Wake up and smell the java

The Kaminak Gold Corp.’s Coffee Property in the White Gold District is giving investors a great reason to get up in the morning

The Kaminak Gold team is exhuberant after their first drill program at the Supremo Zone showed promising results. — photo courtesy Kaminak Gold Corp.

There is something to be said for being in the right place at the right time. Kaminak Gold Corp. (TSX:KAM) seems to be exactly where it needs to be and at just the right moment—and the numbers are worth waking up for.

Kaminak owns the Coffee Property adjacent to the White Gold discovery, which was acquired from prospector Shawn Ryan. Kaminak was intrigued when Underworld Resources—the original investors on Ryan’s property—released encouraging early results during a time when global economics were keeping other fish from biting.

“We saw the earmarks of a potentially large gold system,” said Kaminak’s vice-president, Tony Reda. “We acquired the property in April 2009, and in July 2009, Underworld announced a world-class intercept at 100 metres at 3.5 grams per tonne.”

Grounds for optimism

Kaminak began its own trenching system on Coffee—solely using its own capital—and by the end of 2009, it had mapped eight gold zones on the property. In 2010, Kaminak began the drill program, and at the first hole in the Supremo gold zone, the crew encountered a staggering 17 grams per tonne gold over 15 metres.

“We drilled four holes at Supremo—every hole intersected gold—and then we moved the drill down to Latté and, once again, our very first hole intersected gold mineralization,” said Reda.

From there, the drill was moved to the Double Double Zone, and assay results came in at 6.5 grams per tonne over 35 metres. The fourth and final drill result at the Kona site was likewise lucky.

“Some companies can spend their whole lifetime just trying to make one discovery,” said Reda. “The fact that we have four is spectacular—it’s truly jaw-dropping.”

And Kaminak clearly isn’t down to the grounds yet; soil sampling has indicated a total of 11 identified gold zones—with 90 per cent of the property yet to be explored.

Enjoying the buzz

Naturally, these sorts of numbers are giving investors a jolt as well. Reda said that share prices in Kaminak have seen a sharp and welcome increase, from approximately $.70 per share in late 2008 to a current $3.38 per share.

“This gives us a great sense of accomplishment when people call us and we’ve actually affected their livelihood,” said Reda. “And we’re not done yet—we’ve got assays pending from more zones, so we could be sitting on three more discoveries.”

The mood around the Kaminak office is elevated as well. It’s hard to become blasé when you’ve struck gold four out of four times, with more discoveries anticipated on the horizon.

“The project has had high expectations from the start,” said Reda. “We’re happy, but we’re hungry and passionate guys still.”