Kermode Resources Ltd. is pleased to report that as per the Agreement announced June 19th, 2013 and July 10, 2013 between Kermode Resources and Demerara Gold, the initial financing has been increased by $50,000, and is closed. This initial financing consisted of 8 Million units of Kermode at a price of $0.05 per unit for total gross proceeds of $400,000. Each unit consisted of one common share of Kermode, and one share purchase warrant priced at $0.125. The exercise of the $0.125 warrants will fund a $1 Million exploration program on the Company's Eastgate Gold Project, located near Reno, Nevada, USA. Kermode paid finder's fees of $20,000 cash and 400,000 shares in connection with the transaction. All shares issued are subject to a hold period expiring four months and one day from the date of issuance.
Kermode's Eastgate Gold Project is located approximately 25 miles (40.2 km) northeast of the Rawhide Mine, 55 miles (88.5 km) east of Fallon in Churchill, County, Nevada. The property is less than 5 miles (8 km) south of U.S Hwy 50, and is accessible year round via dirt road. The Eastgate Gold Property features a well-developed hydrothermal system, and Kermode's target is to define a high-grade, low sulphidation epithermal gold-silver deposit. There are multiple sub-parallel quartz-adularia veins throughout the property. Small-scale historic production, as well as work carried out by various groups over the past 30 years, has established that significant gold and silver are present in the system. Several historic mines exist on the property including: Gold Ledge, Double Eagle, Eastgate, Sunny Jim, and Central. The main Eastgate Vein has been traced for over 2000 feet (610 m) along strike and 29 selected historic surface grab samples over the southern 1,100 feet (335 metres)of strike range from 0.03 to 3.19 opt or 1.0 to 109.0 gpt Au
and average 0.584 opt or 20.02 gpt Au.
A chip sample at shallow depth in the Gold Ledge Mine is reported to assay 0.876 opt Au over 4.5 feet or 29.73 gpt Au over 1.37 metres.
A limited number of RC drill holes resulted in notable, high-grade intersections. Highlights from historic RC Drilling include:
- 15 feet of 0.34 opt or 4.75m of 11.66g/t Au
- 10 feet of 0.22 opt or 3.05m of 7.54g/t Au
- 15 feet of 0.30 opt or 4.75m of 10.30g/t Au
- 10 feet of 0.25 opt or 3.05m of 8.57g/t Au
The majority of work on Eastgate had taken place in times of low gold prices and tough market conditions. Furthermore, Eastgate had been privately held and had not been available for option during the recent (last 10 years) buoyant gold markets. As a result, Eastgate has never been fully and systematically tested along strike or at depth, and core drilling has never been carried out on the project.
For additional information on Kermode's Eastgate Gold Project including maps, photos, and diagrams please visit: www.kermode.com
, or simply click the following link: http://www.kermode.com/s/eastgate.asp
Historic information includes drilling summaries, assay laboratory reports, surface sampling and mapping. Details of the sampling methods, handling, and quality control methods are unknown, and the historic drilling results being disclosed cannot be verified for the purposes of NI 43-101. Therefore this information is not NI 43-101 compliant and should not be relied upon for investment purposes. This information, however, is a useful guide for current exploration by the Company's geologists.
Christopher Pratt, P.Geo, is the qualified person who has reviewed the technical information contained in this news release on behalf of the Company.
Further information is available at www.kermode.com
ON BEHALF OF THE BOARD
PRESIDENT and DIRECTOR
Forward-Looking Statements: This Kermode Resources Ltd. news release may contain certain "forward-looking" statements and information relating to Kermode which are based on the beliefs of Kermode management, as well as assumptions made by and information currently available to Kermode management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein.