Kaminak Gold Corporation
TSX VENTURE : KAM

Kaminak Gold Corporation

April 15, 2013 07:00 ET

Kaminak's Coffee Gold Project Yields New Drill Discoveries and Adds High-Grade Zone at Latte North

Results Include: 3.18 g/t Au over 22.86m; 3.38 g/t Au over 10.67m; 6.15 g/t over 10.67m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 15, 2013) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced results for the first 41 drill holes from the 2013 drilling campaign at the Coffee Gold Project, where a near surface, largely oxidized, 3.2 million ounce NI 43-101 Inferred Resource grading 1.56 g/t was reported late last year. Initial drill results continue to define new, good grade, shallow, oxidized gold zones in close proximity to the Supremo-Latte-Double Double gold deposits, which currently comprise the bulk of the inferred resource. The fully funded $11 million exploration program began in March and includes a total of 35,000 m of drilling, the collection of 10,000 soils samples and a comprehensive metallurgical program to build on the positive preliminary leaching results achieved in 2012.

Key Point Summary

  • New oxide gold discovery at Supremo T1; results include: 3.18 g/t Au over 22.86m (from 115.82m) and 6.34 g/t Au over 4.57m (from 82.30m). Drilling has defined 300m of strike and mineralization remains open in all directions. Soil and geophysical magnetic data suggest the T1 structure is over 1km in length. The T1 mineralized trend is one of eight Supremo soil trends labeled T1-T8 that occur within a 2km by 2km area.

  • New oxide gold discovery drilled at Arabica Zone; results include: 3.38 g/t Au over 10.67m (from 164.59m) and 6.05 g/t Au over 4.57m (from 44.20m). Mineralization at Arabica is Supremo-style with extensive oxidization. The Arabica gold-in-soil anomaly is semi-contiguous over a 1.2km north-south trend and located 1.2km east of Supremo T7.

  • High-grade gold mineralization drilled at Latte North; results include: 6.15 g/t over 10.67m (from 109.73m) and 6.56 g/t over 7.62m (from 109.73m). Latte North is associated with a 600m long gold-in-soil anomaly and a 1km long structure interpreted from magnetic geophysical data as a splay off the main Latte structure similar to T3, T4 and T5.

  • The reverse circulation (RC) drilling program is ongoing with two drills turning and over 13,000 metres drilling already completed to date. The drills are currently working at Latte North and Supremo T2. Diamond core drilling is scheduled to commence in early May. The Phase 1 program remains on schedule and budget to complete 35,000 metres of drilling for $11M.

"Kaminak continues to add ounces with each successive drilling campaign and confirms the strong correlation between surface soil geochemistry and magnetics with the underlying mineralized structures. Drilling new oxide gold zones early in the 2013 season highlights the excellent exploration upside that exists at Coffee and the opportunity to continue to grow the 3.2Moz Inferred Resource," stated Eira Thomas, President and CEO of Kaminak. "While exploration drilling remains our key focus in 2013, we are working closely with our engineering consultant, JDS, to target those high potential areas within the inferred resource area that are likely to add value in a mining scenario."

Drill Results

The 2013 RC drilling program at Coffee began on March 1st, 2013 testing discrete gold-in-soil anomalies predominantly within the central Coffee area that comprise the bulk of the 3.2Moz NI 43-101 inferred resource. To date, 70 drill holes totaling over 13,000 metres have been completed, and results from 41 holes have been received. Kaminak's geologists have been working collaboratively with engineering consultants from JDS Energy and Mining Inc., to identify targets which have the potential to positively impact various conceptual open pit mining scenarios that are being considered. Key focus areas include extending mineralization along strike and testing outstanding priority gold-in-soil anomalies in the Supremo-Latte-Double Double areas.

