Kodiak Exploration Limited

Kodiak Exploration Limited

June 07, 2006 09:30 ET

Kodiak Drilling Expands Discovery at Caribou Lake

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 7, 2006) - Kodiak Exploration Limited (TSX VENTURE:KXL) is pleased to report that its ongoing drill program at Caribou Lake, NT continues to expand the scale of the Caribou Lake nickel-copper-cobalt (Ni-Cu-Co) and platinum group elements (PGE) discovery.

The Company has now drilled a total of 19 exploratory holes designed to test the near surface geology of five of fifteen primary targets, and has received assay results from the first 14 holes. Drilling has penetrated significant intercepts of mineralization, with 4 holes returning significant grades of nickel, copper and cobalt. Drilling to date confirms strong potential for multiple zones of nickel, copper and cobalt to exist within the Caribou Lake intrusion, and has also identified a possible PGE "reef" approximately 20 metres thick.

Kodiak published assay results from discovery hole CL-06-01, on VTEM Anomaly 1, in its news release issued March 27, 2006. Additional holes on VTEM Anomaly 1 have now returned significant grades of nickel, copper and cobalt, and recent drilling of that anomaly has resulted in the discovery of new sulphide layers 265 metres north-northeast along strike from hole CL-06-01, in hole CL-06-15. This mineralization remains open along strike and down dip. The map accompanying this news release, which will also be posted on the Company's website, shows the locations of and relationships between the holes drilled to date.

Hole CL-06-05 on Anomaly 1, approximately 60 metres north of hole CL-06-01, returned assays of 1.123% nickel, 1.083% copper and 0.125% cobalt over a 1.20 metre massive sulphide intersection from 80.70 to 81.90 metres downhole. This mineralization remains open along strike and appears to get thicker to the east, as demonstrated by the much wider sulphide intersection in hole CL-06-16 (analytical results pending), located 60 metres to the east of Hole CL-06-05, but still on Anomaly 1. Hole CL-06-05 intersected 8.40 metres of disseminated to massive sulphide, including the 1.20 metre massive sulphide intersection referred to above. Hole CL-06-16 has intersected 53.2 metres of disseminated, net-textured and massive sulphide mineralization from 34.5 to 87.7 metres downhole, including 10 metres of net-textured to semi-massive pyrrhotite and chalcopyrite from 52 to 62 metres downhole, that remains open along strike and to depth. Drilling will continue to test this mineralization down dip and along strike during the current program, to define the scale and geometry of this newly discovered zone.

Hole CL-06-15, located on Anomaly 1 approximately 265 metres north-northeast of discovery hole CL-06-01, intersected multiple sulphide layers totalling 30 metres of sulphide mineralization within the interval 2.5 to 61.6 metres downhole. Assays for holes 15 and 16 are pending.

Drill highlights to date
Hole Depth Interval Base Metals
Number ---------------------------------------------------------
From To (metres) Nickel Copper Cobalt
(%) (%) (%)
CL-01-01 24.0 24.78 0.78 1.02 1.375 0.13
interval 21.60 24.78 3.18 0.53 0.7 0.07
CL-06-03 35.20 36.60 1.40 0.925 1.00 0.12
interval 26.85 31.50 4.65 0.18 0.20 0.029
CL-06-05 80.70 81.90 1.20 1.123 1.083 0.125
interval 75.00 83.40 8.40 0.27 0.34 0.125
CL-06-07 39.00 42.10 3.10 0.14 0.23 0.017
and 63.00 83.75 20.75 0.103 0.189 0.014

Hole CL-06-06 returned anomalous values of nickel and copper over a 30 metre interval from 3 to 33 metres downhole, but did not intersect the VTEM conductor associated with Anomaly 1, which has now been interpreted by geophysics to be located 220 metres vertically below surface from the collar of hole CL-06-06. The geometry of Anomaly 1 is not yet fully defined and will be tested by additional drilling.

Holes 2, 4, 8, 11 and 11b, located on Anomaly 1, holes 9 and 10 on Anomaly 3, hole 12 on Anomaly 5, hole 13 on Anomaly 7, and hole 14 on Anomaly 10, did not intersect the VTEM conductors associated with those anomalies. All of these holes cut weakly disseminated, but not massive, sulphides. Borehole geophysics completed to date in holes 12, 13 and 14 show the presence of conductors indicative of sulphides located off hole. The current drilling is planned to further evaluate the geometry of those conductors and to test the extent of the mineralization. Many VTEM conductors also remain open or untested and are yet to be drilled.

The Company arranged recently to have consulting geologist Dr. Walter Peredery visit the property and provide the Company with the benefit of his knowledge and experience. In the past, Dr. Peredery worked for Inco for 32 years in various capacities including exploration geologist, mine geologist, research geologist and supervising geologist. He worked at Voisey's Bay in Newfoundland, the Sudbury Basin in Ontario and the Thompson Nickel Belt in Manitoba, and has experience in evaluating Ni-Cu and PGE deposits worldwide. Dr. Peredery is very encouraged by the Ni-Cu-PGE potential demonstrated by results to date on the Caribou Lake project. It is his view that the mineralization discovered to date in the Caribou Lake Intrusion, combined with favourable geology, geochemistry and structure, is evidence that Caribou Lake has good potential to develop into a significant new Ni-Cu-Co-PGE deposit.

