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Golden Mile Drilled To A Depth Of Over 1km, Remains Open; System Expanded To 8km of Strike; High Grade Gold Intersected In Multiple Shoots
Vancouver , British Columbia , December 3, 2008. Kodiak Exploration Ltd. (KXL - TSXV) is pleased to report on its exploration activities in the Beardmore-Geraldton gold belt and its flagship Hercules project in particular.
The 2008 program on the Golden Mile at Hercules was planned to systematically expand the known strike and depth extents of this gold mineralized quartz vein system and, based on results seen to date, the program is considered by management to be an overwhelming success. The system has now been traced on surface for at least 8 kilometres and drill tested for more than 3,000 metres along strike, and, most significantly, drill hole HR08-297 has intersected the Golden Mile at a down hole depth of over one kilometre.
Assays are pending for recently completed Hole HR08-297, however, a visual inspection of the drill core shows quartz+sulfide veining, quartz-carbonate stockwork and sheared gabbro over an eight metre interval at a down hole depth of 1027 metres; the system remains wide open, clearly demonstrating the robust nature of the Golden Mile vein system at depth. Hole HR08-297 was drilled as a deep test of one of the high grade shoots previously identified in Area 51 of the Central Golden Mile. Wedging off this hole, producing additional deep intercepts, is planned. Higher in this gold mineralized shoot, drill hole HR08-192 intersected 75.3 gpt (2.20 opt) gold over 0.4 metres at a down hole depth of 231 metres. Multiple drill holes in both the western shoot and the eastern shoot in Area 51 suggest widespread high grade gold mineralization in those shoots (see Figure one, Long Section, below). Ongoing exploratory drilling along strike and to depth continues to intersect mineralized quartz vein and significantly expand the geometry of the Golden Mile system.
The 2008 program has included more than 65,000 metres of diamond drilling to date. Assays from a significant number of drill holes remain pending and drilling is ongoing. However, the initial results of this program already demonstrate the tremendous potential of this extensive vein system to host multiple high grade gold shoots to significant depths.
Hercules exploration highlights to date include:
Drilling has identified deep high grade mineralization in the eastern gold mineralized shoot in Area 51 of the Central Golden Mile: Drill hole HR08-231 intersected 29.5 gpt (0.86 opt) gold over 0.4 metres at a down hole depth of 453 metres. Drill hole HR08-252 cut 0.7 metres grading 15.14 gpt (0.44 opt) gold at a down hole depth of 361 metres, defining a new extension to the eastern mineralized shoot that may be represent a third new gold mineralized shoot. Combined with the western shoot, these three zones outline a very large area of strong gold mineralization that remains open at depth, greatly expanding the resource potential in the central Golden Mile.
Surface exploration well to the west of the central portion of the Golden Mile has identified multiple additional gold showings in mineralized quartz veins that extend the length of the Golden Mile structural zone by an additional 5,000 metres, right up to the Kodiak property boundary. This surface exploration implies that the Golden Mile structural zone and mineralized system on Kodiak's property is at least eight kilometres in length and strongly suggests that expansion of the resource potential of the entire Golden Mile system is probable. Ongoing drilling is planned to test this new 5 km extension of this system for additional high grade gold shoots and outline its full economic potential.
Drilling just west of the Golden Pond on the Golden Mile has identified several zones of strongly altered granitic host rock cut by multiple thick, gold mineralized quartz veins. These veins are open along strike and at depth, and may be on the margin of a high grade zone similar to the pattern seen in Area 51 of the central portion of the Golden Mile. Exploration drilling in this area and in the unexplored segment of the Golden Mile below the Golden Pond will continue this winter.
The drill hole intercepts reported here, are similar in grade and thickness to many high grade vein deposits being profitably mined globally such as those in the Kirkland Lake, Destor-Porcupine Fault Zone and the Cadillac Break at Val d' Or, confirm the significance and economic potential of the Hercules project and the Golden Mile vein system in particular. The exploratory drilling to date has been focused on establishing the full extent of this extensive system along strike and to depth, both of which still remain open. Based on the observed mineralogy of the Golden Mile system, Kodiak's geological team believes that Golden Mile quartz vein should be amenable to conventional, very cost effective gold recovery techniques with high gold recoveries. In order to verify metallurgical properties and move the Golden Mile forward to a new stage, a series of metallurgical tests of surface and core samples from the Golden Mile is under way. These tests will determine the basic metallurgical properties of the vein material, including the amenability of that material to conventional milling techniques, an important first step in determining the full economic potential of this impressive gold mineralized system.
