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Since November, 2006, Kodiak has staked ten new uranium properties covering 105,906 acres (42,859 hectares) in the Otish Basin area of Québec. This area made headlines after Strateco Resources Inc. reported a drill intersection of 2.13% U3O8 over 15.2 metres on its Matoush prospect, which adjoins two of Kodiak’s claim blocks. Other uranium companies, including Cameco and Areva, are also active in the area, which is accessible by winter road from Chibougamau.

According to Québec’s Ministry of Natural Resources and Wildlife, the uranium potential of the Otish Basin is frequently compared to the Athabasca Basin in Saskatchewan, which represents one third of global uranium supply. Like the Athabasca Basin, the Otish Basin hosts many uranium showings above, at, or below the unconformity separating basinal sediments from the underlying Archean basement rocks. At Matoush prospect, Strateco reports that the high grade uranium is associated with gabbro dyke remnants in a fault zone that cuts through basinal sediments well above the unconformity surface.

The Otish Basin has been considered prospective for uranium for many years. Uranerz, a large European uranium company, explored here in the 1970s, but allowed its claims to lapse after uranium prices collapsed in the early 1980s. Kodiak’s properties cover a wide range of geological settings, target types, showings, and geochemical anomalies, on ground formerly held by Uranerz, within and near the margins of the Otish and Paskwati Basins (the Paskwati Basin is an outlier of basinal sediments south of the Otish). The claims were staked to cover specific targets identified by uranium specialist Charles Beaudry, P. Geo., as part of Kodiak’s ongoing project generation program.

Kodiak's UR prospect covers 17,382 acres (7,034 hectares) on the northeast rim of the Otish Basin, including a 3 kilometre x 2 kilometre area with more than 100 radioactive boulders discovered by Uranerz. These mineralized boulders returned uranium values ranging from 0.12% to 4.13% U3O8. The boulders are angular and consist of hematitealtered granite. They appear to be locally derived, and are consistent with deep unconformity-style mineralization in the basement rocks. The mineralized boulders appear to originate from a source area three kilometers up-ice from the apex of the boulder field, where a regional fault cuts Archean bedrock. This inferred source area for the high grade uranium mineralization lies within in the northeast part of Kodiak's UR claim block, and is planned to be one of the principal targets of the 2007 exploration. The company has seen no evidence to indicate that Uranerz previously drill-tested the property.

Kodiak’s UR East claims (26,990 acres/10,922 hectares) are located 5 kilometres northeast of the UR claim block, where basinal sediments and gabbro are cut by sheared gabbro dykes and faults similar to the Matoush structure. Historic lake sediment anomalies up to 159 ppm U, with favourable uranium to thorium ratios, were also recorded within the claim block. The UR East property is regarded as prospective for both unconformity and deep-unconformity style uranium mineralization.

Kodiak’s Mat I, II and III claim blocks (2,230 acres/902 hectares) are in the western part of the Otish Basin. Kodiak’s Mat I claim block lies on the western rim of the basin, adjoining the northern edge of Strateco’s claims in an area that appears most prospective for shallow unconformity-style uranium mineralization. The Mat II block is located between Strateco’s ground and Cameco’s claims to the south. The Mat III block is located to the west of Strateco’s Matoush discovery. The Mat II and Mat III claims are prospective for both perched and unconformity-style uranium mineralization.

Kodiak’s RIM 1 through RIM 3 properties (37,010 acres/14,978 hectares) are located along the east rim of the Otish Basin, where the highest concentrations of uranium showings and anomalies are found. Many of these showings and anomalies are located along or near faults that cross-cut the basinal sediments, making these properties highly prospective for unconformity and perched-style uranium mineralization.

The RIM 1 prospect is crosscut by two north-northeast trending faults, as well as the projected westward extension of the Kerveso Fault. Several radioactive sandstone boulders up to 11,000 cps have been documented on this property, along with gabbro outcrops that are believed to be contemporaneous with the uranium mineralization.

The RIM 2 prospect covers a possible source area for a 500-metre train of radioactive boulders containing up to 0.153% U3O8, located on the adjoining Golden Valley Mines property.

The RIM 3 prospect covers an elongated 24 kilometre lake sediment anomaly, and includes four lakes along the surface trace of the Kerveso Fault, sediments from which returned values between 20 and 50 ppm U. Four radioactive boulders containing up to 134 ppm U have been documented within the area of the lake sediment anomaly.

Kodiak's "308" prospects consist of two claim blocks on the north rim of the Paskwati Basin, an outlier to the southwest that contains terrestrial sedimentary rocks of the same age as those in the Otish Basin.

The 308 West claim block covers 4,626 acres (1,872 hectares) that include the historic Yvon uranium showing, and an area of anomalous uranium geochemistry. At the Yvon showing (which was never drill-tested) Uranerz found uranium-bearing veins cutting granite-gneiss bedrock and radioactive boulders. Historic lake sediment anomalies ranging from 405 ppm to 1,920 ppm U were recorded just outside the eastern claim boundary.

The 308 East claim block covers 2,513 (1070 hectares) and includes a cluster of historic uranium geochemical anomalies and mineralized boulders that follow the northern extension of a north-south gabbro dyke similar to the one associated with the uraniumbearing Matoush structure. The root zone of an unconformity deposit at the west contact of the gabbro dyke could be a possible source for these anomalies.

In addition to having potential for deep unconformity-type uranium deposits, both of the "308" claim blocks straddle the unconformity, and indicate potential for classic unconformity-style uranium mineralization both below and above the unconformity surface. A historic hole drilled by Phelps Dodge 5.3 kilometres south of Kodiak's 308 East block intersected 1.8 metres grading 0.15% U3O8 in metasedimentary rocks immediately overlying the unconformity. Subsequent Events - Otish Kodiak contracted to fly 11,000 kilometres of airborne radiometric, magnetic and EM surveys in August 2007, to identify radioactive targets within the basinal sediments, and radioactive fault zones cutting bedrock up-ice from known lithogeochemical and lake sediment anomalies near the basin margin.

Due to circumstances beyond Kodiak’s control, only part of the planned airborne survey was able to be completed in 2007, and the remainder had to be deferred until 2008. The initial data received from this year’s survey have identified a very large radioactive anomaly on the UR property, directly up-ice from the previously reported fan of highly radioactive boulders found by Uranerz. The intense radiometric anomaly recorded by the airborne survey measures 2 kilometres by 6 kilometres in area, and has consistent values 16 of 2,000 to 3,500 cps. It is associated with a north-south trending structure identified in magnetic data that has an orientation and setting similar to Strateco’s high grade Matoush structure. The size and strength of the anomaly confirms the significant exploration potential of the UR property, and identifies a structural target that may be the source of the boulder train. An experienced field crew was mobilized as quickly as possible to ground truth the anomaly, but the prospecting has unfortunately been cut short by the onset of winter. A thorough follow-up program of ground geophysics, prospecting, mapping, and drilling, is planned to test the economic potential of these prospects in 2008.