Kodiak and Golden Goose Combine to Form Well-Financed Gold Company with Near Term Production Potential
August 31 2010 - 10:23AM
Marketwired
Kodiak Exploration Limited (TSX VENTURE: KXL)(FRANKFURT: KX3)
("Kodiak") and Golden Goose Resources Inc. (TSX VENTURE: GGR)
("Golden Goose") are pleased to announce that they have entered
into a definitive merger agreement and plan of arrangement dated
August 30, 2010 wherein Kodiak will acquire all of the issued and
outstanding shares of Golden Goose. The principal asset of Golden
Goose is the Magino Mine project located 40 kilometres northeast of
the town of Wawa, Ontario. The Magino Mine, a past producing
underground gold mine credited with production of over 105,000
ounces of gold, has a 43-101 compliant Measured and Indicated gold
resources of 453,190 ounces (2,092,000 metric tonnes grading 6.74
grams/tonne gold) and Inferred gold resources of 1,178,120 ounces
gold (5,829,000 metric tonnes grading 6.29 grams/tonne gold) at a
cut-off grade of 3.0 grams/tonne (Technical Report and Mineral
Resource Estimate for the Magino Mine, prepared by InnovExplo, 28
May, 2009). Kodiak is excited to acquire this large gold deposit
that compliments its existing gold resources in the
Beardmore-Geraldton gold belt and further transitions Kodiak from a
pure gold explorer to a growing gold company with multiple projects
and near-term production potential. Kodiak believes there is
substantial upside potential to the Magino Mine property that will
benefit both existing Kodiak shareholders and Golden Goose
shareholders.
- Kodiak will aggressively explore and develop a surface
mineable gold deposit at Magino
Kodiak believes that the Magino Mine property has the potential
to host a significant surface bulk-minable gold deposit. Five
independent third party resource estimates completed between 1996
and 2001 (non NI 43-101 compliant) document the potential for a
large surface bulk-minable gold deposit at Magino. These studies
suggest that the known high grade gold mineralization at Magino is
enveloped by large volumes of lower grade, potentially
bulk-minable, gold mineralization. Kodiak's initial review of
diamond drill hole data modeling of the Magino Mine property has
been very encouraging and suggests there is strong potential to
expand the size of this gold deposit. Preliminary metallurgical
testing (Kappes Cassiday and Lakefield) indicate that gold
mineralization at Magino has excellent recovery (95%) in a
conventional mill circuit. Based on our data review, Kodiak plans a
20,000 metre diamond drilling program to expand gold resources on
the property and initiate a Preliminary Economic Assessment of the
open pit gold mining potential of the project.
- Kodiak to have Measured and Indicated gold resources of
greater than 560,000 ounces and Inferred gold resources of greater
than 1,270,000 ounces
The proposed acquisition of Golden Goose will leave Kodiak with
companywide (Magino plus Hercules) Measured and Indicated gold
resources of 564,640 ounces and Inferred gold resources of
1,279,170 ounces (Hercules: 231,800 metric tonnes grading 14.95
grams/tonne gold Indicated resource and 761,300 tonnes grading 4.13
grams/tonne gold Inferred; uncapped using a 1.0 grams/tonne gold
cut-off). The potential to expand these gold resources is excellent
with exploration ongoing at multiple projects and further resource
expansion drilling tentatively planned for Magino.
- Kodiak exploration pipeline offers significant opportunity
Exploration by Kodiak at its Milestone project in the
Beardmore-Geraldton gold camp has the potential to add
significantly to the combined company's gold resource base,
vaulting Kodiak to a new higher valuation threshold. Continued
exploration elsewhere in the Beardmore-Geraldton area and at the
Mines Point project in Manitoba has the potential to add additional
resource ounces, continuing our rapid resource growth strategy.
- Kodiak has solid financial base to advance projects
Kodiak had $20.4M in cash on hand at the end of the second
quarter of 2010; a robust treasury that will allow the company to
further explore and develop the Magino Mine property while
continuing aggressive exploration of the Milestone Project in the
Beardmore-Geraldton gold camp and initiate the exploration of its
Mines Point Gold project in Manitoba.
- Golden Goose shareholders gain significant upside and improved
share structure
Current Golden Goose shareholders will benefit from a greatly
enlarged project portfolio, access to capital to develop all the
newly combined company's projects, conversion of existing Golden
Goose shares to a highly liquid trading platform and deployment of
Kodiak's technical team to Magino to accelerate its exploration and
development.
The proposed merger with Golden Goose and acquisition of the
Magino Mine property is yet another milestone for Kodiak as the
company continues to consistently execute its strategic plan for
rapid growth: Exploration, Development and Acquisition. Kodiak
plans to have the Magino Mine project at the Preliminary Economic
Assessment (Scoping Study) stage by year end 2010, Measured and
Indicated gold resources of greater than 560,000 ounces and
Inferred gold resources of greater than 1,270,000 ounces and
accelerated ongoing exploration at multiple projects in the
Beardmore-Geraldton gold camp that will bring these projects to the
resource delineation stage. When combined with the recent changes
to Kodiak management, the recent appointment of new members to the
Kodiak Board of Directors and the successful $13.8M financing in
December 2009, both old and new Kodiak shareholders will enjoy a
period of rapid growth and increased shareholder value in the
months and years ahead.
The geological information in this press release has been
reviewed and approved by Darren Lindsay, Kodiak's Vice
President-Exploration, who is a qualified person under the
definitions established by National Instrument 43-101. Please visit
the Kodiak website for updated information about the Magino mine
property, a new corporate presentation and a video clip outlining
the Golden Goose transaction: www.kodiakexp.com.
On behalf of the Boards of Directors:
Brian J. Maher, President and Chief Executive Officer, Kodiak
Exploration Limited
Francois Perron, President and Chief Executive Officer, Golden
Goose Resources Inc.
This release may contain forward-looking statements or
statements that relate to programs that involve a number of risks
and uncertainties. Actual events or results could differ materially
from the Company's expectations and projections.
Neither 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: Kodiak Exploration Limited Brian J. Maher President
and CEO 1-604-688-9006 1-604-688-9029 (FAX) ir@kodiakexp.com
www.kodiakexp.com Renmark Financial Communications Inc. Jason Roy
(514) 939-3989 or (416) 644-2020 jroy@renmarkfinancial.com Renmark
Financial Communications Inc. Arash Shahi (514) 939-3989 or (416)
644-2020 ashahi@renmarkfinancial.com Renmark Financial
Communications Inc. - Media Guy Hurd (514) 939-3989 or (416)
644-2020 ghurd@renmarkfinancial.com www.renmarkfinancial.com Golden
Goose Resources Inc. Francois Perron President and CEO
1-888-928-4667 1-888-494-5371 (FAX) perron@goldengooseres.com
www.goldengooseres.com
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