Kaminak Gold Corporation

Kaminak Gold Corporation

January 12, 2011 08:30 ET

Kaminak Announces $15 Million Initial Phase 1 Budget for Coffee Gold Project, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that Board approval has been granted for the 2011 exploration budget on the Company's 100% owned Coffee Gold Project, located in the White Gold District. The first phase drill program is budgeted at $15 million and is expected to begin in early April. Kaminak currently has over $21 million in cash and has planned an aggressive drill program, which has been scheduled to allow a follow up second phase of drilling before freeze-up in the fall of 2011.

Key Points:

  • April 15, 2011 start date expected for a program of 40,000m – 45,000m of core and reverse circulation drilling from 4 drills. The key objective will be to establish a National Instrument 43-101 compliant resource on priority zones.
  • Each of the 8 gold zones discovered by Kaminak in 2010 will receive follow-up drilling in 2011, and newly-defined, high-quality, gold-in-soil anomalies, such as Americano West, Macchiato, and the newly recognized Sugar, will also be drill tested. The Sugar trend is located 35km east-southeast from Americano West.
  • Initial emphasis will be on expanding the Latte – Double Double – Supremo gold trends. Each of these gold zones begin at surface and remain open in all directions.
  • Up to 10,000 soil samples will be taken across the property including extensions to the existing high tenor anomalies at Coffee, systematic grid sampling over the newly defined Sugar trend gold-in-soil anomaly, and comprehensive first pass ridge and spur soil sampling across the remainder of the Coffee Property.

"Our initial drilling in 2010 successfully outlined 8 significant gold zones demonstrating that the Coffee property is a very robust, large-scale hydrothermal system endowed with gold," stated Rob Carpenter, Kaminak's President & CEO. "Our 2011 drill strategy is threefold: expand the 8 significant gold zones discovered in 2010, work towards compliant resources on priority zones, and make new additional gold discoveries across our vast property by drill testing high-quality soil anomalies."

In 2010, Kaminak executed the first ever drill program on the Coffee Gold Project and drilled 8 separate and closely-spaced gold discoveries within a 10km strike length. Discovery holes include:

CFD001 Supremo Zone 15.5m @ 17.1 g/t Au
CFD006 Latte Zone 83.93m @ 1.08 g/t Au
CFD027 Double Double Zone 35m @ 6.3 g/t Au
CFD053 Kona Zone 56.75m @ 2.21 g/t Au and 23m @ 1.92 g/t Au
CFD064 Americano Zone 18m @ 2.36 g/t Au
CFD069 Connector Zone 11m @ 5.5 g/t Au

Lack of glaciation over the Coffee property has allowed in-situ soil-sampling to be employed as a highly effective exploration tool. All of Kaminak's gold discoveries to date have been found by drilling directly underneath gold-in-soil anomalies. Approximately 19km of untested soil anomalies are known on the property and these targets will also be drill tested in 2011. Moreover, only 10% of the property has seen systematic grid soil sampling. Kaminak intends to take up to 10,000 soil samples targeting extensions to the existing high tenor anomalies at Coffee, systematic grid sampling and diamond drilling over the newly defined Sugar trend gold-in-soil anomaly, and comprehensive first pass ridge and spur soil sampling across the remainder of the Coffee Property.

Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Dr. Rob Carpenter, Ph.D., P.Geo., Kaminak's President and CEO, who serves as a Qualified Person under the definition of National Instrument 43-101. The Coffee property represents an early stage exploration property and does not contain any mineral resources as defined by National Instrument 43-101.

On behalf of the Board of Directors of Kaminak

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

Kaminak Gold Corporation

Kaminak is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Neither the 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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