Kenadyr Mining (Holdings) Corp.
TSX VENTURE : KEN
OTCQB : KNDYF
FRANKFURT : KM0

Kenadyr Mining (Holdings) Corp.

June 19, 2017 17:02 ET

Kenadyr Mining's second 2017 drill hole intersects 50 meters at 8.15 g/t Au at the East Zone from 151m to 201m depth in drill hole EZ-1-17

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 19, 2017) - Kenadyr Mining (Holdings) Corp. (TSX VENTURE:KEN)(OTCQB:KNDYF)(FRANKFURT:KM0) (the "Corporation" or "Kenadyr") is pleased to announce that the second drill hole of the 2017 season, collared at the East Zone on Kenadyr's 100% owned Borubai License, Kyrgyz Republic, has intersected 50 meters at 8.15 g/t Au, from a downhole depth of 151 m to 201m.

The East Zone, as is the case with the previously drilled South Zone (40m @ 6.17 g/t Au in drill hole SZ-1-17), is directly adjacent to Zijin Mining Group Co Ltd.'s ("Zijin") Taldy Bulak Levoberejnyi (TBL) Mine, currently in production. The East Zone intersection, from drill hole EZ-1-17, is approximately 1 km from drill hole SZ-1-17, which was drilled in the South Zone. Zijin's TBL Deposit occurs directly between these two drill holes. Both drill holes encountered identical mineralization consisting of pervasive quartz-tourmaline-pyrite stockwork veining. This mineralization is consistent with the mineralization being mined at the TBL Deposit.

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/ken0619map.pdf.

Kenadyr's initial drilling was designed to intersect the various areas surrounding the TBL Mining Lease, which were previously drilled by the Soviets between 1970 and 1990, and where significant gold mineralization was reported. Subject to additional drilling results, Kenadyr's initial drill holes SZ-1-17 and EZ-1-17 confirm the presence of highly significant widespread gold mineralization reported historically by the Soviets, however these drill holes also encountered stronger and thicker mineralization than was previously reported from both the South Zone and the East Zone. These intersections confirm that significant widespread gold mineralization exists on Kenadyr's license directly adjacent to the TBL Mine, and that this mineralization continues in both directions along strike from the TBL Deposit.

The East Zone is open in two directions and to depth, and appears to directly connect to the TBL deposit. Core recovery for drill hole EZ-1-17 is > 99% and all intervals have been assayed using fire assay methods at an internationally accredited laboratory (ALS Global).

Drill Hole EZ-1-17 Assay Results are listed in the table below:

From To Intervals (meters) Grade Au g/t
151 m 201 m 50 meters 8.15 g/t Au
including
161 m 179 m 18 meters 12.8 g/t Au

The Corporation is confident that these intersections are approximate 'true widths'.

Kenadyr is in a strong position having a robust balance sheet, no debt nor significant payments owing, and a supportive institutional shareholder base. The management team has extensive in-country operational experience, and merger and acquisition expertise.

Dr. Alexander Becker, Kenadyr Chief Executive Officer, states, "These results from our second 2017 drill hole at Borubai have again exceeded our expectations. This latest drill hole, located on Kenadyr's license and drilled at the East Zone, demonstrates that highly significant gold mineralization also continues strongly to the East of the TBL Deposit, onto Kenadyr's License. Technical staff believe, based on the strength of the mineralization encountered in our first two 2017 drill holes that the mineralization being mined at the adjacent TBL Mine continues strongly in two directions along strike onto Kenadyr's Borubai License. As well, based on the geometry of the TBL deposit, the Corporation is confident that these intersections are approximate 'true widths'."

Kenadyr's Borubai project comprises a 100-per-cent-owned exploration license covering a contiguous 164-square-kilometre land package that encircles the Zijin/Kyrgyzaltyn newly constructed and operational TBL mine, in northern Kyrgyz Republic.

