Kent Exploration Inc.

Kent Exploration Inc.

September 27, 2011 13:00 ET

Kent to Book Revenue for Q3 From Flagstaff Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2011) - Kent Exploration Inc. (the "Company" or "Kent") (TSX VENTURE:KEX)(PINK SHEETS:KXPLF)(FRANKFURT:7KX) reports that it has now developed two sources of revenue from its Flagstaff Mine outside Northport, WA. Barite, a significant additive to oil and gas well drilling fluids, and aggregates, a byproduct from the barite mining, and notes the significance of cash flow in the current economic environment.

Despite the turmoil in the general markets, the barite market appears to remain strong in North America with barite delivery to the oil and gas sector appearing to be in undersupply. Since announcing commencement of barite mining operations, the Company has received inquiries from prospective purchasers from North America and as far afield as Dubai for the supply of approximately 2.5 times the Flagstaff mine's maximum permitted production of 100,000 tons of barite per year.

The Company has commenced selling aggregate from the mine to the local market at US$10.50/ton at the mine gate. Waste rock from mining the barite would normally be moved around and stored on site as an expense and selling it as aggregate reduces a cost against barite operations.

The company has entered into a contract with Albar Industrial Minerals for the supply of a minimum 20,000 tons of barite at 4.1 SG per annum at the mine gate, with the price based upon the US Geological Survey annual price survey. For 2011, that price is US$54/ton at the mine gate.

The Company anticipates that any positive cash flow from the barite and aggregate sales will be used for general corporate purposes and exploring the Company's Alexander River, Lyell, and Paparoa gold projects in New Zealand.

At the AGM held September 22 at the Company's offices, Graeme O'Neill, Michael England, John Cerenzia, Corey Klassen and Dr. Clay M. Conway, a Qualified Person as recognized by National Instrument NI-43-101, were elected as directors of the Company.

Kent Exploration Inc. is a junior exploration company that has acquired the Alexander River, Paparoa and Lyell gold projects in the highly prolific Reefton gold field in New Zealand and has an approximate 35% interest in, and is the controlling shareholder of, Archean Star Resources Inc, ("Archean") which is listed on the TSX Venture Exchange under the symbol ASP. 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 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 barite-gold-silver-zinc- property in eastern Washington state, having a fully permitted mine which is approved to produce up to 100,000 tons of barite per year, and 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.


Graeme O'Neill, President

Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release.

Contact Information

  • Kent Exploration Inc.
    Graeme O'Neill
    604-684-3394 or Toll free: 1-866-399-6539
    1-888-282-7763 (FAX)