Gold Junior Intersects High-Grade at Regnault


The Important Investor sits down with Kenorland Minerals CEO Zach Flood to debate the corporate’s newest exploration outcomes from its Regnault gold venture in Qubec.

Kenorland Minerals Ltd. (KLD:TSX.V; 3WQO:FSE) retains increasing and discovering new mineralized constructions at its Regnault goal, a part of its Frotet venture in Québec, which is a part of the 20/80 joint-venture (JV) with Sumitomo Metallic Mining Co. Ltd. (STMNF:OTCPK) the place Kenorland is the operator.

After saying the second 25-hole batch of its 57-hole, 17,792-meter 2021 summer-fall drill program, it’s clear that Regnault comprises a substantial gold system, unfold out over a number of vein constructions.

A just lately accomplished 2022 winter drill program at Regnault, with assays pending, indicated the invention of further veins. Administration is pleased with the outcomes.

“The final remaining outcomes from the 2021 drill program proceed to display the distinctive high-grade nature of the Regnault gold system, together with probably the most important intercept at R2 thus far. Now we have additionally accomplished the 2022 winter drill program, which concludes the fiscal 2021 price range cycle,” Kenorland Minerals CEO Zach Flood stated.

He added: On this program we pushed drilling southward properly past the R1 veins and intersected a collection of further parallel shear veins at depth. The importance of this growth can’t be understated because it confirms the potential for added vein discoveries inside the intrusive complicated. We anticipate the 2022 fiscal price range to be finalized in direction of the tip of the month and we look ahead to persevering with our development of this exceptional gold discovery.”

Let’s take a look at the place these newest outcomes and discoveries rank within the general story of Regnault.

In addition to this, Kenorland additionally acquired assays again for its Healy venture, commenced drilling at its Chicobi venture, and really just lately optioned out the Separation Lithium venture.

The present batch of 25 drillholes (totalling 7,968 meters) follows the beforehand reported batch of outcomes of 32 drillholes (9,824 meters) of the 2021 summer-fall drill program accomplished in October 2021.

This drill program was designed to systematically take a look at alongside strike and the down-dip extensions of the R1, R2 East and R2 West mineralized constructions at Regnault.

The just lately accomplished winter drill program seemed for brand spanking new potential constructions/mineralization, and though outcomes are pending, the R3, R4 and R5 constructions might be recognized based mostly on visible inspection of the core, which confirmed visible gold in a number of cases.

Alongside the R1 pattern, highlights of the summer time/fall program included:

  • Gap 21RDD089 stepped out 60 meters down-dip from among the finest holes at R1 thus far 21RDD024 (5.72 meters at 90.56 grams per tonne gold [90.56 g/t Au]) and intersected 6.21 meters at 3.75 g/t Au from 140 meters, together with 0.6 meter at 30.20 g/t Au.
  • Drillhole 21RDD094 stepped out 80 meters down-dip from wonderful gap 21RDD056A (15.4 meters at 17.96 g/t Au*) and intersected 0.92 meter at 22.04 g/t Au from 247 meters. 
  • Gap 21RDD100 stepped out 80 meters down-dip from 21RDD074 (3.45 meters at 17.53 g/t Au*) and intersected the most effective gap on this batch, containing 6.88 meters at 23.79 g/t Au from 349 meters, together with 2.60 meters at 60.77g/t Au.
  • Drillhole 21RDD105 returned 2.5 meters at 11.15 g/t Au from 40 meters, together with 0.30 meter at 84.6 g/t Au close to the highest of the opening alongside a separate construction 200 meters north of R1 and 50 meters alongside strike from 20RDD021A (2.66 meters at 33.69 g/t Au).  
  • Gap 21RDD109A stepped out 75 meters down-dip of 21RDD032 (4.87 meters at 3.80 g/t Au) and intersected 17.75 meters at 1.26 g/t Au from 223 meters, together with 2.5 meters at 3.92 g/t Au.

