Kaminak Gold Corporation
TSX VENTURE : KAM

Kaminak Gold Corporation

November 14, 2006 08:30 ET

Kaminak Drills 0.32% U3O8 Over 3.4 Metres From the Newly Discovered "Lucky-7" Zone at Baker Lake

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Kaminak Gold Corporation (TSX VENTURE:KAM) and project partner Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX) today announced final drill results on Kaminak's 100% owned Baker Lake Uranium Project, located in the Kivalliq District of the Nunavut Territory.

Key Point Summary

- New assay results from 10 drill holes, in three separate zones, at the Baker Lake Uranium Property

- First ever drilling at the Lucky-7 prospect returns 0.32% U3O8 over 3.4 metres

- Compelling 2006 exploration results, follow-up drilling required in 2007

A total of fourteen drill holes were completed in 2006 to test the depth extent of the previously known KZ and 694 Zones and also drill test the newly discovered Lucky-7 Zone. The first four drill holes were completed at the KZ Zone, where intercepts of 0.31% U3O8 over 11.5 metres and 0.27% U3O8 over 5.8 metres were reported by Kaminak on October 18th. New results from the remaining ten drill holes at the Lucky 7, KZ, and 694 Zones are presented below.

"In our first year, we discovered new outcropping uranium occurrences and our drill results at the Lucky-7 and KZ Zones are very compelling" stated Rob Carpenter, Kaminak's President and CEO. "Kaminak is one of the first companies to realize the potential of this emerging uranium district."

Lucky-7 Zone

Lucky-7 is a new prospecting discovery uncovered during the summer of 2006. The surface exposure of the Lucky-7 Zone was chip sampled across its width and yielded an assay of 0.27% U3O8 over 3.9 metres. A saw cut channel several metres away yielded 0.19% U3O8 over 3.1 metres and the average grade of 23 mineralized frost-heaved boulders assayed 0.32% U3O8 (see Kaminak news release dated October 2nd, 2006). Three angled drill holes were completed from a single set-up along section 8200N. The first two holes returned intercepts of 0.14% U3O8 over 1.6 metres and 0.32% U3O8 over 3.4 metres. The third hole was the deepest hole at Lucky-7 and worsening drill conditions at depth forced this hole to be shut down before the target was completely tested. No significant uranium assays were obtained despite strong alteration at the bottom of the hole.



Drill hole assays from Lucky-7 Zone

INTERVAL WIDTH ASSAY
HOLE SECTION (m) (m)(ii) (% U3O8) (lbs U3O8/t)
--------------------------------------------------------------------------

L7-06-01 8200 N 51.4 - 53.0 1.6 0.14 2.8

L7-06-02 8200 N 74.1 - 77.5 3.4 0.32 6.4
Includes 74.5 - 76.0 1.5 0.68 13.6

L7-06-03 8200 N No significant values

(ii) True widths are estimated at between 50% and 70% of total drill
intervals.


Uranium mineralization at Lucky-7 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. These initial results are very encouraging and further drilling in 2007 will be needed to properly evaluate this target.

KZ Zone

The KZ Zone has been defined by a radiometric survey to be over 1 kilometre in length. Historic drilling of vertical holes along approximately 350 metres of the 1 kilometre target zone saw several holes with uranium values of 0.84% U3O8 over 5.4 metres at depths less than 100 metres from surface. The 2006 drilling program is the first attempt to test mineralized extensions to depth. The first four holes all intersected significant uranium mineralization (see Kaminak news release dated October 18th, 2006). Hole KZ06-05 returned 0.14% U3O8 over 0.8m extending known mineralization approximately 55 metres along strike. Hole 6 was a deep step-out hole designed to test the unconformity region for uranium mineralization. Although worsening drill conditions stopped the drill short of the unconformity, several intervals of 0.10% U3O8 to 0.20% U3O8 over 1 to 3 metres were encountered between 88 and 317 metre depths.



Drill hole assays from KZ Zone

INTERVAL WIDTH ASSAY
HOLE SECTION (m) (m)(ii) (% U3O8) (lbs U3O8/t)
--------------------------------------------------------------------------

(i) KZ 06-01 9065 N 36.0 - 41.8 5.8 0.27 5.4

(i) KZ 06-02 9065 N 79.5 - 91.0 11.5 0.31 6.2
Includes 85.5 - 91.0 5.5 0.56 11.2
and 95.5 - 97.5 2.0 0.23 4.6

(i) KZ 06-03 2750 E No significant intersections,
drilled away from target

(i) KZ 06-04 9065 N 123.0 - 128.2 5.2 0.40 8.0
Includes 123.0 - 125.0 2.0 0.90 18.0

KZ 06-05 9120N 125.5 - 126.3 0.8 0.14 2.8

KZ 06-06 9065N 89.1 - 89.8 0.7 0.12 2.4
and 131.0 - 133.5 2.5 0.11 2.2
and 303.0 - 304.0 1.0 0.16 3.2

(i) Previously reported in a Kaminak news release dated October 18th, 2006.
(ii) True widths are estimated at between 50% and 70% of total drill
intervals, with the exception of holes 06-05 and 06-06 which were
drilled at a steeper angle.


