Kenorland Minerals Provides an Exploration Update and Grants Stock Options
Kenorland Minerals Provides an Exploration
Update and Grants Stock Options
Vancouver, British Columbia--(Newsfile Corp. - December 17, 2024) -
Kenorland Minerals Ltd.
(TSXV: KLD) (OTCQX: KLDCF) (FSE: 3WQ0)
("
Kenorland
" or the "
Company
") is pleased to
provide an update on its exploration activities for its portfolio of projects located in Quebec, Ontario,
Manitoba, Saskatchewan, British Columbia, and Alaska and partnerships with Sumitomo Metal Mining
Canada Ltd. ("
Sumitomo
"), Newmont Corporation ("
Newmont
") and Centerra Gold Inc. ("
Centerra
").
The Company's current working capital position is approximately $27.2 million as of October 31, 2024.
In May 2024, the Company completed a flow-through financing of $9.86 million and issued 8,315,871
common shares resulting in Centerra acquiring approximately 9.9% of the issued and outstanding
common shares of the Company. The total updated forecast for exploration expenditures on properties
in which Kenorland holds direct or royalty interests is anticipated to be over $27.5 million in 2024, which
includes approximately $17.9 million in exploration financed by partners. Forecasted 2024 revenue,
including management fees and cash payments is approximately $2.2 million and the Company
anticipates receiving a refundable mining tax credit of approximately $1.0 million. In addition, Kenorland
holds equity positions of approximately $3.56 million in various private and publicly listed companies as
of December 12, 2024.
Frotet Project 4% NSR Royalty, Quebec:
On January 16, 2024, Kenorland announced that the
Company and Sumitomo entered into an agreement to exchange Kenorland's 20% participating interest
in the Frotet Project for a 4% net smelter return royalty on all minerals extracted from the Frotet Project,
which subsequently closed on February 19, 2024 (see press release dated February 20, 2024).
Kenorland remains operator of the Frotet Project for a minimum of one year from the closing of the
transaction.
The Company announced on July 2, 2024 that it retained BBA Consultants to commence engineering
and baseline studies in preparation for permitting an underground decline at the Regnault gold deposit.
The environmental and technical baseline studies commenced in the summer of 2024 and will progress
through 2025, along with engineering and design work. Sumitomo's decision to proceed with the
development of the decline will be contingent on the outcomes of the baseline studies, the successful
acquisition of necessary permits, and results of future resource and economic studies at the Regnault
gold deposit.
During 2024, Kenorland and Sumitomo completed 33 diamond drill holes for 21,713m of drilling at the
Regnault gold deposit, including 6 holes for 3,266m of drilling recently completed during the summer drill
program. Exploration drilling continues to deliver exceptional results including
4.70m at 24.16 g/t Au
including 0.40m at 261.20 g/t Au at R2
returned from the 2024 winter campaign (see press release
dated June 18, 2024), and
3.30m at 26.67 g/t Au including 0.60m at 137.30 g/t Au at R6
from the
2024 summer drill program (see press release dated November 6, 2024). The Company and Sumitomo
are currently planning a winter drill program for early 2025 with Kenorland continuing as operator of the
Frotet Project.
South Uchi Project, Ontario:
Kenorland completed a 2024 summer exploration campaign including a
heavy mineral concentrate (HMC) till sampling survey along with systematic mapping and prospecting
over the Papaonga target and Target B areas (see press release dated September 11, 2024). The
HMC till sampling returned strong gold grain counts (up to 951 total gold grains) with high pristine grain
morphologies spatially coincident with the previously delineated fine fraction gold-in-till anomaly.
Prospecting identified widespread, newly discovered gold mineralisation across the Papaonga target
area returning anomalous to strong gold results associated with multiple northeast-trending shear zones.
Gold mineralisation is hosted within intrusive, sedimentary and volcanic rock types with rock assay
results up to 13.35 g/t Au and 60.4 g/t Ag.
On September 16, 2024, the Company granted to its wholly owned subsidiary, 1431275 B.C. Ltd., a 2%
net smelter return royalty (the "
South Uchi Royalty
") on its 100% owned South Uchi Project. The
purchase price for the South Uchi Royalty was paid through the issuance of common shares of 1431275
B.C. Ltd.
Kenorland announced on December 2, 2024, that it had entered into a definitive agreement with
Auranova Resources Inc. ("
Auranova
"), granting Auranova the right to earn up to a 70% interest in the
South Uchi Project. Pursuant to the agreement, Auranova may earn an initial 51% interest in the South
Uchi Project by making cash payments totaling $500,000 to Kenorland, completing a diamond drilling
program with at least $8,000,000 in qualifying expenditures or completing 15,000m of drilling within two
years of receiving a drill permit, issuing Kenorland 19.9% of Auranova's common shares, and
maintaining Kenorland's 19.9% share position until Auranova raises a minimum of C$10,000,000
through share issuances, after which Kenorland's stake will remain at 10% on a pro-rata basis through to
the completion of a Preliminary Economic Assessment (the "
PEA
"). Auranova may earn an additional
19% interest, for a total of 70% interest in the project, by incurring an additional $10,000,000 in qualifying
expenditures on or before the third anniversary of Auranova's election to proceed with the second option.
