Kodiak Exploration Limited

Kodiak Exploration Limited

December 17, 2010 11:01 ET

Kodiak Reports New Core Assays From Magino: 114 Metres Grading 1.84 gpt Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2010) - Kodiak Exploration Limited (Kodiak) (TSX VENTURE:KXL)(FRANKFURT:KX3) is pleased to announce results from its core sampling program at its 100% owned Magino Mine project in Ontario. Kodiak and its predecessor at Magino, Golden Goose Resources (now a wholly owned subsidiary of Kodiak) have been systematically sampling previously unassayed sections of core from Golden Goose's 2006 drilling campaign. Because Golden Goose was focused on high grade, underground-minable gold mineralization, only visually mineralized structures were sampled, leaving thick intervals of disseminated gold mineralization unsampled and unassayed. To date, Kodiak has split and sampled over 2,800 metres of core from fifteen drill holes. Highlights from the first five drill holes (06-11 through 06-15) include:

  • 114.0 metres grading 1.84 gpt gold in drill hole 06-15
  • 53.4 metres grading 2.43 gpt gold in drill hole 06-14
  • 63.0 metres grading 1.40 gpt gold in drill hole 06-12
  • 72.7 metres grading 1.19 gpt gold in drill hole 06-13

Complete results for drill holes 06-11 through 06-15 are shown in the table below. Golden Goose previously announced the results of their limited "spot" sampling in a press release dated August 1, 2006.

Drill Hole From (m) To (m) Interval (m) Gold Grade (gpt, capped at 40gpt)
06-11 91.0 133.0 42.0 0.31
  153.7 167.0 9.4 0.85
  257.0 306.9 39.6 0.69
  299.4 306.9 7.5 1.29
06-12 219.0 243.0 24.0 0.81
  278.0 292.0 14.0 1.00
  343.0 355.0 12.0 0.44
  385.0 397.1 12.1 0.85
  457.0 466.7 9.7 0.67
  519.0 582.0 63.0 1.40
06-13 102.3 175.0 72.7 1.19
  179.0 228.0 49.0 1.13
  243.0 260.0 17.0 1.00
06-14 113.6 167.0 53.4 2.43
  172.0 250.0 78.0 0.92
  309.5 318.0 8.5 1.23
06-15 127.0 133.0 6.0 0.84
  146.0 260.0 114.0 1.84
  289.0 301.0 12.0 0.35
  308.0 314.0 6.0 2.55
  322.0 340.0 18.0 0.45
  354.0 362.0 7.0 1.34
  365.0 378.0 13.0 0.35

These drill results confirm the presence of widespread low grade gold mineralization at Magino, consistent with Kodiak's earlier modeling of Magino as a potential open-pit minable gold deposit. The drill holes reported here were all angle holes, therefore the depth below surface for these intercepts is 71% to 86% of the down hole distance, within the range of a potential open-pit mining operation. Data from these drill holes as well as all drilling completed between 2006 and 2010 by Golden Goose (21,897 metres) will be utilized in an updated resources estimate and Preliminary Economic Assessment for the project. Given the thickness and grade of these important intercepts, Kodiak expects the drill hole data to have a significant positive impact on the volume and grade of the updated resource estimate.

Assays are pending for drill holes 06-01 through 06-10; the data will be released when all QA/QC procedures have been completed and the data is properly interpreted.

The geological information for the Magino project has been reviewed and approved by Quentin J. Browne, Kodiak's Magino Project Manager, 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 or are split with a hydraulic slitting device. 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 Chemex ALS, 2090 Riverside Dr., Timmins, ON P4R 0A2. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. 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.

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