Kodiak and Golden Goose Combine to Form Well-Financed Gold Company with Near Term Production Potential
01 September 2010 - 12:24AM
PR Newswire (Canada)
VANCOUVER and MONTRÉAL, Aug. 31 /CNW/ -- TSX.V KXL VANCOUVER and
MONTRÉAL, Aug. 31 /CNW Telbec/ - Kodiak Exploration Limited (TSX-V:
KXL, "Kodiak") and Golden Goose Resources, Inc. (TSX-V: 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 François Perron President and
Chief Executive Officer, Golden Goose Resources, Inc. 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. 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. Kodiak Exploration
Limited: Brian J. Maher, President and CEO, Email:
ir@kodiakexp.com, Website: www.kodiakexp.com, Tel.: 1-604-688-9006,
Fax: 1-604-688-9029; Renmark Financial Communications Inc.: Jason
Roy: jroy@renmarkfinancial.com; Arash Shahi:
ashahi@renmarkfinancial.com; Media - Guy Hurd:
ghurd@renmarkfinancial.com, Tel.: (514) 939-3989, (416) 644-2020,
www.renmarkfinancial.com; Golden Goose Resources Inc.: François
Perron, President and CEO, Email: perron@goldengooseres.com,
Website: www.goldengooseres.com, Tel.: 1-888-928-4667, Fax:
1-888-494-5371
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