Kaminak announces new, Northern access road route to Coffee Project endorsed by First Nation

by Keith Powell
Picture of road worker in a ditch, shovelling dirt.

A single northern access route from the Kaminak Coffee Project to Dawson City has been selected for further detailed analysis. — Photo courtesy Kaminak Gold Corporation

Vancouver, B.C. – Kaminak Gold Corporation (KAM: TSX-V) has announced that in support of the Company’s ongoing feasibility study at Coffee, its flagship development track Yukon gold project, the Company evaluated nine (9) potential access road routes into the project site and has prioritized a single northern access route coming from Dawson City for further detailed analysis. This route was selected as the best option for Kaminak as it results in the least amount of new road construction, land disturbance and overall environmental impact. Moreover, this route also offers the potential to maximize economic benefits to the Tr’ondëk Hwëch’in (“TH”) on whose Traditional Territory the Coffee Project is situated, and their home community of Dawson City. The road would be 100% located within the Traditional Territory of TH, sections of which may be located within the Overlapping Area of Selkirk First Nation and the First Nation of Na-Cho Nyak Dun.

The proposed northern access road route is approximately 190 km in length, more than 160 km of which already exists as public road with select portions requiring upgrading to meet the proposed Coffee mine transportation and safety specifications. Both the Stewart and the Yukon rivers transect the route and will be crossed via ferry during months when the river is flowing and via ice bridge during freeze up, which is an established practice at the Minto copper mine located 114 km southeast of Coffee. A proposed 1300 m airstrip will also service the site principally for transportation of personnel, but also during the shoulder seasons when the river crossings are inaccessible. Traffic to and from the proposed Coffee mine during operations is expected to consist of approximately four B-Train trucks a day, to supply fuel and other consumables. Gold doré will be transported from site by air.

Please view the accompanying supporting maps for this northern access route news release from the following link: http://www.kaminak.com/_resources/maps/DawsonRouteAnimated.pdf

Engineering studies and environmental baseline surveys are now underway in support of a refined route selection and the development of design parameters required for permitting, road upgrading and construction. It should be noted that the cost to construct an all season road into the Coffee site from the south was included in Kaminak’s 2014 Preliminary Economic Asessment (“PEA”) at an estimated cost of CDN $35 million. The new proposed route requires less new construction, and therefore, is expected to cost less. A definitive cost analysis is currently underway and will be incorporated into the upcoming Feasibility Study scheduled for completion in early Q1, 2016.

Initial consultation meetings to introduce the concept of a northern road route from Dawson City have been held with Tr’ondëk Hwëch’in, Yukon Government, the community of Dawson and local placer miners in the Klondike region. While consultation is still ongoing, all of the meetings so far have been positive, and Kaminak has received strong support for the proposed route.

“The Tr’ondek Hwech’in are committed to supporting and ensuring responsible mining within our Traditional Territory and pleased to provide effective input towards advancing the Coffee Project towards production,” stated Chief Roberta Joseph. “Not only will the northern access road route to Coffee maximize business opportunities for our citizens, it will also provide great benefit for the entire town of Dawson City. Kaminak’s transparency and respect towards the environment has helped build a strong relationship with TH and demonstrates support for the next phase of this project. It’s a positive step for our economy. ”

Dawson City Mayor, Wayne Potoroka, stated: “We are very excited about the proposed northern access route and the benefits it would bring to our town. We are proud of our mining heritage, and this road, and the Kaminak operation, will help keep that local culture strong.”

Eira Thomas, CEO commented: “The proposed northern access route from Dawson City ticks all the boxes for us. It is the shortest route, it requires little new construction, thereby, limiting new land disturbance and environmental impacts, and it is largely routed through the traditional territory of Tr’ondëk Hwëch’in First Nation, our partner and a key stakeholder in the future development of Coffee.”

About the Tr’ondëk Hwëch’in First Nation and Kaminak

In 2013, the Tr’ondëk Hwëch’in First Nation (TH) and Kaminak entered into an Exploration Cooperation Agreement (ECA) relating to Kaminak’s Coffee Gold Project, which is located on Crown Land within the Traditional Territory of Tr’ondëk Hwëch’in, as recognized in their Final Agreement with the Government of Canada and the Government of the Yukon (July 16, 1998). The ECA sets out a framework in which Kaminak and TH agree to work together in a spirit of partnership to build a positive, and mutually beneficial working relationship with respect to the exploration activities that are being undertaken on the Coffee Gold Project. For further information, please see Kaminak news release May 17, 2013.

Dawson City is home to the Tr’ondëk Hwëch’in (People of the River), a community that has lived throughout the Yukon and along the Yukon River for millennia, and now comprise over one-third of the town’s population. This self-governing First Nation is committed to forging partnerships to support and ensure responsible mining within their Traditional Territory.

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