Kaminak Gold Corporation

Kaminak Gold Corporation

August 16, 2006 08:30 ET

Kaminak and Pacific Ridge Define High Grade Uranium Occurrences at Baker Lake

Channel samples from "694 Zone" yield up to 17.7% U3O8 over 0.3m

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) - Kaminak Gold Corporation (TSX VENTURE:KAM), and partner Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX), today provided an update on current exploration activities at Kaminak's 100% owned Baker Lake Uranium Property. Prospecting, sampling and ground radiometric surveys have been completed on a total of five zones, resulting in at least two new surface discoveries and the definition of multiple high priority drill targets.

Three priority drill targets have now been defined (694, KZ and Lucky-7) throughout the property. Drilling will commence upon receipt of government permits which are expected within the month. Surface exploration is continuing with prospecting and ground radiometric surveys on additional exploration targets selected from approximately 20 targets across the property.

The Baker Lake Basin is one of four Proterozoic Age basins within the Canadian Shield, including the Athabasca, Thelon and Hornby Bay basins, which are host to uranium deposits. Uranium mineralization on the property occurs both in the Paleoproterozoic Kazan sandstone infilling of the Baker lake Basin and the underlying Achaean basement rocks. The style of uranium mineralization can be described as structurally controlled in an unconformity setting.

Highlights of the ongoing program include the following:

694 Zone

The 694 Zone, originally discovered and explored by New Continental Oil Co. (Assessment Reports 19889 & 60760), consists of three parallel north trending structural zones positioned in the Archean footwall to the recently eroded Baker Lake basin sediments. Known uranium showings and collars of previous drill holes (6 in total) were located and a ground radiometric survey was completed over an approximate 9 square kilometre grid.

Surface mapping confirmed the presence of uranium-bearing structures over an area 250m by 200m and grab samples from frost heaved mineralization yielded assays up to 16.4% U3O8 and saw cut channel samples of exposed bedrock returned 17.7% U3O8 over 0.3m. Overall the sampling of outcrop and frost heaved uranium mineralization along an approximate 200m strike length yielded an average of 0.50% U3O8. Pacific Ridge is planning an initial 5 hole drilling program designed to test the 694 Zone along strike and to depth.

KZ Zone

The KZ Zone is located 15 kilometres northeast of the 694 Zone and is positioned north of the exposed unconformity of the Baker Lake Basin with the basinal Kazan sandstones. Uranium mineralization occurs in the Kazan sandstones associated with bleaching and alteration along a northerly trending structure hosting a mafic dyke. Prior work by Cominco Ltd. in the 1970's consisted of a wide pattern of vertical drill holes along a length of 400 metres and width of 200 metres. Most holes that were collared near the structure intersected uranium values with one hole yielding 3 intersections of 0.15% U3O8 over 17.4 metres, 0.35% U3O8 over 13.6 metres and 0.84% U3O8 over 5.4 metres progressing down the hole to a depth of approximately 100 metres.

A ground radiometric survey has now been completed over an area measuring 1 kilometre in width and 2 kilometres in length, expanding the KZ target length to over 1 kilometre. Several additional radiometric anomalies with total count readings of over 200 cps have been defined and are currently being prospected. A program consisting of six angled drill holes is designed to verify and expand the uranium mineralization. These initial holes will be drilled to the projected intersection of the structure and the basin basement to explore for "Athabasca Type" structured zones in an unconformity setting. The depth of the Baker Basin in the KZ area is expected to be between 220 and 250 metres.

Lucky '7' Zone

The Lucky-7 Zone is a new discovery made this season and occurs approximately 10 kilometres east of the KZ Zone. The Lucky-7 is similar to the KZ in that uranium mineralization occurs in altered and bleached Kazan sandstone associated with a northerly trending structure. A ground radiometric survey was completed over an area measuring approximately 2 kilometres by 2 kilometres that defined a northerly trending radiometric target measuring 500 metres in length and 100 to 200 metres in width contoured with values of 200 cps. Abundant frost heaved blocks of altered and mineralized Kazan sandstones have been located with a spectrometer. Sampling is in progress and assays will be released when received.

TK Zone

The TK Zone, located 11 kilometres northeast of the 694 Zone, is comprised of uranium mineralization associated with an east-west structure that uplifted the basement gneissic rocks against the basin filling Kazan sandstone. A 2-kilometre-by-3-kilometre ground radiometric survey completed over the TK Zone area has defined a 1 kilometre-long anomaly. Previously discovered uranium mineralization in hole KZ 44-80-09 was intersected over 25.9 metres and averaged 0.125% U3O8. Mineralization is associated with silicified breccia of Kazan sandstone and is located just above basement rocks. Prospecting and mapping are underway to define extensions to known mineralization.

Niner Zone

Surface uranium mineralization, consisting of frost-heaved float boulders, was discovered this season east of the Lucky-7 Zone. A grid-controlled ground radiometric survey is currently being conducted. Uranium mineralization is within altered Kazan sandstone similar to that observed at the Lucky-7.

About The Project

Kaminak and Pacific Ridge have also provided a project update to the residents of the community of Baker Lake. The presentation outlined the project status and future plans. Approximately 50 residents attended the event. Kaminak owns 100% of the 500,000 acre property, located in the Kivalliq District of central Nunavut. Under the terms of an Option Agreement (see Kaminak Press Release January 25th, 2006), Pacific Ridge has the right to initially earn a 51% in non-diamond interests by December 31, 2008 by making exploration expenditures totaling $2.0 million dollars and staged payments totaling 400,000 Units to Kaminak.

Kaminak's disclosure of a technical or scientific nature are prepared under the supervision of Rob Carpenter, Ph. D., P.Geo., Kaminak's President and CEO, who serves as the Qualified Person under the definition of National Instrument 43-101. All samples collected at the Baker Basin project are sealed in sample bags at site and forwarded to Activation Laboratories in Ancaster, Ontario for analysis. All samples are initially analyzed by a DNC technique utilizing a reactor. All high values in excess of 0.5% U3O8 are then re-analyzed by XRF and titration methods. Historical assays reported by previous workers were obtained from "Assessment Reports" located in government archives, although this information cannot be verified it is expected to be reliable.

Kaminak Gold Corporation holds one of the largest land positions, covering several million acres, in Canada devoted to metallic mineral exploration. Kaminak's projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.

On behalf of the Board of Directors

Rob Carpenter, Ph. D., P.Geo., President and CEO

Kaminak Gold Corporation

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Kaminak Gold Corporation
    Rob Carpenter, Ph. D., P.Geo.
    President and CEO
    (604) 646-4521