Friday 22nd February 2019

Resource Clips

Kaminak VP Tony Reda on Yukon assays of 2.83 g/t gold over 62m

“The Coffee project was acquired by Kaminak in 2009, from a prospector by the name of Shawn Ryan. We own it 100%. In 2010, we executed the first ever drill program on the Coffee Property; prior to our acquiring the property no one had ever put a drill hole into it. Which is extremely important in terms of blue sky potential. This is a brand new discovery in the historical Klondike area.

“[Our] primary exploration tool is soil sampling, and the reason why this tool is effective is because the area has never been glaciated. So when you take a soil sample, it’s a direct representation of the bedrock mineralization below. In most of Canada you take a soil sampling and you have to trace it back to its source—which could be hundreds of kilometres away, sometimes less, sometimes more. That can be a hair-pulling exercise. So we start taking 10,000 or 20,000 soil samples on a property that’s never been glaciated, and you start to see patterns and trends emerge in the gold-in-soil samples. These trends are essentially the gold bearing structures below. All we’re doing is drilling underneath these trends, hitting the structures and intersecting gold. Knowing how to explore property is critical to the success of the property and the efficiency of your drilling. Last year we had a 100% success rate as far as drilling underneath soil and finding gold. So we’re confident that the soil sampling is working. It gives us a good indication of the footprint, of the potential of the property, because the more gold-in-soil trends you see, the higher the potential for more gold-bearing structures.

The area has never been glaciated. So when you take a soil sample, it’s a direct representation of the bedrock mineralization below. – Tony Reda

“What today’s news release shows is that we found gold outside of the soil footprint. Initially we were just drilling our best soil anomalies. But we hit some of our best intercepts outside of the gold-in-soil footprint. So sometimes these targets are hidden. The Latte Zone soil footprint is one kilometre long, and now we’ve hit outside of that. This gives us a greater indication that the footprint is not the only indication. Not only is there the structure we see in the ground mag, but also the fact that we’re hitting on these holes outside of the footprint, extending the strike length of that zone.

“We don’t have a resource estimate right now, because last year was the first year of drilling. Typically, resource estimates take multiple years and a lot of drill holes. So it’s hard to speculate on when you’ll have a resource, because that really depends on the mineralization, and you don’t know if the next hundred holes are going to hit. But we are working towards that resource, and if everything hangs together and, assuming that we continue to hit and there’s continuity of mineralization and someone’s willing to sign-off on it, then we could potentially have a resource by the Q1 of next year.

“Our Phase 1, $15-million drill program involves 40,000 metres of drilling. That kicked off April 19. So we’re only a couple of months into it. We are about to kick off soil sampling, and we’ve done some geophysics on the property already. Four drills are turning. They are at three zones: Double Double, Latte, and Supremo. Probably at the end of June, some of those drills will move to other targets. Perhaps new drills will be brought on. Then we’ll go from there.

“We’re not a mining team, we’re an exploration team. At the end of the day it’s about doing what’s best for your shareholders and creating value. So if that means taking this to production, we’ll obviously consider that option. But right now, we are well-equipped to take this to feasibility level. If we were to take this to the next level, we’d have to bring on a mining team. The company itself could do that, but right now it’s a matter of keeping your stick on the ice, finding gold and staying focused on that task.

“We’re exceptionally pleased with this project. It’s spectacular. Most companies go their whole lifetime trying to make one discovery. We have eight, and we’re very pleased with the results thus far.”

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