Kodiak Exploration Limited

Kodiak Exploration Limited

March 05, 2010 13:55 ET

Kodiak Expands Thick Zone of Gold Mineralization at Milestone With New Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2010) - Kodiak Exploration Ltd. (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce that the company continues to intercept thick zones of potentially bulk-minable gold mineralization at its Milestone Property at the eastern end of the Beardmore-Geraldton gold camp. Winter drilling by Kodiak has intercepted significant gold mineralization in every drill hole, expanding the size of the gold mineralized system first reported by Kodiak in November, 2009 (News release dated 26 November, 2009). Kodiak has completed six diamond drill holes totaling 2272 metres this winter at Milestone. Highlights include drill hole MS10-05 which cut 34.0 metres grading 0.98 gpt gold; drill hole MS10-06 which cut 37.2 metres grading 0.54 gpt gold and drill hole MS10-08 which cut 12.1 metres grading 2.05 gpt gold. MS10-08 also intercepted locally higher grade gold mineralization (> 7 gpt gold) indicating the potential for high grade style gold mineralization at Milestone. These drill holes are located down dip and on strike with previously reported drill holes MS09-02 which cut 41.2 metres grading 0.98 gpt gold and 30.2 metres grading 0.29 gpt gold, MS09-03 which cut 38.4 metres grading 0.64 gpt gold and drill hole MS09-04 which intercepted 25.0 metres grading 0.90 gpt gold. Drilling is ongoing and will continue to systematically explore the extents of this large gold system. A complete assay table and plan map of the current drilling are shown below.

Drill Hole From (m) To (m) Width (m) Au (g/t)
MS10-05 58.3 92.3 34.0 0.98
including 90.2 90.7 0.5 10.50
MS10-06 52.0 89.2 37.2 0.54
including 75.0 88.5 13.5 1.00
  92.0 97.4 5.4 0.26
MS10-07 73.2 87.2 14.0 0.48
MS10-08 119.0 131.1 12.1 2.05
including 122.5 128.9 6.4 3.10
which includes 122.5 123.4 0.9 7.28
and includes 128.0 128.9 0.9 7.24
MS10-09 56.5 82.0 25.5 0.24
MS10-10 Assays Pending    

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/KXL0305.pdf

Gold mineralization at Milestone has the width, strike length and depth extent to define a large tonnage of potentially open pit exploitable gold mineralization. The system remains open along strike; geophysical data (IP and magnetics) indicates that the host structure continues in both directions for several thousand metres. At this time, the ultimate size of the system is unknown. This bulk tonnage style of gold mineralization has been proven economic by numerous mining companies throughout Canada and is an extremely attractive target for Kodiak.

Hercules and West Geraldton Update: The first phase of 2010 diamond drilling at West Geraldton has been completed and samples submitted for gold analyses. The drill rig has been moved to the Hercules project and will resume exploration drilling on the Bobby Ore, Golden Mile and other veins at Hercules. At this time, the ice thickness is insufficient to support drilling equipment on Golden Pond and we will pursue other options for drilling the Golden Pond target area, including barge drilling. The resource estimate for the Hercules project is on schedule and will be completed in the first quarter of 2010.

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.

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 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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