Kenorland will also retain a 30% free-carried interest in the South Uchi Project through to the completion
of the PEA, at which point a joint venture will be formed.
Chebistuan Project, Quebec:
On November 13, 2024, Kenorland announced that Newmont provided
an election notice to enter Phase 2 of the earn-in agreement to potentially earn an additional 29%
participating interest, for a total of 80% of the Chebistuan Project.
In addition, a follow-up drill program has been approved by Newmont, which will include up to 3,500m of
drilling at the Deux Orignaux target area, and is expected to commence in Q1 2025. The Company
completed an initial 2,170m, 7 drill hole program in 2023 at the Deux Orignaux prospect which returned
157.20m at 0.41 g/t Au including 20.61m at 0.97 g/t Au from hole 23DODD005, hosted within a
mineralised syenite intrusion (see press release dated June 27, 2023). This second phase of drilling will
test lateral and down-dip extents of the known mineralised syenite, as well as additional targets,
identified as potential syenite plugs based on geophysical characteristics.
Hunter Project, Quebec:
Results from the detailed winter sonic overburden drilling consisting of 160
drill holes covering priority target areas from the initial regional program completed in 2022, identified a
large multi-element geochemical anomaly (Cu-Mo-Au-W-Bi±Ag). An induced polarization (IP) survey
was recently completed to refine targets to be drill tested in 2025, pending final approval from Centerra.
South Thompson Project, Manitoba:
On July 30, 2024, Kenorland entered into a definitive purchase
and sale agreement with Evolution Nickel Corporation ("
Evolution
") pursuant to which Evolution
acquired 100% of the South Thompson Nickel Project. As a result of the transaction, Kenorland was
issued 26,000,000 common shares of Evolution and granted a 2% net smelter return royalty over the
entirety of the South Thompson Project. The transaction is expected to close before March 31, 2025.
Kenorland is currently completing a prospectivity analysis and maxwell plate modelling, utilizing
geophysical data sets from the regional scale ~12,100 line-km Versatile Time Domain Electromagnetic
(VTEM) survey completed in Q1 of 2024, to generate and prioritize targets for follow-up. It is anticipated
that priority drill targets will be ready for drill testing in Q2 or Q3 2025.
Tanacross Project, Alaska:
Kenorland recently completed an Extremely Low Frequency ("
ELF
")
electromagnetic survey and infill soil sampling program over the South Taurus target during the 2024
field season. The ELF survey was an extension to the previously completed grid in 2022, and soil
sampling was completed for detailed infill data across the South Taurus target area. The Company is
currently drill targeting and planning for a potential scout drill program in 2025. The Tanacross Project is
100% owned and was previously held under option agreements with Freeport-McMoran and later with
Antofagasta Minerals S.A.
O'Sullivan Project, Quebec:
The Company completed a maiden drill program of 5 drill holes for
3,801m of drilling at the Pusticamica North target area in Q1 of 2024. Hole 24OSDD001 identified
visible gold at 475m depth and returned 56.80 g/t Au and 23.60 g/t Ag over 0.30m core length
associated with a brecciated quartz-calcite-sulphide vein. The Company, along with Sumitomo, is
currently evaluating next steps for the O'Sullivan Project.
Chicobi Project, Quebec:
The 2024 winter phase of sonic overburden drilling included an additional
66 infill drill holes, a continuation of the 55 hole program completed in 2023, totaling 121 infill sonic holes
along the 17 km strike length of the Roch-Can trend within the Chicobi Deformation Zone. On November
18, 2024, the Company announced that Sumitomo elected to terminate the Joint Venture and
Exploration Agreement, resulting in Kenorland regaining 100% ownership of the Chicobi Project.
Opinaca Project, Quebec:
Kenorland operated Targa Exploration's Opinaca Project during its two
phases of exploration completed during the 2024 field season. Kenorland entered into a purchase
agreement with Targa Exploration (see press release dated December 13, 2022), in which Targa
acquired 100% of the Opinaca Project, granting Kenorland a 3% net smelter return royalty. Phase 1 work
included additional regional and infill till sampling that defined a significant gold-in-till anomaly with a 7
km strike length, originally identified in 2023, along with reconnaissance style HMC till sampling,
mapping and prospecting. The second phase of exploration included detailed infill HMC till sampling,
mapping and prospecting that returned significant HMC till results of up to 123 total normalized gold
grain counts, and rock samples up to 6.67 g/t Au.
