Kernow Resources & Developments Ltd.

Kernow Resources & Developments Ltd.

March 29, 2007 14:50 ET

Kernow Commences Drilling at the Almagreira Gold Project in the Ossa Morena Region of Southern Portugal

PORTO, PORTUGAL--(CCNMatthews - March 29, 2007) - Mr. Alan Matthews, President of Kernow Resources & Developments Ltd. (TSX VENTURE:KRD), is pleased to announce that the Company has commenced drilling on the Almagreira Project on the Alandroal concession in the Ossa Morena Zone of Southern Portugal. The work is being undertaken as part of the Option Agreement (the "Agreement") with Rio Narcea Gold Mines Ltd. ("RNGM") whereby Kernow has the right to acquire an initial 60% interest with an option to earn a 100% interest in the Alandroal property and separately the Barrancos property (See News Release dated 18 October 2006).

Almagreira South, Gold Prospect

The current drill program will comprise of 600 meters of core drilling and of 4 holes, two of which will be drilled on Almagreira south and two on Almagreira north. Exploration drilling has been completed by RNGM on the Almagreira south zone with holes PAM-01 and PAM-02. Both holes intersected gold Mineralisation variously contained in silicified carbonates, haematite, gossans and silica-dolomite altered grey marbles. Due to the highly gossanous nature of some of the mineralised intersections recoveries were poor. At the surface the target zone is seen to consist of mineralized altered volcanics and carbonates. Gold Mineralisation was noted by RNGM in two holes at Almagreira south as follows:


Sample From To Interval Gold Silver
Number meters meters Recovery meters g/t Au g/t Ag
PAM-02-033 34.00 35.00 100.00% 1.00 0.030 0.25
PAM-02-034 35.00 35.52 30.77% 0.52 9.270 5.7
PAM-02-035 35.52 37.00 59.46% 1.48 1.670 2.8


Sample Gold Silver
Number From To Recovery Interval g/t Au g/t Ag
PAM-01-37 34.50 35.15 32.31% 0.65 3.37 4.0
PAM-01-38 35.15 36.12 100.00% 0.97 0.015 0.25
PAM-01-39 36.12 37.48 95.59% 1.36 0.11 0.25
PAM-01-40 37.48 38.30 100.00% 0.82 1.02 0.25
PAM-01-41 38.30 39.20 81.11% 0.90 0.96 0.25
PAM-01-42 39.20 39.95 100.00% 0.75 5.77 0.25

The assay results are historical results and have yet to be confirmed by Kernow. The samples from the above holes were assayed at OMAC Labs in Ireland and at the RNGM in house laboratory at El Vale in Spain. Examination of the assay data shows good correlation between the two facilities.

The first Kernow hole in this zone (PAMK-03) is situated some 125 meters to the east of PAM 2 and is targeted to intersect the mineralised zone some 100 meters below surface.

Almagreira North, Gold Prospect

At Almagreira North RNGM completed two trenches each being 114 meters and 67 meters in length. Mapping and sampling reported gold mineralisation in Trench T 3 as 0.35 g/t gold along a length of 41.0 meters. Trench T4 returned assays of 0.35 g/t gold along a length of 36.5 meters. The trenches are sub parallel and are approximately 90 meters apart. In addition sampling of float boulders on trench T3 and trench T4 returned 11.7 g/t gold and 1.070 g/t gold respectively. Two diamond drill holes are planned here to test the anomaly.

Mineralisation is observed to be related to altered, clayey, gossanous tuffs, metasediments and quartz veining that is orientated perpendicular to the trenches.

Other prospects

Kernow will also take the opportunity to examine several of the untested prospects within the Alandroal Licence which currently covers an area of 321 square kilometres. These prospects have been identified by work completed by RNGM and include: Mina Miguel Vacas (Copper Oxide), Mina Bugalho (Copper-Gold veins in a shear zone), Santa Luzia (gold), Mocicos (Copper) and Pego Longo (Copper).

Within 2 kilometres of the Almagreira prospect lies the Torre 2 project. Here RNGM have conducted detailed geological mapping, ground magnetic surveys along with rock and soil sampling. This work has identified a gold anomaly some 150 meters by 300 meters in an area containing values in excess of 123 ppb (parts per billion) gold. In addition sampling of outcrop and float has returned assay values from haematitic gossans of up to 13.3 g/t gold. The gossans are associated with silicified horizons hosted in acid volcanic rocks.

Kernow is a gold explorer based in Porto, Portugal, with a portfolio of highly prospective gold and copper/gold projects in Portugal. In addition it has a 49% interest in the Jales Gralheira property (see news Release 25 January, 2007). Kernow has also applied for other mineral concessions in the country.

The data contained in this News Release has been reviewed and verified by Kernow's President, Alan F. Matthews, C.Eng., a "qualified person" for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects. Such verification was completed by review of the underlying data provided by Rio Narcea, site visits to both properties and extensive discussions with senior technical personnel from Rio Narcea.

Alan F. Matthews, President

This news release contains forward looking statements regarding the ongoing and upcoming exploration work and expected geometry of geological formations and structures. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information

  • Kernow Resources & Developments Ltd.-Portugal
    Mr. Alan Matthews
    + (351) 93 676 0927
    + (351) 22 609 5185 (FAX)
    Kernow Resources & Developments Ltd.-Canada
    Mr. Gary Zak
    (604) 630-1388