Supremo

Drilling tested the along strike extension of Supremo T2 to the north and coincidentally the drill traverses were extended to cover the previously untested T1 gold-soil-trend. RC drill results to date confirm the T1 structure comprises a north-northwest striking mineralized fracture zone with vertical to steep easterly dip. Gold mineralization commences from surface and is open along strike and down-dip. Total drilled strike length of the T1 trend is currently in excess of 300 metres. Results include: 3.18 g/t Au over 22.86 m from 115.82 m (CFR-382); 5.32 g/t Au over 4.58 m from 184.40m (CFR-391); and 6.34 g/t Au over 4.57 m from 82.3m (CFR-395).

Gold mineralization is hosted within brittle fracture zones and brecciated gneisses and felsic-intermediate intrusive rocks, accompanied by silica flooding and limonite/hematite after pyrite. High‐grade gold is associated with intense quartz-sericite alteration and increased hematite content. The mineralized structures are totally to partially oxidized to approximately 150m below surface. Geological similarities between the Supremo T1 structure and other gold zones at Coffee suggest these zones are related to the same mineralizing event, and as a result, are potentially connected along trend and at depth. Aeromagnetic data suggests the southward extension of the T1 zone may trend southwesterly and possibly connect with a 1km long gold-in-soil trend north of the Latte North Zone. Future drilling will trace the T1 structure along strike to the north and south.

A single scout fence of drill holes completed over a Supremo regional gold-in-soil anomaly (+100ppb Au) intersected multiple narrow zones of mineralization which require follow-up drilling to test strike geometry. Results are detailed in the table below.

Arabica

The Arabica gold-in-soil anomaly is semi-contiguous over a 1.2km north-south trend coincident with topographic lineaments and a magnetic low linear feature, thereby, having a similar signature to the Supremo T4 structural zone. Scout drilling was completed on three east-west fences over 800m strike to test for a Supremo-like north-south oriented gold mineralized structure. Drill results indicate there are between one and four zones of structural deformation and mineralization, including: 3.38 g/t Au over 10.67m from 164.59m (CFR-370); and 6.05 g/t Au over 4.57m from 44.20m (CFR-371).

Gold mineralization at Arabica is interpreted to occur in north-south striking, moderate to steeply east dipping brittle fractures, consistent with typical Supremo structural geometries. Mineralization is hosted within silica altered felsic gneiss with pervasive clay-sericite alteration and limonite/hematite after pyrite. High grade oxide gold is characterized by intense silica-sericite alteration with increased limonite/hematite content. The mineralized structures are completely to partially oxidized to depths of 115 metres below surface. Additional drilling is planned to further define geometry, test for additional near-surface oxide mineralization and test the strike extent of the Arabica zone.

Latte North

The Latte North gold-in-soil anomaly comprises a 600 metre long east-northeast trending zone located 200m north of the Latte trend. Latte North appears to merge with Latte at its western end. Previous drilling (see Kaminak news release November 16, 2010) returned 2.37 g/t Au over 7m from 25m (CFD-57), and 2.63 g/t Au over 13m from 31m (CFD-60), which included 11 g/t Au over 2m from 37m. A single follow-up drill hole in 2011 failed to extend the mineralized structure along strike; however, it now appears the drill hole (CFD-172) was collared too far north to intersect the trend. Recent results from two fences of RC drilling spaced 50m apart, including drill undercuts of CFD-57 & CFD-60, include: 28.1 g/t Au over 1.53m from 77.72m (CFR-390); 6.15 g/t Au over 10.67m from 109.73m (CFR-392) including 17.64 g/t Au over 3.05m from 111.25m; 11.75 g/t Au over 3.05m from 79.25m (CFR-396) including 22.4g/t Au over 1.52m from 79.25m; and 6.56 g/t Au over 7.62m from 106.68m (CFR-400) including 18.95 g/t Au over 1.53m from 111.25m.

