Kaminak Gold Corporation

Kaminak Gold Corporation

January 20, 2015 08:00 ET

Kaminak Reports High-Grade Infill Drill Results from the Double Double Deposit, Coffee Gold Project

Highlights Include: 37.6 g/t Au over 5m, 32.8 g/t Au over 6.1m and 5.1g/t Au over 33.5m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 20, 2015) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced results for infill drilling at Double Double, the highest grade of four gold deposits being evaluated as part of an ongoing feasibility study at Coffee, the Company's flagship, development track, gold project located 130 km south of Dawson City, Yukon. A NI 43-101 compliant preliminary economic analysis (PEA) completed for the project in 2014 included approximately 117,000 recoverable ounces from Double Double in years 1 and 2 of the mine-plan, at an average diluted grade of 3.32 g/t Au, contributing to a rapid two year after-tax payback period for the project. At a gold-price of US$1250/oz and using an exchange rate of C$1.00 equal US$0.95, Coffee is expected to generate a pre-tax net present value (NPV) at a 5% discount rate of more than $500 million and an Internal Rate of Return (IRR) of 33%. Further, Coffee could become a significant Yukon gold producer, yielding close to 450,000 ounces in the first two years and producing an average of 167,000 ounces annually over the life of mine at an all-in sustaining cash cost of US$688 per ounce of gold.

A total of 6850 metres of infill drilling from 47 holes was completed at Double Double in 2014 with the objective of verifying and upgrading the open-pit resources defined in the 2014 PEA from "Inferred" to the higher confidence category of "Indicated" for inclusion in the Coffee Mining Feasibility Study.

Infill drilling confirmed the existing Double Double geological interpretation providing additional confidence in the location, geometry and continuity of the mineralized lodes. Drilling completed over the 2013 & 2014 field programs also delineated a previously un-known parallel mineralized structure - Double Double North - culminating in a stand out 2014 intercept of 32.8 g/t Au over 6.1m from 39.6m depth (CFR0731). This high grade drill intercept is located just outside the PEA pit shell, thereby demonstrating potential for resource expansion beyond the limits of the current open-pit resource.

The location and spacing of infill drilling was determined in consultation with independent Qualified Person Robert Sim, P.Geo of SIM Geological Inc., who completed the Coffee Gold Project Mineral Resource Estimates (announced December 13, 2012, and updated January 28, 2014). The Company plans to update the mineral resource estimates for inclusion in the final feasibility study once all of the drill results from all 2014-15 infill drill programs have been received.

