Canaccord Adams Junior Mining Weekly
3 September 2008
Extract re KXL. All the charts used are available on the KXL website.

KODIAK EXPLORATION LTD.
(KXL : TSX-V : C$1.89 | NOT RATED)
Kodiak Exploration is a mineral exploration and development company. Its principal
project is its Geraldton-Beardmore gold play near Thunder Bay, Ontario. The company is
also exploring for base metals and uranium on a number of projects in NWT, Ontario
and Quebec.
The Geraldton-Beardmore area has geological similarities to those of the Red Lake and
Kirkland Lake Au camps. The area occurs within an east-west trending metavolcanic and
metasedimentary greenstone belt. The belt is structural bound by large-scale regional
structures, one of the most significant of which is the Portage shear zone, which bounds the
southern extent of the belt. Local, syntectonic felsic intrusives occur throughout the area.
Figure 27: Archean-aged gold belts
Hercules – Golden Mile
Source: Kodiak Exploration Ltd.
The Geraldton-Beardmore gold project is located between 200 and 250 road kilometres
(Trans Canada Highway #1) from Thunder Bay, a city of 120,000 people. The Canadian
National railway and natural gas pipeline parallels the project area.
Earlier this summer we had the opportunity to visit the company’s key projects
associated with the Geraldton-Beardmore area. Based on exciting early-stage
exploration, Kodiak has attracted strong speculative interest associated with the
Hercules-Golden Mile project area within the Geraldton-Beardmore area.
Figure 26: KXL : TSX-V
Source:StockCharts.com
Junior Mining Weekly | 21
3 September 2008
Figure 28: Infrastructure and mineral claims
Source: Kodiak Exploration Ltd.
Hercules-Golden Mile
In H2/07, Kodiak completed a series of trenches that outlined 2 kilometres of strike of
quartz-carbonate veining at Golden Mile at the Hercules-Golden Mile project. Elevated
gold values have been recorded over the strike length of the Golden Mile. Surface work
shows strong individual veins up to 11 metres wide and over 1 kilometre in strike.
Sampling associated with trenching and more recently drilling, suggests stronger gold
mineralization, especially in the central gold zone at the Golden Mile, occurs within more
confined steeply plunging shoots or zones. This geological observation is backed by
recent drilling that has returned variable overall results, but included some very highgrade
gold intersections that align structurally along an interpreted plunge line. Results
to date have, in our opinion, been variable, and at this time it is difficult to discern the
overall continuity of these higher-grade zones within the overall system. That said, the
company is targeting drilling to better understand the down plunge, more strongly
mineralized zones at Golden Mile. Assay results from a series of drill holes remain
outstanding. Drilling has tested the system to depths up to 450 metres.
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3 September 2008
Figure 29: Hercules-Golden Mile magnetics with interpreted structures
Source: Kodiak Exploration Ltd.
Mineralization at the Hercules-Golden Mile project is associated with structural
dilatational zones, where quartz-carbonate veins occur within a granodiorite host. Along
the structural corridor there are multiple phases of quartz-carbonate veining that is
likely just post-depositional to a series of gabbro sills and dykes. Veins are, by industry
standards, very continuous but typically vary in width throughout the known strike
length. Gold values are commonly associated with sulphides that are largely pyrite with
minor arsenopyrite and bismuth. Higher-grade Au often occurs associated with wispy
bands of chlorite-sericite alteration, minor shear textures, and at times darker smoky
quartz-carbonate veining.
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3 September 2008
Figure 30: Golden Mile and potential extension
Source: Kodiak Exploration Ltd.
Numerous new targets and vein extension remain to be tested at Hercules-Golden Mile.
Early prospecting 3,000 metres northwest of the Golden Mile has identified mineralized
quartz veining that is on strike with the Golden Mile. This could extend the strike length
of the Golden Mile to over 5 kilometres. Magnetics convey a strong northwest series of
mag high linear structures. The company plans to test many of these targets as part of its
property scale exploration program.
At this time, there are no defined mineral resources associated with the Hercules-Golden
Mile project. The company suggests it could complete an NI 43-101 report in fall 2008,
but it will not likely contain a mineral resource estimation. During 2008, Kodiak has
completed over 27,000 metres of drilling in over 100 holes at the Hercules project.
The Geraldton-Beardmore area was first explored for iron ore and gold in about 1915.
Gold production commenced from a number of mines in the 1930s. Many of the mines
targeted gold in iron formation, associated with east-west striking stratigraphy and
corresponding structural zones that occur between Beardmore and Geraldton townships.
Reported Au production for the area occurred between 1930 and 1970 with production
totalling about 4.0 million ounces. The largest producer in the area was the Macleod-
Cockshutt mine (total of 1.4 million ounces produced), which operated at a peak capacity
of 2,500 t/d.
The Geraldton-Beardmore camp appears to be significantly under-explored when
comparing the total exploration expenditures with other Archean gold camps such as
Red Lake or Timmins.
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3 September 2008
Other targets
Kodiak has accumulated a large land position targeting prospective geology throughout
the Geraldton-Beardmore area. We’ve assembled a snapshot review of several properties
Kodiak is currently exploring outside the Hercules-Geraldton area. Our review is not all
inclusive:
• East Leitch: On trend with the former operating Leitch mine. Quartz-carbonate vein,
(0.7 to 1.2 metre wide) hosted within east-west trending metavolcanics. An initial
drill program has commenced, with results pending.
• Cote-Archie: On trend with the East Leitch property. Surface samples have returned
up to 10 g/t Au.
• Solomon’s Pillar: Former small-scale production (2,500 oz) via a production shaft.
Targeting a sheared and folded sequence of banded iron formation. Inco conducted
exploration work over a decade starting in 1974, targeting a bulk mineable Au zone.
Mineralization remains open throughout the property.
• West Geraldton: Company is targeting a series of quartz-carbonate veins hosted
within a pillow basalt. Two historical drill holes reportedly returned significant Au
values that were never followed up. The best intersection was, according to the
company, 2 metres grading 320 g/t Au. On surface, exposed veins and veinlets occur
as anatomizing assemblages of quartz-carbonate. Within the veins (veinlets) there is
minor pyrite and blocky arsenopyrite combined with local epidote and iron
carbonate alteration.
• Mackie: Gold in banded formation associated with sheared and structurally complex
stratigraphy. This area is associated with the southern boundary of the Geraldton-
Beardmore greenstone belt. We believe good potential exist for mineralization to
extend along strike from Mackie.
An analyst has visited Kodiak Exploration Ltd.’s material operations. Partial payment or
reimbursement was received from the issuer for the related travel costs.
Investment risks
The commercialization risks associated with mineral exploration and development are
high, thus investment in the shares of Kodiak Exploration Ltd. is for risk accounts only.