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Kaminak Gold’s shares surge on start-up of $11 mln drill program

Last updated: 19:21 26 Feb 2013 GMT, First published: 20:21 26 Feb 2013 GMT

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Kaminak Gold Corp. (CVE:KAM) Tuesday saw its shares rise nearly seven per cent after it announced the start-up of an $11 million exploration drill program at its Coffee gold project in Yukon Territory.

The company said the fully funded, phase one program is expected to start in the coming days and field crews have now been mobilized. 

Shares were up 6.9 per cent on the back of the news, trading at $1.24 as at about 3:15 p.m. EDT.

Kaminak in December this past year released an NI 43-101 inferred mineral resource estimate of 3.2 million ounces grading 1.56 grams per tonne (g/t) gold at the Coffee gold project.  

"In less than three years, Kaminak has defined 3+million ounces of shallow, high grade gold at Coffee; an extensive, structurally controlled gold system which remains open in all directions,” said director and incoming president and CEO Eira Thomas.

“Our work program in 2013 is designed to expand upon and define preliminary economic parameters for core resource areas at Supremo, Latte and Double Double, while at the same time continuing with an aggressive drilling campaign to identify additional resources over the broader, 100%-per-cent owned Coffee district, where less than 20 per cent of the prospective geology has been systematically tested to date."  

Thomas added that the majority of the inferred resources identified to date are near surface oxide or transitional facies, with initial metallurgical testwork proving positive for high gold recoveries in oxide material using standard leaching techniques. 

“In addition to the ambitious drilling and resource campaigns that are planned for 2013, Kaminak intends to initiate early stage engineering studies and conduct detailed metallurgical testwork in support of a preliminary economic assessment (PEA),” the CEO concluded.

The company said that initial gold heap leach column tests undertaken on select samples of oxide facies material from Supremo, Latte and Double Double in 2012 and resulted in 90 per cent recoveries over 80 days, including 83 per cent recoveries over 15 days.

Kaminak also said it is planning to collect a further 10,000 soil samples from across the property in 2013 with the goal of identifying additional priority targets for drill testing.

In other news Tuesday, the company announced the closing of a non-brokered, private placement offering of 746,250 common shares at a price of $1.34 per common share, for total gross proceeds of almost $1 million. 

Kaminak said the new funds will be used for general working capital and all of the common shares sold in association with this financing were purchased by insiders of the company, which now has $16 million in cash.   

 

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