Kent Exploration Inc.
TSX VENTURE : KEX

Kent Exploration Inc.

March 10, 2011 16:31 ET

Kent Commences Alexander River Diamond Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2011) - Kent Exploration Inc. (TSX VENTURE:KEX) reports that its wholly owned subsidiary, Kent Exploration NZ Limited (together, the "Company" or "Kent"), has commenced its planned diamond drill program on the Company's Alexander River Gold Project, approximately 25 kilometers southeast of Reefton, West Coast, South Island, New Zealand.

The approximately 3,000 meter, 10 plus hole HQ and NQ core diamond drill program, under the direction of Dr. Clay Conway, Ph.D. P.Geol., will operate on a 2 shift, 24 hour a day schedule, and is planned to identify geology and structures to assist in determining the potential for the property to host economic gold mineralization.

During the Company's 2010 surface sampling program, conducted along a strike length of approximately 1,200 meters, significant gold assays included trench "F", 3.2m at 24.6 g/t Au including 1.9m at 40.38 g/t Au, trench "A", 6.4m at 6.87 g/t Au including 3.2m at 12.91 g/t Au, trench "K", 8m at 10.56 g/t Au including 2.9m at 20.2 g/t Au, and trench "M", 12.8m at 4.5 g/t Au including 4.1m at 9.13 g/t Au. Mineralization remains open along strike and to depth.

Alexander River Background

The 2,669-hectare Alexander River gold prospect encompasses the historic Alexander gold mine, which reportedly produced 41,091 ounces of gold from 47,726 tonnes of quartz prior to closing in 1943 due to war induced labor shortages.

In 1988, CRA Exploration cleared and sampled historic trenches and adits. The project was later acquired from CRA by Macraes Mining Ltd. Based on CRA's data and limited drilling, Macraes Mining identified an auriferous halo of sulphide-hosted mineralization which exists around the early mined reefs with a resource potential of approximately four million tonnes grading more than five grams per tonne gold, for approximately 643,000 ounces of gold, as reported in a report filed with Crown Minerals NZ in 1993.

The Company advises that a qualified person has not done sufficient work to classify the historical estimates as a current mineral resource. The Company is not treating the historical estimates as a current mineral resource and the historical estimates should not be relied upon. The Company has retained Dr. Gerry Ray, Ph.D. P.Geol, to prepare an independent, NI 43-101 Compliant Geological Report on the Alexander River property.

In conjunction with the commencement of the diamond drill program, the Company announces, subject to regulatory approval, a non-brokered private placement for up to 5,000,000 Units at $0.10 per Unit (the "Units"), for gross proceeds of $500,000. Units subscribed for under this placement are subject to a four (4) month and one day hold period.

Each Unit will consist of one (1) common share and one (1) non-transferable common share purchase warrant, exercisable at a price of $0.15 for a term of one (1) year from closing.

The gross proceeds from the sale of the Units are to be used for ongoing exploration on the Company's Alexander River Gold Project in New Zealand, for the Flagstaff Project barite operations, and for general corporate purposes.

Finder fees may be payable in accordance with the policies of the TSX Venture Exchange.

Kent Exploration NZ Limited has received approval from the NZ Department of Conservation for the minimum impact, diamond drill program on the Alexander River property.

Kent Exploration Inc. is a junior exploration company that has an approximate 35% interest in, and is the controlling shareholder of, Archean Star Resources Inc, (Archean) which has applied for, and received a conditional acceptance for listing on the TSX Venture Exchange. Archean's wholly owned subsidiary, Archean Star Resources Australia, Pty, Ltd, (ASRA) has an Option Agreement, subject to a 75% back in right, to earn 100% of Teck's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia. The Company has also acquired the Alexander River, Paparoa and Lyell gold projects in the highly prolific Reefton gold field in New Zealand.

The Company has an option to earn a 100% interest in the Silver Hills property, a silver/lead/zinc prospect in south-eastern British Columbia, The Company has a 100% interest in Coal Prospecting Permits covering approximately 92,000 ha in east-central Saskatchewan, a 100% interest in a mining lease option on the Flagstaff Mountain property, a fully permitted mine which is approved to produce up to 100,000 tons of barite per year, a gold/silver/zinc/barite prospect in eastern Washington state, a 100% interest in the mining lease option on the Ivanhoe Creek property, a Midas-style gold/silver target in Nevada's Carlin Trend, and 50% of a 100% interest in the Ivanhoe Creek placer claims covering a bentonite deposit.

This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents. The content of this release has been reviewed and approved by Marvin A. Mitchell, P. Eng., a qualified person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD

Graeme O'Neill, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Kent Exploration Inc.
    Graeme O'Neill
    President
    604-684-3394 or Toll Free: 1-866-399-6539
    1-888-282-7763 (FAX)
    www.kent-exploration.com