VANCOUVER, BC, Sept. 20, 2021 /CNW/ - Kenorland Minerals
Ltd. (TSXV: KLD) (OTCQX: NWRCF) (FSE:
3WQ0) ("Kenorland" or "the Company") is
pleased to announce that it has entered into a property option
agreement (the "Option Agreement") with a wholly-owned
subsidiary of Barrick Gold Corporation
("Barrick") pursuant to which the company has agreed to
grant to Barrick the option to acquire up to an 80% interest in the
South Uchi Project (the "Project"), located within the
Birch-Uchi greenstone Belt, in the Red
Lake district of Northwestern
Ontario.
Figure 1. South Uchi Project Location
Option Agreement
Pursuant to the Option Agreement, Barrick can earn an initial
70% interest in the Project by incurring an aggregate of
$6,000,000 in mineral exploration
expenditures on or before the sixth anniversary of the Option
Agreement (of which $3,000,000 are
guaranteed expenditures within the first three years) and deliver a
technical report in respect of the Project that establishes a
mineral resource of at least one million ounces of gold prepared in
accordance with the requirements of National Instrument 43-101 of
the Canadian Securities Administrators. As part of its
exploration expenditures, Barrick will reimburse the Company for
its sunk costs in relation to the Project and its costs incurred in
exercising an underlying option that comprises part of the
Project.
Following the earning of a 70% interest, Barrick and Kenorland
will form a joint venture in respect of the Project. However,
Kenorland will have the option to forego a minority joint venture
interest and immediately vest a net smelter returns royalty
interest of 3% on currently unencumbered claims and 2% on claims
currently encumbered by an existing royalty. If a joint
venture is formed, Barrick will have an option to earn an
additional 10% interest in the Project (for a total of 80%) by
solely funding a feasibility study on or before the 10th
anniversary of the Option Agreement. In the event a joint
venture participant dilutes to below 10% it will exchange its joint
venture interest for a net smelter returns royalty of 2% on
currently unencumbered claims and 1% on claims currently encumbered
by an existing royalty.
About the South Uchi Project
The Project covers a portion of Confederation Assemblage
volcanic rocks, as well as the boundary between the
volcanic-dominated Uchi subprovince to the north and the
sedimentary-dominated English River subprovince to the
south. Multiple major east-west striking shear zones
associated with the subprovince boundary transect the Project along
its 90km strike-length. Deformation associated with these
structures has resulted in zones of strong shearing, alteration and
complex folded geometries of the metavolcanic-clastic
metasedimentary-iron formation stratigraphy, which are favorable
settings for orogenic gold mineralization.
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. highlight the prospectivity of the entire
Confederation Assemblage along the southern margin of the Uchi
subprovince.
In addition to the gold prospectivity, the Project meets many of
the criteria for potential lithium pegmatite deposits, including
the presence of the large Alison
Lake batholith (a fertile peraluminous granite), which is
partly covered by the project. Numerous lithium pegmatite
occurrences are located in the region, including the McCombe
deposit (Ardiden Ltd.) located immediately to the east of the
Project.
Qualified Person
Mr. Jan Wozniewski, B. Sc.,
P. Geo., OGQ (#2239) is the "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. (TSX.V KLD) is a mineral exploration
Company incorporated under the laws of the Province of British Columbia and based in Vancouver, British Columbia, Canada.
Kenorland's focus is early to advanced stage exploration in North
America. The Company currently holds three projects in
Quebec where work is being
completed under joint venture and earn-in agreement from third
parties. The Frotet Project is held under joint venture with
Sumitomo Metal Mining Canada Ltd. (SMMCL), the Chicobi Project is
optioned to SMMCL, and the Chebistuan Project is optioned to
Newmont Corporation. The Company also owns 100% of the advanced
stage Tanacross porphyry Cu-Au project as well as an option to earn
up to 70% from Newmont Corporation on the Healy Project, both
located in Alaska, USA.
Further information can be found on the Company's website
www.kenorlandminerals.com
Kenorland Minerals Ltd.
Zach Flood
President and CEO
Tel: +1 604 363 1779
zach@kenorlandminerals.com
Kenorland Minerals Ltd.
Francis MacDonald
Executive Vice President
Tel: +1 778 322 8705
francis@kenorlandminerals.com
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.
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SOURCE Kenorland Minerals Ltd.
