Kenorland Minerals Commences 2024 Winter Drill Program at the Frotet Project, Quebec and Grants Stock Options
Kenorland Minerals Commences 2024 Winter
Drill Program at the Frotet Project, Quebec
and Grants Stock Options
Vancouver, British Columbia--(Newsfile Corp. - January 24, 2024) -
Kenorland Minerals Ltd.
(TSXV:
KLD) (OTCQX: KLDCF) (FSE: 3WQ0) ("
Kenorland
" or the "
Company
") is pleased to announce the
commencement of the 2024 winter exploration program at the Frotet Project (the "
Project
"), located in
northern Quebec. The Company recently entered into a definitive agreement to exchange its 20%
interest in a joint venture with Sumitomo Metal Mining Canada Ltd. (
"Sumitomo"
) for a 4% NSR royalty
(see press release dated January 16, 2024). Kenorland is currently the operator of the Project and
expects to close the asset exchange with Sumitomo before the end of January.
Q1 2024 Winter Exploration Program
The Winter 2024 program will include up to 17,600m of diamond drilling at the Regnault gold discovery.
This program follows the recently completed Fall 2023 exploration program comprised of 20 drill holes
for 11,918m of drilling, of which, results are expected to be released during Q1 2024. The proposed drill
plan will focus on infill and step-out targets along the R1, R5, R6 and R7 mineralised structures, as well
as broad step-outs along the R4 structures in towards the north, and R9, R10, and R11 structures within
the southern portions of the deposit area.
Regnault Drill Program
Figure 1. Plan map of Regnault drilling highlights and planned hole locations
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Zach Flood, President and CEO of Kenorland Minerals, states,
"We're very excited to commence winter
drilling at the Regnault gold discovery after very recently completing an asset exchange agreement
with Sumitomo to convert our joint venture interest to a 4% NSR Royalty. Kenorland will remain
operator of the project throughout the year, and we look forward to providing further updates as the
exploration continues."
The priority objective of the Winter 2024 drill program is to increase confidence of the vein system
geometry and grade continuity along the R1, R5, R6 and R7 mineralised structures and to determine
how these structures intersect with the R2, R3, and R8 trends. Approximately 70% of the proposed
drilling will be targeting infill and step-outs along the R5, R6, and R7 mineralised structures at depth,
optimized to infill mineralisation of the R1 structure. Seventeen drill holes are planned to infill the R1 vein
system to 50m spacing or less, while targeting the R5, R6, R7 and R8 mineralised structures with 50-
100m infill and step-out pierce points at depth down to 750m below surface. Within the central portion of
the Regnault deposit, seven drill holes for 20% of the proposed program will target possible
intersections between the R2 and R3 structures with the R6, R7 and R8 mineralisation, associated with
veins in drill hole 23RDD162 which returned
7.10m at 12.24 g/t Au including 1.70m at 45.14 g/t Au in
2023
. The remaining 10% of planned drilling will target broad step-outs at depth along the R4 structures,
and the recently discovered R10 and R11 vein systems from drill hole 23RDD172 which returned
41.85m at 2.56 g/t Au including 4.45m at 11.96 g/t Au
.
Figure 2. Frotet Project, Quebec: 4% NSR Royalty
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*Technical Report and Mineral Resource Estimate on the Troilus Gold-Copper Project, Mineral Resources Effective Date: 02 October 2023
**The Frotet Royalty is subject to the following buy down rights in favour of Sumitomo:
A 0.25% royalty interest may be purchased for a C$3,000,000 cash payment to Kenorland within five (5) years of the grant of the Frotet Royalty
A 0.50% royalty interest may be purchased for a C$10,000,000 cash payment to Kenorland within ten (10) years of the grant of the Frotet Royalty
In the event Sumitomo exercises the foregoing buy down rights, the Frotet Royalty would be reduced to an uncapped 3.25% net smelter return
royalty on all minerals extracted from the Project
About the Frotet Project
The Project covers 39,365 hectares of the Frotet-Evans greenstone belt within the Opatica geological
sub-province of Quebec. The property is adjacent to the past-producing Troilus Gold Corporation's
("
Troilus
") Au-Cu mine (9.23Moz Au indicated resource) and covers several major deformation zones
associated with known orogenic gold prospects, as well as stratigraphy hosting VMS deposits
elsewhere in the belt. Kenorland initially staked the Project in 2017 and then entered into a joint venture
and earn-in agreement with Sumitomo in 2018.
