Jun 12, 2002
Kermode Acquires Advanced Newfoundland Gold Property
Kermode Resources Ltd. has successfully negotiated an agreement to earn a 100% interest in the 92 claim (2,300 hectare) Jackson's Arm property from South Coast Ventures subject to a 3% NSR (Kermode can purchase half of this NSR under certain circumstances) by spending $2,000,000 over a five-year period, paying South Coast Ventures $285,000 and 550,000 shares of Kermode over a four-year period.
Newfoundland has recently become the focus of intense gold exploration with over 17,000 new claims staked since mid-March. Most activity is in the Botwood Basin but other parts of Newfoundland are starting to receive attention. The Jackson's Arm property on the western side of White Bay is the latest. With five known gold zones, potential for more and excellent infrastructure including a paved road and powerline along the length of the property together with easily accessible tidewater the Jackson's Arm property is expected to attract much attention.
Exploration at Jackson's Arm has discovered two large gold mineralizing systems about a kilometer apart. Each system traverses and mineralizes a granite intrusive and overlying sediments. In the granite the zones are each over 600 meters wide, over 300 meters long and over 70 meters thick. Intersections reported include 1.1 g/t gold over 67 meters in the Apsy Zone and 1.1 g/t gold over 47 meters in the Road Zone. These zones of highly altered, intensely fractured granitic rock were the main focus of work on the property.
While drilling the bulk tonnage Road and Apsy targets both zones were found to continue into the overlying sediments. In addition the Beaver Dam Zone also occurs in the sediments immediately overlying the granite, some 3 kilometers south of the Road Zone. Intersections such as 7.37 g/t gold over 2 meters and 5.07 g/t gold over 3 meters are reported in the 15 meter interval of quartzite overlying the granite.
In the limestones above the quartzites one drillhole collared in a zone of alteration containing I g/t gold over 9.8 meters some150 meters above the granite contact. South Coast Ventures has recently located a number of jasperoid (intense to pervasive silicified) zones within the limestones by prospecting. These are interpreted to represent the continuation of the known gold-bearing alteration zones into the chemically favorable limestones and may well be the most important exploration target on the property. They clearly demonstrate the potential of Carlin-type high-grade sedimentary-hosted gold deposits on the property yet they have not been followed up with systematic exploration.
The Carlin-type potential will be given priority status in Kermode's summer exploration program.
ON BEHALF OF THE BOARD OF DIRECTOR
"Donald G. Moore"
President Donald G. Moore"