Kenorland options South Uchi to Barrick Gold

Sep 21, 2021

2021-09-20 11:50 ET – News Release

Also News Release (C-ABX) Barrick Gold Corp

Mr. Zach Flood reports

KENORLAND MINERALS OPTIONS SOUTH UCHI PROJECT TO BARRICK GOLD CORPORATION

Kenorland Minerals Ltd. has entered into a property option agreement with a wholly owned subsidiary of Barrick Gold Corp. pursuant to which the company has agreed to grant to Barrick the option to acquire up to an 80-per-cent interest in the South Uchi project, located within the Birch-Uchi greenstone belt, in the Red Lake district of Northwestern Ontario.

Option agreement

Pursuant to the option agreement, Barrick can earn an initial 70-per-cent interest in the project by incurring an aggregate of $6-million in mineral exploration expenditures on or before the sixth anniversary of the option agreement (of which $3-million 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-per-cent 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 per cent on currently unencumbered claims and 2 per cent on claims currently encumbered by an existing royalty. If a joint venture is formed, Barrick will have an option to earn an additional 10-per-cent interest in the project (for a total of 80 per cent) by solely financing a feasibility study on or before the 10th anniversary of the option agreement. In the event a joint venture participant dilutes to below 10 per cent it will exchange its joint venture interest for a net smelter returns royalty of 2 per cent on currently unencumbered claims and 1 per cent 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 90-kilometre 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 favourable 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

Jan Wozniewski, BSc, PGeo, OGQ (No. 2239) is the qualified person under NI 43-101 who 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 Metal Mining Canada Ltd. (SMMCL), the Chicobi project is optioned to SMMCL and the Chebistuan project is optioned to Newmont Corp. The company also owns 100 per cent of the advanced-stage Tanacross porphyry Cu-Au project as well as an option to earn up to 70 per cent from Newmont on the Healy project, both located in Alaska, U.S.

We seek Safe Harbor.

https://kenorlandminerals.com/