Zijin, the majority owner of the TBL mine, is one of China's largest gold producers, second-largest copper and zinc producer, as well as a major producer of tungsten and iron ore (source: Zijin website). According to a news release published by Zijin on Aug. 15, 2011, the national resources table of Kyrgyz Republic stated that the TBL field contains (C1 plus C2) 8,906,100 tonnes of gold ore (the average grade is 7.23 grams per tonne). The TBL mine is designed to produce 125,000 ounces of gold per annum. The TBL mine deposit is directly adjacent to Kenadyr's initial drill targets, the South Zone and East Zone, which were previously drilled by the Soviets, with drilling on the Borubai License exceeding 98,000 meters.

Readers are cautioned that the historical resource and reserve estimates relating to the TBL mine do not extend to the Borubai project. Kenadyr has not independently verified the information with respect to the TBL mine provided in this news release and it is not necessarily indicative of the mineralization on the Borubai project. Kenadyr is not aware of the resource and reserve categories, or the key assumptions, parameters and methods used to prepare the estimates on Zijin's TBL mine. The historical estimates on the TBL mine are not current mineral resources or mineral reserves as defined in National Instrument 43-101. Kenadyr considers the historical estimates on the TBL mine disclosed in this news release to be relevant to investors for the purpose of understanding Kenadyr's current drill program and exploration strategy.

Kenadyr's Borubai project, which surrounds the TBL mine, has been the subject of extensive historic exploration including drilling (98,200 metres in 184 diamond drill holes), trenching (13,800 cumulative metres), bulldozer cuts (33,400 cumulative metres), geologic mapping at 1:25,000 and 1:50,000 scales, ridge, spur and grid soil geochemistry for multi-elements (14,200 samples), rock geochemical sampling (2,320 samples), pan concentrate sampling (790 samples), 100 metres of adits, and 184 metres of underground raises. Additionally, the entire area has been subject to airborne magnetic, radiometric and gravity surveys, as well as ground-based resistivity and induced polarization surveys. Additional high grade gold targets exist throughout the Borubai license. The entire license has been subject to extensive geochemical and geophysical surveys, with follow up trenching and drilling on only a few of the identified anomalies.

Additional information in respect of the Corporation's business and the Borubai project is available in the Corporation's Annual Information Form dated April 28, 2017, available under the Corporation's profile on SEDAR.

Kenadyr has an expert team of mine developers with considerable local and regulatory knowledge, led by Chief Executive Officer Dr. Alex Becker, who has operated successfully in the country for much of the past 20 years. The board and management team includes; R. Stuart (Tookie) Angus (Chairman), Alexander Becker (Chief Executive Officer), Bryan Slusarchuk (President), Douglas J. Kirwin (Director), Brian Lueck (Director) and Kevin Ma (Chief Financial Officer). Mark Eaton will act as an adviser to the Corporation.

Brian Lueck, P. Geo, a director of Kenadyr and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information in this news release.

On behalf of Kenadyr Mining (Holdings) Corp.

Dr. Alexander Becker, Chief Executive Officer and Director

For more information, visit www.kenadyr.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.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Corporation are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include the success for failure of the Corporation's proposed exploration activities on the Borubai Project or its resource potential relative to the TBL Mine and other risks detailed from time to time in the filings made by the Corporation with securities regulations.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Corporation. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Corporation will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

Appendix: Assay intervals for drill holes SZ-1-17 and EZ-1-17

Hole SZ-1-17 (Significant Intervals)

