Kapuskasing Gold Corp.

Kapuskasing Gold Corp.

August 06, 2015 08:00 ET

Kapuskasing Gold Identifies 2 Gold Mineralization Settings at Rollo Sampling Up to 8.59 g/t and 11.41 g/t as It Readies for Diamond Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 6, 2015) - Kapuskasing Gold Corp. (TSX VENTURE:KAP) (the "Company" or "KAP") reports the results of prospecting and channel sampling at its Rollo Property located in northern Ontario. Sampling at the high-grade Racicot Gold Showing (previously reported as the Hanson Occurrence, see news release June 11, 2015) has identified two different gold bearing relationships - a north bearing quartz vein system sampled in three locations over 30 meters of strike which returned up to 8.59 g/t over 0.6 meters and a syenite/porphyry dike system crosscutting the quartz vein system which sampled up to 11.41 g/t along its contact with east-west trending mafic metavolcanics. A drill program is now being designed to further test these two gold mineralization relationships.

Garry Clark, KAP's exploration manager comments: "We will be conducting a series of short (~50 meter) diamond drill holes to test both styles of gold mineralization and attempt to add a third dimension to the high grade sampling encountered so far. Drill permits are anticipated to be in place by late August and drilling contracts are currently being evaluated. The Company also continues its discussions with First Nations in the area and expects to sign early exploration agreements in the very near term."

The recent program was comprised of prospecting, mapping and sampling (grab and channels). A total of 12 channel samples and 3 grab samples were taken from the Racicot gold showing (see website for map). The channel saw-cuts and grab samples focused on two exposed areas at the Racicot gold showing and determined that there are two principal gold bearing relationships.

Gold mineralization associated with:

1) A north bearing quartz, quartz carbonate vein system that cross cuts the east-west trending mafic metavolcanics and

2) A syenite/porphyry dike system that trends sub parallel to the metavolcanics.

From observations of the limited geological exposure, the dike system seems to crosscut the quartz vein system. The sampling of the quartz vein system in three locations over an approximate 30 meter strike length included 8.82 g/t gold over 0.6 metres. The grab samples were taken at the south contact of the Syenite/Metavolcanics where channel sampling was not possible. The grab samples highlighted the gold concentration along the contact with assays of 1.0, 1.89 and 11.41 g/t gold.

Description Grams Gold
per Ton
284701 South Strip Channel East - West Quartz Vein 2.454 0.5
284702 South Strip Channel East - West Quartz Vein 1.106 0.4
284703 South Strip Channel East - West Quartz Vein 0.825 0.3 1.60/1.2
284704 South Strip Channel East - West Quartz Vein 0.27 0.7 1.12/1.9
284677 North Strip Grab Syenite / Volcanic / Contact 11.414
284678 North Strip Grab Syenite / Volcanic / Contact 1.01
284679 North Strip Grab Syenite / Volcanic / Contact 1.885
284705 North Strip Channel North-South Syenite 0.331 0.9
284706 North Strip Channel North-South Syenite 0.114 0.7
284707 North Strip Channel North-South Syenite 0.43 0.9
284708 North Strip Channel North-South Syenite / Volcanic / Contact 6.752 0.5
284709 North Strip Channel North-South Mafic Volcanic 0.048 0.7
284710 North Strip Channel East - West Quartz vein and Mafic Volcanic 1.237 0.7
284711 North Strip Channel East - West Quartz vein and Mafic Volcanic 0.036 0.6
284712 North Strip Channel East - West Quartz Vein 8.594 0.6

Ongoing prospecting/sampling at other locations on Rollo:

Concurrent with the work at the Racicot showing, 53 grab samples were collected at various areas of the property as part of an ongoing program to advance known gold showings at Rollo. Prospecting focused on any potential gold bearing environments. Samples are illustrated on the company website.

Rollo Prospecting Sampling
Number of Samples Range Gold
27 Below detection limit (DL)
11 > DL to 49 ppb
5 50 to 99 ppb
3 100 to 199 ppb
4 200 to 499 ppb
2 > 500 ppb
(0.639 and 1.309 grams gold per ton)

Previous sampling of the Coppell Lake area had located an anomalous gold sample associated with a quartz feldspar porphyry within sheared mafic metavolcanics. The examination indicates a shallow blast or pit on the quartz feldspar porphyry. A total of 11 samples were taken with 5 greater than 100 ppb gold with one assaying 1.309 g/t gold. All samples were from quartz feldspar porphyry with variable amounts of quartz veinlets and pyrite. The 1.309 g/t gold sample contains 3-5 mm quartz veinlets and >1% pyrite.

The Rollo property is situated along a projected extension of the Destor-Porcupine fault zone, which hosts several multi-million-ounce gold producers in the nearby Timmins camp, and sits between IAMGOLD's Cote Lake gold deposit and Goldcorp's Borden Gold project.

Kapuskasing Gold has 6 gold properties located along extensions of the Destor-Porcupine or Borden Gold project. All of the properties, with the exception of Rollo, are situated within the Kapuskasing structural zones and have potential similarities to Goldcorp's Borden Gold project. A detailed map and property descriptions can be viewed on the Company's website: www.kapgold.com.

On behalf of the Board of Directors of Kapuskasing Gold Corp.,

Dean Nawata, President & CEO, Director

Qualified Person

Mr. Garry Clark P.Geo, the Exploration Manager and a director of the Company, a Qualified Person ("QP") as defined by National Instrument 43-101, has reviewed the technical content of this release.

Neither 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.

Forward-Looking Statements and Cautionary Notes

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Kapuskasing, including, without limitation, expectations and assumptions respecting the outlook of exploration activity on the Borden and Rollo properties and the impact on Kapuskasing's business and management assessment of future operations. Although the forward-looking information contained in this press release is based upon what Kapuskasing's management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Kapuskasing assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of mineral deposits on the Company's properties.

Contact Information

  • Kapuskasing Gold Corp.
    Dean Nawata
    President & CEO, Director
    1(647) 360-0897