Kaminak Gold Corporation
TSX VENTURE : KAM

Kaminak Gold Corporation

November 07, 2013 08:00 ET

Kaminak's Coffee Infill Drilling Program at Latte Deposit Demonstrates Continuity and Intersects High-Grade Zones

New Results include: 9.54g/t Au over 6m, 13.21g/t over 5m, 2.44g/t Au over 55m, 1.92 g/t Au over 85m and 19.11g/t Au over 3m

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 7, 2013) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced the results of an infill delineation drilling program at Latte targeting the central zone of the deposit and representing approximately 500m of its' more than 2km of mineralized strike-length, which remains open along strike and to depth. As previously disclosed, the Latte deposit is one of several gold deposits located within the company's Coffee Gold Project and contributes approximately 1.1 Moz of the previously reported 3.2 Moz NI 43-101 Inferred Mineral Resource Estimate, consisting of 64 million tonnes grading at 1.56 grams per tonne gold ("g/t Au") at a base case cut-off of 0.5g/t Au for Oxide and Transitional material and a 1g/t Au cut-off for Sulphide material.

Highlight Intercepts include:

  • 9.54g/t Au over 6.1m from 60.96m down hole depth in CFR0554
  • 13.21g/t over 4.58m from 77.72m down hole depth in CFR0558
  • 2.44 g/t Au over 54.86m from 67.06m down hole depth in CFR0565
  • 1.92 g/t Au over 85.35m, from 50.29m down hole depth in CFR0567
  • 1.65g/t over 82m from 120m down hole depth in CFD0342
  • 19.11g/t Au over 3.04m from 82.3m down hole depth in CFR0576

Eira Thomas, CEO commented: "Kaminak completed a short infill drilling program at Coffee in 2013 targeting those areas of the resource that could represent high value, potential starter pit mining opportunities for the project. The first results of that program announced today from Latte were encouraging, demonstrating good continuity of mineralization at tighter drill spacing and further defining high grade zones within the central core of the deposit. These results will contribute to an updated 43-101 resource estimate towards year-end followed by the initiation of a Preliminary Economic Assessment in early 2014."

The 2013 Coffee drill program is now complete with over 55,000m drilled this year. Additional news flow in the coming weeks will include final drill results from the 2013 season at Supremo, metallurgical test work results, and updated Coffee resource estimation.

About the Latte Drilling Programs

Latte infill drilling was completed primarily to confirm the continuity of mineralization and grade characterization within a central 500m section of the Latte gold deposit. The ultimate aim of the infill drill program is to upgrade the resource classification of that section of the deposit from Inferred to the higher confidence level required in the Indicated category. The location and spacing of drilling was determined in consultation with independent Qualified Person Robert Sim, P.Geo. of SIM Geological Inc., who completed the Coffee Gold Project maiden Inferred Mineral Resource Estimate (announced December 13, 2012). The Company plans to update the mineral resource estimate once all of the drill results from the 2013 program have been received.

Mineralization intersected by the infill drilling campaign strongly supports the existing geological model of broad steeply south-dipping mineralized shear zones, which exhibit gentle anastomosing and pinch and swell characteristics. A trench excavated within the central Latte area on section 583,250mE assayed 1.31g/t over 56m, which is consistent with underlying drill assay results and provides confirmation that mineralization comes to surface. The trenching was undertaken to collect larger size fraction material (compared to drill core) to test cyanide leach gold recovery at coarser crush sizes. Material was sampled directly from bedrock located beneath a shallow over-burden profile comprising 0.25-0.5m soil and 1.0-1.5m bedrock colluvium.

The Latte Infill program utilized RC percussion drilling for the first time. As per Kaminak's standard procedure, two pre-existing diamond core holes were 'twinned' by RC to confirm reproduction of the results using both drilling methods. CFR0552 twinned CFD0008, returning comparable intercepts of 33.9 gram-metres and 39.0 gram-metres respectively (where gram-metres equals intercept width x grade). CFR0553 twinned CFD0006, returning 57.3 gram-metres and 46.7 gram-metres respectively. These results between core and RC compare well given the tolerances of the exercise, including deviation between the paired drill holes and that it was necessary to collar the RC holes 3-5m from the core holes collar in order to maintain air pressure.