No. No.
Sample
from to length weight Au,
ppm
Rock
code
366 1736 to 639.0 1.0 3.130 2.418 BER
367 1737 639.0 640.0 1.0 3.670 10.575 BER
368 1738 640.0 641.0 1.0 4.100 28.643 BER
369 1739 641.0 642.0 1.0 3.010 4.759 BER
370 1740 642.0 642.0 Blank 3.060 0.057
371 1741 642.0 643.0 1.0 3.270 12.777 BER
372 1742 643.0 644.0 1.0 3.520 3.716 BER
373 1743 644.0 645.0 1.0 3.150 0.951 BER
374 1744 645.0 646.0 1.0 3.630 0.584 BER
375 1745 646.0 647.0 1.0 3.480 1.984 BER
376 1746 647.0 648.0 1.0 3.570 4.725 BER
377 1747 648.0 649.0 1.0 3.150 0.57 BER
378 1748 649.0 650.0 1.0 3.750 0.66 BER
379 1749 650.0 651.0 1.0 4.150 9.21 BER
380 1750 651.0 652.0 1.0 3.800 6.61 BER
381 1751 652.0 653.0 1.0 3.900 28.75 BER
382 1752 653.0 654.0 1.0 4.150 4.78 BER
383 1753 654.0 655.0 1.0 4.000 0.44 BER
384 1754 655.0 656.0 1.0 3.250 0.90 BER
385 1755 656.0 657.0 1.0 4.150 6.69 Q-TUR
386 1756 657.0 658.0 1.0 3.800 2.59 Q-TUR
387 1757 658.0 659.0 1.0 4.100 1.63 Q-TUR
388 1758 659.0 660.0 1.0 4.100 3.55 Q-TUR
389 1759 660.0 661.0 1.0 3.800 1.75 Q-TUR
390 1760 661.0 662.0 1.0 3.900 3.60 Q-TUR
391 1761 662.0 663.0 1.0 3.150 0.38 Q-TUR
392 1762 663.0 664.0 1.0 3.250 4.99 Q-TUR
393 1763 664.0 665.0 1.0 3.600 4.56 Q-TUR
394 1764 665.0 666.0 1.0 3.150 3.18 Q-TUR
395 1765 666.0 667.0 1.0 4.200 7.52 Q-TUR
396 1766 667.0 668.0 1.0 4.100 12.40 Q-TUR
397 1767 668.0 669.0 1.0 3.250 2.89 Q-TUR
398 1768 669.0 670.0 1.0 4.000 10.94 Q-TUR
399 1769 670.0 671.0 1.0 3.250 9.24 Q-TUR
400 1770 671.0 672.0 1.0 4.000 4.58 Q-TUR
401 1771 672.0 673.0 1.0 3.100 20.92 Q-TUR
402 1772 673.0 674.0 1.0 3.250 5.68 Q-TUR
403 1773 674.0 675.0 1.0 3.600 3.65 Q-TUR
404 1774 675.0 676.0 1.0 4.100 0.62 Q-TUR
405 1775 676.0 677.0 1.0 4.000 7.08 Q-TUR
406 1776 677.0 678.0 1.0 3.100 5.24 Q-TUR
407 1777 678.0 679.0 1.0 2.300 0.27 Q
408 1778 679.0 680.0 1.0 3.000 0.19 Q
409 1779 680.0 681.0 1.0 2.200 0.27 LIS
410 1780 681.0 681.0 Blank 3.000 <0.050
411 1781 681.0 682.0 1.0 2.500 1.19 LIS
412 1782 682.0 683.0 1.0 3.000 0.24 LIS
413 1783 683.0 684.0 1.0 3.500 0.13 LIS
414 1784 684.0 685.0 1.0 3.000 0.27 LIS
415 1785 685.0 686.0 1.0 3.100 <0.050 LIS
416 1786 686.0 687.0 1.0 2.700 <0.050 Q
417 1787 687.0 688.0 1.0 3.400 0.87 DR
418 1788 688.0 689.0 1.0 3.500 0.06 DR
419 1789 689.0 690.0 1.0 2.500 <0.050 DR
420 1790 690.0 691.0 1.0 2.200 <0.050 DR
421 1791 691.0 692.0 1.0 3.100 <0.050 DR
422 1792 692.0 693.0 1.0 3.000 0.06 DR
423 1793 693.0 694.0 1.0 3.200 0.33 Q-TUR
424 1794 694.0 695.0 1.0 4.000 0.41 Q-TUR
425 1795 695.0 696.0 1.0 3.100 1.86 Q-TUR
426 1796 696.0 697.0 1.0 3.250 0.24 Q-TUR
427 1797 697.0 698.0 1.0 3.100 0.05 Q-TUR
428 1798 698.0 699.0 1.0 4.000 <0.050 MG
429 1799 699.0 700.0 1.0 3.600 <0.050 MG
430 1800 700.0 701.0 1.0 3.500 <0.050 MG
431 1801 701.0 702.0 1.0 4.000 <0.050 MG
432 1802 702.0 703.0 1.0 3.600 <0.050 MG
433 1803 703.0 704.0 1.0 4.000 <0.050 MG
434 1804 704.0 705.0 1.0 4.000 <0.050 MG
435 1805 705.0 706.0 1.0 4.120 <0.050 MG
436 1806 706.0 707.0 1.0 4.250 0.10 Q-SER
437 1807 707.0 708.0 1.0 3.500 2.23 Q-SER
438 1808 708.0 709.0 1.0 4.250 0.94 Q-SER
439 1809 709.0 710.0 1.0 4.200 <0.050 Q-SER
440 1810 710.0 711.0 1.0 4.100 0.06 Q-SER
441 1811 711.0 712.0 1.0 3.780 0.06 LIS
442 1812 712.0 713.0 1.0 4.250 <0.050 LIS
443 1813 713.0 714.0 1.0 4.000 0.70 Q-SER
444 1814 714.0 715.0 1.0 4.000 1.64 Q-TUR
445 1815 715.0 716.0 1.0 3.500 1.52 Q-TUR
446 1816 716.0 717.0 1.0 4.000 14.94 Q-TUR
447 1817 717.0 718.0 1.0 4.250 7.47 Q-TUR
448 1818 718.0 719.0 1.0 4.250 3.49 Q-TUR
449 1819 719.0 720.0 1.0 3.635 Q-TUR

