Kenorland Minerals Options the O'Sullivan Project to Sumitomo Metal Mining Canada Ltd.
Kenorland Minerals Options the O'Sullivan
Project to Sumitomo Metal Mining Canada Ltd.
Vancouver, British Columbia--(Newsfile Corp. - December 15, 2022) -
Kenorland Minerals Ltd.
(
TSXV: KLD
) (
OTCQX: KLDCF
) (
FSE: 3WQ0
)
(
"Kenorland"
or
"the Company"
) is pleased to
announce that it has entered into a property option agreement (the "
Option Agreement
") with
Sumitomo Metal Mining Canada Ltd. (
"Sumitomo" or "SMMCL"
), a wholly-owned subsidiary of
Sumitomo Metal Mining Co. Ltd., pursuant to which the Company has agreed to grant to SMMCL the
option to acquire up to a 70% interest in the O'Sullivan Project (the "
Project
"), located within the Abitibi
greenstone Belt, of Northern Quebec.
Figure 1. Location Map of the O'Sullivan Project
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/6489/148090_e2462558b4ea2be3_001full.jpg
Option Agreement
Pursuant to the Option Agreement, SMMCL can earn an initial 51% interest in the Project by incurring an
aggregate of $4,900,000 in mineral exploration expenditures on or before the third anniversary of the
Option Agreement (of which $1,200,000 are guaranteed expenditures within the first three years).
Kenorland will act as operator of the Project in return for a management fee equal to 15% of the total
expenditures during the first earn-in period.
Following the earning of a 51% interest, SMMCL has the option to earn an additional 19% (for a total of
70% interest), by delivering a NI-43-101 compliant Feasibility Study on the Project disclosing mineral
resources in the measured and indicated categories of not less than 1,500,000 ounces of gold (or
AuEq) within an additional seven years. Once SMMCL has earned a 70% interest, Kenorland will have
the option to forego a minority joint venture interest and immediately vest a net smelter returns royalty
interest of 4% on the Property. In the event of joint venture participation, any party which dilutes to below
a 10% interest will exchange its joint venture interest for a net smelter returns royalty of 3% (subject to a
1% buyback for $1,000,000).
About the O'Sullivan Project
The O'Sullivan Project covers 27,595 hectares of mineral tenure within the Abitibi Greenstone Belt
(AGB) along the Casa Berardi Deformation Zone (CBDZ). The CBDZ is one of the primary structures
that controls orogenic gold mineralisation in the belt and hosts the active Casa Berardi mine that has
produced over 1.9 million ounces of gold since 1988, with recent proven and probable reserves of 1.7
million ounces (December 31, 2019).
Other major deposits along the CBDZ include the Douay gold
deposit (2.35 million oz Au inferred and 422,000 oz Au indicated) as well as the Nelligan gold deposit,
having a 3.2 million ounce inferred resource (October 22, 2019). The O'Sullivan Project covers
approximately 15 kilometers of strike length along the southern margin of the CBDZ where the
deformation zone intersects volcanic rocks of the Stoughton-Roquemaure and Kidd-Munro
assemblages.
Since acquiring the project through map staking in 2020, Kenorland has completed two phases of
regional till sampling across the Project. An initial 1300 sample first pass till program completed in 2020
covered the property at 1km line spacing and 200m station spacing. Anomalous gold-in-till was
identified in several locations across the property. An airborne lidar survey covering 245km
2
of the
property was also flown, followed by a surficial geological interpretation and ground truthing to aid in
further targeting. Six target areas with anomalous results were identified for a follow up sampling
program in 2021 consisting of 500 samples at 100m to 200m line spacing and 100m to 200m station
spacing. This sampling confirmed the anomalous Au in till and defined the anomalous till dispersion
trains.
Figure 2. Property Map of the O'Sullivan Project with Gold-in-till Geochemical Results
To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/6489/148090_e2462558b4ea2be3_002full.jpg
The systematic work performed by Kenorland demonstrates the potential of the O'Sullivan project to host
gold mineralization, and the successive surveys have vectored towards favourable geological settings.
Coherent Au in till anomalism along the northern shore of Lac Pusticamica
(Pusticamica North) is
coincident with strong deformation and a major felsic intrusive-volcanic contact. The dispersion train is
open beneath the lake. A follow up program of drone based magnetic (MAG), time-domain
electromagnetics (TDEM) and induced-polarization (IP) geophysics is planned for the first quarter of
2023 designed to cover the deformation zone at the interpreted head of the anomalous till.
About Kenorland Minerals Ltd.
Kenorland Minerals Ltd. (TSXV: KLD) is a mineral exploration Company incorporated under the laws of
the Province of British Columbia and based in Vancouver, British Columbia, Canada. Kenorland's focus
is early to advanced stage exploration in North America.
The Company currently holds five projects in
Quebec where work is being completed under joint venture and earn-in agreement from third parties.
The Frotet Project and Chicobi Project are held under joint venture with Sumitomo, the O'Sullivan Project
is optioned to Sumitomo, the Chebistuan Project is optioned to Newmont Corporation and the Hunter
Project is held under option to Centerra Gold Inc. In Ontario, the Company holds the South Uchi Project
under an earn-in agreement with a wholly owned subsidiary of Barrick Gold Corporation.
In Alaska, the
Company holds the advanced stage Tanacross porphyry Cu-Au-Mo project, optioned to Antofagasta, as
well as a 70% interest in the Healy Project, held under joint venture with Newmont Corporation.
Further information can be found on the Company's website
www.kenorlandminerals.com
Kenorland Minerals Ltd.
Zach Flood
President and CEO, Director
Tel: +1 604 363 1779
Kenorland Minerals Ltd.
Scott Smits
Vice President of Exploration
Tel: +1 250 686 8135
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/148090