkinson Lake 2007 Drilling Summary

Hole ID From To Interval Au g/t Au opt Zone
HR07-02 Anom Au WLGZ
HR07-03 15.1 15.4 0.3 1.03 0.03 WLGZ
16.7 17.2 0.5 1.58 0.05
17.6 18.0 0.4 4.08 0.12
HR07-04 50.0 50.4 0.4 62.89 1.83 WLGZ
55.3 57.9 2.6 5.80 0.17
58.3 58.6 0.3 18.72 0.55
59.1 59.6 0.5 3.05 0.09
69.6 70.9 1.3 3.06 0.09
71.4 71.8 0.4 2.42 0.07
HR07-05 242.5 243.0 0.5 1.58 0.05 WLGZ
HR07-06 136.0 137.0 1.0 1.28 0.04 WLGZ
HR07-07 Anom Au WLGZ
HR07-08 Anom Au WLGZ

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 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 TSL Laboratories Inc., Saskatoon, SK S7K 6A4. 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.

Caribou update. The 2007 drill program at Caribou Lake has concluded with very encouraging results, with some significant intersections of sulphides containing Ni and Cu. However, this 17 hole drill program did not intercept wide intersections of high-grade Ni-Cu mineralization. Drill holes CL07-05 and CL07-14 both intercepted significant sulphide mineralization and confirm the continuity of sulphide mineralization between the drill holes. Drill hole assays results from this program grade up to 0.31% Cu and 0.22% Ni over 1.11metres from hole CL07-05 (previously announced). Additional drill highlights include hole CL07-03 which intersected 587 metres of 1 to 10% sulphides with anomalous Ni and Cu. These results continue to demonstrate that a large Ni and Cu bearing sulphide system is present in the Caribou Lake mafic complex which has the potential to host a significant Ni and Cu ore body. Geologic and drill hole data is being compiled and interpreted in preparation for the next phase of exploration at Caribou.

The information contained in this news release has been reviewed and approved by Robert B. Hawkins, Kodiak's Chief Geologist, who is a qualified person under the definitions established by National Instrument 43-101.

Kodiak is a mineral exploration company with significant projects in three different sectors of the mining resource industry. Through regional, grass-roots generative exploration and new geological models the Company has built a portfolio of 100% controlled projects focused on gold, base metals (nickel/copper), and uranium in three different areas of Canada. Maps, photographs, detailed geologic reports and additional information may be viewed on our web site at www.kodiakexp.com.

On behalf of the Board of Directors


William S. Chornobay, Director, President

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

This release has been prepared by management - TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information