694 Zone

The 694 Zone, partially explored by previous operators with a program of pitting and 6 short drill holes, consists of structurally-controlled uranium mineralization within basement gneissic rocks just below the eroded basin sediments. Field work in 2006 confirmed the presence of several north-south trending structures that host structurally-controlled uranium mineralization within basement gneissic rocks. Six individual mineralized structures have been mapped within a 250 metre-wide zone over a strike length of 200 metres. Grab samples of frost-heaved mineralization graded to 16.4% U3O8.

Drilling determined that the 694 structures controlling the uranium mineralization were moderately dipping to the west and the historic drilling program hit the zones at a sharp angle thus exaggerating the length of the mineralized intervals. The angled drilling program confirmed the depth continuity of the uranium-bearing structures but narrow widths and variable grades obtained during the 2006 drilling program has reduced the priority of this target. Five angled holes were completed at the 694 Zone and results are summarized below.



Drill hole assays from 694 Zone

INTERVAL WIDTH ASSAY
HOLE (m) (m)(ii) (% U3O8) (lbs U3O8/t)
-----------------------------------------------------------

694-06-01 88.4 - 88.8 0.4 0.18 3.6

694-06-02 No significant values

694-06-03 13.3 - 13.7 0.4 0.16 3.2

694-06-04 25.2 - 25.7 0.5 0.16 3.2

694-06-05 16.8 - 17.3 0.5 0.23 4.6
and 43.9 - 44.9 1.0 0.62 12.4

(ii) True widths are estimated at between 50% and 70% of total
drill intervals, with the exception of hole 06-04 which
was drilled at a steeper angle.


Summary

Pacific Ridge Exploration Ltd. spent over $1.6 million in 2006 exploring the Baker Lake Uranium Project. The sampling of outcrop and frost heaved boulders, in combination with large, grid-controlled radiometric survey, defined five targets. Three of these targets, the Lucky 7, KZ, and 694 Zones, saw initial drill programs in 2006. Encouraging drill results from the KZ Zone and the new Lucky-7 Zone, as well as the new "7-one Zone" surface discovery (see Kaminak news release dated October 18th, 2006), will require follow-up drill programs in 2007. Assays of eight large angular boulders from the "7-one" Zone range from 0.81% U3O8 to 1.83% U3O8 and average 1.29% U3O8.

Project Overview

The Baker Lake Uranium Project, located within the Baker Lake Basin, is immediately adjacent to the Thelon Basin where Areva Resources Canada Ltd. ("Areva") owns the Kiggavik-Sissons Schultz uranium deposits, located approximately 80 kilometres west of Baker Lake. Areva, in a November 2005 project presentation, reported that three of the Kiggavik uranium deposits contained a combined geological resource of 50,630 tonnes uranium (representing a non 43-101 compliant historic resource of 131 million pounds U3O8). It is of interest that Areva recently opened a community relations office in the town of Baker Lake.

Baker Lake, with summer access to ocean shipping and year-round airport facilities, brings important logistical support to mineral exploration and development contemplated in the Baker Lake region.

Located 70 kilometres north of Baker Lake is Cumberland Resource's multi-million ounce Meadowbank gold deposit. Cumberland has received a positive development recommendation from Nunavut Impact Review Board and depending on receipt of permits and licences operation from three shallow open pits could commence in late 2008 or early 2009.

Kaminak holds a 100% interest in the 510,000 acre property, located in the Kivalliq District of central Nunavut. The Baker Lake Basin is one of four Proterozoic age basins within the Canadian Shield that are host to uranium deposits, including the Athabasca, Thelon, and Hornby Bay basins. The property is host to at least 20 known uranium prospects that occur along 75 kilometers of the Archean - Proterozoic unconformity.

The Agreement

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. Pacific Ridge will have the right to increase its interest to 60% by spending an additional $1.0 million prior to December 31, 2010.

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 Lake Uranium 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.

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
    President and CEO
    (604) 646-4534
    Website: www.kaminak.com