Table 1 Infill Drilling Results

Prospect Drill Hole From (m) To (m) Width (m)* Weighted Average grade (g/t Au)
Double Double CFD0387 154 155 1 12.30
Double Double CFD0387 167 178 11 2.70
Double Double CFD0387 192 197 5 1.18
Double Double CFD0387 204 215 11 0.61
Double Double CFD0393 176 181 5 37.60
Double Double CFD0398 NSV
Double Double CFD0401 146 148 2 2.71
Double Double CFD0401 157 159 2 8.36
Double Double CFD0401 203 206 3 3.33
Double Double CFD0405 170 176 6 3.32
Double Double CFR0685 48.77 54.86 6.09 2.30
Double Double CFR0687 47.24 48.77 1.53 2.81
Double Double CFR0689 39.62 41.15 1.53 9.06
Double Double CFR0689 57.91 65.53 7.62 2.60
Double Double CFR0691 57.91 59.44 1.53 2.23
Double Double CFR0692 47.24 50.29 3.05 10.73
Double Double CFR0694 39.62 41.15 1.53 1.15
Double Double CFR0696 79.25 82.3 3.05 3.08
Double Double CFR0696 88.39 91.44 3.05 1.73
Double Double CFR0698 NSV
Double Double CFR0699 42.67 48.77 6.1 5.86
Double Double CFR0701 NSV
Double Double CFR0702 NSV
Double Double CFR0704 0 3.05 3.05 5.03
Double Double CFR0704 12.19 13.72 1.53 12.70
Double Double CFR0706 NSV
Double Double CFR0707 53.34 54.86 1.52 4.24
Double Double CFR0708 102.11 103.63 1.52 1.01
Double Double CFR0710 30.48 42.67 12.19 4.08
Double Double CFR0710 65.53 73.15 7.62 0.98
Double Double CFR0710 97.54 105.16 7.62 2.88
Double Double CFR0711 56.39 57.91 1.52 4.98
Double Double CFR0713 9.14 42.67 33.53 5.07
Double Double CFR0714 74.68 76.2 1.52 2.77
Double Double CFR0714 102.11 112.78 10.67 1.42
Double Double CFR0716 121.92 129.54 7.62 1.93
Double Double CFR0717 140.21 141.73 1.52 6.20
Double Double CFR0719 97.54 100.58 3.04 5.95
Double Double CFR0720 121.92 126.49 4.57 3.86
Double Double CFR0722 105.16 111.25 6.09 2.10
Double Double CFR0723 21.34 24.38 3.04 6.43
Double Double CFR0725 NSV
Double Double CFR0726 73.15 82.30 9.15 8.72
Double Double CFR0730 NSV
Double Double CFR0735 117.35 121.92 4.57 1.17
Double Double North CFR0700 NSV
Double Double North CFR0703 100.58 102.11 1.53 1.31
Double Double North CFR0705 9.14 12.19 3.05 1.03
Double Double North CFR0709 45.72 60.96 15.24 1.99
Double Double North CFR0709 70.10 73.15 3.05 1.84
Double Double North CFR0712 76.20 80.77 4.57 1.93
Double Double North CFR0715 NSV
Double Double North CFR0718 47.24 48.77 1.53 1.19
Double Double North CFR0721 NSV
Double Double North CFR0724 68.58 73.15 4.57 1.80
Double Double North CFR0724 79.25 82.30 3.05 2.38
Double Double North CFR0728 126.49 128.02 1.53 2.07
Double Double North CFR0731 39.62 45.72 6.10 32.78
Double Double North CFR0732 NSV
Double Double North CFR0734 NSV
*True width estimated at approximately 2/3 down-hole length.
Additional notes: drill hole prefixes CFD are diamond core holes, CFR are RC drill holes.

All maps, sections and assay sheets associated with this news release can be viewed by clicking the following link: http://www.kaminak.com/news_releases/2015/index.php?&content_id=608.

Feasibility and Environment Baseline Program Updates

As announced 28 July, 2014, the Company initiated a mining Feasibility Study on the Coffee Gold Project with a targeted completion date of end 2015 or early 2016. Drilling and related field programs ended in the last week of November 2014 and will resume in February 2015. Drilling in 2015 will comprise ongoing resource delineation infill, condemnation drilling of areas containing proposed mine infrastructure, and geotechnical and hydrological drilling. Environmental and heritage baseline studies, and engineering studies into the optimal route and design of the access road, are also advancing as planned. All metallurgical sampling was completed in 2014 and composites are now at the Kappes Cassiday and Associates Laboratory undergoing leaching and other test work.


Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Tim Smith, P.Geo., Vice President Exploration of Kaminak Gold Corporation, who serves as a Qualified Person under the definition of National Instrument 43-101. Quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill sample string. Samples are placed in sealed bags and shipped directly to the ALS Minerals preparatory laboratory in Whitehorse prior to gold fire assay.

On behalf of the Board of Directors of Kaminak

Eira Thomas

President and CEO

Kaminak Gold Corporation

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Caution Concerning Forward-Looking Statements

Certain disclosures in this release, including management's assessment of the future potential of the Coffee Project 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. Except as required by law, Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise.

The Company has not made a production decision, and the Company's strategic plan to develop a stand-alone heap leach operation is subject to the results of its Feasibility Study. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

Cautionary Note concerning estimates of Inferred and Indicated Resources:

This news release uses the terms "Inferred Resources" and "Indicated Resources", which have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred and/or Indicated Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. Kaminak advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an Inferred and Indicated resource exists or is economically or legally minable.

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