KAMINAK DEFINES EXTENSIVE SOIL ANOMALIES ALONG NEWLY RECOGNIZED SUGAR TREND, COFFEE PROJECT


Kaminak Gold Corp. has provided soil results from grid sampling of the Sugar area located approximately 20 kilometres southeast of the Supremo-Latte drill discoveries. The soil results from Sugar further reinforce the company’s belief that a district-scale gold system is present at Coffee. No previous drilling has been completed on the Sugar prospects. Additional widely spaced reconnaissance soil sampling has also been completed on previously unexplored portions of the 150,000-acre Coffee property. Basic soil sampling is a reliable exploration tool at Coffee due to the lack of glacial influence and near-surface nature of gold mineralization.

“These results continue to illustrate the excellent early stage exploration potential of the Coffee property. The scale and intensity of the new Sugar soil results are strikingly similar to the original soil results that led to Kaminak’s drill discoveries in 2010,” stated Dr. Rob Carpenter, Kaminak’s president and chief executive officer. “The Sugar anomalies represent the most significant untested gold-in-soil trends in the Yukon and an extensive drill program is currently planned for early 2012.”

Key point summary

 Several kilometre-scale-long gold-in-soil trends identified in the Sugar area, including Sugar North (minimum one km long) and Sugar South (minimum two km long);

  • Geological setting and geochemical pathfinders suggest mineralized trends at Sugar are typical Coffee-style structurally controlled occurrences;
  • Widely spaced ridge line samples within previously unsampled portions of the Coffee property yield results as high as 3,086 parts per billion Au;
  • Continuing drill program now exceeds 46,000 m completed since April. Current focus is on the Supremo and Latte gold zones.

 Sugar soil results

The Sugar trend was identified by a first-pass ridge and spur sampling in 2010 comprising a broad consistent zone of gold-in-soil located 20 km from the Supremo-Latte zones at Coffee. A follow-up 100 m by 50 m grid soil sampling program was completed in July, 2011. Soil assay results delineate a broad new gold-in-soil footprint measuring four km by 1.8 km. The Sugar zone is now directly comparable in scale and tenor to the original gold-in-soil anomaly over the Supremo-Latte-Double Double areas at Coffee that led to Kaminak’s drill discoveries in 2010.

A total of 2,916 soil samples from Sugar were analyzed and 92 of these samples yielded results greater than 100 ppb Au. Over all, results ranged from background (less than 10 ppb Au) to a high of 2,135 ppb Au (2.135 grams per tonne (g/t) Au). Gold-in-soil anomalies are also associated with high arsenic (As) and antimony (Sb), which is also identical to the Coffee geochemical suite. Two broadly east-west-trending zones are identified as Sugar North and Sugar South.

The core zone of Sugar North (consistent more than 50 ppb Au gold-in-soil) measures one km east-west by 500 m north-south, with 27 more than 100 ppb Au samples peaking at 522 ppb Au. The Sugar North trend can be traced 900 m farther to the west, across a section of north-facing slope where soil sampling is subdued by permafrost, to a zone measuring 600 m by 300 m containing an additional four plus 100 ppb Au samples peaking at 255 ppb Au.

Sugar South comprises an eastern and western zone, separated by a section of north-facing slope where soil sampling is subdued by permafrost. The eastern zone measures 900 m east-west, by 350 m north-south, with 23 more than 100 ppb Au samples peaking at 1,142 ppb Au (1.142 g/t Au). The western zone measures 1,200 m east-west, by 600 m north-south, with 19 more than 100 ppb Au samples peaking at 1,450 ppb Au (1.450 g/t Au). The total combined strike length, if proven by future sampling to be a continuous alteration system, could be in excess of 2.3 km east-west.

Preliminary interpretation of geophysical data suggests east-west-trending structural zones marked by magnetite destruction at both Sugar North and Sugar South, plus additional possible structural trends in other orientations akin to those observed at Coffee. An initial trenching program was completed over the Sugar North and South zones in September, 2011, with assay results currently pending. A follow-up drilling program is planned for 2012.

Several smaller plus 100 ppb Au zones are located throughout the Sugar grid survey, and ridge and spur sampling returned an additional six plus 100 ppb Au samples peaking at 3,086 ppb Au located within an area measuring seven km by five km to the east of the current Sugar grid. This zone will be targeted for follow-up grid soil sampling in 2012.

Maps are currently available on the Kaminak website.

Subject to regulatory approval, the board of directors has granted an aggregate of 150,000 stock options under the company’s stock option plan to newly appointed chief financial officer, Jonathan Singh. The stock options have an exercise price of $2.82 per share, will vest according to schedules set by the board of directors and are exercisable for a period of five years.

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