Mining Explorers 2015: Kaminak Gold Corp.
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Last updated 11/1/2015 at Noon
KAM: TSX-V
President and CEO: Eira Thomas
Executive Chairman: John Robins
VP, Exploration: Tim Smith
Since drilling the discovery hole at the Coffee gold project in 2010, Kaminak Gold Corp. has established indicated resource of 14 million metric tons averaging 1.56 grams per metric ton (719,000 ounces) gold, and an inferred resource of 79 million metric tons averaging 1.36 g/t (3.43 million ounces) gold.
Kaminak budgeted C$30 million to continue the advancement of the Coffee project in 2015.
The bulk of this budget, roughly C$21 million, was allotted for the finalization of a feasibility study, which is due to be finished early in 2016; about C$3.6 million was invested into permitting-related activities; and the balance of some C$5.4 million was earmarked for exploration, marketing and general expenses.
A preliminary economic assessment completed in 2014 envisions an open-pit mine and heap-leach facility producing an average of 167,000 ounces of gold annually over an 11-year mine-life.
At a gold-price of US$1,250 per ounce, the mine outlined in the PEA generates a pre-tax net present value (5 percent discount) of C$522 million and an internal rate of return of 33 percent.
One of the primary goals since the completion of the PEA is to upgrade much of the inferred resources at Coffee to the higher confidence indicated category prior to completing the feasibility study.
The company completed nearly 39,000 meters of the infill drilling in 2014 and another 31,000 meters this year.
The 2015 exploration at Coffee included drilling at two of the more recent discoveries, Kona North and Dolce.
Kona North, which lies less than 1,000 meters north of the main Kona deposit, is associated with a 1,800-meter-long gold-in-soil anomaly of which only 300 meters has been systematically drill-tested to date.
A 10-hole (718 meters) program completed at Kona North in April confirmed the east-west strike and steep southerly dip of mineralization.
The depth of oxide and transitional mineralization, however, appears to be shallow at Kona North compared to other Coffee gold deposits.
The company said there is good potential to test for extensions of the oxide mineralization to the east.
Kona North is now pending further analysis to determine if it will be included in the overall Coffee feasibility study.
The Dolce zone, situated about 1,100 meters south of the main Kona deposit, is associated with a semi-contiguous 1,000-meter-long gold-in-soil anomaly originally drilled in 2014 as part of the condemnation program within areas adjacent to proposed mine infrastructure.
Recent results from Dolce include 4.57 meters of 2.93 g/t gold in hole CFR0974.
Cash and short-term deposits: C$13.7 million (June 30, 2015)
Working capital: C$10.2 million (June 30, 2015)
Market capitalization: C$119.3 million (Sept. 22, 2015)
1020-800 West Pender Street, Vancouver, BC, V6C 2V6
Tel: 604-646-4527 Fax: 604-646-4526
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