These outcomes affirm and progressively prolong the mineralized zone over 950 meters of strike size, to depths of 350 meters, coming from 750 meters alongside strike and depths of 330 meters. The next lengthy part of R1 signifies this construction:

This ends in an up to date, very back-of-the-envelope estimate on the Regnault constructions, with a median grade* thickness (or GT as Kenorland calls it) of 5×5 = 25, and arrives for R1 at 950 x 250 x 5 x 2.75 = 3.27 million tonnes (3.27 Mt). At a median “guesstimated” grade of 5 g/t Au, this may imply a hypothetical 525,000 oz gold.

Mineralized constructions transect each the multiphase Regnault intrusive complicated and surrounding volcanic rocks and are outlined by zones of moderate-strong pressure, biotite-calcite ± silica-chlorite alteration and disseminated pyrite (regionally starting from 3-10%). Excessive-grade intercepts are characteristically shear-hosted, laminated quartz-carbonate-pyrite veins, usually haloed by variably deformed extensional stockwork quartz veining regionally, containing as much as 20% pyrite together with hint chalcopyrite, Au/Ag tellurides and visual gold.

In addition to R1, outcomes additionally got here in for the R2 construction. At R2 West, gap 088 intersected a slim however nonetheless spectacular 1.77 meters at 117.86 g/t Au, and is 80 meters east of step-out gap 082A, which returned 1.6 meters at 28.34 g/t Au.

Gap 085 returned 0.6 meter at 48 g/t Au, 30 meters up-dip of 082A. Mineralization for the R2 construction now has a strike size of 950 meters, and extends to 350 meters depth — this might point out a again of the envelope guesstimate of 700 x 200 x 2 x 2.75 = 770 Kt, at a median guesstimated grade of 9 g/t Au, is a hypothetical 223 Koz Au. This brings the full guesstimated mineralized envelope to 748 Koz Au.

Not included are the R3, R4 and R5 vein constructions, so in my opinion Kenorland might already be approaching 1Moz Au right here.

Mineralization is present in stacked, shallow north-dipping extensional kind quartz veins (R2 West) and steeply north-dipping shear hosted quartz-carbonate veins (R2 East).

Common mineralization for present constructions seems to be otherwise oriented (shallow and steeply dipping, some stacked, some particular person) vein stockworks, which seems to be fairly complicated (though Regnault isn’t as complicated as most, the veins are comparatively constant when it comes to strike and dip):

Holes like 22RDD129 (included within the winter drill program, assays anticipated again in two months) point out the potential of latest veins at depth, so the Regnault vein constructions might run a lot deeper, considerably similar to the close by Troilus deposits, which I mentioned in one other article about Kenorland.

It appears by the schematic fashions supplied within the information launch as if the mineralized veins run outdoors the intrusive complicated as properly, so I requested if administration is concentrated fully on the intrusive complicated, or appears outdoors it as properly. CEO Zach Flood answered, “Now we have discovered, and there’s nice potential for, gold mineralization within the volcanics surrounding the intrusive complicated.”

As Flood indicated in my earlier interview with him, Kenorland continues to step-out alongside strike however its focus is absolutely extra on deeper step-outs down plunge of potential high-grade shoots.

The corporate is seeking to drill extra aggressive step-outs down dip. I puzzled how a lot deeper would the corporate goal for its subsequent drill program (it drilled to 500 meters depth in the course of the winter program), and what number can be aimed toward infill holes versus step-outs at depth.

Flood stated: “The following section of exploration might be targeted on wide-spaced step-outs alongside the brand new vein discoveries to the south of, and parallel to, the R1 pattern, together with R5 and the three further veins we found with gap RDD129. We can even see step-outs alongside R4 to the north, the R2 pattern, in addition to testing completely new targets to the south of R3.”

This wraps up the outcomes from Regnault, let’s see what different tasks Kenorland is engaged on lately.

Relating to the Healy Undertaking, Alaska, optioned from Newmont Corp. (NEM:NYSE), a 5,200-meter maiden diamond drill program has been accomplished, and outcomes had been introduced on April 1. A map indicating the three foremost targets could be seen right here:

Outcomes weren’t very spectacular, however take into accout it’s nonetheless early days at Healy.

Gap 019, the most effective intercept drilled on the Thor goal, returned 13.38 meters at 1.22 g/t Au from 20.2 meters. This was carefully adopted by gap 017, a 250-meter step-out, assaying 11.9 meters at 1.29 g/t Au from 118.9 meters.

