WestKam Gold Signs Letter of Intent to Acquire Uranium Project in Utah
NEWS RELEASE
WestKam Gold Signs Letter of Intent to Acquire Uranium Project in
Utah
Vancouver, Canada, June 24, 2024 – WestKam Gold Corp. (TSX-
V:WKG) (the “Company” or “WestKam”) is pleased to announce that it
has signed a Letter of Intent (“LOI”) dated June 21, 2024 with Ameranium
Resources Corp. (an arm’s length party) for the purchase of 100-per-cent
legal and beneficial interest in 131 lode claims in Grand County, Utah,
covering 2,649 acres (1,072 ha), called the Powerline One Project (the
“Powerline”).
The Powerline lies within sedimentary rocks of the Colorado Plateau, the
most prolific uranium mining region in the United States, and has produced
over 328 million pounds U3O8 (at 0.2 to 0.4 per cent U3O8) since the
1950’s (referenced from January 30, 2024, NI 43-101 Technical Report on
the Powerline Uranium Project from Ameranium Resources Corp ). Utah is a
mining-friendly state with a long history of mining. The required
environmental surveys have been completed and permits to carry out drilling
have been issued by the United States Bureau of Land Management. Drilling
can commence at any time following the posting of the necessary
reclamation bond. Field work and mining can be carried out year-round.
Prior work on the project identified a prospective target zone extending
across the Powerline property, and resulted from reanalysis and
reinterpretation of historical seismic data. The data was cross-analyzed
against gamma ray logs from numerous historical abandoned oil and gas
wells.
Gamma ray logs are a common geophysical log used in downhole surveying
of wells drilled by the oil and gas industry and are used to assist in
identifying lithological units in a well. When radioactive elements decay, they
emit radiation that can be measured by the logging instrument. This amount
of radiation is typically scaled in application programming interface (“API”)
units, a standardized system established by the American Petroleum
Institute.
Figures in the original well logs version show zones of anomalous API
readings (greater than 400 API). The anomalous values detected by the
gamma ray logs from these wells are likely to be indicative of high-grade
radioactive material.
The Samson 12-1 well is the primary well of interest with multiple anomalies
identified in the Chinle formation at about 2,700 ft with readings well in
excess of 400 API. Gamma ray geophysical logs indicate a 35.4-metre-(116-
feet)-thick zone of uranium mineralization within which a 19.0 m (62.4 ft)
thick section is estimated to have uranium grade of 0.0258 per cent eU3O8.
The top of the favourable target zone in the Samson Powerline hole is at a
depth of 823 m (2,700 ft). This zone is well below the potable water table
and has the potential to be amenable for uranium mining by in situ leach
and recovery methods (“ISL”). The buried deposits are thought to lie at
depths ranging from 300 to 1,000 m and are considered to be attractive
targets due to the advent of ISL. Deposits of this type and grade account for
approximately 46 per cent of worldwide uranium production.
Pursuant to the terms of the LOI, the purchase price payable by WestKam
will be:
(i) At closing, WestKam will issue and deliver to Ameranium 4,500,000 of
its common shares; and
(ii) on or before August 1, 2024, WestKam will pay Ameranium
US$105,000. Ameranium will covenant to pay these funds to the
Bureau of Land Management to pay the annual maintenance fees and
any other land costs due and outstanding relating to the Powerline
project.
All WestKam shares issued to Ameranium will be subject to a hold period
expiring four months and one day after their date of issue pursuant to
applicable Canadian securities laws and the policies of the TSX Venture
Exchange (“TSXV”).
This acquisition, and issuance of the WestKam shares thereunder, is subject
to TSXV approval. Not finder’s fees are payable in connection with the
transaction.
The Company is in the process of completing due diligence on the Powerline
project. Upon successful due diligence, the parties will work to finalize and
execute a definitive agreement for submission to the TSX-V for approval.
The Company will provide updates on this transaction as and when they
become available.
Qualified person
Lorne Warner P.Geo, a qualified person as defined by National Instrument
43-101 -- Standards of Disclosure for Mineral Projects, has read and
approved all technical and scientific information contained in this news
release.
About WestKam
WestKam Gold Corp. is a Canadian-listed junior gold exploration company
focused on exploring and developing projects in Western Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
“Peter Laipnieks”
Peter Laipnieks, President & CEO
Contacts:
WestKam Gold Corp.
Suite 900, 570 Granville Street
Vancouver, BC V6C 3P1
Contact:
Investor Relations
250.216.5674
westkamgoldcorp.com
Neither 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 release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future are forward-looking statements.
These forward-looking statements involve numerous assumptions made by the Company based on its
experience, perception of historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. In addition, these statements involve substantial
known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will prove inaccurate, certain of which are beyond the
Company’s control. Readers should not place undue reliance on forward-looking statements. Except as
required by law, the Company does not intend to revise or update these forward-looking statements after
the date hereof or revise them to reflect the occurrence of future unanticipated events.