Kodiak Announces Completion of Hercules Technical Assessment Report,
Hercules Drill Results and Land Acquisition in the
Beardmore-Geraldton Gold Belt
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/20/09 -- Kodiak
Exploration Ltd. (TSX VENTURE: KXL)(FRANKFURT: KX3) is pleased to
report the completion of a National Instrument 43-101 compliant
Technical Assessment of the company's Hercules Project located in the
Beardmore-Geraldton gold belt of western Ontario. The report by
InnovExplo, a well-respected mining and geology consulting company
based in Val d'Or, Quebec, confirms the significance of the Golden
Mile discovery and validates the methodology, QA-QC procedures and
the technical merits of the work done to date at Hercules. The report
is an important milestone as the Hercules project moves along the
development time line, providing third party documentation of
progress to date. The recommendations made by InnovExplo will be
utilized to guide future drilling and prepare the project for a
formal resource estimate.
InnovExplo notes that, "Exploration work carried out by Kodiak since
2005 led to the discovery of the Golden Mile and subsequent work led
to significant extensions of the newly discovered gold mineralization
(Yellow Brick Road, Marino, Penelton, 7 of 9 and Lucky Strike)."
InnovExplo further states, "The property contains a significant
potential for new discoveries. The mineralized hydrothermal system is
quite large, and additional work on the property could lead to a
Mineral Resource Estimate." InnovExplo goes on to recommend a multi
phase diamond drilling program, a portion of which has already been
completed by Kodiak. The complete Technical Assessment Report will be
filed on SEDAR and be available on our website, www.kodiakexp.com,
shortly.
When the Technical Assessment is combined with the recently released
metallurgical study on Golden Mile gold mineralization, we can now
begin evaluating options for possible bulk sampling of the Golden
Mile and adjacent veins. Planning the next phase of diamond drilling,
slated to begin in June, is well underway. Additional exploration at
Hercules and our other project areas in the Beardmore-Geraldton gold
belt will continue to focus on documenting and building resource
potential while simultaneously moving Hercules forward as a
development project.
Assay results for the final ten drill holes of our winter, 2009
drilling campaign at Hercules have been received. All the drill holes
intersected gold-mineralized quartz veining and shear zones; of
particular interest is drill hole HR09-333, drilled at the eastern
end of the Golden Mile, which cut 1.0 m grading 10.72 gpt gold (0.31
opt), including 0.7 m grading 14.80 gpt gold (0.43 opt). This drill
hole was collared in the footwall of the Golden Mile vein system near
previously announced drill hole HR07-29 (54.1 gpt (1.57 opt) gold
over 2.0 m, including 134.4 gpt (3.9 opt) gold over 0.8 m) and
extends high grade gold mineralization into a new, deeper part of the
system. Results for all ten drill holes can be found on Kodiak's web
site.
As part of our continuing strategy of acquiring key prospective
ground within the Beardmore-Geraldton gold belt, Kodiak has entered
into an option agreement covering an additional mineral property in
the Thunder Bay Mining Division of south central Ontario.
The Wildgoose Property Option
Pursuant to an agreement made with Ginguro Exploration Inc., Kodiak
has been granted an option to acquire an undivided 100% interest in
one mineral claim (16 units) located in Lindsley Township, subject to
a 3% net smelter returns royalty in favor of Ginguro. Kodiak may
exercise the option by making the following option payments over four
years:
1. $10,000 in cash within 5 business days after acceptance by the TSX
Venture Exchange;
2. an additional $15,000 in cash or shares not later than March 24,
2010;
3. an additional $25,000 in cash or shares not later than March 24,
2011;
4. an additional $50,000 in cash or shares not later than March 24,
2012; and
5. an additional $100,000 in cash or shares not later than March 24,
2013.
Kodiak may purchase one-third (i.e. 1%) of the royalty for $500,000
in cash or shares at any time, and may purchase an additional
one-third (i.e. 1%) of the royalty for an additional $1,000,000 in
cash or shares. Any shares issued in connection with the exercise of
the option or purchase of a royalty interest will be issued at the
price per share which is equal to the average closing price of the
Company's shares over the 10 consecutive trading days ending on the
fifth day prior to the payment due date. The proposed option is
subject to acceptance by the TSX Venture Exchange.
Energy Division Update
The winter exploration program at Kodiak's West Millennium project in
the Athabasca Basin of northern Saskatchewan has been completed.
Kodiak drilled five core holes totaling nearly 4,000 metres testing a
14 km long trend of structural and stratigraphic EM conductors. The
exploration program has confirmed and significantly expanded the size
of the very encouraging uranium anomalies and strong hydrothermal
alteration found in the historical Cameco drill hole CX-11. Four of
the five drill holes define a central zone of highly altered basement
graphitic pelite associated with strongly anomalous radioactivity
(greater than 1100 cps, up to 25x background) at the unconformity. A
full report on this very encouraging drilling program will be
released when all assay results have been received. More information
about the West Millennium Project can be found on Kodiak's web site:
www.kodiakexp.com
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 20 cm
and removed with a hammer. Channel sample spacing is nominally every
20 m 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 TSL Laboratories Inc., Saskatoon, SK S7K
6A4. 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.
The geological information for the Hercules Project has been reviewed
and approved by Robert B. Hawkins, Kodiak's Chief Geologist, who is a
qualified person under the definitions established by National
Instrument 43-101. For the Energy Division, the geological
information has been reviewed and approved by Keith Metcalfe, Chief
Geologist-Energy Division, who is a qualified person under the
definitions established by National Instrument 43-101.
On behalf of the Board of Directors
Robert J. Harrington, Managing Director
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.
Contacts:
Kodiak Exploration Ltd.
Robert J. Harrington
Managing Director
(604) 688-9006
(604) 688-9029 (FAX)
info@kodiakexp.com
www.kodiakexp.com
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
