| Gold |
| Hercules Gold Property |
| Milestone |
| Beardmore Geraldton Regional |
| Mines Point |
| Magino Gold Property |
| Uranium |
Hercules Gold Property
Kodiak’s Hercules Project is located approximately 120 kilometres northeast of Thunder Bay, in Ontario’s historic Beardmore-Geraldton Gold Camp (more than eight million ounces of gold production and identified gold resources). The project is road accessible and close to infrastructure including the Trans-Canada Highway, railway, electricity, natural gas and work force. At Hercules, high grade gold has been found in multiple quartz-carbonate veins that cut through the 31 square kilometre Elmhurst Lake Intrusion and adjacent metavolcanic rocks. Surface stripping since 2006 has exposed multiple gold-bearing structures consisting of vein and quartz stockwork that have a combined strike length of more than six kilometres. Individual veins are up to three kilometres long and nine metres wide, enclosed within an envelope of intensely sheared and altered wall rock. The gold-mineralized structures remain open in all directions and they display many of the characteristics of other Archean gold deposits, which together account for two thirds of Canada’s gold production. Mineral Resources On April 13, 2010, Kodiak released an initial resource calculation for the Hercules Project:
Gold Resources, Hercules Project, Beardmore-Geraldton Gold District, Ontario
The mineral resource estimates were undertaken by Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers, of Toronto, Canada (WGM). WGM carried out database verification, wireframing of all zones that had 3-D continuity using a 0.50 gpt gold outline and a nominal minimum horizontal width of 1.5 metres. The gold grade was interpolated by block modeling methods. The Indicated and Inferred mineral resources were classified according to the CIM definition Standards for Mineral Resources and Mineral Reserves (December 2005) by Michael Kociumbas, P. Geo, WGM Vice-President, a "qualified person" as defined by NI 43-101. The Golden Mile The Golden Mile, the principal vein at Kodiak’s Hercules Project, is a large quartz vein system with visible gold and sulphide minerals that is exposed on the surface for a minimum three kilometre strike length. During initial exploration in 2007, continuous gold mineralization was traced on the surface for more than 400 metres; channel samples taken every 20 metres along this zone had an average grade of 20.2 gpt gold over an average width of 3.8 metres. Based on these encouraging initial sampling results, aggressive exploration drilling commenced, defining a large gold system that extends to depths of at least 1000 metres. Systematic resource delineation drilling has so far outlined at least seven sub-parallel high grade zones with a northwest plunge, contained within an envelope of lower grade gold mineralization. The central part of the Golden Mile vein system has a higher grade zone that has returned drill intercepts up to 515.98 gpt gold over 2.5 metres (HR07-51). This central portion of the Golden Mile forms a unique high-grade resource that is still open at depth and along strike. Using a higher cut off grade of three gpt gold, the Golden Mile resource remains robust with an average uncapped Indicated resource grade of 26.68 gpt gold (see table below). The high grade mineralization starts at the surface and extends to depth along the Golden Mile structure (see three-dimensional model below). Extension to this zone of high grade gold mineralization remain open and are the subject of on-going exploration on the Golden Mile. Gold Resources, Golden Mile Vein, Hercules Project
Three dimensional view looking north, Gold Resources, Golden Mile Vein, Hercules Project
Exploration drilling by Kodiak has defined at least seven distinct shoots of gold mineralization. These shoots have a regular geometry and periodicity, i.e. higher grade zones appear to occur at regular intervals along strike. This information helps guide further drilling and targeting of high grade gold mineralization. Our deep drilling at Hercules continues to intersect mineralized quartz veins, which display wide haloes of sericite-chlorite-carbonate alteration, silicification, as well as hematite "soaking" in the footwall and hanging wall of the main structure. Lucky Strike The Lucky Strike vein was discovered in 2008, 200 metres west of the Golden Mile vein, during the course of step-back drilling along the central part of the Golden Mile. The vein was intersected at a depth of 38.5 metres in a two metre interval containing visible gold. Further drilling on this structure has outlined a broad zone of gold mineralization that graded 1.2 gpt gold over 41 metres in hole HR08-137. The Lucky Strike vein contributes to the global Hercules gold resource and remains open for resource expansion (green polygon in the three dimensional view above). Recent exploration (May and June, 2010) continues to identify new gold mineralization, up to 82 gpt gold in surface grab samples and drill intercepts of 1.5 metres grading 18.9 gpt gold (including 0.3 metres grading 87.1 gpt gold) in core hole HR10-388. These results will expand the gold resources already documented on the Lucky Strike vein. Other Veins In addition to the Golden Mile and Lucky Strike vein systems, Kodiak has discovered several other significant gold mineralized veins at Hercules, most of which are located within 1.5 kilometres of the Golden Mile vein. These include the Marino, Seven of Nine, Yellow Brick Road, Penelton, Wilkinson Lake (WL), Fat Bastard and Mini-Mile veins. The veins are geologically nearly identical to the Golden Mile: quartz-carbonate veins that frequently contain visible gold and sulphides. Significant drill intersections include 38.47 gpt gold over 1.6 metres at Marino (HR07-16), 12.85 gpt gold over 1.1 metres (including 0.3 metres grading 53.24 gpt gold) at Seven of Nine (HR08-113) and 51.65 gpt gold over 2.8 metres at WL (HR07-03). Exploration is continuing on these veins, seeking to expand the high grade gold resource at the Hercules project. Metallurgical Testing In the first quarter of 2009, Kodiak released the results of metallurgical testing performed on three composite surface and drill hole bulk samples from the Golden Mile vein system at the Hercules Project in the Beardmore-Geraldton gold camp in western Ontario. These test results show an average gold recovery of greater than 99% from the three +10 kg samples. The test work was performed by SGS Lakefield Research Ltd., Lakefield, Ontario (“Lakefield”) In the Conclusions and Recommendations prepared by Lakefield, they state “The cyanidation of gravity tails yielded an excellent response with greater than 99% of the gold being recovered/extracted in the gravity + cyanidation flow sheet”. Lakefield further states “Process mineralogy should be considered for further characterization of gold occurrence”. . Based on these tests, it is apparent that Golden Mile mineralization will be amenable to low-cost conventional milling techniques. As the company moves forward with the economic evaluation of the Hercules project, these results help answer vital questions about gold distribution in the system.
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