Kenorland and Auranova complete drilling at South Uchi Project, Ontario

Kenorland Minerals Ltd. [TSXV: KLD; OTCQX: KLDCF; FSE: 3WQ0] and Auranova Resources Inc. have completed the 2025 winter drill program at the South Uchi project, located in the Red Lake district of northwestern Ontario.

2025 winter drill program: The maiden drill program consisted of 27 diamond drill holes totalling 14,363 metres, testing the Papaonga target over an 8 km by 3 km area, within the large gold-in-till and heavy mineral concentrate gold grain anomalies, underlain by bedrock mineralization consisting of quartz-sulphide veins and disseminated sulphide. Widely spaced drill fences, roughly 500 metres to greater than one km apart, were designed to test interpreted structural corridors concealed by deep overburden and Papaonga Lake. Complete assay results are expected to be reported in late second quarter or early third quarter 2025.

Papaonga target: This program marks the first ever drilling at the Papaonga target, following four years of systematic exploration. Prior to this work, no historical drilling or documented gold occurrences had been recorded within the target area.

Drilling targeted three principal areas: the sheared margin of the Papaonga diorite, northeast-trending shear zones transecting folded clastic sedimentary rocks with interbedded iron formation and folded volcanic stratigraphy beneath Papaonga Lake cut by northeast- to east-west-trending shear zones. Although mineralization is present within the completed holes, it does not necessarily indicate economically significant gold grades.

Next steps: Following the completion of the 2025 winter drill program at the project, Kenorland will maintain the camp and infrastructure at Papaonga for an additional three months in preparation for a potential subsequent summer drill program.

The South Uchi project was first identified and staked by Kenorland based on the underexplored region’s prospectivity to host significant gold mineralized 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 mineralization.

Prior to Kenorland staking the project, records indicated little to no systematic exploration had been completed, and the land package remained underexplored. The majority of gold deposits in the Red Lake district (Red Lake, Madsen, Hasaga and others) is 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 December 2, 2024 that it had entered into a definitive agreement with Auranova, granting Auranova the right to earn an up to a 70% interest in the project. Under 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 million 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 million 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.

Kenorland has received the $500,000 in cash payments and currently holds 9,242,267 common shares of Auranova. Further, Auranova may earn an additional 19% interest, for a total of 70% interest in the project, by incurring an additional $10 million in qualifying expenditures by 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.

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 greenfield discovery made by Kenorland and Sumitomo Metal Mining Canada Ltd. in 2020.