Kenai Resources Announces Entry to Nevada Gold Exploration
March 19 2010 - 6:07PM
Marketwired Canada
Kenai Resources Ltd. ("Kenai") (TSX VENTURE:KAI) announces that it has reached
an agreement dated March 19, 2010 with Western Uranium Corporation (TSX-V:WUC)
("Western") to participate in exploring the Albisu gold property located at the
northern end of the Kings Valley in north-western Nevada, approximately 35
kilometres west of McDermitt, at the Nevada/Oregon border. The project, covered
by 136 unpatented lode mining claims, is located in Humboldt County, immediately
south of the Oregon border in the northern Nevada epithermal province, which
includes the Sleeper, Hog Ranch and Hycroft deposits.
The terms of the transaction agreed by Kenai ("KAI") with Western, are
summarised below:
-- Kenai has the right to an earn-in giving it a 60 per cent joint venture
interest in Western's Albisu project claims, subject to the following
payments and expenditures.
-- Kenai will issue 250,000 shares of Kenai stock to WUC at commencement
subject to TSX Venture Exchange approval.
-- Kenai is to be manager and operator of the project, and will keep the
claims in good standing at all times.
-- Kenai must pay Western $30,000, $70,000, $300,000 and $400,000 on or
before the first to fourth annual anniversary dates respectively from
the date of the agreement.
-- Kenai will fund $250,000 on Albisu project exploration expenditures by
December 31, 2010.
-- Kenai will fund $500,000 and $1,200,000 on Albisu project expenditures
by the third and fourth annual anniversary dates respectively.
-- Kenai has the option following the earn-in period to increase its
interest in the joint venture from 60 per cent to 80 per cent by
completion of a bankable feasibility study and payment of $1,000,000 in
cash to Western.
-- Kenai has the usual rights of withdrawal during the operation of the
project.
The Earn-In Agreement represents a new phase in Kenai's development. Kenai will
have a strategic interest in three under explored and undeveloped gold projects
in northern Nevada and southern Oregon. As part of this strategy Kenai is also
in discussions with experienced mining industry executives with a view to
significantly increase its management strength to enable further development of
the company.
Albisu Gold Exploration Project, Kings Valley, Nevada
Information in this release about the Albisu project is taken from press
releases by Western on October 29, 2008, July 21, 2009 and August 4, 2009 and
from an internal Western November 4, 2009 technical report.
Initial drill sites were identified from geochemical and soil sampling across
grids in the project area. During 2008 and 2009, Western completed 3,320 meters
of core drilling in 15 drill holes, with the intercepts of note listed below,
showing widespread low-grade gold mineralization.
To view the map accompanying this press release please click the following link:
http://media3.marketwire.com/docs/KENMAP319.pdf
The drilling has intercepted geochemically anomalous and intensely altered
volcanic rocks suggesting a large mineralizing system has been active in the
area. The results are interpreted as highly encouraging and, given the
widespread nature and continuity of the gold mineralization, suggest that more
prospective areas of the system may not have been identified to date.
Low grade, wide intercepts of gold with scattered narrower zones of higher grade
have been encountered in many of the holes. The gold occurs in hydrothermally
altered brecciated volcanic rocks that exhibit strong argillization,
silicification and sulphide veining characteristic of high level epithermal
systems. Occurring with the gold and throughout the holes are geochemically
elevated intervals of silver, arsenic, cobalt, chromium, mercury, molybdenum,
and vanadium. Additional field work is planned to re-evaluate the surface
geology using the data from the drilling to assist in better defining potential
mineralizing controls to focus the next phases of drilling.
