Kodiak’s Golden Mile zone returns golden channel samples

Soaring gold grades from Kodiak Explorations (KXL-V) Hercules project caused the companys share price to take off today, finishing up more than 50%.

Kodiak closed 34 higher at 99 per share on a trading volume of 2.5 million shares.

Shallow drill holes and channel samples from the 2-km-long Golden Mile zone at Hercules, located in the Beardmore-Geraldton gold camp in northern Ontario, reached grades well above 30 grams gold per tonne.

Continuous gold mineralization has been traced over a strike length of 365 metres with channel samples averaging 20.20 grams gold per tonne over an average width of 3.8 metres.

The Golden Mile is strongly mineralized with pyrite, base metal sulfides and frequent visible gold on surface and in drill core.

More than 5 km of newly discovered gold-bearing structures have now been exposed on surface at Hercules.

Highlights from Kodiaks first set of results from drilling this year include a 1.6 metre intersection on the Marino vein grading 38.47 grams gold per tonne.

On the Golden Mile, an 11.60-metre channel sample returned 32.96 grams gold per tonne while a hole drilled below the sample intersected 0.8 metres grading 20.55 grams gold per tonne.

Another hole drilled deeper into the same section returned 4 metres grading 6.89 grams gold per tonne showing that gold mineralization continues to a depth of at least 40 metres.

Kodiak has also uncovered quartz vein structures in between the Wilkinson Lake, Yellow Brick Road and Golden Mile zones, which run parallel to one another within an area of about 2 km by 1.5 km.

The company notes that similar quartz vein structures have been found on surface in the Red Lake, Kirkland Lake and Beardmore-Geraldton gold camps, but with much smaller surface expressions, have extended to depths of 1km to 2km and contain economic mineral resources.

Kodiak plans to explore the Hercules campe to greater depths and is adding two more drill rigs to the project.