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
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Kenai Resources Ltd. Daniel Kunz Chairman and
President 604-669-5753 604-688-9895 (FAX) info@kenairesources.com
www.kenairesources.com
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