In April 2021, the Company acquired, through staking and option, the South Uchi Property, consisting of 76,511 hectares of mineral tenure in the Red Lake District of Northwestern Ontario.
In September 2021, the Company entered into a property Option Agreement with a wholly owned subsidiary of Barrick Gold Corporation. Pursuant to the Option Agreement, Barrick can earn an initial 70% interest in the South Uchi Property by incurring an aggregate of $6,000,000 in mineral exploration expenditures on or before the sixth anniversary of the Barrick Option Agreement (of which $3,000,000 are guaranteed expenditures within the first three years) and deliver a technical report in respect of the South Uchi Property 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 South Uchi Property and its costs incurred in exercising an underlying option that comprises part of the South Uchi Property.
Following the earning of a 70% interest, Barrick and Kenorland will form a joint venture in respect of the South Uchi Property; however, Kenorland will have the option to forego a minority joint venture interest and immediately vest a net smelter returns royalty interest of 3% on currently unencumbered claims and 2% on claims currently encumbered by an existing royalty. If a joint venture is formed, Barrick will have an option to earn an additional 10% interest in the South Uchi Property (for a total of 80%) by solely funding a feasibility study on or before the 10th anniversary of the Barrick Option Agreement. In the event a joint venture participant dilutes to below 10% it will exchange its joint venture interest for a net smelter returns royalty of 2% on currently unencumbered claims and 1% on claims currently encumbered by an existing royalty.
Location and Access
The South Uchi 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 kilometer 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 favorable 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.
the South Uchi Project also has strong potential to host lithium pegmatite deposits, with criteria which includes the presence of the large Alison Lake batholith (a fertile peraluminous granite), which is partly located within the project area. In addition, numerous lithium pegmatite occurrences are found in the region, including the McCombe deposit (Ardiden Ltd.) located immediately to the east of the project.
Geology and Mineralisation
The South Uchi Project covers 76,511 hectares within the Red Lake District of Northwestern Ontario and spans approximately 90km of strike-length along the southern margin of the Uchi geologic subprovince. The property is located roughly 20km to the Northeast of the town of Ear Falls and is accessible through an extensive forestry road network north of provincial highway 657.
Reported historical exploration within the vicinity of the South Uchi Property dates back to the 1950’s, during which time iron deposits (iron formation) and pegmatite lithium and beryl deposits were the focus. Advanced exploration developed several iron deposits, as well as pegmatite lithium deposits including the Root Lake and
McCombe lithium deposits located immediately along strike to the east of the project. During the 1980’s, initial exploration for gold and base metals occurred resulting in a number of orogenic gold and base metal VMS showings discovered through prospecting. Subsequent exploration campaigns included localized prospecting, mapping, geochemical surveys (humus, and limited soils sampling), geophysical surveys (magnetic, electromagnetic including VLF), and limited drilling between 1980 and 2010; in total 29 drill holes have been completed within the project area targeting gold and/or base metals. Extensive glacial till and glaciolacustrine deposits covering the project has historically hindered regional exploration.
Summary of exploration activities conducted by Kenorland Minerals
In April 2021, the Company acquired, through staking and option, the South Uchi Property, consisting of 76,511 hectares of mineral tenure in the Red Lake District of Northwestern Ontario. In September 2021, Barrick completed a first-pass regional till geochemical program consisting of approximately 1,904 samples covering the 76,511 hectare property.