Kaminak Gold Corporation

Kaminak Gold Corporation

June 07, 2007 08:00 ET

Kaminak and Pacific Ridge Commence Drill Program at Baker Lake Uranium Project, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 7, 2007) - Kaminak Gold Corporation (TSX VENTURE:KAM) and project partner Pacific Ridge Exploration Ltd. (TSX VENTURE:PEX), today announced the commencement of the 2007 drill program at the Baker Lake Uranium Project in Nunavut.

Initial drill testing in 2007 will focus on the "Lucky-7" Zone where drilling in 2006 by Kaminak and Pacific Ridge intersected near surface structurally controlled uranium mineralization grading up to 0.32% U3O8 over 3.4 metres (see Kaminak News Release dated November 14th, 2006). Initial drill holes at the "Lucky-7" Zone are being collared to intersect the mineralized structure at depth near the basin unconformity.

The "Lucky-7" Zone is a new prospecting discovery made during the summer of 2006 which geologically resembles other notable uranium occurrences on the property, including the "KZ" Zone. Uranium mineralization occurs in altered and bleached Kazan sandstone associated with a northerly-trending structure.

Details of 2007 Work Program

Kaminak and Pacific Ridge are planning a $3 million exploration program at the Baker Lake Uranium Project. A 3,000 metre Phase 1 drilling program has now been initiated. Kaminak and Pacific Ridge plan five deep holes on each of the "Lucky-7" and "KZ" Zones to test for structurally controlled unconformity-related uranium mineralization. Upon completion of Phase 1 drilling at "Lucky-7", drill testing of the "7-one" and "Niner" Zones will commence. These two zones were discovered during prospecting in 2006 and require ground geophysical surveys to delineate specific targets prior to drilling (see Kaminak news release dated October 18th, 2006).

Summary of 2006 Results

Kaminak and Pacific Ridge completed a radiometric survey at "Lucky-7" over an area measuring approximately 2 kilometres by 2 kilometres that successfully defined a northerly-trending anomaly measuring 500 metres in length and 100 to 200 metres in width, contoured with peak values to 240 cps. The surface outcrop exposure of the "Lucky-7" Zone was chip sampled across its width and yielded an assay of 0.27% U3O8 over 3.9 metres. Moreover, a saw cut channel several metres away from this chip sample yielded 0.19% U3O8 over 3.1 metres. Three angled drill holes were completed from a single set-up during 2006. 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". 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.

The Agreement

Under the terms of the option agreement, Pacific Ridge has the right to earn an initial 51% interest by December 31, 2008 by making exploration expenditures totaling $2.0 million and staged payments totaling 400,000 Units, with each Unit consisting of one common share and one 12-month share purchase warrant with an exercise price set in accordance with market at the time of issuance of the Unit. Pacific Ridge has the right to increase its interest to 60% by spending an additional $1.0 million prior to December 31, 2010. Thereafter, Pacific Ridge and Kaminak will form a joint venture in accordance with their interest then held. Underlying interests are held by Hunter Exploration Group as to a 2% Net Smelter Return interest, and by Shear Minerals Ltd./Stornoway Diamond Corporation who collectively hold a 5.0% Net Profits Interest. The option agreement with Pacific Ridge pertains to all commodities other than diamonds.

Kaminak's disclosure of a technical or scientific nature is 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.

Kaminak Gold Corporation is a project generator employing a joint venture strategy that maximizes opportunities for discovery while minimizing exploration and shareholder risk. 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