Kodiak Exploration Limited

Kodiak Exploration Limited

November 10, 2006 09:30 ET

Kodiak Traces New Gold System for 1.2 km Along Strike at Hercules-Remains Open

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2006) - Kodiak (TSX VENTURE:KXL) reports positive results from the recently completed Phase I program at its Hercules property in Ontario, including the discovery of two significant new gold zones. Based on those results, Kodiak has mobilized its field crew for a Phase II program which will include drill testing of the two new zones over next few weeks.

The Phase I drill program intersected high-grade gold mineralization in several drill holes at the Wilkinson Lake Gold Zone (WLGZ). Drill hole HR-06-03 intersected bonanza grades of 51.65 g/t Au over 4.85 metres within a 16.60 metre interval grading 15.59 g/t Au, and two other holes returned gold values greater than 10 g/t over multi-metre intervals. Stripping of overburden along the newly discovered Penelton and Yellow Brick Road zones has exposed a series of large gold-bearing quartz veins and stockworks similar to those seen in the WLGZ. The new gold system has been traced on surface for one kilometre northwest of the WLGZ and remains open.

Final results from the Phase I drill program are tabulated below. The drilling has outlined a high grade gold-mineralized shoot, plunging to the northwest and open to depth, within a broad steeply dipping halo of low grade gold mineralization more than 75 metres wide (see long section on Kodiak's Web site). Seven of the Phase I drill holes intersected the low-grade halo, including HR-06-09 which assayed 0.84 g/t Au over 10.1 metres, and HR-06-12 which averaged 1.26 g/t Au over 9.0 metres. Drill holes 10, 11 and 15 returned no significant assays.

Phase I drilling tested the WLGZ over a strike length of 240 metres and showed that that mineralized zone is an average of 10.3 metres wide, strikes 120 degrees and dips 78 degrees to the southwest. The Phase II drill program will test the down-dip and down-plunge extents of the high-grade gold zone outlined by the Phase I drilling. Phase II drilling will also test both the Penelton and Yellow Brick Road zones along strike.


From To Au g/t
Drill hole (m) (m) Interval (uncut) Comment

HR-06-01 20.32 37.50 17.18 1.4 Quartz vein/stockwork with
sericitic wall rock inclusions,
up to 1% pyrite.
HR-06-02 12.8 24.3 11.5 10.37 Quartz vein/stockwork with 1-10%
pyrite, locally chalcopyrite and
including 12.8 16 3.2 17.47 Quartz vein/stockwork with 1-10%
pyrite, locally chalcopyrite and
including 21.1 24.3 3.2 19.02 Quartz vein with 1-4% pyrite.
HR-06-03 26.4 43 16.6 15.59 Unaltered and sericitic quartz
vein/stockwork with 1 to 15%
pyrite, locally argentite,
galena and chalcopyrite.
including 27.15 32.0 4.85 51.65 Sericite schist and quartz vein
stockwork with 1 to 15% pyrite,
locally argentite, galena and
HR-06-04 36.5 51.7 15.2 3.14 Sericitic quartz vein and
stockwork with pyrite.
including 37.4 39.75 2.35 6.58
HR-06-05 26.9 32.85 5.95 10.15 Sericite schist and quartz vein
with 1 to 5% disseminated
including 28.9 30.3 1.4 42.19 Sericite schist and quartz vein
with 1 to 5% disseminated
HR-06-06 64.4 72.6 8.2 0.76 Quartz veinlets, boudins and
lenses in sericite-chlorite-
carbonate schist with up to 5%
including 64.4 66.9 2.5 1.585
HR-06-07 40.0 47.37 7.37 0.83 Quartz vein and stockwork with
up to 5% pyrite, plus argentite
and galena.
HR-06-08 21.95 29.45 7.5 0.72 Quartz vein, stockwork and
fractured quartz with up to 5%
HR-06-09 34.0 44.1 10.1 0.84 Mostly quartz stockwork with up
to 5% pyrite.
HR-06-12 17.0 26.0 9.0 1.26 Quartz vein and stockwork with
strong sericite alteration and
up to 4% pyrite.
HR-06-13 43.5 55.0 11.5 0.46 KW Fault - includes 3.66 m wide
quartz vein with up to 5% pyrite
in fractures.
HR-06-14 107.81 112.8 4.99 1.0 Quartz and quartz carbonate vein
and stockwork with boudins,
lenses and up to 3% pyrite.

