KAT Exploration Inc (KATX)

[Biochemist2002]

HOLY CANOLI! KEN'S GETTING SERIOUS!

Looks like these guys put some serious thought into Phase II and Phase III and BEYOND!
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7519490

Phase II total $1.145 Million
Phase III total $3.281 Million

Nice:

Previous Exploration
The area in which the Property is located has had a sporadic history of exploration and development since discovery of the Handcamp gold and base metal prospect in 1928. Trenching was carried out on the prospect in 1930 and six short drill holes completed in 1941. Orenada Mines Ltd. conducted a short 14-hole drilling program on the prospect in 1956. Geophysical surveys including magnetic and electromagnetic surveys were conducted on the property between 1956 and 1977. From 1977 to 1979 Falconbridge Ltd. carried out geological, geochemical and geophysical surveys in the prospect area followed up by trenching and a nine-hole diamond drilling program. During 1982, US Borax Ltd. and Pacific Coast Mines Inc. carried out an induced polarization geophysical survey and subsequently a seven drill hole approximately 684 m drilling program.

Results of the previous exploration returned generally encouraging results that prompted KATX to option the Property in 2006 from certain prospectors. At that time, KATX established an approximately 2 km by 2 km exploration grid centered on the Property. Soil sampling on the grid revealed elevated concentrations of gold, copper and zinc related to the main Handcamp structure as well in an area on the west side of the grid along a chain of small ponds. Several rock samples collected in the area also returned elevated gold. The Property was returned to the vendors in 2007. A high resolution airborne magnetic survey completed by the Geological Survey of Canada in 2008 revealed the presence of northeast-trending magnetic structures, one of which coincides with the location of the Property.

Current Exploration
During 2009, KATX once again optioned the Property from the prospectors. Exploration completed by the Company and KATX during 2010 included two induced polarization (“ IP ”) geophysical surveys, trenching and diamond drilling, the latter focusing on the northeast trending structure that includes the Property. Induced polarization surveys especially the chargeability measurements are useful for detecting conductive minerals such as pyrite (iron sulfide) or chalcopyrite (copper-iron sulfide) disseminated in rocks below the surface.

Results of the induced polarization survey carried out on the exploration grid established in 2006 successfully traced the mineralized structure containing the Property along a length of approximately 1200m (See “ Figure 3 ”). Other IP chargeability anomalies were detected parallel to that containing the Property including one that coincides with elevated gold and copper concentrations in soil samples near the chain of small lakes on the west side of the exploration grid. On the southern portion of the surveyed area, the suspected Handcamp mineralized zone appears to bifurcate or split into two structures.

Trenches were completed on IP targets along the suspected Handcamp mineralized zone to verify the presence of mineralization. The trenches locally exposed mineralization that contained elevated gold, silver lead and zinc concentrations along a length of approximately 600 m with widths of up to 20 m. A chip sample across the main Handcamp showing returned a weighted average of 7.3 g/ton (ppm) gold over 8.5 m.

A total of 1,640 m of diamond drilling in 12 drill holes was completed as part of the 2010 exploration program on the Property.

Eleven of the holes were located in three fences spaced at approximately 250 to 300m intervals, the central fence located near the Property. The 12 th hole was located about 600m south of the Property and was drilled to test the southern extension of the IP anomaly.

All of the drill holes successfully intersected alteration and mineralization associated with the Property. Estimated true widths of the mineralized zone intersected vary from 15 to 50m. The structure was tested to a vertical depth of 185m, or approximately 135m below intersections completed during previous drilling by US Borax and Falconbridge along the Property. Anomalous values of gold, silver, lead and zinc were intersected in all of the holes.