Flora Project, Ontario:
The Company completed a first pass property-wide glacial till geochemical
survey, including the collection of approximately 2,560 samples (1000m x 200m sample spacing)
covering the 57,706-hectare property. In addition, 91 rock samples were collected along previously
known mineral occurrence trends, and 35 HMC/medium density mineral concentrate (MDMC) till
samples for spodumene grain counts to define an undocumented spodumene bearing pegmatite dyke
occurrence discovered in 2023 by a local prospector. The till geochemical survey identified two targets,
the F1 target (Au-Mo metal associations) and the F2 target (Au-W association) located 16 km along
strike to the southwest, subparallel to the southwest-northeast trending Wabigoon Fault. The F1 target is
a high tenor, coherent gold-in-till anomaly extending over 7 km within a sheared diorite. Prospecting
confirmed the presence of a north-south trending pegmatite dyke with rock samples returning up to
4.62% Li
2
O. Kenorland is currently planning follow-up exploration programs to be completed in 2025.
Western Wabigoon Project, Ontario:
Systematic, property-wide geochemical screening was
completed at the Western Wabigoon Project, with the collection of approximately 2,820 till samples
(1000m x 200m sample spacing) covering the 69,008-hectare property. A significant, approximately 19
km trend of gold-in-till anomalism follows the Manitou-Dinorwic Deformation Zone that transects the
northern portion of the property. Within that trend, the W1 target with Au-As±Sb-Te-W metal
associations, and the W2 target (Au-As-Sb) have been identified as priority areas for follow-up. The W3
target (Ag-Mo-Te-W±Au-Cu), located 5 km to the southeast follows a regional contact between mafic
volcanic rocks and gabbro intrusive rocks. Follow-up programs are being planned for the 2025 field
season.
Algoman Project, Ontario:
Large-scale geochemical surveys including fine fraction till sampling
(approximately 3,110 samples) and HMC/MDMC till sampling (approximately 500 samples) for gold
grain analysis and spodumene grain counts were carried out covering the 94,394-hectare property. The
till geochemical survey outlined two distinct trends of Au-As±Sb-Ag-Cu anomalism, the A1 and A2
targets, hosted within volcanics and structures sub-parallel to the Marmion-Quetico subprovince
boundary immediately to the south. Results from the HMC/MDMC till sampling program covering the
metasedimentary rocks of the Quetico subprovince remain pending.
Stormy Lake Project, Ontario:
The Company completed a first pass property-wide glacial till
geochemical survey, including the collection of approximately 3,180 till samples (500m x 200m sample
spacing) covering the 42,366-hectare property. Areas of anomalous Au±As-Mo associated with the
Mosher Bay-Washeibemaga Deformation Zone, and Ag-Zn-Te-W-Bi have been identified. The
Company is currently planning next steps for the Stormy Lake Project.
Muskayk Project, Manitoba:
The Company completed an initial property-wide regional geochemical
survey, including the collection of 1,343 samples covering the 39,640-hectare property. Numerous gold ±
base metal till geochemical anomalies have been identified. The Company is currently determining next
steps for the Muskayk Project.
Settee Project, Saskatchewan:
The 5,834 hectare Settee Project was staked by Kenorland in 2023
based on a regional multi-element till anomaly within the McLean Belt (MLB), part of the Kisseynew
sedimentary subprovince. An initial property-wide regional geochemical survey (680 till samples) was
completed, with positive results of gold and base metals. The Company recently expanded the Settee
Project's land tenure through online staking for a total 79,870 hectares of land.
Critical Minerals, British Columbia & Ontario:
In British Columbia, Kenorland contracted Anomalous
Exploration Ltd. to carry out a regional prospecting program across the rare-earth element (REE)
Omineca Project. The program included geological mapping and reconnaissance-style prospecting
across various target areas, defined by stream sediment geochemistry and airborne geophysics.
Anomalous rock results up to 4.01% total rare earth oxides (TREO) were obtained, as well as samples
up to 5.48 g/t Au, 1.16% Cu and 110.4 g/t Ag. Mineralisation is hosted within faulted and brecciated
zones of the metasedimentary rocks, often associated with quartz-Fe carbonate veining, iron oxides and
sulphide mineralisation. In Ontario, Kenorland completed a small-scale prospecting program at the
Torrance Project, following up on the 2,865 line-km (50m spaced lines) magnetic and VLF-EM survey
completed over the Torrance Project in January 2024.
Eeyou Istchee Project, Quebec:
The Company acquired the Eeyou Istchee Project through map
staking between 2023 and 2024. Comprised of two large claim blocks in northern Quebec covering
268,941 hectares, the Eeyou Istchee Project covers vast areas of prospective geology within the
Opinaca subprovince in the James Bay region, an area with low exploration maturity. The Company
completed a LIDAR survey in 2024 to facilitate planning for a first-pass regional till geochemical
sampling survey.
Stock Option Grant
The Company also announces that it has granted stock options (the "
Options
") to its directors, officers,
employees and consultants to acquire a total of 5,230,000 common shares of the Company at an
exercise price of $1.22 per share for a period of five years. The Options vest one-third immediately,
followed by one-third every year thereafter.
Qualified Person
Mr. Janek Wozniewski, B.Sc., P.Geo. (EGBC #172781, APEGS #77522, EGMB #48045, PGO #3824),
and Cédric Mayer, M.Sc., P.Geo. (OGQ #02385), each a "Qualified Person" under National Instrument
43-101, have reviewed and approved the scientific and technical information in this press release.
About Kenorland Minerals Ltd.
Kenorland Minerals Ltd. (TSXV: KLD) is a well-financed mineral exploration company focused 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 holds a 4% net
smelter return royalty on the Frotet Project in Quebec which is 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/234085