Kenai Resources Ltd. Drilling to Begin at Sao Chico Gold Project, Brazil
May 02 2011 - 4:03PM
Marketwired
Kenai Resources Ltd. ("Kenai") (TSX VENTURE: KAI) is pleased to
advise that, following the arrangement of the various regulatory
approvals and landowner consents, drilling at the Sao Chico gold
project in northern Brazil is in the final planning stage. After
the completion of certain routine activities including lodgement of
drilling notification advice with local resource authorities, an
initial core drilling program will commence over the next several
weeks as follows:
-- Initial program is for 3000 metres of core drilling as proposed by
Exploration Alliance Ltd ("EAL"), at locations shown on the plan map
below.
-- The drilling will test the continuity of interpreted quartz/sulphide
vein structures to vertical depths of up to 200 metres.
-- The initial priority and first drill holes will investigate the area
around the Waldimiro Shaft (left-centre in plan map), where sampling and
assaying have recently confirmed the existence of high grade gold
intercepts in primary unoxidised veins along a 59 metre underground
drive at a vertical depth of 18 metres. This area is also where a
conceptual underground mine plan has recently been prepared for
underground exploration.
-- A drilling contract has been established with Minexplor Servicos e
Consultoria Mineral Ltda of Pocone, Mato Grosso, who expects to mobilize
a drill to the Sao Chico site within two to three weeks.
As shown on the plan map at the following link,
http://media3.marketwire.com/docs/KAI_PlanMap.pdf, surface trenches
have intersected gold-bearing vein structures at Sao Chico that
extend generally east-west over several hundred metres. Several
sub-parallel vein structures have been sampled, with vein
thicknesses varying from less than one centimetre to three metres.
From the trenching and sampling undertaken by Kenai since August
2010, it is estimated that the aggregate vein thickness over the
currently identified one kilometre strike length is up to
approximately five metres.
The Sao Chico gold project is more completely described in
Kenai's NI 43-101 Technical Report, prepared by EAL and filed on
SEDAR and on Kenai's website at www.kenairesources.com. Details of
the Sao Chico Technical Report were contained in Kenai's news
release of January 20, 2011. EAL has prepared and approved the
inclusion herein of the appended Sao Chico project plan.
Kenai has a loan and option agreement with ASX-listed Gold
Anomaly Ltd, the parent company of Gold Aura Do Brasil Mineracao
Ltda ("GOAB"). GOAB is conditionally entitled to the Sao Chico
project mineral rights covering the 1416 hectare area of
Exploration License AP12836. Kenai's initial option is to acquire
50% of the GOAB equity through loans and expenditure of up to A$3
million.
On behalf of the Board of Directors of Kenai Resources Ltd.
Greg Starr, President and CEO
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: 62,406,734
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. Greg Starr President and CEO
604-669-5753 604-688-9895 (FAX) info@kenairesources.com
www.kenairesources.com
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