Hole EZ-1-17 (significant intervals)

No. No.
Sample
from to length Au,
ppm
Au,
ppm
Au,
ppm
Rock
code
1 1955 140.0 141.0 1.0 <0.050 MG
2 1956 141.0 142.0 1.0 <0.050 Q-SER
3 1957 142.0 143.0 1.0 <0.050 LIS
4 1958 143.0 144.0 1.0 <0.050 LIS
5 1959 144.0 145.0 1.0 <0.050 LIS
6 1960 145.0 146.0 1.0 <0.050 LIS
7 1961 146.0 147.0 1.0 0.061 LIS
8 1962 147.0 148.0 1.0 0.087 LIS
9 1963 148.0 149.0 1.0 0.140 0.140 BER
10 1964 149.0 150.0 1.0 0.723 BER
11 1965 150.0 151.0 1.0 0.611 BER
12 1966 151.0 152.0 1.0 18.8 18.8 14.1 BER
13 1967 152.0 153.0 1.0 10.3 10.7 9.6 Q-TUR
15 1968 153.0 154.0 1.0 7.9 6.4 7.1 Q-TUR
16 1969 154.0 155.0 1.0 7.1 6.1 6.9 Q-TUR
17 1970 155.0 156.0 1.0 3.4 2.4 2.6 Q-TUR
18 1971 156.0 157.0 1.0 2.27 2.27 Q-TUR
19 1972 157.0 158.0 1.0 4.71 4.25 4.48 Q-TUR
20 1973 158.0 159.0 1.0 3.46 3.12 2.28 Q-TUR
21 1974 159.0 160.0 1.0 2.95 1.98 2.31 Q-TUR
22 1975 160.0 161.0 1.0 5.20 4.49 4.33 Q-TUR
23 1976 161.0 162.0 1.0 13.0 20.3 19.7 Q-TUR
24 1977 162.0 163.0 1.0 9.06 7.92 7.94 Q-TUR
25 1978 163.0 164.0 1.0 2.28 3.71 3.05 Q-TUR
26 1979 164.0 165.0 1.0 4.94 6.63 6.74 Q-TUR
27 1980 165.0 166.0 1.0 7.60 8.84 11.13 Q-TUR
28 1981 166.0 167.0 1.0 17.1 17.8 14.2 Q-TUR
29 1982 167.0 168.0 1.0 23.7 24.5 23.8 Q-TUR
30 1983 168.0 169.0 1.0 34.5 39.1 39.1 Q-TUR
31 1984 169.0 170.0 1.0 17.5 14.6 14.5 Q-TUR
32 1985 170.0 171.0 1.0 4.66 3.93 3.54 Q-TUR
33 1986 171.0 172.0 1.0 4.53 4.41 Q-TUR
34 1987 172.0 173.0 1.0 12.0 11.7 10.9 Q-TUR
35 1988 173.0 174.0 1.0 4.46 4.05 4.05 Q-TUR
36 1989 174.0 175.0 1.0 3.07 3.51 3.50 Q-TUR
37 1990 175.0 176.0 1.0 16.6 17.5 16.4 Q-TUR
38 1991 176.0 177.0 1.0 15.2 16.9 15.4 Q-TUR
39 1992 177.0 178.0 1.0 7.50 7.73 6.81 Q-TUR
40 1993 178.0 179.0 1.0 19.0 17.1 16.7 Q-TUR
41 1994 179.0 180.0 1.0 5.37 4.95 4.76 Q-TUR
42 1995 180.0 180.0 BLANK <0.050 blank
