Ms. Eira Thomas reports
KAMINAK REPORTS INFILL DRILL RESULTS FROM THE COFFEE LATTE DEPOSIT
Kaminak Gold Corp. today released results for infill drilling at the Latte deposit, a key gold resource contributing approximately 21 per cent of the recoverable gold ounces at Coffee, Kaminak's flagship development-track gold project located 130 kilometres south of Dawson City, Yukon. A National Instrument 43-101 preliminary economic assessment completed in 2014 indicates that Coffee represents a robust, high-margin, rapid-payback, 11-year open-pit mining project at a $1,250-(U.S.)-per-ounce gold price and generates a pretax net present value at 5 per cent of $522-million and a pretax internal rate of return of 33 per cent. A feasibility study was initiated in the third quarter of 2014 and is targeted for completion in late 2015 or early 2016 at a budget of approximately $30-million. Feasibility work in 2014 continued until late November, and infill drilling completed during 2014 exceeded the plan by over 9,000 metres or 33 per cent of the planned infill metres for the year. Mobilization for the 2015 feasibility program is now under way, with drilling expected to commence in early February, 2015.
A total of 5,200 metres of infill drilling from 43 holes was completed at Latte in 2014, with the objective of verifying and upgrading the open-pit resource defined in the 2014 PEA from largely inferred to the higher-confidence category of indicated. Infill drilling generally confirmed the existing geological interpretation and resource model; updated resource modelling is now under way. Two thousand fourteen infill drilling results for Kona and Double Double are in the process of being compiled and will be reported in the coming weeks.
Kaminak president and chief executive officer Eira Thomas commented: "Latte plays a key role in the current mine plan for Coffee, contributing the majority of the gold ounces during the payback period (years 1 and 2) and offering the lowest strip ratio of all the Coffee deposits. We are pleased to report that infill drilling in 2014 continued to confirm the continuity of the mineralization at Latte; there were no surprises. Coffee remains on track to complete the feasibility study and initiate the permitting phase of the project in early 2016."
Drilling results
Infill drilling is being undertaken across the Coffee gold deposits with the objective of verifying the current resource block model and upgrading the open-pit resources defined in the current PEA to the higher-confidence indicated category for inclusion in the Coffee mining feasibility study. The location and spacing of infill drilling were determined in consultation with independent qualified person Robert Sim, PGeo, of SIM Geological Inc., who completed the Coffee gold project mineral resource estimates (announced Dec. 13, 2012, and updated Jan. 28, 2014). The company plans to update the mineral resource estimates for inclusion in the final feasibility study once all of the drill results from all 2014 to 2015 infill drill programs have been received.
Infill drilling was previously completed over 500 metres of strike length within the central zone of Latte in 2013 (see news release dated Nov. 7, 2013), with resultant conversion of resources to the indicated category within that zone (see news release dated Jan. 28, 2014). The 2014 infill drilling was undertaken over the eastern and western extremities of Latte and, in addition, the Latte North zone, which is a splay off of the main Latte structure. The drilling results generally confirm the location, geometry, continuity and grade of the mineralization interpreted within the existing resource model. Results of the 2014 infill drilling are tabulated.