Drill results indicate at least 50m strike extent; however, results are currently awaited for drilling completed to date over a total of 200m strike extent. Mineralization strikes east-northeast and dips moderately to the south. High-grade gold intervals are hosted within brittle structures with common quartz veining in biotite-feldspar schist. Alteration comprises intense silica and clay alteration and abundant fine-grained pyrite. The mineralized structure is completely to partially oxidized to a depth of up to 140 metres below surface. Drilling is currently ongoing, including continued step out along strike and also testing for additional structures across-strike between the Latte and Latte North trends.

Assay Table

Drill Hole Number From (m) To (m) Width (m)* Weighted grade (g/t Au)
Supremo T1
CFR-369 6.10 10.67 4.57 2.63
CFR-372 47.24 50.29 3.05 4.40
CFR-374 88.39 91.44 3.05 3.57
CFR-376 129.54 131.06 1.52 7.88
CFR-378 33.53 36.58 3.05 1.46
and 167.64 172.21 4.57 1.70
CFR-380 80.77 89.92 9.15 1.26
CFR-382 115.82 138.68 22.86 3.18
and 175.26 182.88 7.62 1.55
CFR-387 22.86 27.43 4.57 4.76
CFR-389 60.96 67.06 6.10 2.58
CFR-391 105.16 109.73 4.57 3.13
and 184.40 188.98 4.58 5.32
CFR-394 47.24 51.82 4.58 2.81
CFR-395 82.3 86.87 4.57 6.34
Supremo T2
CFR-358 50.29 51.82 1.53 2.14
and 71.63 73.15 1.52 2.27
CFR-359 135.64 140.21 4.57 2.44
CFR-360 86.87 89.92 3.05 2.37
and 106.68 109.73 3.05 2.34
CFR-361 115.82 131.06 15.24 1.11
CFR-362 No significant values
CFR-364 No significant values
CFR-366 No significant values
CFR-384 No significant values
Supremo Regional
CFR-383 16.76 18.29 1.53 2.34
and 175.26 178.31 3.05 1.30
CFR-385 103.63 105.16 1.53 2.04
and 152.4 155.45 3.05 1.39
CFR-386 99.06 102.11 3.05 1.26
CFR-388 48.77 50.29 1.52 0.78
Arabica
CFR-363 No significant values
CFR-365 7.62 9.14 1.52 1.33
CFR-367 No significant values
CFR-368 56.39 57.91 1.52 3.45
and 67.06 71.63 4.57 3.76
CFR-370 124.97 128.02 3.05 2.16
and 164.59 175.26 10.67 3.38
CFR-371 44.20 48.77 4.57 6.05
and 57.91 62.48 4.57 1.73
CFR-373 108.20 112.78 4.58 1.21
and 135.64 143.26 7.62 2.25
CFR-375 167.64 172.21 4.57 1.24
and 188.98 198.12 9.14 1.24
CFR-377 No significant values
CFR-379 123.44 132.59 9.15 1.51
CFR-381 No significant values
Latte North
CFR-390 77.72 79.25 1.53 28.10
and 92.96 99.06 6.10 3.32
CFR-392 109.73 120.40 10.67 6.15
including 111.25 114.30 3.05 17.64
CFR-393 156.97 158.50 1.53 1.68
CFR-396 65.53 70.10 4.57 1.20
and 79.25 82.30 3.05 11.75
including 79.25 80.77 1.52 22.40
CFR-397 96.01 103.63 7.62 2.92
CFR-400 106.68 114.30 7.62 6.56
including 111.25 112.78 1.53 18.95
and 164.59 173.74 9.15 1.18
CFR-401 76.20 77.72 1.52 2.30

*True width estimated at approximately 2/3 down-hole length.

All maps, sections and assay sheets are currently available on the Kaminak website, www.kaminak.com.

QA / QC

Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Rory Kutluoglu, P.Geo., Exploration Manager 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

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 events, or otherwise.

Cautionary Note concerning estimates of Inferred Resources:

This news release uses the term "inferred resources". Inferred resources 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 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 resource exists, or is economically or legally minable.

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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