Kodiak hit by first hole at Caribou Lake

VANCOUVER The first of three exploratory holes drilled by Kodiak Exploration (KXL-V) at the Caribou Lake property hit copper-nickel-cobalt mineralization, but market reception was almost as cool as the project’s location in Canada’s Northwest Territories. The company’s shares took a hit and fell to $1.19 from today’s pre-announcement opening price of $1.80.

Hole 06-01 intersected 5.4 metres averaging 0.5% copper, 0.36% nickel and 0.05% cobalt at a downhole depth between 21.6 metres and 27 metres. This included a 3.18-metre interval grading an average of 0.7% copper, 0.53% nickel, and 0.07% cobalt, which in turn includes a 1.41-meter interval grading 1.11% copper, 0.9% nickel and 0.12% cobalt.

The Caribou Lake property is situated about 90 km southeast of Yellowknife, and is considered prospective for copper-nickel-cobalt mineralization with associated platinum group elements (PGEs). The company had previously identified 83 geophysical targets along a 9-km-long mineralized trend and the surrounding area.

The first three shallow holes all tested Target 1, near the southern end of a 12-km-long gabbro intrusion. Hole 06-02 overshot its sulphide target because the collar set-up was “unfortunately mislocated” at the wrong GPS coordinates.

Hole 06-03 intersected 4.25 metres of disseminated to massive sulphide mineralization consisting of pyrrhotite and chalcopyrite, while hole 06-04 hit 37.19 metres of disseminated, blebby and net-textured sulphide mineralization that remains open. Assay results are pending from both holes.

Kodiak has expanded its drill program to 32 holes from the initially planned 16 holes in order to test ten geophysical anomalies, most of which are associated with the 9-km-long copper-nickel mineralized horizon.