Kenai Update on Drilling at Sao Chico Gold Project, Brazil
September 20 2011 - 8:45AM
Marketwired
Kenai Resources Ltd. ("Kenai") (TSX VENTURE: KAI) is pleased to
provide an update on the core drilling program at the Sao Chico
gold project in the Tapajos gold belt region of north central
Brazil, pursuant to the 3,000 meter drilling contract announced on
August 31.
Drilling Progress
The first drill rig has been mobilized to site and has commenced
core drilling operations. The first hole has now been drilled to a
depth of about 40 meters, with unoxidised rock encountered from 9
meters downhole depth.
The objective of the drilling is to demonstrate high grade gold
mineralization along strike, down-dip and laterally on quartz
sulphide hard rock veins at Sao Chico, where an underground drive
channel sampling program has identified high grade gold
mineralization along the 58 meter length of the drive. The gold
mineralization occurs in sub-parallel quartz sulphide vein
structures hosted in granodiorite. At a vertical depth of 18 meters
below the surface, 37 assay sample results from 13 sample sections
were collected over the total drive length of 58 meters with a
sample line approximately every 5 meters from west to east. The
average grade and width is 17.7 g/t gold across 1.95 meters of the
underground drive. The following table shows assay results in grams
per tonne of gold for 13 sections and up to three samples per
section, with Sections 1a, 1b and 13 at 0.5 meters, and all others
at 1 meter intervals:
----------------------------------------------------------------------------
Channel Sample Section Gold grades per sample
----------------------------------------------------------------------------
# g/t gold g/t gold g/t gold
----------------------------------------------------------------------------
1a 235.900 254.500 3.518
1b 2.128 0.430 0.198
2 0.333 7.390 1.060
3 20.390 49.340
4 20.680 0.437
5 1.026 16.780
6 4.223 12.760 2.811
7 1.132 107.600 0.377
8 10.790 0.313
9 0.736 6.480 0.379
10 0.224 1.562 35.030
11 0.453 74.120 0.266
12 0.038 0.177
13 0.191 0.056 0.016
----------------------------------------------------------------------------
The gold analyses shown in the table were by fire assay, at the
Belo Horizonte laboratory of SGS Geosol.
Kenai is making arrangements with the drilling contractor
Minexplor Servicos e Consultaria Mineral Ltda. of Rio de Janeiro
State to have a second rig available at the site during
October.
To view photo, please visit the following link:
http://media3.marketwire.com/docs/FirstDrillHole.pdf.
The photo shows the first hole being drilled to a target depth
of 75 meters, to test a possible down dip extension to the high
grade eastern end of the underground drive where high grade gold
assay intercepts were recorded, as shown in Channel Sample Section
1a above.
Assay results from the first 1000 meters of drilling are
expected to be available about the end of October, with the overall
program expected to be completed in mid December.
Trial surface mining suspended during drilling program
The poor competency of the surface lateritic material has meant
trial mining requires significant moving of waste material to
enable mechanical mining of the steep gold veins. As a result,
efforts are focused on drilling for the veins in the primary or
unoxidised rock, to enable more selective mining and significantly
less dilution from future mining operations. The photo below shows
the competency of the underground drive rock structure, together
with the down dip sub vertical extension (approximately 20 meters
below surface) of one of the surface veins.
The primary unoxidised ore zone targets are high grade quartz
sulphide hard rock vein structures, expected to be processed
initially through the existing plant with certain minor
modifications.
To view photo, please visit the following link:
http://media3.marketwire.com/docs/SubVerticalExtension.pdf.
About Kenai Resources:
Kenai is a Canadian company focused on precious mineral project
exploration and development, towards early significant gold
production. In addition to the Sao Chico gold project in Brazil,
Sao Chico is located within the Tapajos region in Brazil, the site
of one of the biggest gold rushes in recent history. Despite the
gold rush, little modern exploration has been conducted over the
region to date. The Sao Chico project team has extensive experience
and expertise of operating within the region, which will provide a
focussed and systematic effort to gold production and exploration
at Sao Chico.
Kenai has the wholly-owned Quartz Mountain and Hope Butte
epithermal gold projects in South-Eastern Oregon, both located in
Malheur County, close to the Oregon border with Idaho. Kenai's
current indicated and historical gold resources from the two Oregon
projects: Quartz Mountain 15,050,200 tonnes at 0.80 g/t Au
containing 352,667 ounces gold Indicated Resources (NI43-101
compliant); and Hope Butte: 5,000,000 tonnes at 0.91 g/t Au
containing 146,300 ounces (Historical estimate, a qualified person
has not done sufficient work to classify the historical estimate as
current mineral resources, the issuer is not treating the
historical estimate as current mineral resources and the historical
estimate should not be relied upon.)
On behalf of the Board of Directors of Kenai Resources Ltd.
Greg Starr, President and CEO
Forward-Looking Statements: Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed and
elsewhere in the company's periodic filings with Canadian
securities regulators. The economic viabilities of the resources
estimates discussed in the release have not been established and
may not be. Such information contained herein represents
management's best judgment as of the date hereof based on
information currently available. The company does not assume the
obligation to update any forward-looking statement.
The technical content of this news release has been reviewed by
Kenai's Vice President Technical Services, Neil Cole, who has
sufficient experience which is relevant to the style of
mineralization under consideration and to the activity which is
being undertaken and planned to qualify as a Qualified Person under
NI 43-101.
Shares Outstanding: 62,406,734
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Kenai Resources Ltd. Greg Starr President and CEO
604-669-5753 604-688-9895 (FAX) info@kenairesources.com
www.kenairesources.com
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