Kodiak Exploration Limited

Kodiak Exploration Limited

November 26, 2009 13:58 ET

Kodiak Drills Thick Zone of Gold Mineralization at Milestone in the Beardmore-Geraldton Gold Camp

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2009) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce that it has intercepted a thick zone of potentially bulk-minable gold mineralization at its Milestone Property at the eastern end of the Beardmore-Geraldton gold camp. Drilling by Kodiak has cut two parallel zones of gold mineralized sheared granitic rock. Four diamond drill holes, totaling 1,023 metres, targeted the zone, establishing a minimum strike length of 400 metres; historic drilling suggests the zones may extend at least 2,000 metres farther along strike. Gold has been intercepted to depths of 200 metres, implying a very large body of gold mineralized rock. Highlights include MS09-02 which cut 41.2 metres grading 0.98 gpt Au and 30.2 metres grading 0.29 gpt gold. Drill hole MS09-03 cut 38.4 metres grading 0.64 gpt gold while drill hole MS09-04 intercepted 25.0 metres grading 0.90 gpt gold. All three drill intercepts discussed above occur in the "Pag" shear zone where historic drill hole M17-84 intercepted 60.7 metres grading 0.61 gpt gold. Our exploration program has verified the older drilling and expands the target size considerably. The historic drilling demonstrates that gold mineralization extends to the surface, confirming the large depth potential of this system. Additional drilling is being planned. A complete assay table is shown below.

Drill HoleDepthFromToWidthAuTarget Description
MS09-01237136.4149.1012.70.40Pag North Zone
  165.0176.411.40.44Pag South Zone
MS09-0220762.0103.241.20.98Pag North Zone
  143.0173.230.20.29Pag South Zone
MS09-03339170.0208.438.40.64Pag North Zone
MS09-04240125.0150.025.00.90Pag North Zone
  163.8170.06.20.24Pag South Zone

Gold mineralization at Milestone has a geologic setting similar to Kodiak's flagship Hercules project located some 80 kilometres to the west: Structurally controlled shear hosted gold in Archean granitic rock. Milestone differs from the high grade Hercules system in that mineralization is widespread within a broad shear zone; shearing occurring over widths of up to 200 metres. The long strike length, large width and depth potential suggest the presence of a large, potentially open pit exploitable zone of gold mineralization. This exploration result continues to validate the company's exploration model for the Beardmore-Geraldton district: Based on analogy to similar Archean gold camps in Ontario and Quebec, the Beardmore-Geraldton camp could contain numerous undiscovered gold deposits yielding a gold endowment similar to the other famous gold camps of the region, e.g. Red Lake, Timmins, Val d' Or, etc. Drill results for Hercules will be released in a few days.

The geological information for the Beardmore-Geraldton regional exploration project 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 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 20cm 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 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. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors
Brian J. Maher
President and Chief Operating 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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