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Apr 14, 2009

#2009-3

Kermode Resources Ltd is pleased to announce that a National Instrument 43-101 compliant Mineral Resource Estimate has been completed by Mercator Geological Services Limited (Mercator) for Kermode's wholly-owned Jackson's Arm Gold project, located in northwest Newfoundland Canada. The study was carried out on the property's three main gold deposits, the Road, Apsy and Beaver Dam Zones.

The Mercator report states that the total combined Inferred Resource for all three deposits is 18,310,000 tonnes at an average grade of 0.84 grams per tonne ('gpt') at a 0.50 gpt cutoff. Gold grade outliers were capped at 4.00 gpt in the Road and Apsy models and a restricted range approach was used to limit outlier effect in the Beaver Dam model. Three dimensional deposit models indicate that gold mineralization in the Beaver Dam and Apsy deposits show reasonably well defined grade-shoot trends while the Road deposit appears to be more complex. The table below details the Inferred Mineral Resource at various cut-off classifications for the three individual gold deposits.

Jackson's Arm Newfoundland Inferred Gold Resources

Gold Cut-off Grade (gpt)

Rounded Tonnes

Gold Grade (gpt)

 Total Grams Gold (Rounded)

Total Ounces Gold (Rounded)

Road Zone

 

 

 

 

0.50

9,880,000

0.76

7,509,000

241,000

0.75

3,810,000

0.98

3,734,000

120,000

1.00

1,400,000

1.22

1,708,000

55,000

Apsy Zone

 

 

 

 

0.50

7,410,000

0.95

7,040,000

226,000

0.75

5,040,000

1.11

5,594,000

180,000

1.00

2,760,000

1.30

3,588,000

115,000

Beaver Dam Zone

 

 

 

 

0.50

1,020,000

0.85

867,000

28,000

0.75

440,000

1.16

510,000

16,000

1.00

200,000

1.52

304,000

10,000

*Combined Inferred Resources

 

 

 

0.50

18,310,000

0.84

15,380,000

495,000

0.75

9,290,000

1.06

9,847,000

317,000

1.00

4,360,000

1.28

5,581,000

179,000

*Calculated total gold figures differ slightly due to rounding effect


Gold mineralization on the property occurs in association with disseminated sulphides in fractured and hydrothermally altered granodiorite of Upper Proterozoic age and within stratabound zones hosted by unconformably overlying Cambro-Ordovician quartzite and limestone. On the district scale, mineralization is associated with major northeast trending shear zones.

Kermode Chairman Don Moore states, "The Jackson's Arm project has required an incredible amount of persistence, technical acumen and geological interpretation to reveal the first 500,000 ounces of its gold potential. Additional drilling is highly likely to add to this resource should the company decide to expend additional time and money to pursue the further investigation of this large mineralizing system. Initial indications of a high grade component to the deposit to enhance overall grade have not yet developed a meaningful contribution to overall grade. It is time to reflect on the potential at Jacksons Arm while the company reviews numerous opportunities that are developing in the mineral 'space' as a result of the recent market turmoil. The treasury is in good shape and new projects are being accessed and assessed. This has the making of a turnaround year for Kermode."

The Jackson's Arm project resource estimate was independently prepared by Mercator Geological Services Limited of Dartmouth, Nova Scotia under supervision of Senior Geologist Michael Cullen, P. Geo. and Senior Project Geologist Chrystal Kennedy, P. Geo., both 'Qualified Persons' as defined under National Instrument 43-101.

Diamond drilling data from Kermode and historic BP-Selco Inc diamond drilling data were used to create separate three dimensional block models for the deposits. Models were developed using Surpac(r) Version 6.1 modelling software and incorporated inverse distance squared interpolation methodology. Block size was 5 metres x 5 metres x 5 metres with sub-blocking at 2.5 metres x 2.5 metres x 2.5 metres. Grade interpolation was fully constrained within wire-framed peripheral deposit solids and separate interpolation domains were assigned to distinguish stratabound and/or tabular style mineralization from cross-trend or root-zone style mineralization. Spherical variogram models were developed to guide range and orientation values in grade continuity assessments. Three-dimensional geological solids were developed for the granite and quartzite units and a specific gravity of 2.7 g/cm3 was used, based on analysis of mineralized drill core samples.

Mercator Geological Services Limited is a Canadian geological consulting firm that has served the domestic and international exploration community for over 12 years. The company offers project design/management, resource modeling and NI 43-101 reporting services for assessment of precious metals, base metals, industrial minerals and specific energy commodities.

Michael Moore, P.Geo is the Qualified Person who has reviewed the technical information contained in this News Release on behalf of Kermode. As required by NI 43-101 regulations, the resource estimate report will be filed in its entirety on SEDAR within 45 days. Visit our website for more information.


ON BEHALF OF THE BOARD OF DIRECTORS


"Donald G. Moore"
Chairman & CEO



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