Kenorland Options the South Uchi Project to Auranova Resources Inc.
Kenorland Options the South Uchi Project to
Auranova Resources Inc.
Vancouver, British Columbia--(Newsfile Corp. - December 2, 2024) -
Kenorland Minerals Ltd.
(TSXV:
KLD) (OTCQX: KLDCF) (FSE: 3WQ0) ("
Kenorland
" or the "
Company
") is pleased to announce that it
has entered into a definitive agreement (the "
Agreement
") with Auranova Resources Inc. ("
Auranova
"),
pursuant to which the Company has agreed to grant to Auranova the right to acquire up to a 70% interest
in the South Uchi Project (the "
Project
"), located in the Red Lake District of Northwestern Ontario.
Figure 1. South Uchi Project location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6489/232004_5576862ee4e0692a_001full.jpg
Option Agreement
Under the terms of the Agreement, Auranova may acquire an initial 51% interest in the Project (the "
First
Option
") by fulfilling the following conditions:
Pay C$250,000 upon signing the Agreement.
Pay an additional C$250,000 upon receiving the Drilling Permit (as defined in the Agreement).
Complete at least 15,000 metres of diamond drilling or incur C$8,000,000 in qualifying
expenditures on or before the second anniversary of the Drilling Permit issuance.
Issue to Kenorland common shares of Auranova representing a 19.9% equity interest.
Grant Kenorland the right to receive additional shares, for no additional consideration, to maintain
a 19.9% equity ownership until Auranova raises a minimum of C$10,000,000 through share
issuances.
Enter into an investor rights agreement granting Kenorland the right to appoint one director to
Auranova's board and maintain its pro-rata equity ownership for so long as Kenorland holds a
7.5% interest therein.
Kenorland shall act as operator during the First Option period in exchange for a management fee
equal to 15% of total expenditures.
Second Option: Acquiring an Additional 19% Interest
If Auranova exercises the First Option, it will have the right to acquire an additional 19% interest in the
Project (the "
Second Option
"), for an aggregate 70% interest, by incurring an additional C$10,000,000
in qualifying expenditures on the Project on or before the third anniversary of Auranova's election to
proceed with the Second Option. If Auranova does not exercise the Second Option, it will transfer a 2%
interest back to Kenorland, resulting in Kenorland holding a 51% interest and Auranova holding a 49%
interest under a joint venture arrangement.
Joint Venture and Free-Carried Interest
Upon completion of the Second Option, Auranova will hold a 70% interest in the Project, and Kenorland
will retain a 30% free-carried interest until the completion of a NI 43-101-compliant Preliminary
Economic Assessment ("
PEA
") demonstrating at least 1,000,000 ounces of gold equivalent in any
category of mineral resource. Kenorland will also have the right to receive common shares of Auranova,
for no additional consideration, to maintain a minimum 10% equity ownership in Auranova from the
election to exercise the Second Option until the PEA is delivered. If a party's joint venture interest is
diluted below 10%, it will automatically convert to a 1% net smelter return royalty.
South Uchi Geologic Summary
Figure 2. Regional volcanic assemblages with significant gold deposits and South Uchi Project
location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6489/232004_5576862ee4e0692a_002full.jpg
1
Kinross reports 2023 fourth-quarter and full-year results: (Date February 14, 2024) - Updated resource to the technical report titled Great Bear
Project Ontario, Canada prepared by Nicos Pfeiffer, P.Geo., John Sims, CPG, Yves Breau, P.Eng., Rick Greenwood, P.Geo., Agung Prawasono,
P.Eng., issued February 13, 2023
Multiple major east-west striking shear zones associated with the subprovince boundary between the
volcanic-dominated Uchi geological subprovince to the north and the sedimentary-dominated English
River geological subprovince to the south, transect the Project along its 90 kilometer strike-length. The
regional, east-west striking deformation zones have strongly deformed the underlying Confederation
Assemblage volcanic rocks, a similar geologic setting to Kinross Gold's (TSX:K, NYSE:KGC) Great
Bear Project, located 45 kilometers along strike to the west. Deformation associated with these
structures has resulted in zones of strong shearing, alteration, and folding of the metavolcanic-clastic
metasedimentary-iron formation stratigraphy. Gold mineralisation hosted within intrusive, sedimentary
and volcanic rock types is associated with penetrative fabrics, quartz-sulphide veining and variable
alteration assemblages.