43 1996 180.0 181.0 1.0 5.15 4.62 6.32 Q-TUR
44 1997 181.0 182.0 1.0 3.78 3.76 4.94 Q-TUR
45 1998 182.0 183.0 1.0 2.00 2.26 2.21 Q-TUR
46 1999 183.0 184.0 1.0 10.0 9.16 9.71 Q-TUR
47 2000 184.0 185.0 1.0 16.3 15.2 16.9 Q-TUR
48 2001 185.0 186.0 1.0 5.25 5.49 Q-TUR
49 2002 186.0 187.0 1.0 6.78 7.49 Q-TUR
50 2003 187.0 188.0 1.0 3.51 Q-TUR
51 2004 188.0 189.0 1.0 6.47 6.99 6.17 Q-TUR
52 2005 189.0 190.0 1.0 22.6 23.2 23.7 Q-TUR
53 2006 190.0 191.0 1.0 6.16 5.94 Q-TUR
54 2007 191.0 192.0 1.0 2.52 2.51 2.82 Q-TUR
55 2008 192.0 193.0 1.0 2.22 2.16 2.02 Q-TUR
56 2009 193.0 194.0 1.0 1.71 Q-TUR
57 2010 194.0 195.0 1.0 1.44 Q-TUR
58 2011 195.0 196.0 1.0 2.83 2.55 2.49 Q-TUR
59 2012 196.0 197.0 1.0 1.05 Q-TUR
60 2013 197.0 198.0 1.0 2.07 1.97 2.14 Q-TUR
61 2014 198.0 199.0 1.0 4.40 4.27 3.96 Q-TUR
62 2015 199.0 200.0 1.0 10.3 12.8 9.74 Q-TUR
63 2016 200.0 201.0 1.0 1.34 Q-TUR
64 2017 201.0 202.0 1.0 1.08 Q-TUR
65 2018 202.0 203.0 1.0 0.625 Q-TUR
66 2019 203.0 204.0 1.0 0.506 Q-TUR
67 2020 204.0 205.0 1.0 0.469 BER
68 2021 205.0 206.0 1.0 0.298 BER
69 2022 206.0 207.0 1.0 0.388 BER
70 2023 207.0 208.0 1.0 0.323 0.333 Q-TUR
71 2024 208.0 209.0 1.0 0.364 Q-TUR
72 2025 209.0 210.0 1.0 0.616 Q-TUR
73 2026 210.0 211.0 1.0 0.073 AMF
74 2027 211.0 212.0 1.0 <0.050 <0.050 blank AMF
75 2028 212.0 213.0 1.0 5.85 5.59 5.86 BER
76 2029 213.0 214.0 1.0 2.67 2.51 2.53 BER
77 2030 214.0 215.0 1.0 0.603 BER
78 2031 215.0 216.0 1.0 0.646 BER

Please note that the three "Au, ppm" columns show the initial assay values in the first column from the left, and check or repeat assays of the same sample in the second and third columns.

To view the appendix associated with this release, please visit the following link: http://media3.marketwire.com/docs/ken0619appendix.pdf.

Contact Information