Benton recaps 2021 work, outlines 2022 plans
2021-12-15 12:51 ET - News Release
Mr. Stephen Stares reports
BENTON RECAPS 2021 AND OUTLINES 2022 OBJECTIVES
Benton Resources Inc. has released a review of activities throughout 2021 along with an update on 2022 strategic objectives aimed at unlocking value for shareholders in the coming year. 2021 has been productive not only from an exploration perspective, but also through several key developments by companies in which Benton holds strategic investments. The company feels that the value from these initiatives has yet to be fully realized. These achievements are more fully described below.
Clean Air Metals Inc.
During 2019, Benton was able to successfully secure agreements to acquire both the Escape Lake and Thunder Bay North platinum-group-element-copper-Nickel properties located approximately 50 kilometres northeast of the city of Thunder Bay, Ont. The company subsequently optioned all its rights under these agreements to Clean Air Metals and the property is now known as the Thunder Bay North project (TBN). In return the company received, and still retains, 24.6 million common shares of Clean Air (approximately 14.7 per cent) and holds a 0.5-per-cent net smelter return royalty (NSR) from production on the Escape Lake portion of the project and a 0.5-per-cent NSR from production on any mineral claims comprising the original Thunder Bay North portion of the project on which an NSR has not previously been granted.
Since assuming Benton's rights to acquire these properties, Clean Air has aggressively advanced the TBN project with extensive drilling completed and added to a drill database that now includes over 800 drill holes. Clean Air released an updated mineral resource estimate (MRE) in November, 2021, at TBN that includes an indicated mineral resource of 14,553,324 tonnes at an average grade of 8.12 grams per tonne (g/t) platinum equivalent (PtEq) containing 3,798,581 ounces PtEq and an inferred mineral resource of 8,077,595 tonnes at an average grade of 4.07 g/t PtEq containing 1,057,646 ounces PtEq.
In addition, Clean Air completed a preliminary economic assessment (PEA) in early December, 2021. Highlights include:
- Pretax net present value (NPV) of $425.0-million, and after-tax NPV of $378.4-million, at a 5-per-cent discount rate;
- Pretax internal rate of return (IRR) is 31.1 per cent, and the after-tax IRR is 29.8 per cent;
- Capital payback is 2.4 years from start of production;
- Revenues projected to average $239.8-million per year from sale of platinum group elements (PGE) and copper mineral concentrates;
- 10-year operating life based on the present mineral resource.
Clean Air remains focused on unlocking additional potential of the TBN project through further exploration to increase the mineral resource and optimization of their technical plan with an objective to deliver a prefeasibility study in 2023.
The company will continue to update shareholders on Clean Air's progress at TBN and is currently evaluating opportunities to bring value to shareholders from this exciting equity and NSR asset with significant upside.
Benton Resources -- Sokoman Minerals Corp. strategic exploration alliance
During 2021, the company formed a strategic exploration alliance with Newfoundland-based explorer, Sokoman Minerals. The alliance hit the ground running and acquired three large-scale, early-stage exploration projects with excellent potential for new discoveries in Newfoundland: Golden Hope, Kepenkeck and Grey River. In addition, in May, 2021, the alliance attracted the investment of $2-million into Benton by well-known and respected resource investor Eric Sprott.
Golden Hope
During the summer of 2021 reconnaissance gold exploration program at Golden Hope, the alliance discovered a swarm of lithium-bearing pegmatite dikes, now named the Kraken Pegmatite field with two of three initial samples returning grades of 1.95-per-cent lithium oxide (Li2O) and 0.49-per-cent Li2O. This is believed to be the first discovery of significant lithium mineralization on the island of Newfoundland. In the fall of 2021, the alliance conducted a multiphase prospecting, mapping, and sampling program over a 0.85-kilometre-by-2.2-kilometre area and further confirmed this discovery with many assays yielding lithium values greater than 1-per-cent Li2O and the best sample grading 2.37-per-cent Li2O. Assay results from the final phase of prospecting are still pending. The alliance has now completed detailed geological mapping and a high-resolution drone survey that includes imagery, Lidar (light detection and ranging) to assist in the mapping and targeting of the dike system. The alliance has also completed a 5,709-line-kilometre Heliborne high-resolution aeromagnetic and matrix digital VLF-EM survey flown by Terraquest Ltd., with the final data currently being processed. These surveys will enhance the company's understanding of the structural/lithological setting and help identify gold-bearing structure extensions, as well as any unrecognized structures including those potentially related to the lithium-bearing pegmatites.