Latte Drill Results

Drill Hole From (m) To (m) Core
Length (m)*
Weighted
Average
Grade
(g/t Au)
CFR0552 18.29 33.53 15.24 0.81
And 42.67 59.44 16.77 1.29
CFR0553 30.48 50.29 19.81 1.50
And 56.39 76.2 19.81 1.46
And 102.11 109.73 7.62 1.41
CFR0554 12.19 35.05 22.86 1.93
And 39.62 45.72 6.1 5.69
And 60.96 67.06 6.1 9.54
And 100.58 105.16 4.58 9.53
CFR0555 16.76 21.34 4.58 2.32
And 45.72 64.01 18.29 0.90
CFR0556 80.77 103.63 22.86 3.80
CFR0557 92.96 163.07 70.11 1.64
CFR0558 19.81 35.05 15.24 1.39
And 59.44 71.63 12.19 2.46
And 77.72 82.3 4.58 13.21
And 105.16 117.35 12.19 3.26
CFR0559 108.20 124.97 16.77 1.51
And 131.06 135.64 4.58 2.38
CFR0560 118.87 126.49 7.62 3.88
CFR0561 91.44 105.16 13.72 2.54
CFR0562 83.82 85.34 1.52 9.53
And 92.96 112.78 19.82 2.44
CFR0563 38.10 86.87 48.77 2.85
And 103.63 115.82 12.19 3.21
CFR0564 74.68 111.25 36.57 1.19
And 137.16 149.35 12.19 1.82
CFR0565 67.06 121.92 54.86 2.44
And 132.59 140.21 7.62 1.41
CFR0566 25.91 33.53 7.62 1.41
And 44.20 83.82 39.62 2.38
CFR0567 50.29 135.64 85.35 1.92
CFR0568 47.24 121.92 74.68 1.09
CFR0569 88.39 120.4 32.01 1.84
CFR0570 18.29 57.91 39.62 1.67
And 82.30 89.92 7.62 2.08
CFR0571 42.67 73.15 30.48 2.04
And 96.01 103.63 7.62 3.56
CFR0572 33.53 73.15 39.62 1.31
And 118.87 123.44 4.57 3.36
CFR0573 54.86 70.10 15.24 1.04
CFR0574 18.29 39.62 21.33 1.80
And 44.20 82.3 38.1 0.99
And 88.39 106.68 18.29 1.41
CFR0575 36.58 70.10 33.52 1.50
CFR0576 6.10 70.10 64 1.71
And 82.30 85.34 3.04 19.11
CFR0577 109.73 114.3 4.57 3.92
CFR0578 27.43 39.62 12.19 1.87
CFR0579 48.77 62.48 13.71 1.83
CFR0580 132.59 137.16 4.57 2.29
CFR0581 45.72 68.58 22.86 1.58
CFR0582 25.91 44.2 18.29 1.41
And 62.48 85.34 22.86 1.70
CFR0583 18.29 30.48 12.19 1.53
CFD0340 89 124 35 3.52
And 170 184 14 1.78
CFD0341 152 178 26 1.29
And 191 199 8 1.31
And 219 229 10 1.38
CFD0342 101 105 4 4.42
And 120 202 82 1.65
CFD0343 111 119 8 1.25
And 126 142 16 2.33
And 146 167 21 1.31
CFD0344 124 128 4 3.04
And 158 164 6 1.89
And 182 192 10 2.87
And 214 223 9 2.09
CFD0345 162 164 2 4.99
And 180 185 5 2.24
And 193 197 4 2.58
CFD0346 108 120 12 2.00
CFD0347 148 149 1 3.33
CFD0348 99 120 21 0.98
And 124 163 39 0.97
And 179 191 12 1.20
CFD0349 198 200 2 3.41
CFD0350 159 168 9 1.79
And 175 178 3 4.39
CFD0351 79 104 25 1.87

*In general, the true width is estimated at approximately 2/3 of the core length.

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

The Company also announces that Broadside Media Inc. is providing investor relations services for the Company, subject to acceptance for filing by the TSX Venture Exchange.

The principal of Broadside Media, Inc., Kyle Barker, is an experienced finance and communications executive with an extensive corporate development and marketing background. Mr. Barker will assist the Company with the development and implementation of a public and investor relations and communications program, and provide on-going assistance to the Company regarding the development and enhancement of the Company's public and market image.

Through Broadside, Mr. Barker will provide the services of Manager, Investor Relations on a monthly basis at an hourly rate of $43.75 and may be granted stock options under the Company's Stock Option Plan. Mr. Barker and Broadside are each arm's length parties to the Company and have advised the Company that they do not have any direct or indirect interest in the Company.

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

For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com.

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.

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 do 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.

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