A complete table of Hercules drill holes for which assays have been received, including reconnaissance drill holes elsewhere in the Elmhurst Lake intrusion, is set out below.
Other Beardmore-Geraldton Drilling and Exploration Highlights
In addition to its program at Hercules, Kodiak has completed exploratory diamond drilling on several stand alone projects in the Beardmore-Geraldton gold belt, with very impressive results. Reconnaissance drilling continues to test new areas with strong gold resource potential to augment the Golden Mile and other Hercules vein systems. Highlights from Kodiak's 2008 regional exploration program are described below:
At West Geraldton, approximately 50 km east of Hercules, drilling has just begun under a very high grade surface showing now known as the "Big Bonanza" zone as a result of high grade channel sample assays received on November 26, 2008. Located in the Portage shear zone, this showing has produced excellent grab and channel sample results including 24 samples grading between 4.97 gpt and 118.6 gpt gold. Channel WG-04 (17222-17224) returned 12.2 gpt gold over 2.3 metres, including 0.8 metre grading 31.0 gpt gold. Early assay results from drilling include 5.7 metres grading 5.61 gpt gold including 1.4 metres grading 12.38 gpt (0.36 opt) gold in drill hole WG08-06. Additional assays will be reported when received and further drilling is planned. The Portage shear zone is a regional structure that extends for over 40 kilometres, of which approximately 35 km is controlled by Kodiak. The 150 metre wide Portage shear runs parallel to the Bankfield-Tombill fault zone, a regional structure that hosts eight gold mines with over 2.6 million ounces of production, and hosts the high grade +600,000 ounce Little Long Lac gold mine. Big Bonanza is geologically similar to gold deposits located on the Bankfield-Tombill fault zone in that similar host rocks, strong silicification and sericite-carbonate alteration, intense sulfide mineralization and conglomerates are present in both areas. The system is open at depth and along strike.
At the Golden Boomerang zone, which is also in West Geraldton and located on a strand of the Portage shear approximately 5.5km east of the Big Bonanza, exploratory drilling has produced a drill h ole intercept: 12.3 metres grading 0.68 gpt gold including 0.5 metres grading 7.5 gpt gold, 241 gpt Ag and 4.8% lead (18.8-19.3 metres) in drill hole GK08-18. The Golden Boomerang vein system is a very strongly mineralized zone consisting of quartz veins up to five metres wide with 5 to 20% sulfide mineralization, including pyrite, galena, sphalerite, arsenopyrite and, locally, visible gold. The Golden Boomerang has been cut by drill holes to depths of greater than 200 metres. Additional drill core assays are pending.
Reconnaissance exploration, including first pass exploratory drilling, was also successful at the Kaby Lake Gold Rush Zone. The Kaby Lake intrusion is located approximately 13 kilometres east of the Elmhurst Lake intrusion, measures approximately 25 square km with strong gold potential and is a "look alike" to the Elmhurst Lake intrusion. Gold occurs in northwest structures hosted by Archean granitic rock the same age as the Elmhurst Lake intrusion. These structures have been traced on surface for up to 6 kilometres. Trenching, stripping and sampling at the Gold Rush Zone produced individual channel grab samples assaying greater than 11 gpt gold. Initial exploratory diamond drilling has intersected broad zones of sheared intrusive rock accompanied by quartz stockwork and veining with anomalous gold mineralization. Additional exploration and drilling is planned for the Gold Rush Zone.
At Sturgeon Bridge, a discrete project located approximately 20 kilometres southeast from Hercules and 32 kilometres of West Geraldton, wide spaced exploration drilling in the Sturgeon Bridge-Caviar zone has discovered multiple areas of mineralization, including high grade gold mineralization: 0.6 metres grading 66.7 gpt (1.95 opt) gold in drill hole SB08-13. These intercepts occur in a broad 100 metre wide shear zone that is open along strike and at depth, and has widespread gold mineralization. Additional exploration of this promising project area is underway.
