Kenorland Minerals options Tanacross for $5M (U.S.)

Jul 20, 2022

2022-07-20 12:15 ET – News Release

Mr. Francis MacDonald reports

KENORLAND MINERALS OPTIONS THE TANACROSS PROJECT TO ANTOFAGASTA

Kenorland Minerals Ltd. has signed an earn-in agreement with Antofagasta Minerals S.A., a wholly owned subsidiary of Antofagasta Plc, on the Tanacross copper-gold project located in eastern Alaska, United States. The agreement grants Antofagasta an option to acquire a 70-per-cent interest in the project by spending $30-million (U.S.) on exploration over eight years and delivering a National Instrument 43-101-compliant preliminary economic assessment report.

Zach Flood, chief executive officer of Kenorland, commented: “We’re very excited to be working with Antofagasta on the Tanacross project. The property, which covers numerous mineralized systems and target areas, warrants significant exploration to unlock the discovery potential that we believe exists. We look forward to getting back on the ground as soon as possible to begin work which will lead towards drill target definition.”

Agreement terms

Antofagasta can earn a 70-per-cent interest in Tanacross by making cash payments in an aggregate amount of $1-million (U.S.) plus a success payment of $4-million (U.S.) upon exercise of the option and spending $30-million (U.S.) on exploration over eight years, with a firm commitment to spend $1-million (U.S.) in year one, and delivering the report. During the option period, Antofagasta will finance all exploration and Kenorland will be the initial operator.

Once Antofagasta has earned its 70-per-cent interest, Kenorland and Antofagasta will form a 30:70 joint venture. If either party’s interest in the joint venture falls below 10 per cent, that party’s interest will be converted to a 2-per-cent net smelter returns royalty, one quarter of which can be purchased by the other party for $2-million (U.S.).

About the Tanacross project

The Tanacross project covers 45,000 hectares of Alaska state-owned land, approximately 70 kilometres northeast of Tok, along the Alaska Highway. The project hosts a cluster of late Cretaceous (68-73Ma) porphyry copper (plus/minus gold, molybdenum) occurrences including East Taurus, West Taurus and Bluff. This age of mineralization is similar to the giant Casino porphyry copper system (Western Copper and Gold Corp.), which is located 140 kilometres to the southeast in Yukon Territory, Canada, as well as the Tetlin Au Skarn system (Contango Ore Inc.), located 70 kilometres to the southwest of the Tanacross project. The project has seen a total of 17,076 metres of drilling in over 67 drill holes, since the initial discovery of East Taurus in 1971 by Duval Corp. Multiple drill campaigns have been carried out by nine different companies including the most recent drill program in 2019 when the property was held under option to Freeport McMoRan. The best historical results from the project include drilling at East Taurus, where 08DDH040 intersected 232.56 m at 0.31 per cent copper, 0.25 gram per tonne gold and 0.036 per cent molybdenum.

Qualified person

Janek Wozniewski, BSc, PGeo, OGQ (No. 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 Ltd.

Kenorland Minerals is a mineral exploration company incorporated under the laws of the province of British Columbia and based in Vancouver, B.C., 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, the Chicobi project is optioned to Sumitomo, and the Chebistuan project is optioned to Newmont Corp. In Ontario, the company holds the South Uchi project under an earn-in agreement with a wholly owned subsidiary of Barrick Gold Corp. In Alaska, the company holds the advanced-stage Tanacross porphyry Cu-Au-Mo project, optioned to Antofagasta, as well as an option to earn up to 70 per cent from Newmont on the Healy project.

We seek Safe Harbor.

https://kenorlandminerals.com/