As noted above, recent stripping has exposed the Penelton zone for approximately 350 metres northwest of the WLGZ. Located 200 metres farther west, the Penelton closely resembles and is mapped as a faulted offset of the WLGZ. It consists of an 8 metre wide gold-bearing quartz vein, more than 100 metres long, within schist and altered wall rock. The veins, schist and altered wall rock are all gold-bearing. A newly exposed gold-bearing, sugary quartz vein that reaches thicknesses of up to 5 metres has been outlined for an additional 250 metres in a northwest direction. Grab samples from the Penelton vein yielded assays from 0.12 g/t Au to 37.07 g/t Au, and a series of grab samples across the vein averaged 7.91 g/t Au over 9.5 metres. Two channel samples assayed 8.90 g/t Au and 36.4 g/t Ag over 1.50 metres, and 7.15 g/t Au over 1.06 metres.

The Yellow Brick Road is a steeply dipping, gold-bearing zone of quartz-pyrite and quartz-carbonate veins and stockwork enveloped by sericite-chlorite-quartz schist. It has been exposed over a strike length of 250 metres, and is up to 3.50 metres wide on surface. It is aligned on strike with the Penelton zone to the south, and the two zones are believed to be continuous across a swamp which separates them. A grab sample from the Yellow Brick Road contained 5.85 g/t Au, and a channel sample assayed 2.60 g/t Au and 60.72 g/t Ag over 1.51 metres.

Taken together, the WLGZ, Penelton and Yellow Brick Road quartz vein and stockwork zones have a combined length of at least 1.2 kilometres within the 400 metre-wide Hercules Shear (see attached map). The mineralization remains open along strike and down dip. Ground geophysical surveys have mapped what is believed to be an extension of the mineralized system beneath shallow cover for an additional 2.4 kilometres, and it also remains open. In addition to the significant gold values, the width and style of the alteration halo and the width and continuity of the gold-bearing quartz veins suggest that the Wilkinson Lake, Penelton and Yellow Brick Road zones are part of a large gold-bearing system along a regional geologic contact. The geology, mineralization and structure have many of the characteristics of multi-million ounce shear-hosted gold deposits in the Archean.

Eight kilometres of sheared intrusive-metavolcanic contact southwest of the Penelton zone remains unexplored due to overburden cover, but two known showings in this area have returned high-grade gold values, including a grab sample assaying 30.42 g/t Au at the Amede showing and a grab sample grading 40.32 g/t Au at the Bat showing. A channel sample across the Bat showing assayed 11.05 g/t Au over 0.66 metres. Early indications along this southwest contact have led company geologists to believe these showings are very similar to the showings seen in the area northwest of Wilkinson Lake prior to Kodiak's Phase I prospecting and stripping program. This area is planned to be explored as soon as weather permits.

The Hercules claim block has recently been expanded to 29,800 acres, confirming Kodiak's position as one of the largest land holders in the Beardmore-Geraldton Gold Camp, which has 4.1 million ounces of historic gold production. The property is road accessible and close to infrastructure.

Kodiak plans to continue prospecting, stripping and mapping along this large shear structure in future exploration programs. Kodiak's Phase II program will focus on drilling to expand the known extent of these gold zones and further evaluate their economic potential.

Kodiak's Phase I drill program produced 1106 metres of NQ core with recovery close to 100%. Half-core samples were sawed on site and assayed at Accurassay's Thunder Bay laboratory. Thirty-gram samples were fire-assayed with an ICP finish, and samples containing more than 5 grams of gold per tonne were submitted for metallic screen fire assay. Quality assurance included the insertion of blanks, duplicates and standards every 50 samples. Half-core samples were retained on site for verification and reference purposes.

The information contained in this news release has been reviewed and approved by Trevor Bremner, P. Geo., who is a qualified person for the Hercules project under the definitions established by National Instrument 43-101. Mr. Bremner is an independent consultant to Kodiak.

Further information, including maps, drill sections and photographs, is available on Kodiak's Web site at www.kodiakexp.com.

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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