Kodiak down 23% on Caribou Lake nickel-copper results

Vancouver – Despite hitting additional intervals of nickel and copper sulphides, drill results from Kodiak Explorations (KXL-V) Caribou Lake layered ultramafic intrusive project near Yellowknife in the Northwest Territories returned grades that fell below investor expectations, pushing companys stock price down by 23% in June 4th trading.

Drilling is targeting structural depressions along the base of the intrusive body with two holes collared almost one km apart in the northern part of the intrusion both intersecting magmatic sulphides

Hole CL-07-05, drilled more than 600 metres in depth, intersected a number of sulphide mineralized bands. The highest grades were between 479.6 and 480.7 metres, which returned 0.21% nickel and 0.31% copper. Other bands graded 0.06-0.12% nickel and 0.10-0.14% copper. The second hole, CL-07-06, intersected 0.10% nickel and 0.15% copper over 5.0 metres from 392 metres downhole.

Mineralization occurs as both coarse and fine grained magmatic sulphides within the layered ultramafics that the company notes having a tholeiitic composition similar to the Duluth Intrusive Complex in Minnesota. Better grades are hosted in coarse to very coarse grained gabbro and pyroxenite units.

Kodiak had been pushing initial exploration results that indicated the presence of several massive sulphide bodies at Caribou Lake, which is located immediately north of Great Slave Lake. In September 2005 Kodiak announced that grab samples assays combined with aeromagnetic data and geological observations indicated a gabbro layer containing massive and net-textured magmatic sulphides containing up to 1.41% copper, 0.62% nickel, and anomalous levels of platinum, palladium, gold and cobalt.

A VTEM survey conducted a few months later also indicated the presence of massive sulphide bodies with a collective strike length of 3.3 km. Last spring assay results from the first diamond holes returned 0.5% copper, 0.36% nickel and 0.05% cobalt over 5.4 metres including 1.41 metres of 1.11% copper, 0.9% nickel and 0.12% cobalt.

The companys share price had been on the rise in expectation of strong nickel and copper grades at Caribou Lake, having climbed from 0.40 in mid-2006 to over $1.00 by March 2007. The share price fell 0.20 on the first drill results in late March. At press, the second set of drill results had created the same effect with Kodiaks share price slipping 18 to 61.

Besides its Caribou Lake property Kodiak holds two gold prospects the Hercules and Knuckelthumb properties northeast of Thunder Bay in Ontario, as well as ten uranium properties in the Otish Basin area of Quebec.