Kermode intersects 1.32 g/t Gold over 71.6 metres
Don Moore, the President of Kermode stated, "These results confirm the continuity of the Apsy Feeder Zone, a very significant new discovery on the Jackson's Arm property. We are continuing drilling in this area and in other areas of this extensively mineralized property with a goal of developing at least one significant gold deposit at Jackson's Arm. Today's results coupled with the previously announced 91.2 meter intersection of 1.36 g/t Au are an important step as we advance towards this goal."
Kermode's planned extensive Phase 4 drill program is designed to better define tonnage and grade of portions of the gold mineralization on the Jackson's Arm property in Newfoundland. Kermode's initial focus is to test the crosscutting feeder zone discovered at the end of the Phase 3 drill program. Sixteen Phase 4 drillholes totaling 2,714 metres have now encountered the mineralized feeder structure.
Analytical results have been received for an additional 9 drillholes the results and the Apsy Feeder Zone intersections are reported below.
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Hole From To Core Estimated True Au
Number (m) (m) Length (m) Thickness (m) * (gpt)
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JA-06-49 163.3 187.1 23.9 10.1 1.48
JA-06-50 192.0 204.5 12.5 11.3 1.25
JA-06-51 231.1 236.0 4.9 3.5 0.80
JA-06-52 3.5 32.0 28.5 28.4 1.13
47.0 51.0 4.0 4.0 1.73
JA-06-53 5.0 76.6 71.6 50.6 1.32
JA-06-54 1.2 86.5 85.3 36.0 1.03
122.0 135.8 13.8 5.8 2.13
JA-06-55 106.9 132.5 25.6 18.1 1.18
140.0 141.1 1.1 0.8 2.37
143.5 144.7 1.2 0.8 1.88
154.2 155.0 0.8 0.6 1.27
JA-06-56 130.0 131.5 1.5 1.5 1.04
143.0 149.0 6.0 6.0 0.60
JA-06-57 116.2 123.5 7.3 3.1 1.10
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*True thicknesses are estimated by assuming the zone dips 45 degrees toward an azimuth of 200 degrees (grid south).
The mineralized Apsy Feeder Zone is oriented roughly grid east-west and dips approximately 45 degrees towards grid south. Previous drilling in this area has almost entirely been oriented towards grid west and would most likely either miss the feeder entirely or cut it at very poor angles resulting in apparent poor continuity or in exaggerated thicknesses. Kermode's Phase 4 drilling is oriented grid north-south to properly assess the mineralized feeder structure.
Consulting Geologist James Harris P.Geo, a Qualified Person under National Instrument 43-101 guidelines, is supervising the Jackson's Arm drilling program and has reviewed the technical information contained in this News Release on behalf of the Company. Petro Drilling Company Limited of Springdale, Newfoundland is conducting the drilling. Core samples were taken from drillcore which was descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. One half the core has been preserved in core boxes for future reference. The samples, comprising the other half of the drillcore were bagged, sealed and delivered directly to the analytical laboratory under the supervision of Mr. Harris. Samples were processed and analyzed at Eastern Analytical Ltd., an assay laboratory based in Springdale, Newfoundland. Samples were crushed with a jaw crusher to 75% passing 10 mesh and split with a riffle splitter to approximately 250 grams. This sample was then pulverized to 95% passing 150 mesh and analyzed for gold utilizing a half assay ton, fire assay technique plus ICP-11. As part of the quality control program being implemented, Eastern Analytical is sending a pulp of 1 in 10 samples to Acme Analytical Laboratories Ltd. of Vancouver BC, an ISO 9001:2000 accredited laboratory for ICPMS check analyses. Analytical pulps and rejects will be Retrieved by Kermode and retained.
Kermode acknowledges the financial assistance provided by the Government of Newfoundland and Labrador's Junior Company Exploration Assistance Program. Proceeds from a recent flowthrough financing of Kermode by MineralFields Group of Toronto (www.mineralfields.com)
are being used to fund this drill program.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR
No Stock Exchange Has Approved or Disa pproved The Information Contained Herein
Kermode cuts 1.36 g/t Gold over 91.2 metres
"I am delighted with these initial results confirming the potential of the Apsy Feeder Zone." stated Don Moore, the President of Kermode. "This is a very promising new discovery. We are continuing drilling and now look forward to additional encouraging assay results to move us closer to our goal of developing at least one significant gold deposit at Jackson's Arm".
