NEWS RELEASE 2004-07
Kermode Resources Ltd.
is pleased to announce results from Phase 2 of Kermode's
Jackson's Arm drill program that commenced on April 30, 2004.
Earlier this year Kermode
completed a Phase 1 ten-drillhole program on the Beaver Dam Zone. This program confirmed that the gold mineralization at Jackson's Arm displays many of the characteristics found in the Carlin Trend gold district in Nevada, a district that has already produced over 50 million ounces of gold.
Phase 2 drill program was designed to test granite-hosted gold-mineralized structures in the Road Zone, recently discovered coincident gold and arsenic soil geochemical anomalies in the grid 14 area and sediment-hosted gold mineralization in the northern extension of the Apsy Zone. To date Kermode has drilled 7 holes totalling 1,065 meters during this Phase 2 drill program.
One vertical hole was drilled to test the characteristics of the Road Zone gold mineralization, previous drilling in this area was inclined. The hole was entirely in granitic rocks with some mafic dykes. The entire 82.6 meters of the hole was mineralized and sampled. The more significant results are shown below:
From (m) To (m) Core Length (m) Gold g/t
24.0 69.9 45.9 0.85
Includes 24.0 37.6 13.6 1.49
Includes 35.7 36.2 0.5 6.50
Includes 55.9 69.9 14.0 1.21
Includes 67.8 68.4 0.6 6.38
The granite-hosted gold mineralization of the Road and Apsy Zones has the potential to develop into bulk-tonnage gold deposits.
Four holes were drilled to investigate a soil geochemical anomaly found, and partially detailed, by Kermode during the 2003 program. All four holes encountered gold mineralization similar to that known in other parts of the extensive Jackson's Arm property. The newly discovered zone has a core length between ten and fifteen meters where tested to date. The best gold value encountered so far is 0.87 g/t gold over a core length of 1.0 meter. The mineralization occurs principally in shaley limestones, stratigraphically higher than the mineralized quartzites at the Beaver Dam Zone.
Kermode has, to date, tested only 200 meters of the presently known anomaly strike length of 500 meters. The anomaly is open on strike to the north and the best mineralization was found at the northern end of the anomaly. Kermode is currently carrying out further detailed soil geochemical sampling to determine the limits of this anomaly.
Northern Apsy Zone
Kermode drilled two holes to test the northern extension of previously known gold mineralization in sedimentary rocks in the Apsy Zone.
The first of these holes was drilled on property optioned from Cornerstone Capital Resources Inc. The hole tested a soil geochemical anomaly 300 meters further north than any previous drilling. Gold mineralization was encountered in quartzites with the best value being 0.87 g/t gold over a core length of 0.4 meters.
The second hole was partially drilled on property optioned from Cornerstone Capital Resources Inc. and tested the extension of previously drilled gold mineralization. The hole cut a mineralized section of quartzite with the best section being 2.0 g/t gold over a core length of 2.0 meters.
Kermode's primary exploration focus at Jackson's Arm continues to be on the discovery of high-grade sediment hosted gold deposits similar to those at Carlin, Nevada. There are also opportunities to develop a bulk tonnage gold deposit in the granites and/or the sediments although these are a secondary objective for Kermode at the present time.
Recent Newfoundland and Labrador Geological Survey reports on the Jackson's Arm area have noted that the mineralization displays many of the characteristics found in the Carlin Trend Gold Deposits in Nevada. The sediment hosted gold mineralization on Kermode's Jackson's Arm property is reported to be "the only extensive gold mineralization presently known to occur in Cambrian and Ordovician platformal sedimentary rocks anywhere in Newfoundland". Similarities with the Carlin Nevada Gold District include the presence of jasperoids, the impure carbonate host rocks, high Au/Ag and high Au/base-metal ratios, an association with disseminated pyrite, and the strong correlation of gold and arsenic.
Kermode is pleased to acknowledge 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"
The Jackson's Arm drilling program is supervised by Consulting Geologist James Harris P.Geo. Qualified Person under National Instrument 43-101 guidelines. Petro Drilling of Springdale, Newfoundland conducted the drilling. Assay samples are taken from drillcore (NQ size) sawed in half using a diamond saw blade. One-half the core is preserved in core boxes for future reference. The samples, comprising the other half of the drillcore are 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 accredited 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 is then pulverized to 95% passing 150 mesh and analyzed for gold utilizing a half assay ton, fire assay technique plus ICP-11. All analytical pulps and rejects are retrieved by Kermode and retained. Kermode is implementing a quality control program.
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