Kaminak Reports High-Grade Infill Drill Results from the Double Double Deposit, Coffee Gold Project; Highlights Include: 37.6 g/t Au over 5m, 32.8 g/t Au over 6.1m and 5.1g/t Au over 33.5m
January 20, 2015
Vancouver, B.C. – Kaminak Gold Corporation (KAM: TSX-V) today announced results for infill drilling at Double Double, the highest grade of four gold deposits being evaluated as part of an ongoing feasibility study at Coffee, the Company’s flagship, development track, gold project located 130 km south of Dawson City, Yukon. A NI 43-101 compliant preliminary economic analysis (PEA) completed for the project in 2014 included approximately 117,000 recoverable ounces from Double Double in years 1 and 2 of the mine-plan, at an average diluted grade of 3.32 g/t Au, contributing to a rapid two year after-tax payback period for the project. At a gold-price of US$1250/oz and using an exchange rate of C$1.00 equal US$0.95, Coffee is expected to generate a pre-tax net present value (NPV) at a 5% discount rate of more than $500 million and an Internal Rate of Return (IRR) of 33%. Further, Coffee could become a significant Yukon gold producer, yielding close to 450,000 ounces in the first two years and producing an average of 167,000 ounces annually over the life of mine at an all-in sustaining cash cost of US$688 per ounce of gold.
A total of 6850 metres of infill drilling from 47 holes was completed at Double Double in 2014 with the objective of verifying and upgrading the open-pit resources defined in the 2014 PEA from “Inferred” to the higher confidence category of “Indicated” for inclusion in the Coffee Mining Feasibility Study.
Infill drilling confirmed the existing Double Double geological interpretation providing additional confidence in the location, geometry and continuity of the mineralized lodes. Drilling completed over the 2013 & 2014 field programs also delineated a previously un-known parallel mineralized structure – Double Double North – culminating in a stand out 2014 intercept of 32.8 g/t Au over 6.1m from 39.6m depth (CFR0731). This high grade drill intercept is located just outside the PEA pit shell, thereby demonstrating potential for resource expansion beyond the limits of the current open-pit resource.
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.
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