Phase 4 of the Jackson's Arm drill program is in progress with ten drillholes totaling 1,796 metres completed to date. Kermode's planned extensive Phase 4 drill program is designed to better define tonnage and grade of portions of the extensive gold mineralization on the Jackson's Arm property in Newfoundland.
Kermode's initial focus is to test the crosscutting Apsy Feeder Zone discovered at the end of the Phase 3 drill program. All 10 Phase 4 drillholes to date have encountered the mineralized feeder structure. The 10 holes drilled to date have tested the Apsy Feeder Zone on two north-south sections at 30 to 100 metre intervals along the zone. Analytical results have been received for 7 drillholes and the Apsy Feeder Zone intersections are reported below.
---------------------------------------------------------- Hole From To Core Estimated True Au Number (m) (m) Length (m) Thickness (m)* gpt ---------------------------------------------------------- JA-06-42 56.0 81.0 25.0 25 0.85 JA-06-43 80.0 114.0 34.0 34 0.88 JA-06-44 129.5 162.5 33.0 33 0.89 JA-06-45 151.0 172.6 21.6 15 0.80 JA-06-46 10.5 108.4 91.2 91 1.36 JA-06-47 87.5 102.0 14.5 13 0.87 JA-06-48 89.0 98.0 9.0 6 0.72 ----------------------------------------------------------
* True thicknesses are estimated by assuming the zone dips 45 degrees toward an azimuth of 200 degrees (grid south).
The mineralized Apsy Feeder Zone is oriented roughly grid east-west and dips approximately 45 degrees towards grid south. Previous drilling in this area has almost entirely been oriented towards grid west and would most likely either miss the feeder entirely or cut it at very poor angles resulting in apparent poor continuity or in exaggerated thicknesses. Kermode's ongoing Phase 4 drilling is oriented toward grid north to properly assess the mineralized feeder structure.
Consulting Geologist James Harris P.Geo, a Qualified Person under National Instrument 43-101 guidelines, is supervising the Jackson's Arm drilling program and has reviewed the technical information contained in this News Release on behalf of the Company. Petro Drilling Company Limited of Springdale, Newfoundland is conducting the drilling. Core samples were taken from drillcore which was descriptively logged on site, aligned, marked for sampling and then split in half, longitudinally, using a diamond saw blade. One half the core has been preserved in core boxes for future reference. The samples, comprising the other half of the drillcore were bagged, sealed and delivered directly to the analytical laboratory under the supervision of Mr. Harris. Samples were processed and analyzed at Eastern Analytical Ltd., an assay laboratory based in Springdale, Newfoundland. Samples were crushed with a jaw crusher to 75% passing 10 mesh and split with a riffle splitter to approximately 250 grams. This sample was then pulverized to 95% passing 150 mesh and analyzed for gold utilizing a half assay ton, fire assay technique plus ICP-11. As part of the quality control program being implemented, Eastern Analytical is sending a pulp of 1 in 10 samples to Acme Analytical Laboratories Ltd. of Vancouver BC, an ISO 9001:2000 accredited laboratory for ICPMS check analyses. Analytical pulps and rejects will be retrieved by Kermode and retained.
Kermode acknowledges the financial assistance provided by the Government of Newfoundland and Labrador's Junior Company Exploration Assistance Program. Proceeds from a recent flowthrough financing of Kermode by MineralFields Group of Toronto ( www.mineralfields.com) are being used to fund this drill program.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR
No Stock Exchange Has Approved or Disapproved The Information Contained Herein
Four drillholes cut mineralized structure at Jackson's Arm
Kermode's initial focus is to test the crosscutting feeder zone discovered at the end of the Phase 3 drill program. All four Phase 4 drillholes to date have encountered the mineralized feeder structure and extensive sections of drillcore have been cut and submitted for assay.
