Kenorland Minerals Ltd (CVE:KLD) (FRA:3WQ0) announced that it has acquired 65,657 hectares of mineral claims, through staking, within the Birch-Uchi Greenstone Belt in the Red Lake district of Northwestern Ontario.
Kenorland said it has also entered into an option agreement dated April 29 with a private Ontario company, which grants the company the sole and exclusive option to acquire a 100% interest in the Curie Lake and Root Lake West properties. The staked and optioned claims combine for a total of 76,511 hectares and are referred to as Kenorland's South Uchi Project.
In order to exercise the option, Kenorland will make aggregate cash payments of $175,000 and issue common shares worth $175,000 over a two-year period. Kenorland will also grant to the optionor a 2% net smelter return royalty on the property, half of which (1%) may be purchased by Kenorland for $1 million in cash or stock.
READ: Kenorland Minerals announces 2021 summer exploration program at Chebistuan project in Quebec
The South Uchi project covers a portion of Confederation assemblage volcanic rocks, as well as the boundary between the volcanic-dominated Uchi sub-province to the north and the sedimentary-dominated English River sub-province to the south.
Multiple major east-west striking shear zones associated with the subprovince boundary transect the project along its 90 kilometre strike-length, the company said. 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 are located on the northern margin of the Confederation assemblage, although Kenorland noted that the recent discoveries such as the LP Fault on the Dixie Project by Great Bear Resources Ltd highlight the prospectivity of the entire Confederation assemblage along the southern margin of the Uchi sub-province.
Additionally, 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, the company said. Numerous lithium pegmatite occurrences are located in the region, including the McCombe deposit located immediately to the east.
"The South Uchi Project is an excellent addition to our pipeline of greenfields exploration assets," Kenorland CEO Zach Flood said in a statement. "The project meets all of the criteria we look for, including an extensive amount of prospective geology concealed by glacial till, vastly under-explored, and favourable access and infrastructure. Our plan is to carry out a large-scale systematic geochemical survey over the entire property this summer. This approach has worked very well for us in Quebec and we will apply a similar methodology here in the Birch-Uchi belt."
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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