SKRR Exploration Inc. Closes 100% Acquisition of the Watts Lake Zinc Claims in Saskatchewan
SKRR Exploration Inc. Closes 100%
Acquisition of the Watts Lake Zinc Claims in
Saskatchewan
VANCOUVER, BC
,
Feb. 18, 2022
/CNW/ - SKRR Exploration Inc. (TSXV: SKRR) (FSE:
B04Q) ("
SKRR
" or the "
Company
") is pleased to announce that it has received final approval from
the TSX Venture Exchange (the "
Exchange
") for the previously announced non-arm's length
acquisition agreement dated
November 4, 2021
(the "
Acquisition Agreement
") to acquire a 100%
interest in Edge Geological Consulting Inc.'s ("
Edge
") Watts Lake zinc property (the "
Property
")
consisting of twenty-four (24) mineral claims compromising a total of 13,708.109 hectares.
The Property covers multiple, parallel basement conductive corridors, including the ~14km long
Borys Lake Corridor, which hosts the historic Borys Lake lead-zinc deposit as well as numerous
other mineralized occurrences. Watts Lake is located approximately 65 km north-east of the town of
La Ronge, Saskatchewan
and 20km northwest of the community of
Missinipe, SK
. The well-
maintained gravel Provincial Highway 102 runs north from
La Ronge
, through
Missinipe
to Reindeer
Lake and its closest point is approximately 12.5km east of the Property.
Sherman Dahl
, SKRR Exploration's chief executive officer, commented:
"High-grade intercepts like we have seen at The Watts Lake Zinc property are rare and very
exciting. SKRR is a gold and base metal exploration company. SKRR's zinc and nickel properties
should not be ignored by investors. Given the current low market cap, the battery metal option on
SKRR common shares is real.
We are positively surprised by the high-grade zinc intercepts and the overall mineralization of
Watts Lake. This is consistent with the often-overlooked nature of The Trans Hudson Corridor
where the exploration and discovery potential is exceptional. SKRR has amassed a very high-
quality portfolio of properties covering precious metals as well as strategic clean energy
basemetals including Nickel and Zinc."
Terms of the Acquisition Agreements
Under the terms of the Acquisition Agreement, SKRR acquired a 100% interest in the Property by
making an initial cash payment of
C$62,500
and issuing 50,000 common shares of SKRR to Edge
upon Exchange approval of the Acquisition Agreement. The Acquisition Agreement provides for a 2%
net smelter return royalty in favour of Edge (subject to a buy down to 1% for
C$1,000,000
). SKRR
will also make an additional cash payment of
C$62,500
to Edge within 12-months of Exchange
approval of the Acquisition Agreement.
The 50,000 common shares issued pursuant to the Acquisition Agreement are subject to a four
month hold period from the closing date in accordance with applicable securities laws and the
policies of the Exchange.
The Acquisition Agreement with Edge is not an "Arm's Length Transaction" as such term is defined in
the Exchange's Policy 1.1 and therefore constituted a "related party transaction" as such term is
defined in Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions
("
MI 61-101
"). Ross McElroy is a director of SKRR and is also a director of Edge. In
respect of the requirements of MI 61-101 and Exchange Policy 5.9, the Company will rely on the
exemptions from the formal valuation and minority approval required under MI 61-101. The Company
is exempt from the formal valuation requirement of MI 61-101 in reliance on section 5.5(b) as no
securities of the Company are listed on the specified markets outlined therein. Additionally, the
Company is exempt from minority shareholder approval of MI 61-101 in reliance on section 5.7(1)(a)
(fair market value not more than 25% of the Company's market capitalization).
Watts Lake Property Highlights
World-Class Jurisdiction
:
Saskatchewan
is consistently ranked globally as a top mining
investment jurisdiction
Large Land Package in a Favorable Geological Setting:
Watts Lake is a large contiguous
land package consisting of 13,708 ha in the established, deposit endowed La Ronge Domain, of
Saskatchewan
. The project is strategically located near important infrastructure, including within
20km of major provincial highway network.
Historic Borys Lake Lead-Zinc Zones:
The Borys Lake Corridor is anchored by the shallow
depth historic Borys Lake lead-zinc deposit, including all four known drill hole delineated zones;
Mac, Main, Will A/Will B and Sam zones.
The main zone was interpreted to have an
approximate strike length of
975 m
and widths varying from 5.3 to
19.5 m
with the zinc to
lead ratio being approximately 10:1. Mineralization is open along strike and at depth.
Strong Blue-Sky Potential:
Watts Lake project area covers multiple, parallel basement
conductive corridors, identified by a 2008 airborne versatile time-domain electromagnetic
(VTEM) geophysical survey, including the entire approximately 14km-long Borys Lake
conductive corridor, as well as significant portions of parallel corridors. The conductive corridors
have numerous drill intersected and surface identified mineralized occurrences of zinc, copper,
and silver as well as anomalous gold, nickel and cobalt.
Geologic Particulars of the Property
The Watts Lake property has been explored sporadically since the mid 50's by several exploration
companies. The Borys Lake deposit occurs within northeast trending, steep northwesterly dipping
supracrustal rocks at the eastern margin of the Crew Lake Belt of the La Ronge Domain. These
rocks comprise mainly biotitic gneisses that are variably migmatized. The deposit lies on the
northwestern limb of a major antiform within an approximately conformable, northeast trending
biotite-chlorite shear zone. Structurally controlled mineralization on the property consists of a suite of
sulphide minerals including pyrrhotite, sphalerite, chalcopyrite, pyrite, and galena. Gold and silver are
also present. The sulphides occur as fine dissemination, isolated blebs, and rare veinlets. Locally,
massive sphalerite-galena mineralization occurs within quartz-rich veins and lenses, which may
represent silicification.