The Project hosts the Regnault gold system, a greenfields discovery made by Kenorland and Sumitomo
in 2020 following two years of systematic exploration. Since the initial discovery, Regnault has seen
extensive exploration, totaling 82,273 meters of drilling (193 drillholes).
On January 16, 2024, Kenorland announced the conversion of its 20% participating interest in the Frotet
Project to a 4% NSR Royalty, which was previously held under a joint venture agreement between
Sumitomo and Kenorland Minerals. Kenorland is the current operator of the Project and is transitioning
operatorship to Sumitomo over the next year.
The Project is located 100 kilometers to the north of Chibougamau, Quebec. Favorable infrastructure
exists in the Project area with an extensive forestry road network as well as the Route-du-Nord crossing
the southwestern portion of the property. A power transmission line also crosses through the property
which supplied power to the past producing Troilus mine.
QA/QC and Core Sampling Protocols
All drill core samples were collected under the supervision of Kenorland employees. Drill core was
transported from the drill platform to the logging facility where it was logged, photographed, and split by
diamond saw prior to being sampled. Samples were then bagged, and blanks and certified reference
materials were inserted at regular intervals. Groups of samples were placed in large bags, sealed with
numbered tags in order to maintain a chain-of-custody, and transported from Chibougamau to Bureau
Veritas Commodities ("
BV
") laboratory in Timmins, Ontario.
Sample preparation and analytical work for this drill program were carried out by BV. Samples were
prepared for analysis according to BV method PRP70-250: individual samples were crushed to 2mm
(10 mesh) and a 250g split was pulverized to 75μm (200 mesh) for analysis and then assayed for gold.
Gold in samples were analyzed using BV method FA430 where a 30g split is analyzed with fire assay by
Pb collection and AAS finish. Over-limits gold samples were re-analyzed using BV method FA530
where a 30g split is analyzed with fire assay by Pb collection and gravimetric finish. Multi-element
geochemical analysis (45 elements) was performed on all samples using BV method MA200 where a
0.25g split is by multi-acid digest with ICP-MS/ES finish. All results passed the QA/QC screening at the
lab, all company inserted standards and blanks returned results that were within acceptable limits.
Qualified Person
Cédric Mayer, M.Sc., P.Geo. (OGQ #02385), "Qualified Person" under National Instrument 43-101, has
reviewed and approved the scientific and technical information in this press release.
Stock Option Grant
The Company also announces that it has granted stock options (the "
Options
") to its directors, officers,
employees and consultant to acquire a total of 2,180,000 common shares of the Company at an
exercise price of $0.75 per share for a period of five years. The Options vest one-third immediately,
followed by one-third every year thereafter.
About Kenorland Minerals
Kenorland Minerals Ltd. (TSX.V KLD) is a well-financed mineral exploration company focussed on
project generation and early-stage exploration in North America. Kenorland's exploration strategy is to
advance greenfields projects through systematic, property-wide, phased exploration surveys financed
primarily through exploration partnerships including option to joint venture agreements. Kenorland has
agreed to exchange a 20% participating interest for a 4% net smelter return royalty on the Frotet Project
in Quebec which will then be 100% owned by Sumitomo Metal Mining Canada Ltd. The Frotet Project
hosts the Regnault gold system, a greenfields discovery made by Kenorland and Sumitomo Metal
Mining Canada Ltd. in 2020. Kenorland is based in Vancouver, British Columbia, Canada.
Further information can be found on the Company's website
www.kenorlandminerals.com
.
On behalf of the Board of Directors,
Zach Flood
President, CEO & Director
For further information, please contact:
Alex Muir, CFA
Investor Relations Manager
Tel +1 604 568 6005
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together,
"forward-looking statements") within the meaning of applicable securities laws. All statements, other
than statements of historical facts, are forward-looking statements. Generally, forward-looking
statements can be identified by the use of terminology such as "plans", "expects', "estimates",
"intends", "anticipates", "believes" or variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward
looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk
Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause
actual results, performance, prospects and opportunities to differ materially from those expressed or
implied by such forward-looking statements. Although the Company believes that the assumptions
and factors used in preparing these forward-looking statements are reasonable based upon the
information currently available to management as of the date hereof, actual results and developments
may differ materially from those contemplated by these statements. Readers are therefore cautioned
not to place undue reliance on these statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the disclosed times frames or at all.
Except where required by applicable law, the Company disclaims any intention or obligation to update
or revise any forward-looking statement, whether as a result of new information, future events or
otherwise.
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 release.
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https://www.newsfilecorp.com/release/195409