Kenorland Minerals Ltd (TSX-V:KLD) announced that drilling has begun at the Chicobi project in Quebec's Abitibi greenstone belt, which is held under an earn-in agreement with option to joint venture with Sumitomo Metal Mining Canada Limited.
The company said the maiden diamond drill program will consist of about 2,000 meters over four holes, testing a coherent gold and multi-element till anomaly (Target B) of approximately 1.5 kilometres (km) by 3 km in extent.
“Target B is a completely greenfields target generated from multiple campaigns of systematic geochemical sampling beneath extensive glacial cover in the central Abitibi,” Kenorland Minerals CEO Zach Flood said in a statement.
READ: Kenorland Minerals reports 2021 drill results from Healy project in Alaska
“This environment is a challenge to explore, however, represents the frontier of exploration in one of the world's most productive mineral provinces,” Flood added.
Kenorland noted that the drill program is scheduled to last about three weeks and will be completed near the middle of April 2022.
Sumitomo Metal Mining Canada has an option to earn up to 51% interest in the Chicobi project by funding C$4.9 million in exploration expenditures, according to the company.
Sumitomo then has the option to earn a further 19% by funding an additional C$10 million in exploration expenditures within three years of the initial vesting period. Kenorland would then retain a 30% participating interest. If either party is diluted below 10%, their interest would convert to a 2% uncapped net smelter return (NSR) royalty, the company said.
Kenorland's focus is early to advanced-stage exploration in North America. It currently holds four projects in Quebec, where work is being completed under joint venture and earn-in agreement from third parties.
In Alaska, the company owns 100% of the advanced stage Tanacross porphyry copper-gold-molybdenum project as well as a 70% interest in the Healy Project, held under joint venture with Newmont Corporation.
Contact Sean at sean@proactiveinvestors.com