The Vent Gold Zone is viewed as one of Kodiak’s more important targets due to the large extent of sulphide mineralization and intense alteration and is a new discovery for the company. The broad alteration system within the Vent Gold Zoneis one of the largest alteration systems in northwestern Ontario and measures approximately 3.0 kilometres long and between 400 and 700 metres wide.

The alteration zone is characterized by widespread and intense sodium-depletion and pyritization within a quartz porphyry intrusion, with broad open gold-silver mineralization containing values of up to 2.68 grams/tonne gold over a channel length of 0.62 metres (for a combined gold equivalent grade of 0.72 grams/tonne gold), 1.01 grams/tonne gold over a channel length of 1.66 metres and 107 grams/tonne silver and 0.59% copper over a channel length of 0.44 metres. The gold-sliver mineralization is trending NS-NNW and is 25 metres wide and 200 metres long with gold values that average 0.38 grams/tonne gold and 20 grams/tonne silver. These numbers are occurring in moderately to strongly disseminated sulphides in an intensely sericitic-silicified altered quartz porphyry. The mineralization remains open to the north-east. Additional mineral potential is indicated by geophysics and gold-silver anomalies immediately adjacent to the west and up to 160 metres west of the main zone containing 0.9 grams/tonne gold and 20 grams/tonne silver and remains open. The sampling was severely restricted by swamp and over burden.

The Vent consists of complex intrusive and volcanic rhyolitic rocks that is cut by a major northeast-striking alteration system measuring approximately some 2.5 kilometres in length and up to 800 metres wide. It is characterized by sodium depletion and enrichment in alumina, silica and iron. IP-resistivity, magnetic geophysical surveys and humus geochemistry revealed a variety of coincident anomalies within this alteration zone. Some of the geological features include host porphyry, the presence of kyanite, sericite-silica alteration, pyrite (the dominant sulphide) and iron-silver sulphosalts and stibnite. Also, there are localized areas of intense silicification and sheeted quartz veining. The highest gold values are in rocks with the greatest concentrations of pyrite. Anomalous antimony up to 3,737 ppm and arsenic up to 682 ppm are directly associated with the gold-silver mineralization, indicating a sulphosalt mineralogy. All these features are consistent for the existence of an extensively large mineralized system.

Aeromagnetic Map Showing
Location of Vent Area

Vent Area
Lithogeochemical Survey - Gold

Hole KL-05-18 intersected gold values of 2.7 grams/tonne gold within an interval that averaged 1.07 grams/tonne gold and 15.8 grams/tonne silver over a drill intersection of 8.0 metres between 26.0 and 34.0 metres, in a strongly pyritic (16% to 26%) and silicified felsic autobreccia. An underlying interval of anomalous gold (> 0.10 grams/tonne over 33.1 metres) occurs between 33 and 67 metres.

This mineralized interval contains highly anomalous values of antimony ( 1,852 ppm), lead (>4000 ppm), arsenic ( 283 ppm), zinc ( 3,111 ppm), and tin ( 28 ppm). The gold-silver mineralization is open to the north and at depth.

The hole was drilled to test a north-trending, 200 metre long zone of gold-silver mineralization (May 30, 2005 News release), that is expressed as one of the strongest IP chargeability anomalies and intense alteration zones in the Vent area. Sulfur isotope values of pyrite ranging from 2.0 to 2.5 per mil, and the presence of vuggy/open space-filling, disseminated and stringers of pyrite and silver sulphosalts in a highly siliceous and brecciated replacement felsic host, strongly indicate deposition in a shallow water environment. This target therefore has strong potential for gold-silver mineralization to persist at depth, since the highly silicified host rocks on surface may represent the siliceous cap overlying deeper mineralization. Kodiak plans to carry out a Titan 24 deep IP survey over this priority zone to establish deep drill targets to test the economic potential at depth.

QUARTZ SERICITE ALTERATION
AT VENT 1.0 g/t GOLD 77 g/t SILVER

HAMMERHEAD ZONE
SILICIFIED-PYRITIC CRACKLE HYDROTHERMAL BRECCIA
7.17 G/T GOLD, 20.9 G/T AG, 1.70 METRES INCLUDING 11.88 G/T GOLD, 25 G/T SILVER OVER 1 METRE

Mechanical stripping discovered a new gold-silver zone within one of the largest known alteration systems in northwestern Ontario. Channel highlights from this zone yielded an interval grading 11.88 grams per tonne gold and 25 grams per tonne silver over a true width of 1 metre.

The qualified person for the Knucklethumb project, under the definitions established by National Instrument 43-101, is Christopher Marmont, M.Sc., P. Geo.