Welcome to the Kapuskasing Gold Discussion Forum

Kapuskasing Gold Corp (TSX-V: KAP) is a Toronto Venture Exchange listed resource company engaged in the exploration of gold in the Borden Lake area in Northern Ontario

Message: Kapuskasing Gold to Acquire West Keefer Property in Timmins, Ontario

2016-04-20 08:34:00 AM ET (Filing Services Canada)

Kapuskasing Gold to Acquire West Keefer Property in Timmins, Ontario

Vancouver, British Columbia (FSCwire) - Kapuskasing Gold Corp. (TSX-V: KAP) (the Company or KAP) is pleased to announce that it has signed a non-binding letter of intent to acquire a 100% interest in the West Keefer Property (the Property) near Timmins, Ontario. The West Keefer Property is drill ready and consists of 10 claims covering 1,250 hectares in the heart of the prolific Destor-Porcupine Fault Zone, 40 kilometers west of Timmins, Ontario. The Company is planning to apply for permits and carry out a 1000 meter diamond drill program as soon as possible.

The Project is underlain by mafic and felsic metavolcanics, metasediments and intruded by granitic porphyries in a similar geological setting to Lakeshore Golds Timmins West Mine, located approximately 15 kilometers to the east along the Destor-Porcupine Fault Zone (DPFZ).

Most of the known gold deposits in the Timmins camp are spatially related to the Destor-Porcupine Fault Zone which is the major regional structure. The deposits occur in Archean metavolcanic rocks that are typically accompanied by metasedimentary rocks, quartz feldspar porphyries and ultramafic intrusive rocks. Almost all known deposits of this type are hosted within shear zones and are accompanied by quartz carbonate alteration.

The West Keefer Project has seen minimal exploration over the years with no diamond drilling being conducted on the current claim configuration. Of particular interest, the West Keefer Property hosts several untested I.P. anomalies of which are overburden covered. Each of these anomalies are characterised by moderate to high chargeability coincidental with areas of high resistivity. The Company believes that the I.P. signatures of these anomalies may represent mineralized porphyries or felsic intrusive units. Situated proximal and to the north of the interpreted DPFZ, potential porphyry units represent a favourable geological environment in the Timmins and Timmins West Camps for significant gold mineralization.

Immediately west of the Property (approximately 1.2 kilometers) are the Bartleman Trenches which are host to numerous high grade quartz veins with reported historical values including 5.1 g/t gold over 0.37 meters to 25.8 g/t gold and 68.4 g/t silver 0.50 meters (Ontario Ministry of Northern Development and Mines Mineral Deposit Inventory). Approximately 1.0 kilometer east of the West Keefer Property boundary is the Mosher Lake Occurrence which has historical assay values up to 35.1 g/t gold (grab sample) and up to 7.73 g/t gold over 0.60 meters from limited diamond drilling (unknown true width) (Ontario Ministry of Northern Development and Mines Mineral Deposit Inventory).

West Keefer Property Option Agreement

The Company has signed a non-binding letter of intent to option the West Keefer Property from the vendor for total consideration of $200,000 and 500,000 common shares of KAP over a four year period to earn a 100% interest. In addition, the Company has provided a bonus to the vendor of $1,000,000 (payable in cash or common shares at the election of the vendor) in the event a NI 43-101 compliant resource of 1,0000,000 ounces of gold is delineated on the property. The vendor shall retain a 3% net smelter royalty (NSR) interest while the Company retains the option to buy back 1.5% of the NSR for $1,500,000. A formal option agreement will follow upon completion of due diligence, expected to be completed by April 22, 2016.

About the Company

Kapuskasing Gold has 7 gold properties located along extensions of the Destor-Porcupine or Borden Gold project. All of the properties, with the exception of Rollo and West Keefer, are situated within the Kapuskasing structural zones and have potential similarities to Goldcorp's Borden Gold project. A detailed map and property descriptions can be viewed on the Company's website: www.kapgold.com (http://www.kapgold.com/).

Mr. Garry Clark P.Geo, the Exploration Manager and a director of the Company, a Qualified Person ("QP") as defined by National Instrument 43-101, has reviewed the technical content of this release.

On behalf of the Board of Directors

Kapuskasing Gold Corp.

Jonathan Armes President & CEO Phone 1 (416) 708-0243

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 press release.

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company. Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including will, anticipates, expected to, plans, planned and other similar words. Actual results may differ significantly. The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Companys management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com. Investors are cautioned not to place undue reliance upon forward-looking statements.

This news release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

To view this press release as a PDF file, click onto the following link:


Source: Kapuskasing Gold Corp. (TSX Venture:KAP) http://www.kapuskasinggold.com/s/home.asp

Maximum News Dissemination by FSCwire. http://www.fscwire.com

Copyright(C)2016 Filing Services Canada Inc.

New Message
Please login to post a reply