Kaminak Gold Corporation

Kaminak Gold Corporation

August 22, 2007 08:30 ET

Kaminak Options Needle Gold Property to TerraX Resource Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2007) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that the Company has signed a letter of intent with TerraX Resource Corp. on Kaminak's Needle Gold Property located in the Kitikmeot District of Nunavut, Canada.

The 5,000 acre Needle property is located in the north Slave region of Nunavut, approximately 450 km north of the city of Yellowknife, NWT. The property is host to a banded iron formation similar in geology to the past producing Lupin Gold Mine. The property contains more than a dozen untested gold occurrences, greater than 10 g/t Au. Chip samples from banded iron formation assayed up to 23.59 g/t Au across 2.11m. In the early 1990's, a total of 13 holes were drilled totaling 1,287m. Drill results at the Needle Zone include 9.46 g/t Au over 3.43m of core length and 11.58 g/t Au over 2.02m.

TerraX Resource Corp. is a newly formed, private mineral exploration company, which has the right to initially earn a 51% project interest by making exploration expenditures totaling $1 million and staged share payments totaling 400,000 shares to Kaminak by December 31, 2010. TerraX will have the right to increase its project interest to 60% by spending an additional $1.0 million. Year 1 (2007) exploration expenditures are set at a minimum of $100,000. The letter of intent is subject to regulatory approval from the TSX Venture Exchange. Share payments are subject to TerraX successfully completing an IPO by June 30th, 2008. Failure by TerraX to successfully complete the IPO will result in the return of the Property to Kaminak with no retained interest by TerraX, and TerraX will have and no further obligations 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. Historical gold assays from previous surface sampling and drilling were obtained from reports written and supervised by Professional Geologists. Although this data cannot be confirmed, they are considered reliable. Certified laboratory assay sheets accompanied these reports.

Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while minimizing exploration risk to the company. A critical component of Kaminak's business model is working with strong project partners to advance the company's exploration projects. Covering several million acres, Kaminak holds one of the largest land positions 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

Certain disclosures in this release, including management's assessment of Kaminak's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. 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.

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
    Tony Reda
    Investor Relations
    (604) 646-4534
    Website: www.kaminak.com