Following receipt of all the data accumulated during the latter portion of 2021, including the outstanding sample assays, they will be compiled and interpreted with the objective of undertaking an initial drilling program on the Kraken dike swarm as soon as possible in 2022.
Grey River
The alliance identified and discovered high-grade gold in a large 10-kilometre-long quartz/silica body. Historic grab samples as well as recent grab samples (see company news release dated Sept. 2, 2021), have yielded gold values ranging from 50 parts per billion (ppb) Au to 225 g/t Au. In October, 2021, the alliance completed a five-hole, 1,026-metre diamond drilling program with the holes spread over a four-kilometre strike length of the silica body. A total of 643 core samples were cut and sent for assay. Of these, 13 were super rushed for Au analysis to confirm the presence of gold in the system, six of these returned from 1.34 g/t to 37.64 g/t Au. Assays are pending for the remaining 630 samples.
The alliance is planning an aggressive spring-summer 2022 program to drill the silica body.
Kepenkeck
The Kepenkeck project, while early in the exploration cycle, has shown significant potential. The alliance has done limited work thus far but has already identified anomalous gold in bedrock and boulders grading up to 5.8 g/t Au. In addition, the alliance has recently discovered high-grade uranium in five samples that were collected from a radioactive area of black topsoil and sandy till that was sampled along the projected contact of a granite and sedimentary unit. All five samples contain significant uranium grading between 0.06-per-cent and 1.86-per-cent U308. The companies are planning follow-up work on the gold and a 1.0-kilometre square soil survey over the newly-discovered uranium is currently under way.
Far Lake copper project
Benton continues to advance the Far Lake copper project located 80 km west of Thunder Bay, Ont. The company has identified a large copper system in its first two phases of diamond drilling and is now planning to further explore the project with a phase 3 drilling program to commence in early 2022. Benton is currently earning a 70-per-cent interest in the project from White Metal Resources Corp. (see company news release dated May 20, 2020) and will update shareholders as to the timing of upcoming activities.
KM 67 gold project
In November, 2021, the company optioned the KM 67 volcanic massive sulphide (VMS) base metal and gold project located in central Newfoundland. The company acquired the project due to compelling data compiled by the optionors that demonstrates prospective potential of for the discovery of significant VMS and gold deposits on the property. Historical work on the project has identified large VMS boulders grading up to 37.8-per-cent lead-plus-zinc as well as others that assayed 13.56-per-cent copper-plus-lead-plus-zinc (Cu-Pb-Zn) and 8.76-per-cent Cu-Pb-Zn. In addition, the property hosts quartz boulders grading up to 7.1 g/t gold and historical soil sampling showing geochemistry highs of 1,870 parts per billion (ppb) 1,421 ppb, 1,360 ppb, 300 ppb and 279 ppb gold. The company believes this represents a great addition to its project portfolio and Benton is planning to complete an airborne survey to be followed by diamond drilling known targets and any new potential targets outlined during the company's upcoming exploration programs.
Starr gold-silver project (under option to Metallica Metals Corp.)
Metallica Metals is currently earning a 70-per-cent interest in the Starr gold-silver project (formerly known as Benton's Saganaga project) located in the Thunder Bay mining district by making certain cash and share payments to Benton along with completing exploration work commitments and has an option to earn the remaining 30-per-cent interest by completing further cash and share payments along with further work commitments (see Benton news release dated Aug. 11, 2020 for full details).