Systematic, regional geochemical sampling surveys completed between 2021 and 2023 defined two
large-scale, coherent gold-in-till anomalies (see press release dated February 28, 2024); the Papaonga
target (Au-Ag-Te-W±As-Sb) and Target B (Au-Te-W±Ag) areas.
Figure 3. South Uchi Project regional glacial till sampling gold geochemistry (2021-2023)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6489/232004_5576862ee4e0692a_003full.jpg
Papaonga Target Area Summary
The Papaonga target is a large gold-in-till and heavy mineral concentrate (HMC) gold grain anomaly,
covering approximately 5km of east-west strike length and 8km along the northeast-southwest ice flow
direction. It is highlighted by newly discovered bedrock gold mineralisation during the 2024 summer
exploration program (see press release dated September 11, 2024). The underlying geology is within
the eastern pressure shadow of an interpreted early (pre to syn-tectonic) diorite pluton bounded by
regional first order, major east-west trending deformation zones to the north and south. Northeast-
trending, second-order structures have intensely deformed, folded, and offset a geologically complex
stratigraphy consisting of clastic sedimentary rocks intercalated with iron formations and polymictic
conglomerates, calc-alkaline mafic volcanics, and tholeiitic mafic volcanics. Multi-phase deformation has
produced strong penetrative fabrics within all rock types (intrusive, sedimentary and volcanic rocks)
commonly associated with sericite, Fe-carbonate, chlorite, and calcite alteration.
During the 2024 summer field season, Kenorland conducted a HMC till sampling survey, mapping, and
prospecting program at the Papaonga target area. The program focused on identifying bedrock sources
of gold-in-till dispersal plumes outlined in the 2023 exploration campaign. The HMC till sampling returned
strong gold grain counts, including a peak of 951 total gold grains, 91% of which were pristine,
coinciding with the previously identified fine fraction gold-in-till anomaly. Prospecting efforts identified
widespread gold and silver mineralisation in outcrop, with rock sampling assay results of up to 13.35 g/t
Au and 60.4 g/t Ag. The prospecting campaign identified widespread gold mineralisation across the
Papaonga target area, associated with northeast-trending shear zones and multiple lithologies. These
include diorite plutons, clastic sedimentary rocks, and mafic volcanic rocks, each showing evidence of
long-lived, overprinting hydrothermal alteration systems. The results further confirm the potential of the
Papaonga target as a significant, previously unrecognized gold system.
Figure 4. Papaonga target and Target B geology, till geochemistry, gold grain counts and rock
geochemistry
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6489/232004_5576862ee4e0692a_004full.jpg
About the South Uchi Project
The South Uchi Project was first identified and staked by Kenorland based on the region's prospectivity
to host significant gold mineralised systems. The Project covers a portion of Confederation Assemblage
volcanic rocks, as well as the boundary between the Uchi geological subprovince to the north and the
English River geological subprovince to the south. Multiple major east-west striking deformation zones
associated with the subprovince boundary transect the Project resulting in zones of strong shearing and
folding of the supracrustal stratigraphy, which are favorable settings for orogenic gold mineralisation.
Prior to Kenorland staking the Project, records indicated little to no systematic exploration had been
completed, and the land package remained under-explored. The majority of gold deposits in the Red
Lake District (Red Lake, Madsen, Hasaga, and others) are located on the northern margin of the
Confederation Assemblage, however, recent discoveries such as the LP Fault Zone on the Dixie Project
by Great Bear Resources Ltd. (acquired by Kinross Gold and renamed Great Bear Project) highlight the
prospectivity of the entire Confederation Assemblage along the southern margin of the Uchi
subprovince.
Kenorland holds a 2% net smelter return royalty on the Project (see press release dated September 16,
2024).
Qualified Person
Mr. Janek Wozniewski, B.Sc., P.Geo. (EGBC #172781, APEGS #77522, EGMB #48045, PGO #3824),
"Qualified Person" under National Instrument 43-101, has reviewed and approved the scientific and
technical information in this press release.
About Auranova Resources
Auranova Resources Inc. is an unlisted reporting issuer in the Provinces of British Columbia, Alberta,
Saskatchewan and Manitoba. The company was founded
and is controlled and managed by Tom
Obradovich, Chris Taylor and Timothy Young.
About Kenorland Minerals
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 ForwardLooking 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.
This news release also contains information about adjacent properties on which the Company does
not have an interest and the presence of resources on adjacent properties is not necessarily
indicative of the mineralisation on the South Uchi project.
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/232004