Kiska Delivers Whistler Trigger Program Report to Kennecott
August 23 2010 - 7:00AM
Marketwired
Kiska Metals Corporation (TSX VENTURE: KSK) reports that Kennecott
Exploration Inc. (a wholly-owned subsidiary of Rio Tinto) has
confirmed receipt of the geological and geophysical report
detailing the results from 264 line-kilometres of Induced
Polarization (IP) geophysical survey and 23 drillholes at Kiska's
Whistler property, Alaska. With the delivery of the report, Kiska
has completed the requirements under the back-in agreement with
Kennecott. Kennecott has 90 days until November 10, 2010 to inform
Kiska of its decision to exercise or waive its right to back-in to
the Whistler Project.
"Our goal has been to resolve the uncertainty surrounding the
ultimate ownership of the Whistler Project as soon as possible,"
stated Jason Weber, President and CEO of Kiska Metals Corporation.
"One year after completing the merger between Geoinformatics and
Rimfire to form Kiska, we have fulfilled the requirements necessary
for Kennecott to make a decision regarding its back-in rights. This
decision will provide clarity of ownership in the project and a
clear path forward for both the project and Kiska."
Under the agreement defining Kennecott's back-in rights,
Kennecott can elect to exercise the right to acquire 51% by paying
Kiska twice its exploration expenditures, estimated at $30 million
dollars, and funding exploration through to the completion of a
positive preliminary feasibility study at Whistler. Kennecott can
further increase its interest to 60% by funding exploration through
to a positive production decision. If Kennecott's right to back in
is waived, Kennecott's interest will revert to a 2% Net Smelter
Royalty (NSR).
During the 90 day decision period, Kiska will continue drilling
at Whistler. Currently two diamond drill rigs are operating. One
rig is advancing the Island Mountain Breccia discovery, where
drilling in 2009 intersected two zones of gold mineralization. An
upper gold-copper zone averages 0.72 g/t gold, 2.4 g/t silver and
0.16% copper over 150 metres and a lower gold intersection averages
1.22 g/t gold over 107 metres. Island Mountain is hosted within a
4.5 by 3.0 kilometre area of anomalous gold-copper soil and rock
geochemistry and is located 23 kilometres south of the Whistler
Deposit.
A second rig is operating on the Whistler Deposit, which hosts a
NI43-101 compliant indicated resource of 1.31 million ounces
gold-equivalent and an inferred resource of 4.44 million ounces
gold-equivalent Five holes are expected to be completed at the
Whistler Deposit by the end of this season and together with the
eight holes completed by Geoinformatics after the current resource
estimate was completed in early 2008, these drill holes will be
incorporated into an updated NI43-101 compliant resource estimate
for the Whistler Deposit. Completion of the estimate is expected in
early November. Preliminary metallurgical studies are underway for
Island Mountain and Whistler with results expected in late
August.
Mineral Resource Statement for the Whistler Gold Deposit, Alaska. Prepared
by SRK Consulting (Canada) Inc December 2007
----------------------------------------------------------------------------
Tonnes and Grades Total Contained Metal
----------------------------------------------------------------------------
Gold Gold
Resource Tonnage Gold Silver Copper Eq(3) Gold Silver Copper Eq(3)
Category (Mt) (g/t) (g/t) (%) g/t (Moz) (Moz) (Mlb) (Moz)
----------------------------------------------------------------------------
Indicated
(open-pit(1)) 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
----------------------------------------------------------------------------
Total
Indicated 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
----------------------------------------------------------------------------
Inferred
(open-pit(1)) 123 0.59 2.07 0.19 0.98 2.33 8.19 515 3.86
----------------------------------------------------------------------------
Inferred
(underground
(2)) 11 1.16 3.55 0.24 1.66 0.41 1.26 58 0.59
----------------------------------------------------------------------------
Total
Inferred(4) 134 0.64 2.18 0.20 1.05 2.74 9.44 573 4.44
----------------------------------------------------------------------------
1. Reported within a conceptual pit shell and based at a cut-off grade
of 0.3 g/t gold equivalent adjusted for metallurgical recovery.
2. Reported based on an underground bulk mining method using a cut-off
grade of 1.1 g/t gold equivalent adjusted for metallurgical recovery;
3. Gold equivalent grade estimated based on 75 percent recovery for gold
and silver; 85 percent recovery for copper; US$550 per ounce gold, US$8
per ounce silver and US$1.50 per pound of copper;
4. Totals may vary due to rounding.
Results of the final six holes from the trigger program are
summarized below. Two additional holes were completed at Island
Mountain, two holes were completed at Round Mountain and two holes
were completed in the Whistler Orbit area. At Island Mountain,
drilling targeted the Cirque and Actinolite Stockwork showings, 1.5
kilometres north and 750 metres southeast, respectively of the
Island Mountain Breccia discovery. The Cirque hole returned narrow,
irregular intervals of anomalous gold-copper geochemistry
associated with biotite alteration and quartz - magnetite veining.
The Actinolite Stockwork hole intersected weakly developed quartz
vein stockwork with elevated gold-copper-molybdenum geochemistry.
Alteration dominated by epidote and chlorite (propylitic
assemblages) indicate the drill hole may be distal to a higher
temperature core of mineralization at the Island Mountain Breccia
zone.
The Round Mountain area is located 10 kilometres north of the
Whistler Deposit. Two holes did not return any significant results.
Drilling at the Red and Mogul targets (3 kilometres east and 3
kilometres northeast from the Whistler Deposit) in the Whistler
Orbit intersected strong phyllic-style porphyry alteration. As in
other holes within the Whistler Orbit, the presence of this style
of alteration suggests proximity to new porphyry systems and
further drilling will aim to vector towards the high temperature
gold-copper rich portions of these systems.
Qualified Person Statement
The content of this release has been reviewed and approved by
Mark Baknes P. Geo., Vice President of Exploration of Kiska Metals
Corporation. Mr. Baknes is a Qualified Person as defined under the
terms of National Instrument 43-101. Rock samples were prepared for
assay at ALS Chemex labs in Fairbanks, Alaska, and analyzed for
multiple elements at ALS Chemex labs in North Vancouver, British
Columbia.
About Kiska Metals Corporation
Kiska Metals Corporation is a mineral exploration company
focused on advancing the Whistler Project, Alaska, which includes a
multi-million ounce gold-copper resource and excellent exploration
potential. Kiska has renowned technical expertise and a quality
exploration portfolio with numerous early stage exploration
opportunities around the world, some held in partnership with a
selection of the world's largest and most successful gold and base
metal producers. Kiska resulted from the merger of Rimfire Minerals
Corporation and Geoinformatics Exploration in August 2009.
On behalf of Kiska Metals Corporation
Jason Weber, P.Geo., President & CEO
CAUTIONARY STATEMENT: This News Release includes certain
"forward-looking statements". Other than statements of historical
fact, all statements included in this release, including, without
limitation, statements regarding future plans and objectives of
Kiska Metals Corporation, are forward-looking statements that
involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from Kiska's expectations are the risks
detailed herein and from time to time in the filings made by Kiska
Metals Corporation with securities regulators. Those filings can be
found on the Internet at http://www.sedar.com and
http://www.sec.gov/edgar.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
Contacts: Kiska Metals Corporation Drew Martel Investor
Relations 604.669.6660 Kiska Metals Corporation Jason Weber
604.669.6660 604.669.0898 (FAX) www.kiskametals.com
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