"I am very pleased with these initial results confirming the newly discovered mineralized feeder zone. Moreover, I am very happy with the progress we have made to date. We now look forward to receiving encouraging assay results to move us closer to our goal of developing at least one significant gold deposit at Jackson's Arm" stated Don Moore, the President of Kermode.
The mineralized feeder structure is oriented roughly grid east-west and dips shallowly to grid south. Previous drilling in this area has almost entirely been oriented towards grid west and would most likely either miss the feeder entirely or cut it at very poor angles resulting in apparent poor continuity or in exaggerated thicknesses. Kermode's Phase 4 drilling is oriented toward grid north to properly assess the mineralized feeder structure.
Consulting Geologist James Harris P.Geo, a Qualified Person under National Instrument 43-101 guidelines, is supervising the Jackson's Arm drilling program and has reviewed the technical information contained in this News Release on behalf of the Company. Petro Drilling Company Limited of Springdale, Newfoundland is conducting the drilling.
Kermode acknowledges the financial assistance provided by the Government of Newfoundland and Labrador's Junior Company Exploration Assistance Program.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR
No Stock Exchange Has Approved or Disapproved The Information Contained Herein
Kermode Awards Jackson's Arm Drill Contract
Kermode Resources Ltd. is pleased to announce that it has awarded a drill contract to Petro Drilling Company Limited of Springdale, Newfoundland, a division of Cabo Drilling Corp. The contract covers a minimum of 5,000 metres in Phase 4 of Kermode's Jackson's Arm drill program. One drill will be mobilized to the property before August 15, 2006 and a second drill may be added later.
The Phase 4 drill program will test the recently discovered feeder structure at the north end of the Apsy Zone. This feeder structure is oriented roughly grid east-west and dipping shallowly to the south. Previous drilling in this area was mostly oriented towards the west and would most likely either miss the feeder entirely or cut it at very poor angles resulting in apparent poor continuity or in exaggerated thicknesses. The Phase 4 program will test this structure by drilling angle holes from south to north (at right angles to most previous drilling).
In addition the Phase 4 program will explore selected areas in the search for other cross structures which may be feeders to the known gold mineralization. Several targets have already been selected.
Kermode's primary exploration focus at Jackson's Arm is to delineate the tonnage and grade of the extensive gold mineralization with particular emphasis on the newly discovered cross structures.
Consulting Geologist James Harris P.Geo is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR
Kermode Closes $1.7 Million Financing
Kermode Resources Ltd. (the "Company") announces that it has closed on its non-brokered private placement announced on June 26, 2006 and issued 5,483,868 flow-through common shares ("FT Shares") at a price of $0.31 per FT Share for gross proceeds of $1,700,000. The Company has paid a finder's fee of $85,000 cash and issued 548,387 non-flow through warrants ("Finder's Fee Warrants"), exercisable at $0.31 per share for a period of two years from the date of issuance, as finder's fees in connection with the private placement. The FT Shares and any shares acquired on exercise of the Finder's Fee Warrants are subject to a four-month hold period expiring November 8, 2006.
MineralFields Group is a Toronto based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.
The proceeds of this financing will be used to explore Kermode's Jackson's Arm property in Newfoundland. The project has the potential to contain two different, but related, deposit types. Firstly a bulk tonnage open pittable gold deposit and secondly a higher-grade sediment hosted gold deposit. The 104 holes drilled to date on the property have partially defined the bulk tonnage potential and also point the way to the higher grade sediment hosted potential.
Kermode also announces that it has closed on the second and final tranche of its non-brokered private placement announced on April 26, 2006 (and amended May 8, 2006) and issued 480,000 common shares (the "Shares") at a price of $0.25 per Share for gross proceeds of $120,000. The Company has paid a finder's fee of $9,600 in connection with the private placement. The Shares are subject to a four-month hold period expiring October 24, 2006.
Visit our website at www.kermode.com for more information.
ON BEHALF OF THE BOARD OF DIRECTORS
"D. Neil Briggs"
DIRECTOR
No Stock Exchange Has Approved or Disapproved The Information Contained Herein