Drilling at t he East Leitch, which is another discrete project located approximately 33 kilometres southwest of Hercules, has intersected 0.8 metres of vein material grading 19.3 gpt (0.56 opt) gold in drill hole EL08-01. This intercept is in the Leitch Mine vein system, a structure that produced over 847,000 ounces of gold at an average grade of 31.5 gpt (0.92 opt) gold only 1800 metres from the East Leitch property boundary. The Leitch vein system extends from the Leitch Mine property onto Kodiak's East Lietch claims and is open at depth and along strike. Follow up drilling is planned for East Leitch.
At the Maki Midas, which is yet another discrete project located approximately 19 kilometres southwest of Hercules, stripping, geologic mapping and surface sampling by Kodiak has identified a zone at least 1000 metres long that is currently being drilled. This mineralized zone is part of an extensive gold bearing structure that extends for at least five kilometres on Kodiak property and remains open within a regional structure that is over 100 kilometres long. It has produced grab and channel samples that grade up to 17 gpt gold . Drilling is ongoing and logging of the core confirms intercepts of the same style and type of gold mineralization seen on the surface. Assays are pending. The Maki Midas system remains open both on strike and at depth, and further exploration is planned on it for 2009.
These results confirm the resource potential of the Beardmore-Geraldton gold belt and the potential for Kodiak to continue to increase the gold resource potential of its extensive land package. Drilling was also completed at several other project areas including Cote Archie, GMO and Solomon's Pillars. No further work is planned for Solomon's Pillars and the option on that property has been dropped. A table summarizing all drill results for the regional exploration program is set out below. Maps showing drill hole locations for each project, project location maps and additi onal information for the projects can be found on Kodiak's web site: www.kodiakexp.com
Figure One: Inclined Long Section, Golden Mile vein system, Hercules Project showing contoured grade thickness intervals in gram*metres. The new deep intercept is in the central portion of the section shown by the orange circle. The volume of gold mineralized rock, indicated by the +3 gram*metre contour, has dramatically increased since the last news release. Note also the continuity of higher grades at depth and periodicity of gold mineralized shoots. Many drill assays are still pending on the west end of the Golden Mile. West and East mineralized shoots are shown in Red, possible additional shoots are shown in magenta The system remains open along strike and at depth.
Copies of the new long section, new maps and photos may be found in the "What's New" section of Kodiak's web site: www.kodiakexp.com
Management's Analysis
Mr. Bill Chornobay, President, comments: "With a strong cash position and no debt, we will continue to explore our extensive landholdings in the Beardmore-Geraldton gold belt with the same careful planning and enthusiasm as in the past, tempered by the global financial situation that mandates an increased level of prudence. Fortunately, our company is well-positioned to continue to systematically explore while maintaining a strong cash balance, ensuring that we will go the distance. Kodiak will continue to run exploration programs focused on discovery, and it is well positioned to seize new opportunities which may present themselves as a result of current market conditions."
Mr. Brian Maher, Vice President of Exploration, comments: "The results on the Golden Mile at Hercules and on our other Beardmore-Geraldton area projects underscore the significant gold resource potential of Kodiak's land holdings. Now that the Golden Mile has been traced to a depth of at least one kilometre and for eight kilometres along strike, we are in a position to start to define the full economic potential of this robust and well developed gold system. We have identified a very large volume of gold mineralized rock to date, and considering that the system is wide open at depth and along strike, we look forward with great anticipation to additional results from our continuing drill campaign. What is truly exciting is that the Golden Mile is only one of many stand-alone targets in the Kodiak land package. Kodiak controls over 1,400 square kilometers of the most prospective property in the belt, and one cannot understate the importance of our regional exploration success. Our recent results across our numerous projects clearly demonstrate that we have only just begun to unlock the potential of this gold belt, and we have many more underexplored properties in our exploration pipeline, each with the potential to be a stand-alone project."
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 remov ed 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 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 information contained in this news release 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.
Update on the Uranium Division
The Company has not yet received assay results from samples taken during Kodiak's 2008 ground exploration program on its UR and 308 uranium prospects on the Otish Basin of Quebec. Those results will be announced when they are received by the Company.
Kodiak is a mineral exploration company with properties located in Canada. You can now view an interactive map, as well as additional photographs, geological details and additional information, on our Web site: www.kodiakexp.com.
On behalf of the board of Directors
KODIAK EXPLORATION LIMITED
William S. Chornobay, Director, President
For further information contact:
(604) 688-9006 or by email at info@kodiakexp.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The statements made in this release may contain forward-looking statements or 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.
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