Kaminak Gold to start feasibility study on Yukon property

KaminakGold Corporation isembarking on a $30 million feasibility study of its Coffee property 130 kilometres south of Dawson City, Yukon.

TonyReda, Kaminak's vice-president for Corporate Development,says a mine there is profitable at current gold prices.

"Coffee's a project that works now," he said. "That's really key, becauseyou don't want to build something or go forward based on what-ifs.Right now we don't need anything other thanthe capital to movethis thing forward and the permits."

Two prominent mining investors showed their support earlier this month by putting up $13.5millionfor a stake in the company.

The company would have to raise $305 million to build the mine.

Redasays the feasibility study should be done in about 18 months. If it's positive,Kaminakwill apply for the development and environmental permits.