INFILL DRILLING RESULTS
Weighted
average
Drill Width grade
Prospect hole From (m) To (m) (m) (i) (g/t Au)
Latte CFD0390 15 32 17 1.61
Latte CFD0390 66 73 7 1.32
Latte CFD0392 29 31 2 3.28
Latte CFD0392 93 95 2 19.15
Latte CFD0392 107 109 2 9.10
Latte CFR0619 NSV
Latte CFR0620 41.15 44.2 3.05 1.47
Latte CFR0623 38.1 41.15 3.05 1.46
Latte CFR0624 25.91 30.48 4.57 1.91
Latte CFR0626 NSV
Latte CFR0627 105.16 112.78 7.62 1.75
Latte CFR0629 25.91 28.96 3.05 1.35
Latte CFR0631 12.19 35.05 22.86 1.62
Latte CFR0633 32.00 33.53 1.53 2.39
Latte CFR0635 NSV
Latte CFR0637 13.72 15.24 1.52 1.13
Latte CFR0639 44.20 47.24 3.04 2.02
Latte CFR0640 105.16 108.2 3.04 4.57
Latte CFR0643 NSV
Latte CFR0644 NSV
Latte CFR0647 74.68 80.77 6.09 6.47
Latte CFR0647 117.35 134.11 16.76 4.85
Latte CFR0649 86.87 97.54 10.67 2.16
Latte CFR0649 111.25 123.44 12.19 2.09
Latte CFR0649 132.59 143.26 10.67 4.45
Latte CFR0649 167.64 175.26 7.62 1.32
Latte CFR0651 80.77 86.87 6.10 2.39
Latte CFR0651 96.01 118.87 22.86 3.99
Latte CFR0651 176.78 185.93 9.15 6.29
Latte CFR0658 NSV
Latte CFR0659 35.05 38.1 3.05 2.94
Latte CFR0659 48.77 68.58 19.81 3.63
Latte CFR0662 NSV
Latte CFR0664 80.77 85.34 4.57 1.88
Latte CFR0667 77.72 83.82 6.10 1.14
Latte CFR0669 54.86 79.25 24.39 1.31
Latte CFR0688 1.53 9.14 7.61 5.26
Latte CFR0688 47.24 54.86 7.62 3.16
Latte CFR0690 28.96 33.53 4.57 1.49
Latte CFR0690 82.30 83.82 1.52 8.85
Latte CFR0693 38.10 45.72 7.62 4.88
Latte CFR0695 0 27.43 27.43 1.01
Latte CFR0697 56.39 74.68 18.29 0.98
Latte CFR0697 82.30 103.63 21.33 0.99
Latte CFR0697 111.25 124.97 13.72 3.74
Latte CFR0736 12.19 21.34 9.15 2.29
Latte CFR0736 94.49 106.68 12.19 0.63
Latte CFR0739 126.49 129.54 3.05 1.94
Latte CFR0741 59.44 65.53 6.09 0.96
Latte CFR0745 48.77 53.34 4.57 2.58
Latte CFR0748 38.10 53.34 1.06 15.24
Latte CFR0748 77.72 86.87 9.15 1.16
Latte North CFD0384 47.00 49.00 2.00 1.98
Latte North CFD0386 NSV
Latte North CFD0388 97 98 1 8.73
Latte North CFD0388 104 107 3 24.06
Latte North CFR0677 65.53 68.58 3.05 3.92
Latte North CFR0680 80.77 86.87 6.10 3.56
Latte North CFR0682 33.53 39.62 6.09 3.32
Latte North CFR0682 80.77 83.82 3.05 1.85
Latte North CFR0683 68.58 74.68 6.10 9.58
Latte North CFR0683 156.97 158.5 1.53 5.49
Latte North CFR0686 NSV
(i) True width is estimated at approximately two-thirds downhole length.
Note:
Drill hole prefixes CFD are diamond core holes; CFR are RC drill holes.
All maps, sections and assay sheets associated with this news release can be viewed at the company's website.
Feasibility and environment baseline program updates
As announced July 28, 2014, the company initiated a mining feasibility study on the Coffee gold project with a targeted completion date of end 2015 or early 2016. Drilling and related field programs ended in the last week of November, 2014, and will resume in February, 2015. Drilling in 2015 will comprise resource delineation infill, condemnation, geotechnical and hydrological. Environmental and heritage baseline studies and engineering studies into the optimal route and design of the access road are also advancing as planned. All metallurgical sampling was completed in 2014, and composites are now at the Kappes Cassiday and Associates Laboratory undergoing leaching and other test work.
Quality assurance/quality control
Kaminak's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Tim Smith, PGeo, vice-president, exploration, of Kaminak Gold, who serves as a qualified person under the definition of National Instrument 43-101. Quality assurance and quality control procedures include the systematic insertion of blanks and standards into the drill sample string. Samples are placed in sealed bags and shipped directly to the ALS Minerals preparatory laboratory in Whitehorse prior to gold fire assay.
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