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Kaminak Gold Muscles into White Gold District
By James West
MidasLetter.com
Tuesday, June 2nd, 2009
Canada's Yukon is once again turning into one very prolific gold exploration territory.. Just a few weeks prior to the recently announced gold exploration success of Underworld Resources, (104 m of 3.4 g/t Au) Kaminak Gold Corporation (TSX.V:KAM) acquired a sizable land position that is proximal to Underworld's White Gold project. Kaminak's Coffee Project exhibits an almost identical, and very compelling, geo-chemical signature to the one that led to Underworld's gold discovery.
Outlined by a large gold-in-soil anomaly with the right pathfinder elements, geo-chemical testing at Kaminak's Coffee Project reveals the same signature as Underworld's White Gold Project and remains untested by drilling. Kaminak's properties were acquired from the same property vendor, a well-know Yukon prospector and resident.
Kaminak has an option to acquire a 100% interest in three highly prospective gold properties located approximately 120 km south of Dawson City, Yukon. The Coffee, Cream and Kirkman properties total over 8,500 hectares and are located in the newly recognized "White" gold district in the west-central Yukon.
"In 2008, we targeted the White gold district as a high-priority area that we needed to be in," stated Rob Carpenter, Kaminak's President & CEO. "Looking for discovery-stage opportunities that can host large-scale deposits is, and has always been, our number one objective. Kaminak's three new Yukon gold properties have that potential."
The primary target on all three properties is a near surface, bulk tonnage gold deposit analogous to Underworld Resources Inc.'s newly discovered White Project, which is located only 8 km from Kaminak's Kirkman property and 27 km from Kaminak's Coffee and Cream properties. In 2008, Underworld drilled 18.1m over 4.35 g/t Au and 50.7m over 3.1 g/t Au, and follow-up drilling in 2009, resulted in more additional stellar drill intercepts of 3.39 g/t Au over 104.0 meters and 3.89 g/t Au over 60.5 meters revealing a new and extensive mineralized gold system. Kaminak will be completing a $250,000 program this summer that will include extensive trenching of existing soil anomalies, additional soil sampling, ground magnetic surveys and geological mapping. The goal of this work is to identify and prioritize diamond drill targets.
It was Kaminak, along with only a handful of other savvy mineral explorers, which identified the potential of the White Gold District before Underworld's most recent stellar drill results. Because of Kaminak's excellent timing, the company is extremely well positioned to reward shareholders in the almost inevitable coming exploration/land staking rush in the White Gold District. As the story at Underworld's project and at Kaminak's Coffee Project unfolds, we can expect exciting times for those investors who get involved at the early stages.
Kaminak is among the most cost-efficient form of explorers, employing the "great to have, yet hard to emulate" "prospect generator" business model. The company seeks to acquire a 100% interest in large scale, early stage land packages in proven and/or prospective geologic areas, and then markets joint venture opportunities to other publicly traded explorers to offset exploration cost and risk. Their partners' investment in exploration then adds value to the properties, which translates to low discovery costs for Kaminak shareholders.
"Cash is king in these markets and we have been very selective with where we deploy our cash. Our efforts have been focused on new project generation and acquisitions, which is where we feel we can significantly grow the company," said Rob Carpenter. "That being said, we hope to announce future project acquisitions, similar to our Yukon gold properties, in the upcoming months."
Kaminak's project pipeline is so robust relative to that of its competitors that it may spin out its Yukon gold projects, providing that the summer 2009 results are encouraging, into a new entity whose shares would then be distributed to existing Kaminak shareholders (see Kaminak news release May 4, 2009). It was this methodology that saw the creation of Kivalliq Energy Corp. (TSX.V:KIV), a company structured to efficiently and exclusively explore northern Canada's highest grade uranium deposit, Lac Cinquante 20.4M lbs with grades in excess of 1% U308 (not NI 43101 compliant). (We'll be featuring Kivalliq Energy in a feature article in the near future.)
By spinning out assets into purpose-built corporate vehicles, the shareholders of Kaminak benefit from exploration risk diversified into separate shareholdings, while standing first in line to receive shares, at no extra cost, in additional ventures. The chances of participating in a major find are enhanced dramatically, while dilution due to exploration funding is spread to the incoming partners and/or to the newly formed special purpose companies.
Kaminak currently has 15 projects throughout Canada and working capital in excess of $5,300,000 including over $4,500,000 in cash. The company has no debt, minimal required project expenditures and has a corporate burn-rate of under $60,000 per month. Moreover, Kaminak has not raised money through equity markets in three years. These factors combine to put Kaminak in a position of strength in the current market. Management will continue to seek out market friendly opportunities which are value-driven with high-potential for discovery.
Kaminak is led by Dr. Rob Carpenter, a Ph.D. Geologist involved in all aspects of precious and base metal exploration for over 16 years. Dr. Carpenter has more than ten years of experience with BHP-Billiton Ltd., Placer Dome Inc., and WMC Resources Ltd., focusing primarily on early stage exploration projects throughout Canada, Australia and the United States. While with WMC Resources Ltd., he spent time on gold and nickel projects throughout North America. More recently, he spent three years with the Federal Department of Indian and Northern Affairs of Canada.
Company Chairman John Robins is a professional geologist based in Vancouver, BC, with over 25 years of experience as an independent exploration geologist and entrepreneur. A 1984 graduate of the University of British Columbia with a Bachelor of Science in Geology, Mr. Robins initially worked as a self employed prospector and geologist in BC and Northern Canada. In 1988, he founded Hunter Exploration Group, one of Canada's most successful private exploration companies. Mr. Robins has also been active in starting several successful public exploration and development companies culminating in 2005 with his co-founding of the Discovery Group of Companies, of which Kaminak is a member.
Kaminak has 36.5 million shares outstanding with a market capitalization of CA$13.5 million. Visit the company online at www.kaminak.com.
SOURCE: http://www.midasletter.com/news/09060206_Kaminak-gold-muscles-into-white-gold-district.php
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Gold Mining
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