Hole Total Depth Interval Thickness
Number Azimuth Angle (meters) (meters) (meters) Au g/t
--------------------------------------------------------------------------
ALB-05 180 -60 289 32.0-35.0 3.0m 0.336
degrees degrees
--------------------------------------------------------------------------
ALB-06 270 -70 289 10.7-32.0 21.3m 0.134
degrees degrees
89.9-144.8 (111.3-117.4) (6.1m) (3.98)
(111.3-112.8) (1.5m) (14.6)
(114.3-115.8) (1.5m) (2.3)
(125.0-126.5) (1.5m) (0.66)
(135.6-137.2) (0.6m) (0.41)
(141.7-143.2) (1.5m) (0.41)
147.9-173.8 25.9m 0.381
(161-167.7) (6.7m) (0.616)
--------------------------------------------------------------------------
ALB-08 130 -60 231 38.7-40.2 1.5m 0.354
degrees degrees
137.2-141.8 4.6m 0.327
--------------------------------------------------------------------------
ALB-09 270 -65 350 53.3-71.6 18.3m 0.109
degrees degrees
175.3-181.4 6.1m 0.174
205.8-213.4 7.6m 0.206
265.2-312.5 47.3m 0.216
--------------------------------------------------------------------------
ALB-10 240 -65 337 295.7-321.6(i) 25.9m 0.481
degrees degrees
(i) includes 10.7m from 306.4-317.1m of 0.623g/t Au, 4.8g/t Ag, 0.059% MoS
--------------------------------------------------------------------------
ALB-12 315 -60 288 117.4-174.1 56.7m 0.184
degrees degrees
(166.2-169.2) 3.0m 0.89
--------------------------------------------------------------------------
ALB-13 135 -60 438
degrees degrees
0-192.1 70.0-71.5 1.5m 1.6
88.4-89.9 1.5m 1.02
123.4-124.9 1.5m 0.57
282.0-302.0 20.0m 0.259
311.0-344.5 33.5m 0.242
344.5-411.6 352.0-364.2 12.2m 0.342
413.1-417.7 4.0m 1.37
The large halo of widespread and continuous lower grade gold along with
geochemically elevated intervals of silver, arsenic, cobalt, mercury and
molybdenum within hydrothermally altered and brecciated volcanic rocks indicates
this has been an active and dynamic system. Although the levels of gold are low,
the widespread elevated levels of gold along with the other elements that are
elevated above background levels suggest that with additional exploration a gold
discovery may be possible.
Western QA/QC Program
Quality Control and Assurance for all sampling projects at the Albisu project
was under the direction of Mr. John Rice of Western, a Qualified Person as
defined by National Instrument 43-101 standards. Core samples were collected
daily from the drill site and transported back to the field office where Western
personnel photographed each box. Western geologists then logged the core noting
rock types and alteration. The core was then split and packaged in sealed heavy
weight polyethylene bags. Core samples were delivered by Western employees to
American Assay Laboratories located in Sparks, Nevada.
American Assay Laboratory's quality control system complies with the
requirements for the International Standards ISO 9001:2000 and ISO 17025:1999.
Analytical accuracy and precision are monitored by the use of reagent blanks,
reference samples, and sample duplicates. Additionally, Western selected
duplicate samples which were then submitted to a third party lab for separate
confirmation analysis.
Private Placement
Kenai has negotiated a non-brokered private placement totalling $700,000. These
funds will be raised by Kenai issuing 5,000,000 units at a price of $0.14 per
unit. Each unit will consist of one common share and one share purchase warrant;
each warrant will entitle the holder to purchase one additional common share of
Kenai for a period of two years at a price of $0.20. The proceeds will be used
to finance Kenai's exploration activities and for general working capital.
Finder's fees will be payable on the private placement, in accordance with the
policies of the TSX Venture Exchange. The private placement is subject to the
acceptance of the TSX Venture Exchange.
About Kenai Resources:
Kenai is a Canadian company engaged in precious mineral exploration. Kenai's
assets include the Quartz Mountain and Hope Butte gold projects in Southeastern
Oregon. In November 2006, MineFill Services, Inc. of Vancouver, BC, completed a
NI 43-101 compliant Quartz Mountain resource estimate that was prepared in
compliance with Canadian Institute of Mining and Metallurgy standards on
reporting of mineral resources (CIMM 2000). A copy of the Quartz Mountain
Technical Report was posted on SEDAR in 2006.
Kenai's current gold resources from the two Oregon projects are summarized as
follows:
Project Tonnes Grade Oz Au Status/Classification
Quartz Mountain 15,050,200 0.80 g/t AU 352,667 Indicated NI 43-101
Compliant
Hope Butte 5,000,000 0.91 g/t AU 146,300 Historical Not NI 43-101
Compliant
Footnotes:
1. Resources above a 0.34 g/t cutoff with silver converted to gold
equivalent using a ratio of 49.5:1 silver to gold. Metallurgical
recoveries were not considered.
2. These resources are considered historic in nature, do not comply with
current NI 43-101 standards, have not been verified by the Company and
therefore should not be relied upon. It is uncertain if further
exploration will result in the discovery of an economic mineral
resource.
On behalf of the Board of Kenai Resources Limited
Daniel Kunz, Chairman and President
Forward-Looking Statements: Statements in this release that are forward-looking
statements are subject to various risks and uncertainties concerning the
specific factors disclosed and elsewhere in the company's periodic filings with
Canadian securities regulators. The economic viabilities of the resources
estimates discussed in the release have not been established and may not be.
Such information contained herein represents management's best judgment as of
the date hereof based on information currently available. The company does not
assume the obligation to update any forward-looking statement.
Shares Outstanding: 21,119,036
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