VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 13, 2015) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced results for infill drilling at the Latte Deposit, a key gold resource contributing approximately 21% of the recoverable gold ounces at Coffee, Kaminak's flagship development track gold project located 130 km south of Dawson City, Yukon. A NI 43-101 Preliminary Economic Assessment (PEA) completed in 2014 indicates that Coffee represents a robust, high margin, rapid pay-back, 11 year open-pit mining project at a US$1250/oz gold price and generates a pre-tax NPV @5% of $522 million and a pre-tax IRR of 33%. A feasibility study was initiated in Q3 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 9000 metres or 33% of the planned infill metres for the year. Mobilization for the 2015 feasibility program is now underway, with drilling expected to commence in early February, 2015.
A total of 5200 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 modeling is now underway. 2014 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 CEO, 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 was determined in consultation with independent Qualified Person Robert Sim, P.Geo of SIM Geological Inc., who completed the Coffee Gold Project Mineral Resource Estimates (announced December 13, 2012, and updated January 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 2014-15 infill drill programs have been received.
Infill drilling was previously completed over 500m of strike length within the central zone of Latte in 2013 (see news release November 7th, 2013) with resultant conversion of resources to the Indicated category within that zone (see news release January 28th, 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 below in Table 1.
Table 1 Infill Drilling Results
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Weighted
Average
grade (g/t
Prospect Drill Hole From (m) To (m) Width (m)(i) Au)
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Latte CFD0390 15 32 17 1.61
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Latte CFD0390 66 73 7 1.32
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Latte CFD0392 29 31 2 3.28
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Latte CFD0392 93 95 2 19.15
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Latte CFD0392 107 109 2 9.10
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Latte CFR0619 NSV
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Latte CFR0620 41.15 44.2 3.05 1.47
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Latte CFR0623 38.1 41.15 3.05 1.46
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Latte CFR0624 25.91 30.48 4.57 1.91
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Latte CFR0626 NSV
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Latte CFR0627 105.16 112.78 7.62 1.75
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Latte CFR0629 25.91 28.96 3.05 1.35
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Latte CFR0631 12.19 35.05 22.86 1.62
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Latte CFR0633 32.00 33.53 1.53 2.39
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Latte CFR0635 NSV
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Latte CFR0637 13.72 15.24 1.52 1.13
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Latte CFR0639 44.20 47.24 3.04 2.02
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Latte CFR0640 105.16 108.2 3.04 4.57
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Latte CFR0643 NSV
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Latte CFR0644 NSV
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Latte CFR0647 74.68 80.77 6.09 6.47
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Latte CFR0647 117.35 134.11 16.76 4.85
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Latte CFR0649 86.87 97.54 10.67 2.16
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Latte CFR0649 111.25 123.44 12.19 2.09
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Latte CFR0649 132.59 143.26 10.67 4.45
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Latte CFR0649 167.64 175.26 7.62 1.32
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Latte CFR0651 80.77 86.87 6.10 2.39
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Latte CFR0651 96.01 118.87 22.86 3.99
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Latte CFR0651 176.78 185.93 9.15 6.29
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Latte CFR0658 NSV
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Latte CFR0659 35.05 38.1 3.05 2.94
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Latte CFR0659 48.77 68.58 19.81 3.63
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Latte CFR0662 NSV
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Latte CFR0664 80.77 85.34 4.57 1.88
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Latte CFR0667 77.72 83.82 6.10 1.14
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Latte CFR0669 54.86 79.25 24.39 1.31
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Latte CFR0688 1.53 9.14 7.61 5.26
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Latte CFR0688 47.24 54.86 7.62 3.16
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Latte CFR0690 28.96 33.53 4.57 1.49
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Latte CFR0690 82.30 83.82 1.52 8.85
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Latte CFR0693 38.10 45.72 7.62 4.88
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Latte CFR0695 0 27.43 27.43 1.01
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Latte CFR0697 56.39 74.68 18.29 0.98
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Latte CFR0697 82.30 103.63 21.33 0.99
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Latte CFR0697 111.25 124.97 13.72 3.74
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Latte CFR0736 12.19 21.34 9.15 2.29
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Latte CFR0736 94.49 106.68 12.19 0.63
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Latte CFR0739 126.49 129.54 3.05 1.94
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Latte CFR0741 59.44 65.53 6.09 0.96
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Latte CFR0745 48.77 53.34 4.57 2.58
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Latte CFR0748 38.10 53.34 1.06 15.24
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Latte CFR0748 77.72 86.87 9.15 1.16
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Latte North CFD0384 47.00 49.00 2.00 1.98
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Latte North CFD0386 NSV
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Latte North CFD0388 97 98 1 8.73
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Latte North CFD0388 104 107 3 24.06
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Latte North CFR0677 65.53 68.58 3.05 3.92
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Latte North CFR0680 80.77 86.87 6.10 3.56
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Latte North CFR0682 33.53 39.62 6.09 3.32
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Latte North CFR0682 80.77 83.82 3.05 1.85
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Latte North CFR0683 68.58 74.68 6.10 9.58
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Latte North CFR0683 156.97 158.5 1.53 5.49
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Latte North CFR0686 NSV
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(i) True width estimated at approximately 2/3 down-hole length.
Additional notes: 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 by clicking the following link:
http://kaminak.com/news_releases/2015/index.php?&content_id=606Feasibility and Environment Baseline Program Updates
As announced 28 July, 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.
QA / QC
Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Tim Smith, P.Geo., Vice President Exploration of Kaminak Gold Corporation, 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.
On behalf of the Board of Directors of Kaminak
Eira Thomas, President and CEO
Kaminak Gold Corporation
For further information about Kaminak Gold Corporation or this news release, please visit our website at
www.kaminak.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
Caution Concerning Forward-Looking Statements
Certain disclosures in this release, including management's assessment of the future potential of the Coffee Project and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise.
The Company has not made a production decision, and the Company's strategic plan to develop a stand-alone heap leach operation is subject to the results of its Feasibility Study. Further, if and when the Company makes any production decision, it will disclose the basis of such decision in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
Cautionary Note concerning estimates of Inferred and Indicated Resources:
This news release uses the terms "Inferred Resources" and "Indicated Resources", which have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred and/or Indicated Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. Kaminak advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an Inferred and Indicated resource exists or is economically or legally minable.