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VANCOUVER, BRITISH COLUMBIA–(Marketwire -11/29/11)- Kenai Resources Ltd. (TSX-V: KAI.V – News) (“Kenai”) is pleased to provide a update on drilling at the Sao Chico gold project in north central Brazil. High grade gold assay results have been received from the independent lab for four core holes. Two strongly mineralized gold zones have been encountered from the results of 16 core holes that have now been completed over a strike length of 500 meters, for a total of approximately 2,200 meters so far drilled in the first phase 3,000 meter program. Sulphides have been encountered to a downhole depth so far of 186 meters or 158 vertical meters. Mineralization is open at depth and along strike.
As detailed below, the initial exploration target is for a potential high grade deposit in the range of 1.1 million to 2.2 million tonnes.
Official assays for NI 43-101 reporting purposes have been received from ACME Analytical Laboratories (Chile) S.A. for the first six holes, with additional unofficial preliminary assays received for the seventh hole from the nearby Serabi Mining plc Palito mine assay laboratory. No results have yet been received for subsequent holes, but high interest sulphide bearing core samples from holes 8 to 16 have been submitted to both ACME and Palito, with assays pending.
The assay data now received include the results shown in the table below, showing reasonable correlation between the ACME and Palito assays. The estimated true widths shown have been estimated having regard to the surveyed dip of the vein where intercepted, ranging from about 80 degrees to the south at higher levels, to near vertical at greater depths. All holes are drilled at 55 degrees declination from the horizontal, with an azimuth of approximately 10 degrees.