The Borys Lake Main zone was the focus for Husky Oil Operations Ltd. in 1972. Husky was
sufficiently encouraged with results that they prepared an internal report for the initial tonnage and
grade estimate of the Main zone of the Borys Lake deposit "Preliminary Calculation of Grade and
Tonnage Borys Lake – Lead-Zinc Prospect for Husky Oil Operations Ltd.". Husky's estimates are
based on limited drill information and only provide an inventory of the metal distribution within that
portion of the zone tested by 10 holes and to a vertical depth of
30m
below surface. The Main zone
was interpreted to have an approximate strike length of
975 m
and widths varying from 5.3 to
19.5
m
. In a report titled "Preliminary Calculation of Grade and Tonnage Borys Lake – Lead-Zinc
Prospect for Husky Oil Operations Ltd.", dated
May 1972
, the author reported that using all grades
without applying a cut-off, and using a cut-off vertical depth of
30 m
, the deposit was calculated to
contain 1,336,500 tons grading 1.91% combined zinc and lead (the zinc to lead ratio is
approximately 10:1). The deposit calculations are considered to be relevant but are historical. The
report does not make reference to the estimate being an inferred mineral resource, indicated mineral
resource nor measured mineral resource nor does it make reference to being a probable mineral
reserve or proven mineral reserve as per NI 43-101 Standards of Disclosure for Mineral Projects.
This estimate is believed to be the most current available. A qualified person has not done sufficient
work to classify the historical estimate as current mineral resources or current mineral reserves and
SKRR is not treating the historical estimate as current mineral resources or current mineral reserves.
SKRR has not verified the calculations or the assay results supporting them, nor has SKRR done
the drilling and sampling necessary to verify the classification of the resource or reserve. The Watts
Lake package includes all four mineralized zones of the Borys Lake deposit: Main, Mac, Cam and
Will A/B zones. Although not part of the grade and tonnage estimate, other significant minerals are
noted in the historic literature filed on this property, including anomalous silver and gold.
The above results were summarized from the SMDI descriptions and assessment reports filed with
the
Saskatchewan
government. SKRR cautions that historical results were collected and reported by
past operators and have not been verified nor confirmed by a Qualified Person. Further work
(including drilling) is required by SKRR in order to verify the historical work on the Property.
Management cautions that past results or discoveries on proximate land are not necessarily
indicative of the results that may be achieved on the Property.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by
Ross McElroy P.Geol
, a director of the Company and a "Qualified Person" as defined
in National Instrument 43-101 –
Standards of Disclosure
for Mineral Projects
. Mr. McElroy verified
the data disclosed which includes a review of the sampling, analytical and test data underlying the
information and opinions contained therein.
About SKRR Exploration Inc.
:
SKRR is a Canadian-based precious metal explorer with properties in
Saskatchewan
- one of the
world's highest ranked mining jurisdictions. The primary exploration focus is on the Trans-Hudson
Corridor in
Saskatchewan
in search of world class precious metal deposits. The Trans-Hudson
Orogen - although extremely well known in geological terms has been significantly under-explored in
Saskatchewan
. SKRR is committed to all stakeholders including shareholders, all its partners and
the environment in which it operates.
ON BEHALF OF THE BOARD
Sherman Dahl
President & CEO
Tel: 250-558-8340
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.
Forward-Looking Information
This news release contains "forward–looking information or statements" within the meaning of
applicable securities laws, which may include, without limitation, statements that address the Watts
Lake property, other statements relating to the technical, financial and business prospects of the
Company, its projects and other matters. All statements in this news release, other than statements
of historical facts, that address events or developments that the Company expects to occur, are
forward-looking statements. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results may differ materially from those in the forward-
looking statements. Such statements and information are based on numerous assumptions regarding
present and future business strategies and the environment in which the Company will operate in the
future, including the price of metals, the ability to achieve its goals, the ability to secure equipment
and personnel to carry out work programs, that general business and economic conditions will not
change in a material adverse manner, that financing will be available if and when needed and on
reasonable terms. Such forward-looking information reflects the Company's views with respect to
future events and is subject to risks, uncertainties and assumptions, including the risks and
uncertainties relating to the interpretation of exploration results, the interpretation of technical and
scientific data, risks related to the inherent uncertainty of exploration and development and cost
estimates and the potential for unexpected costs and expenses and including those filed under the
Company's profile on SEDAR at
www.sedar.com
. There is a possibility that future exploration,
development or mining results will not be consistent with the Company's expectations. Factors that
could cause actual results to differ materially from those in forward looking statements include, but
are not limited to, continued availability of capital and financing and general economic, market or
business conditions, adverse weather or climate conditions, decrease in the price of metals,
equipment failures or failure to obtain the necessary equipment, failure to maintain all necessary
government permits, approvals and authorizations, the impact of Covid-19 or other viruses and
diseases on the Company's ability to operate, failure to maintain community acceptance (including
First Nations), increase in costs, litigation, and failure of counterparties to perform their contractual
obligations. The Company does not undertake to update forward–looking statements or forward–
looking information, except as required by law.
SOURCE
SKRR EXPLORATION INC.
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For further information:
Sherman Dahl, President & CEO, Tel: 250-558-8340
CO: SKRR EXPLORATION INC.
CNW 03:00e 18-FEB-22