Usha Resources Options Southern Arm VMS Property from Abitibi Metals with ~7.3 km Copper-Gold Trend
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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Usha Resources Options Southern Arm VMS Property from Abitibi Metals with ~7.3 km
Copper-Gold Trend
Vancouver, British Columbia / July 17, 2024 – Usha Resources Lt d. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American mineral acquisition and exploration
company, is pleased to announce that the Company has executed a n option (the “Option” or “Option
Agreement”) with Abitibi Metals Corp. (“Abitibi” or the “Optionor”) for the right to purchase an undivided
100% interest in the Southern Arm property (“Southern Arm” or the “Property”, Fig. 1).
Highlights:
Southern Arm hosts a ~7.3 km c opper-gold trend along the region al-scale Bapst fault within the
volcanic rocks of the Brouillan-Fenelon Group, which hosts the nearby Selbaie Mine (~15 km W)
and B26 Deposit (~16 km SW) and is prospective for polymetallic VMS-style mineralization.
Multiple drill targets identified including “Hollywood” where anomalous metals values have been
identified over a ~1.8 km footprint that is open along strike.
The Property is situated in a region famous for its endowment in precious and base metals. Notable
nearby projects include:
o ~16 km from the high-grade B26 Copper deposit, which hosts an indicated resource of 6.97
Mt at 2.94% Cu Eq (1.32% Cu, 1.80% Zn, 0.60 g/t Au and 43 g/t A g) and an inferred
resources of 4.41 Mt at 2.97% Cu Eq (2.03% Cu, 0.22% Zn, 1.07 g/t Au and 9 g/t Ag; and
o ~15 km from the Fenelon Gold Project, which hosts as indicated resource of 2.4 Moz Au
and inferred 1.7 Moz Au; and
o ~15 km from the historic Selbaie mine, which produced 53 Mt at 0.96% Cu, 1.9% Zn, 0.58
g/t Au, 40.7 g/t Ag.
Exploration targets at Southern Arm were produced by the Abitibi Metals technical team, who will
be acting in an advisory role as the Company progresses the pro posed exploration strategy. Fully
funded drill program planned for Fall 2024.
The Southern Arm Option was negotiated following payment of US$ 75,000 by Stardust Power,
Inc. (MC $675M) pursuant to the Letter of Intent granting the r ight to earn up to a 90% interest
subject to a 2% Net Smelter Royalty in Usha’s Jackpot Lake Lith ium Brine Project for total
consideration that could total up to US$26,025,000 over five ye ars inclusive of payments
comprising US$1,525,000 cash, US $750,000 stock, US$15,750,000 s tock or cash at Stardust
Power’s election, and a work commitment of (US$8M).
The full details of the LOI are included in Usha’s press release dated May 17, 2024. The transaction
is subject to the satisfaction of a number of conditions. The C ompany cautions that there is no
guarantee that the Definitive Agreement will be completed.
Deepak Varshney, CEO of Usha Resources, commented: “We are very excited to partner with Abitibi
Metals on Southern Arm, which est ablishes Usha as a diversified metals company in North America with
an opportunity to develop a company-making asset in the best mi ning province in Canada. Through their
rigorous systematic exploration approach, we are starting with a 7 km+ trend with multiple targets including
Hollywood, where anomalous metals values have been identified o ver a ~1.8 km footprint that remains
open. We look forward to working with the Abitibi team to advance Southern Arm and plan on completing
a fully funded maiden drill program this coming Fall.”
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
www.usharesources.com
Figure 1 – Regional Claim Map
Southern Arm Property Details
The Property comprises 76 claims totaling more than 42 km2 in the deposit-rich Abitibi mining camp (Fig.
1). The Property contains geol ogy favourable for polymetallic V MS-style mineralization ( Fig. 2 ) and
historic drill logs documented brecciated felsic exhalite horiz ons that underwent chlorite and sericite
alteration associated with elevated Zn valuesi (Fig. 2).
It is situated on the eastern side of the Brouillan pluton and the bedrock geology is dominated by the
volcanic rocks of the Brouillan-Fenelon Group, which also host the nearby Selbaie Mine and B26 Deposit.
These rocks are situated along th e regional-scale Bapst fault, which represents a splay of the Southern
Detour deformation and is associated with Zn, Pb Ag, Mo and Cu mineralization along trend.
The property hosts a ~7.3 km conductive trend with multiple dri ll targets already identified including
“Hollywood” where anomalous metals values have been identified over a ~1.8 km footprint that remains
open.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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Figure 2 - Bedrock geology of the Southern Arm Property
Terms of the Agreement
Pursuant to the Option Agreement, the Company may acquire a 100% interest in the Property by issuing an
aggregate of 5,000,000 common shares in the capital of the Comp any and completing $2,000,000 of work
expenditures as indicated in the table below:
Payment Shares Work Commitment
Signing 2,500,0001, 2 -
1st Anniversary 2,500,0002 -
2nd Anniversary - 2,000,000
Total 5,000,000 $2,000,000
Notes 1. Payable within fifteen (15) days from receipt of approval to the Agreement from the Exchange (the
“Approval”).
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2. Shares of the Company are to be issued at a deemed value based on the Discounted Market Price at
the time of issuance.
The Company has granted to the Optionor a 2% net-smelter return s royalty (the “ NSR”) on the claims
making up the Property with no historical royalty.
The transaction contemplated, including the issuance of the sha res, is subject to the final approval of the
TSX Venture (the “Exchange”). The shares will be subject to the applicable hold periods in accordance
with securities laws in Canada and exchange policies.
Qualified person
The technical content of this news release has been reviewed an d approved by Mr. Deepak Varshney,
P.Geo., a qualified person as defi ned by National Instrument 43 -101. Historical reports provided by the
optionors were reviewed by the qualified person. The informatio n provided has not been verified and is
being treated as historic non-compliant intercepts.
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration compan y focused on the
development of quality critical metal properties that are drill -ready with high-upside and expansion
potential. Based in Vancouver, BC, Usha’s portfolio of strategi c properties provides target-rich
diversification and includes Southern Arm, a copper-gold VMS project in Quebec, Jackpot Lake, a lithium
brine project in Nevada and White Willow, a lithium pegmatite project in Ontario that is the flagship among
its growing portfolio of hard-rock lithium assets. Usha trades on the TSX Venture Exchange under the
symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under
the symbol JO0.
USHA RESOURCES LTD.
For more information, please call 778-899-1780, email info@usha resources.com or visit
www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release may include "forward-looking in formation" under applicable Canadian securities
legislation. Such forward-looking information re flects management's current beliefs and are based on a
number of estimates and/or assumptions made by and information currently available to the Company that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that
may cause the actual results and future events to differ materially from those expressed or implied by such
forward-looking information. Read ers are cautioned that such forwar d-looking information are neither
promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain and
volatile equity and capital markets, lack of availabl e capital, actual results of exploration activities,
environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays
in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company . Exploration is highly speculative in nature,
involves many risks, requires substantial expenditu res, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermo re, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such forward-looking statements will prove to be
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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accurate, and actual results and fu ture events could differ materially from those anticipated in such
statements.
i Mercier, D., de Corta, H. and de Cabissole, B. (1995) Rapport d’une campagne de forage propriete SG3; GM54389,
Energie et Ressources naturelles Quebec.