Kodiak Exploration Limited

Kodiak Exploration Limited

October 06, 2010 12:05 ET

Kodiak Drills 35m Grading 2.21 gpt Gold including 4m Grading 16.6 gpt Gold at Milestone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) - Kodiak Exploration Limited (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce results for an additional nine drill holes at its Milestone gold project in the Beardmore-Geraldton gold camp of northern Ontario. Kodiak continues to intercept thick intervals of potentially bulk-minable shallow gold mineralization that outline a large robust gold system. Highlights include drill hole MS10-48 which intercepted 35.0 metres grading 2.21 gpt gold including 4.0 metres grading 16.58 gpt gold. This drill intercept is located in the hanging wall of the Pag North structure and may indicate a significant cross structure that is also gold mineralized. This potential new structure represents a new target area contiguous to the main Pag structure and enhances the gold potential at Milestone. Drill hole MS10-49 cut 23.5 metres grading 1.98 gpt gold including 10.3 metres grading 3.32 gpt gold in the main Pag North structure, demonstrating an increase in the thickness of the mineralized zone and average grade. This drill hole and the others reported below continue to expand the size of the gold mineralized system and improve our geological understanding of gold distribution at Milestone enabling the company to effectively target the higher grade portions of the system. Kodiak currently has an additional 3,500 metres of diamond drilling planned for Milestone with the ability to expand the program as warranted. A complete drill hole table and drill hole location map are shown below.

  From To Length Gold  
Hole ID (m) (m) (m) (gpt) Zone
MS10-41 152.8 160.0 7.2 2.37 Pag N
MS10-42 168.8 195.7 26.9 1.11 Pag N
  including 175.0 176.0 1.0 14.14  
MS10-43 158.0 187.0 29.0 0.57 Pag N
MS10-44 103.0 125.0 22.0 1.04 Pag N
MS10-45 209.0 223.0 14.0 0.69 Pag N
MS10-46 158.5 167.0 8.5 1.36 Pag N
MS10-47       NSV Pag N
MS10-48 154.0 189.0 35.0 2.21 Pag ?
  including 157.0 161.0 4.0 16.58  
  and 250.6 266.0 15.4 0.21  
MS10-49 159.0 182.5 23.5 1.98 Pag N
  including 167.0 177.3 10.3 3.32  

Brian Maher, President and CEO of Kodiak, comments: "With the drilling completed to date at Milestone, we have intercepted significant grades of gold mineralization over a strike length of almost 2,500 metres, with average widths of approximately 30 metres and have intercepted the system to a depth of at least 300 metres. The Milestone gold system is open in all directions and we believe the potential for further expansion, witnessed by these latest results, is very good."

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/KXL1006.pdf

The geological information for the Milestone project has been reviewed and approved by Darren Lindsay, Kodiak's Vice President-Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Kodiak QA/QC procedures are as follows: Kodiak channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 10 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Kodiak drill cores are split down the center with a typical table feed circular rock saw. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Kodiak logging and sample preparation facilities by Kodiak personnel. Kodiak angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Kodiak samples are currently being assayed by Activation Laboratories Ltd., Ancaster, ON L9G 4V5 and Accurassay Laboratories Inc., Thunder Bay, ON, P7B 5X5. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Screened metallic assays are routinely run on all anomalous gold results as a check on nugget effects. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors

Brian J. Maher, President and Chief Executive Officer

This release may contain forward-looking statements or statements that relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

Neither 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.

Contact Information