Though width and grade look comparable, the depths range significantly, and as Healy represents disseminated sulphide, vein-hosted sulphide and breccia-fill sulphide types of mineralization, chances are high that these two outcomes aren’t referring to the identical gold construction. Here’s a full desk of outcomes:

  

CEO Zach Flood wasn’t sad about this primary spherical of drilling:

“The maiden diamond-drill program confirmed the presence of a large-scale gold system at Healy evidenced by broad mineralization encountered all through the wide-spaced drilling throughout a number of goal areas. Whereas there are lots of indications that Healy represents a big greenfields gold discovery inside ’s prolific Goodpaster Mining District, it’ll require further drill testing to totally consider the financial potential. We are going to present an replace on our exploration plans going ahead after now we have accomplished an in depth assessment of the outcomes and targets with Newmont, which presently holds a 30% collaborating curiosity in Healy.”

It might be nice in fact if Kenorland would discover one other Pogo (8 Moz Au) or Naosi (1.5 Moz Au) deposit, to call a number of examples of main deposits within the area. After finishing induced-polarization (IP) and magnetotellurics (MT) surveys, administration has excessive hopes of discovering mineralization at depth, however it will require deep and expensive drilling, as could be seen in these sections:

As there are sturdy and important chargeability and conductivity anomalies at depth, and gold mineralization and alteration happens over a 4 by 2-kilometer footprint, administration anticipates the potential presence of an intensive gold system.

One other essential venture for Kenorland is Tanacross, additionally in Alaska. In depth soil sampling program has been completed, a 5-kilometer IP and MT survey had been accomplished, and an airborne magnetics survey was flown over a number of targets.

As surveys and consequent assays had been delayed, and drilling placed on maintain, I used to be questioning if the assays had been acquired from the labs. CEO Flood answered, “Sure, all assays have been acquired from the 2021 summer time soil program. Now we have recognized a really compelling goal, which we are going to present extra data on within the close to future.  There’s a excessive chance we might be drilling the venture this summer time.”

Kenorland additionally accomplished a VTEM survey on the Hunter venture in Québec [optioned to Centerra Gold Inc. (CG:TSX; CADGF:OTCPK)], and a LiDAR survey and mapping at South Uchi, which was optioned to Barrick Gold Corp. (ABX:TSX; GOLD:NYSE).

A property-wide sonic drill-for-till program at Hunter might be carried out in 2022.

At South Uchi, Barrick will comply with up on the 2021 property-wide until geochemical survey with additional exploration. Extra particulars on these tasks might be introduced within the coming weeks.

Since until sampling, boulder prospecting, and airborne magnetics had been accomplished at Deux Orignaux (a part of Kenorland’s Chebistuan venture) and crews had been getting ready for an IP survey final time we spoke, I puzzled if the IP survey had already been accomplished and if there can be additional concentrating on. CEO Flood answered, “We’re nonetheless ready on the ultimate IP information. As soon as now we have that in hand and have accomplished our concentrating on, we are going to suggest a program and price range to Newmont.”

Drone magnetics, IP and EM had been accomplished at Chicobi in January, and concentrating on and allowing had been accomplished in March, ensuing within the graduation of drilling on April 4. Kenorland introduced a small 2,000-meter diamond drill program over 4 holes, testing a 1.5 x 3-kilometer until anomaly.

Chicobi is one other instance of the deployment of intensive sonic “drill-for-till” sampling of glacial tills under cowl. The outcomes of those sampling packages have indicated a significant contact between sedimentary rocks together with iron formation and sericite-chloritoid altered mafic volcanic rocks. Drone based mostly aeromagnetic and ground-based IP and EM geophysical surveys carried out at Goal B in November and December of 2021 have recognized areas of sturdy chargeability and conductivity coincident and adjoining to a distinguished jog in strongly magnetic sedimentary stratigraphy.

An preliminary drill take a look at totalling 2,000 meters of drilling alongside one fence is presently underway to check the strongest of the geochemical anomalies. The fence is designed to cross all beneficial stratigraphic horizons and elevated chargeability, magnetic and conductive geophysical responses.

