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Feb 04, 2004

45 Metres of Continuous Gold Mineralization


An exciting new geological picture has emerged from additional core drilling at the Jackson's Arm, Newfoundland property of Kermode Resources Ltd. Four new drillholes have confirmed and extended the thick, continuously mineralized gold zone previously reported. Continuous thicknesses of gold mineralization in excess of 45 meters were discovered at shallow depths. Significantly all six holes drilled to date have found higher grade gold occurrences where the thick gold system encounters favourable sedimentary rock units. Individual gold values up to 11.59 g/t occur within the thick, continuously mineralized gold zone.

Kermode's exploration model for Jackson's Arm is based on the prolific Carlin, Nevada gold district that has produced over 50 million ounces of gold. Previous work on the property by BP/Selco had been concentrated on the discovery and delineation of bulk tonnage gold deposits in granitic rocks. Kermode, however, recognised the similarities of the geological setting of the Jackson's Arm area to that of Carlin and targeted its exploration to Carlin-type gold mineralization. Expert geologists have confirmed these similarities and stated that the little-explored sedimentary rocks at Jackson's Arm are the most prospective for Carlin-type gold occurrences.

Kermode has completed drilling, sampling and analyzing four drillholes since the previous report. All four holes were drilled in the Beaver Dam Zone and all four holes encountered core lengths of greater than 45 metres of continuous gold mineralization. Much of this mineralization was in sedimentary rocks where the continuously mineralized gold zones varied from 26.4 to 47.5 metres in core length. The gold mineralization is shallow and open to the northeast.

Previous drillholes by both BP/Selco and Kermode showed that certain sections of the sediments have characteristics that make them especially amenable to higher gold concentrations. In Kermode's recent drilling these zones showed values up to 11.59 g/t gold over 0.3 m in drillhole JA-04-03, 3.47 g/t gold over 0.9 m in drillhole JA-04-04, 1.29 g/t gold over 1.0 m in drillhole JA-04-05 and 8.06 g/t gold over 0.5 m in drillhole JA-04-06.

The Beaver Dam Zone represents the first of many drill targets on the extensive Jackson's Arm property. On completion of the first phase of the Beaver Dam Zone drilling Kermode will continue to drill test numerous targets, including newly discovered soil geochemical anomalies.


"D. Neil Briggs"


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