Dr. Peredery's expertise was also very helpful in identifying the possible presence of a PGE reef on Anomaly 1. Drilling intersected a 20 metre thick layer with strongly anomalous platinum, palladium and gold in holes CL-06-01, CL-06-02 and CL-06-04. Dr. Peredery has described this layer as a possible reef, similar to the PGE reefs found at Stillwater, Montana and in the Bushveld Complex of South Africa. The Caribou Lake PGE layer has been intersected in three of the first four drillholes, where it can be recognized as a mappable unit distinct from the sulphide rich layers.

Highly anomalous PGE values have been found in outcrop as well as the referenced drill holes. Four surface rock samples, two from the Anomaly 12 area, and two taken about 1 kilometer south of Anomaly 12, assayed more than 127 ppb platinum plus palladium. The best surface sample, taken 8 kilometers north of the discovery reef at Anomaly 1, assayed 198 ppb platinum and 11.4 ppb palladium. Based on these findings, Kodiak plans to systematically map, prospect and drill test the newly discovered PGE layers within the Caribou Lake Gabbro to determine their economic potential.

The current work program has given Kodiak's geologists a much better understanding of the geology of the Caribou Lake intrusion. Preliminary geological mapping and sampling has confirmed the presence of magnesium-rich ultramafic layers within a layered series of rocks exposed along the north side of the intrusion in the area of Anomaly 12. These layers dip at a shallow angle to the east, and because they represent a lower part of the intrusion than the layers exposed near Anomaly 1, they indicate that the intrusion has a slight southward tilt.

Magnesium-rich layers near the base of a layered intrusion are the most prospective locations for concentrations of nickel, copper and cobalt, suggesting Anomaly 12 near the north edge of the intrusion, and Anomaly 14 near the centre of the intrusion, are new priority targets for massive sulphides. These targets remain to be drilled. Geophysics has identified a series of strong conductors in the area of Anomaly 12, one of which has been interpreted to have a strike length of 200 metres, and a depth of less than 25 metres. Kodiak geologists recently discovered chalcopyrite-rich samples in outcrop. This mineralization remains open along strike, confirming Anomaly 12 as a high priority drill target.

Anomaly 14 is located close to the Hearne Channel of Great Slave Lake, approximately 4 kilometres east of Anomaly 1. The Channel has been interpreted as a continental rift which tapped Ni-Cu-Co and PGE from the mantle. Three dimensional magnetic imaging has identified a large magnetic body at depth below Anomaly 14, where gabbroic rocks are inferred to lie beneath a shallow granite cover based on a regional gravity survey. High grade niccolite filling a vertical fracture in the surface granite over Anomaly 14 provides evidence to support the presence of sulphides below the granite. Gabbroic inclusions measuring hundreds of metres in diameter in the granite also support the proposition that the Caribou Lake Gabbro extends under the granite.

Kodiak continues to identify new drill targets and refine its understanding of the Caribou Lake intrusion, and is encouraged by the near surface drill results obtained to date. Ongoing exploration for the 2006 spring and summer program will include:

- Additional Diamond Drilling

- Detailed analysis of drill core to determine the dip of the mineralization and interpret the stratigraphy

- Geological mapping and prospecting

- Borehole geophysics to further define targets

The current drill program will continue to test multiple strong geophysical targets for their economic potential. When all results from the current program have been received and interpreted, Phase 2 drilling will be carried out to further define the geometry and extent of sulphides confirmed by the phase 1 program.

Drill core is logged on site by Kodiak's consulting geologists. Core is then split under their supervision. One half is retained and stored on site for reference, and one half is sent for analysis. Blanks and duplicates are inserted at regular intervals as quality control. Additional standards, blanks and duplicate analyses are also employed by Acme.

Core samples are delivered to Acme Analytical Laboratories' Yellowknife preparation facility for crushing and pulverizing. Pulps are forwarded to Acme's Vancouver laboratory and assayed for gold, platinum and palladium by Fire Assay-ICP using a 30 gm inquart (method 3B-MS) and for multiple trace element geochemical analysis by ICP-MS using a four acid digestion (method code 1T-MS). Samples exceeding 0.5% copper or nickel and more than 0.1% cobalt are assayed using a hot 4-acid digest and ICP-ES (method code 7TD). Major elements are also determined for the selected samples by fusion-ICP-MS (method code 4A).

The information contained in this news release has been reviewed and approved by Dr. Walter Peredery, P. Geo., Louis Covello, P. Geo., and Trevor Bremner, P.Geo., who are qualified persons for the Caribou Lake project under the definitions established by National Instrument 43-101. Dr. Peredery, Mr. Covello and Mr. Bremner are all independent consultants to Kodiak.

Kodiak is a mineral exploration company with properties located in Canada. Maps, photographs, geological details and additional information may be reviewed on its Web site at www.kodiakexp.com.

To see the Drillhole locations of the Caribou Lake project please visit the following link: www.ccnmatthews.com/docs/kodiak1.jpg

On behalf of the Board of Directors


William S. Chornobay, Director, President

This release has been prepared by management - This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

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

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