The Chicobi Undertaking is held beneath an earn-in choice to JV settlement with Sumitomo the place it has the choice to earn as much as a 51% curiosity by funding CA$4.9M in exploration work. Some 2,000 meters of drilling are anticipated to be accomplished in mid-April, and the outcomes are anticipated from the lab inside 2-3 months.

On a closing word, Kenorland optioned its Separation Lithium venture in Ontario to privately held Double O Seven Sources Ltd., which has the choice to amass a 100% curiosity. The staking prices for Kenorland had been CA$100,000 so the preliminary cost of CA$100,000 by Double O covers the acquisition value for Kenorland — all else is risk-free upside.

Such flipping of property could be fairly worthwhile, as complete funds over 5 years would account for CA$1.5M. Kenorland retains a 2.5% web smelter return royalty, stays the operator and receives a ten% administration price on any exploration expenditures.

The Separation Lithium venture is on pattern with the massive Tanco lithium-caesium-tantalum pegmatite deposit (owned by Sinomine Useful resource Group Co. Ltd., a Chinese language large), however can be positioned on to the north and east of Separation Rapids held by Avalon Superior Supplies Inc. (AVL:TSX; AVL:NYSE; AVARF:OTCQX).

The treasury presently stands at about CA$8M, and the thought of administration is to spend round $5M of this on exploration advancing its personal tasks, together with funding its joint-venture dedication at Frotet, additional exploration in Alaska, and extra generative exploration, together with advancing tasks in Manitoba. The income generated from its operations, together with administration charges in addition to money and fairness acquired from companions, will greater than cowl its G&A.

Conclusion

The Regnault venture appears to be shaping as much as grow to be fairly a considerable gold system after the second batch outcomes got here in — as my back-of-the-envelope guesstimate signifies potential as much as 1Moz Au. Kenorland Minerals remains to be ready for JV associate Sumitomo to approve its price range for one more in depth drill program at Regnault, and that is due any day now. Outcomes for the just lately accomplished 10,000-meter program at Regnault are anticipated to come back again in two months. Healy did disappoint me considerably, though it’s nonetheless early days; it’s a very massive system and with a number of deep geophysical anomalies to drill. For now, Kenorland is specializing in drilling at Chicobi, let’s see if the profitable reconnaissance exploration may end up in financial intercepts.

I hope you’ll discover this text fascinating and helpful, and may have additional curiosity in my upcoming articles on mining. To by no means miss a factor, please subscribe to my free e-newsletter at www.criticalinvestor.eu, to be able to get an e mail discover of my new articles quickly after they’re revealed.

This text can be revealed on www.criticalinvestor.euTo by no means miss a factor, please subscribe to my free e-newsletter, to be able to get an e mail discover of my new articles quickly after they’re revealed.

All introduced tables are my very own materials, except acknowledged in any other case.

All photos are firm materials, except acknowledged in any other case.

All currencies are in US {Dollars}, except acknowledged in any other case.

Please word: the views, opinions, estimates, forecasts or predictions relating to Platinex’s useful resource potential are these of the writer alone and don’t symbolize views, opinions, estimates, forecasts or predictions of Platinex or Platinex’s administration. Platinex has not in any approach endorsed the views, opinions, estimates, forecasts or predictions supplied by the writer.

The Important Investor is a e-newsletter and complete junior mining platform, offering evaluation, weblog and newsfeed and all kinds of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/venture administration. Quantity cruncher at venture economics, in search of high-quality corporations, largely progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and sometimes in search of long-term deep worth. Getting burned previously himself at junior mining investments by following overly optimistic sources that as a rule averted to say (hidden) dangers or vital flaws, The Important Investor realized his lesson properly, and goes a number of steps additional ever since, offering a recent, extra in-depth, and significant imaginative and prescient on issues, therefore the title.

The writer isn’t a registered funding advisor, and has a protracted place on this inventory. Tectonic Metals is a sponsoring firm. All details are to be checked by the reader. For extra data go to www.tectonicmetals.com and browse the corporate’s profile and official paperwork on www.sedar.com, additionally for essential danger disclosures. This text is supplied for data functions solely, and isn’t meant to be funding recommendation of any sort, and all readers are inspired to do their very own due diligence, and discuss to their very own licensed funding advisors prior to creating any funding choices.


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