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ORIGINAL: Kenorland Announces 2022 Exploration Program and Budget at the Hunter Project
2022-05-09 08:26 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - May 9, 2022) - Kenorland Minerals Ltd. (TSXV: KLD) (OTCQX: NWRCF) (FSE: 3WQ0) ("Kenorland" or "the Company") is pleased to announce the 2022 exploration program and budget at the Hunter Project ("the Project"), located in the Abitibi Greenstone Belt of Quebec and held under earn-in agreement ("the Agreement") with Centerra Gold Inc. (TSX: CG) (NYSE:CGAU).
2022 Exploration Program and Budget
The 2022 exploration program, operated by Kenorland, will include approximately 420 broad-spaced sonic drill holes, which will provide a systematic first-pass regional geochemical dataset covering the 18,177 hectare Hunter Project. Sonic drilling allows for the collection of glacial till for geochemical analysis. The glacial till sits stratigraphically above bedrock and below a thick layer of glacial lake sediments that cover much of the Abitibi greenstone belt. These glacial lake sediments impede conventional surface geochemical exploration methods such as surface soil and till sampling. The average depth to bedrock across the Hunter Project is approximately 15 vertical meters. The target till package above bedrock is 6.5m thick on average. The approved budget for the sonic 'drill-for-till' program, to be carried out from June to August, is CAD$1.5 million.
Figure 1. 2022 Hunter Exploration Program
Figure 1
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Centerra Option Agreement
Under the Option Agreement, Centerra can earn an initial 51% interest in the Project by incurring an aggregate of $5,000,000 in mineral exploration expenditures on or before the fourth anniversary of the Option Agreement (the "First Option").
Centerra can earn an additional 19% interest in the Project, for an aggregate 70% interest held (the "Second Option"), by completing a technical report in respect of the Project that establishes a mineral resource of at least one million ounces of Au Eq prepared in accordance with the requirements of National Instrument 43-101 of the Canadian Securities Administrators on or before the fourth anniversary of the exercise of the Second Option, provided that Centerra must provide notice of its intent to exercise the Second Option within 90 days of the completion of the First Option.
Following the earning of a 70% interest, Centerra and Kenorland will form a joint venture in respect of the Project. In the event a joint venture participant's interest is diluted to below 10%, it will exchange its joint venture interest for a net smelter returns royalty of 2% on currently unencumbered claims and 1.5% on claims currently encumbered by an existing royalty.
Figure 2. Hunter Project Location
Figure 2
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About the Hunter Project
In 2019, the Company acquired the Hunter Project through map staking after completing a comprehensive compilation and review of historical exploration data covering the project area. The property covers 18,177 hectares of mineral tenure over a felsic volcanic complex within the southern Abitibi Greenstone Belt (AGB). These felsic-dominant volcanic complexes are highly prospective for syn-volcanic, Au-rich VMS type systems such as the world-class Horne and LaRonde deposits. The property is dominantly covered by glacial till and lake sediments, resulting in sparse bedrock exposure with very little systematic exploration completed to date due to the challenges of exploring through thick glacial sedimentary cover. In early 2020 the company completed 5 sonic drill-for-till holes to confirm the presence of elevated gold anomalism in the glacial till cover identified from historical data compilation. In August 2021, the Company completed a property-wide airborne Versatile Time Domain Electromagnetic (VTEM) geophysical survey aimed to identify potential volcanogenic massive sulphide (VMS) targets for follow-up exploration. A total of 1,104 line-kilometers were flown at a spacing of 200m.