The Lady Pond Copper/Cobalt Property Now Includes Historic Sterling Mine and Twin Pond Property

Vancouver, British Columbia (FSCwire) - Kapuskasing Gold Corp. (TSX-V: KAP) (the “Company” or “KAP”) announces that the Company has signed a non-binding letter of intent to acquire The Sterling Property consisting of 28 claims (700 hectares) contiguous to the recently announced Lady Pond Copper/Cobalt Property (see press release dated March 1, 2017).  The Sterling Property is host to the historic Sterling mine and Twin Pond prospect with an exploration history dating back to the late 1800’s.  This potential acquisition hosts a NI 43-101 non-compliant, historic resource of 1,000,000 tonnes of 1% copper based on results from drilling and evaluations performed during the late 1960’s on the Sterling Mine and Twin Prospect. The Lady Pond Property currently stands at 1625 hectares in size and covers a number of historic shafts, mine workings and areas of historical drilling.

Highlights of some of the historic work carried out on the Sterling and Twin Pond prospects include:

• The recognition of a NI 43-101 non-compliant, open ended one million tonne copper resource

• Two mine shafts and four test pits on the historic Sterling mine;

• Over 50 historic drill holes that include numerous economic intervals with grades and widths up to 5.50% Cu over 4.42m;

• Recent grab samples of up to 10% Cu;

• Anomalous cobalt assays;

• Untested airborne EM anomalies present.

A preliminary three dimensional geological modeling of the historic drilling results for Sterling and Twin Pond has been performed and will prove to be a useful and highly effective tool to better understand the Sterling and Twin Pond potential.  Based on the initial results, significant gaps in drilling between high grade intersections have been identified.  A detailed compilation of the all historical data is currently underway and a drill program is being planned for later this year.  Previous operators focused primarily on the copper mineralization and it appears that cobalt analysis was never routinely performed. A more thorough analysis of the multi element potential for the Lady Pond property will be a top priority for the exploration programs currently being planned.

“The addition of the Sterling Property completes the consolidation of the Lady Pond and greatly enhances the Company’s chances of developing a resource.” Stated Jonathan Armes, President of Kapuskasing.  “We are excited to get working on the Sterling deposit as soon as compilations are complete and conditions permit.”

The Company has signed a non-binding letter of intent whereby KAP can earn a 100% interest in the Sterling Property total consideration of 1,800,000 shares, $25,000 in cash payments and a work commitment of $250,000 over four years. The Vendor shall retain a 3% net smelter royalty (NSR) interest. The Company retains the option to buy back 2% of the NSR for $2,000,000. A formal option agreement will follow upon completion of due diligence.

Mr. Garry Clark P.Geo,(Exploration Manager and a director of the Company) a Qualified Person ("QP") as defined by National Instrument 43-101, has reviewed the technical content of this release.  The content of the geological data presented has been derived from the Provinces Mineral Deposit Database and exploration assessment files and are believed to be accurate and correct.

On behalf of the Board of Directors

Kapuskasing Gold Corp.

Jonathan Armes
President & CEO
Phone 1 (416) 708-0243

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. 

This press release contains forward-looking statements within the meaning of applicable Canadian and U.S. securities laws and regulations, including statements regarding the future activities of the Company.  Forward looking statements reflect the current beliefs and expectations of management and are identified by the use of words including “will”, “anticipates”, “expected to”, “plans”, “planned” and other similar words.  Actual results may differ significantly.  The achievement of the results expressed in forward-looking statements is subject to a number of risks, including those described in the Company’s management discussion and analysis as filed with the Canadian securities regulatory authorities which are available at www.sedar.com.  Investors are cautioned not to place undue reliance upon forward-looking statements. 

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