Vancouver, British Columbia--(Newsfile Corp. - February 12, 2025) - Kenorland Minerals Ltd. (TSXV: KLD) (OTCQX: KLDCF) (FSE: 3WQ0) ("Kenorland" or the "Company") is pleased to announce the commencement of the maiden diamond drill program at the South Uchi Project (the "Project"), located in the Red Lake District of Ontario and held under an option agreement with Auranova Resources Inc. ("Auranova").
Q1 2025 Winter Exploration Program
A total budget of $8.0 million has been approved by Auranova for the Winter 2025 exploration program. The maiden drill program will include up to 15,000m of diamond drilling as an initial test of the Papaonga target identified through systematic exploration carried out since 2021. During the 2024 exploration campaign, prospecting identified newly discovered, widespread gold mineralisation across the target area, with rock sampling assay results of up to 13.35 g/t Au. Kenorland is operator of the Project, and drilling activities are expected to conclude in late-March.
Figure 1. Plan map of Papaonga target area with planned drill hole locations and gold-in-till geochemistry
The maiden 15,000m drill program will consist of approximately 30 drill holes testing high-priority structural corridors over the 6km strike length of the Papaonga target. It is defined by a large gold-in-till and heavy mineral concentrate (HMC) gold grain anomaly, with newly discovered bedrock gold mineralisation consisting of quartz-sulfide veins and disseminated sulfide (see press release dated September 11, 2024). The underlying geology lies 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 the geologically complex stratigraphy. Drilling will target three principal target areas: the sheared margin of the Papaonga diorite, northeast-trending shear zones transecting folded clastic sedimentary rocks, iron formation and volcanic stratigraphy underlying the north arm of Papaonga Lake, and east-west trending shear zones through folded calc-alkaline and tholeiitic volcanic rocks along the eastern arm of Papaonga Lake. No historical drilling has been conducted within the Papaonga target area.
Figure 2. Papaonga target and Target B geology, till geochemistry, gold grain counts and rock geochemistry
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 favourable 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.
Figure 3. Regional volcanic assemblages with significant gold deposits and South Uchi Project location
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
Kenorland announced on December 2, 2024, that it had entered into a definitive agreement with 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 Project by making cash payments totalling $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 $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% carried interest in the Project through to the completion of the PEA, at which point a joint venture will be formed.
Kenorland also 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), a "Qualified Person" under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
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.
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.
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