Earlier this month, Metallica reported assay results from several drill holes with highlights coming from hole STR21-004, which intersected 4.1 g/t Au over 14.2 metres including 5.1 g/t Au over 11.0 m, 13.5 g/t Au over 3.6 m, and 25.2 g/t Au over 1.9 m. Additional assay results are expected soon with 18 diamond drill holes already completed across the property. To date, 14 holes have been drilled on the Starr and Powell zones found in the central portion of the property, with another four holes completed seven-kilometres northeast in a previously un-drilled area containing high-grade grab and soil samples at surface. Further drilling will be undertaken in early-2022.
Benton currently holds 2.507 million shares of Metallica and will keep shareholders apprised of Metallica's progress.
Panama gold project (Under Option to St Anthony Gold Corp.)
In late 2019, Benton executed an option agreement with St. Anthony Gold Corp. (formerly Maxtech Ventures Inc.) in which St. Anthony has the option to earn up to a 100-per-cent interest in the company's Panama gold project located in the Red Lake Mining district, Ont., in the vicinity of the recent and significant Dixie gold discovery of Great Bear Resources Ltd. St. Anthony may earn a 100-per-cent interest in the property in a three-stage process by fulfilling various cash (or shares) payment and work commitment obligations. St. Anthony is currently earning its initial 50-per-cent interest and has made the required $100,000 payment (cash or shares) by issuing to Benton 808,375 St. Anthony common shares to vest at the 50-per-cent interest level (review of work commitment obligation is under way).
Interest in the Panama and Dixie project areas is being reinforced by leading gold companies and joint ventures that are moving to secure nearby and adjacent properties. Recently, Kenorland Minerals Ltd. optioned its project, immediately adjacent to the Panama project, to Barrick Gold Corp. Even more importantly, the company believes that the Dec. 8, 2021, offer by Kinross Gold Corp. to acquire 100-per-cent of Great Bear Resources Ltd. for $1.8-billion will no doubt bolster activity and interest in this important mining jurisdiction.
Benton currently holds approximately 1,725,000 shares of St. Anthony and will keep shareholders apprised of their progress.
Baril Lake West project (under option to Rio Tinto Exploration Canada)
Benton has received the third anniversary option payment of $25,000 from option holder Rio Tinto Exploration Canada (RTEC) for the Baril Lake West project (see company news release dated Jan. 2, 2019). The Baril Lake West is situated approximately four kilometres west of Benton's 100-per-cent-owned Bark Lake project and immediately adjacent RTEC's Baril project where RTEC discovered significant mineralization grading 4.78-per-cent Ni and 0.43-per-cent Cu over 2.08 m in 2018 (Ontario ENDM assessment file No.: 200000017073). The projects are approximately 100 km west along the major crustal-scale, east-west oriented Quetico fault, in which the Escape Lake and TBN projects held by Clean Air Metals are situated. While the Baril West and Bark Lake projects are early stage in nature, the company believes they have the potential to contain a magmatic conduit system that could host Cu-Ni-PGEs.
Stephen Stares, president and chief executive officer of Benton, stated: "I truly believe this will be a transformational year for Benton and its shareholders. We are well funded for all of our current objectives, and we have several great opportunities and projects to advance in 2022. With the increasing demand for lithium and other critical metals such as uranium as well as the strong outlook for gold, copper and platinum group metals, Benton is very well positioned on multiple fronts for an exciting year ahead."
Qualified person (QP)
John R. Sullivan, BSc, PGeo, consulting geologist and independent director of Benton has acted as the qualified person, as defined in National Instrument (NI) 43-101, with respect to the disclosure of the scientific and technical information contained in this press release.
About Benton Resources Inc.
Benton Resources is a well-funded mineral exploration company listed on the TSX Venture Exchange under the symbol BEX. Following a project generation business model, Benton has a diversified, highly-prospective property portfolio of gold, silver, nickel, copper, platinum group elements and, most-recently, lithium assets. In addition, it currently holds large equity positions in other mining companies that are advancing high-quality assets. Whenever possible, BEX retains net smelter royalties (NSR) with potential long-term cash flow.
Benton also recently entered into a 50/50 strategic alliance with Sokoman Minerals through three large-scale joint-venture properties including Grey River, Golden Hope and Kepenkeck in Newfoundland that are now being explored.
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