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Kenorland Minerals Ltd. (TSXV: KLD,OTC:KLDCF) (OTCQX: KLDCF) (FSE: 3WQ0) ("Kenorland" or the "Company") is pleased to announce the commencement of the Phase 2 diamond drill program at the South Uchi Project (the "Project"), located in the Red Lake District of Ontario and held under an option agreement with Auranova Resources Inc. ("Auranova").
2025 Fall Exploration Program
The Fall 2025 exploration program and budget have been approved by Auranova and will include up to 6,000m of drilling across 13 drill holes at the Papaonga target area. This second phase of drilling, a follow-up to the successful maiden drill program completed earlier in 2025 (see press release dated July 2, 2025), is designed to expand on the recently discovered gold-bearing structural corridors and test for additional structures concealed by deep overburden.
Figure 1. Plan map of Papaonga target area with planned Phase 2 drill hole locations
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The current drill program includes a series of tighter step-outs surrounding hole 25PADD023, which intersected volcaniclastic and mafic volcanic rocks cut by strongly mineralised shear zones hosting quartz-carbonate stockwork with visible gold. These follow-up holes are designed to better define the geometry and continuity of mineralisation within this structural corridor. In addition, broader-spaced step-outs are being completed along the interpreted east-west trending deformation zone between holes 25PADD016 and 25PADD023, testing for lateral extensions of gold-bearing structures. The program also includes initial drill testing structures located to the northeast of 25PADD023, within areas of deeper overburden where no historical drilling has been completed and bedrock remains completely concealed. Collectively, these efforts aim to both constrain the geometries of the high-grade zone identified at 25PADD023 and expand the search space into previously untested portions of the deformation corridor.
Zach Flood, President and CEO of Kenorland, stated, "We're excited to return to South Uchi following a very successful maiden drill program earlier this year. The initial campaign confirmed widespread gold mineralisation in bedrock across multiple kilometres of strike. Among the most compelling results was along the eastern extent of the target area, where drilling intersected a strongly mineralised and altered shear zone hosting multiple generations of veining, sulphidation, and visible gold-hallmarks of a robust orogenic gold system. The current drill program will step out from this discovery as well as test additional targets concealed beneath thick overburden."
Papaonga Target Area
Figure 2. Regional volcanic assemblages with significant gold deposits and South Uchi Project location
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About South Uchi Project
The South Uchi Project was first identified and staked by Kenorland based on the under-explored region's prospectivity to host significant gold mineralised systems. The Project covers a portion of Confederation Assemblage volcanic rocks, as well as the boundary between the Uchi geological subprovince to the north and the English River geological subprovince to the south. Multiple major east-west striking deformation zones associated with the subprovince boundary transect the Project, resulting in zones of strong shearing and folding of the supracrustal stratigraphy, which are favourable settings for orogenic gold mineralisation. Prior to Kenorland staking the Project, records indicated little to no systematic exploration had been completed, and the land package remained under-explored. 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. (acquired by Kinross Gold and renamed Great Bear Project) highlight the prospectivity of the entire Confederation Assemblage along the southern margin of the Uchi subprovince.
Kenorland announced on December 2, 2024, that it had entered into a definitive agreement with Auranova, granting Auranova the right to earn up to a 70% interest in the Project. Pursuant to the agreement, Auranova may earn an initial 51% interest in the Project by making cash payments totalling $500,000 to Kenorland, completing a diamond drilling program with at least $8,000,000 in qualifying expenditures or completing 15,000 metres of drilling within two years of receiving a drill permit, issuing Kenorland 19.9% of Auranova's common shares, and maintaining Kenorland's 19.9% share position until Auranova raises a minimum of $10,000,000 through share issuances, after which Kenorland's stake will remain at 10% on a pro-rata basis through to the completion of a Preliminary Economic Assessment (the "PEA").
Kenorland has received the $500,000 in cash payments and currently holds 9,242,267 common shares of Auranova and confirms that Auranova has now earned a 51% ownership interest in the Project (see press release dated July 2, 2025). Further, Auranova may earn an additional 19% interest, for a total of 70%, by incurring an additional $10,000,000 in qualifying expenditures on or before the third anniversary of Auranova's election to proceed with the second option. Kenorland will also retain a 30% carried interest in the Project through to the completion of the PEA, at which point a joint venture will be formed.
Kenorland also holds a 2% net smelter return royalty on the Project (see press release dated September 16, 2024).
Qualified Person
Janek Wozniewski, B.Sc., P.Geo. (EGBC #172781, APEGS #77522, EGMB #48045, PGO #3824, APEGNB #8348), Vice President of Operations at Kenorland, a "Qualified Person" under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
About Kenorland Minerals
Kenorland Minerals Ltd. (TSXV: KLD,OTC:KLDCF) is a well-financed mineral exploration company focused on project generation and early-stage exploration in North America. Kenorland's exploration strategy is to advance greenfields projects through systematic, property-wide, phased exploration surveys financed primarily through exploration partnerships including option to joint venture agreements. Kenorland holds a 4% net smelter return royalty on the Frotet Project in Quebec which is owned by Sumitomo Metal Mining Canada Ltd. The Frotet Project hosts the Regnault gold system, a greenfields discovery made by Kenorland and Sumitomo Metal Mining Canada Ltd. in 2020. Kenorland is based in Vancouver, British Columbia, Canada.
Further information can be found on the Company's website www.kenorlandminerals.com.
On behalf of the Board of Directors,
Zach Flood
President, CEO & Director
For further information, please contact:
Alex Muir, CFA
Corporate Development and Investor Relations Manager
Tel +1 604 568 6005
info@kenorlandminerals.com
Cautionary Statement Regarding Forward Looking Statements
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269387
