Kenorland Minerals begins drilling at O'Sullivan

Executive Summary

• Kenorland Minerals Ltd. has commenced drilling at its O'Sullivan project in Quebec, marking the first test of a target area defined by five years of systematic exploration.
• The fall 2025 exploration program is fully funded by partner Sumitomo Metal Mining Canada Ltd. with a budget of $1.72 million, aiming to complete up to 2,925 metres of diamond drilling by early December.
• The drilling campaign targets strong geophysical anomalies (chargeability and conductivity) coincident with interpreted structures and lithological contacts, specifically looking for orogenic gold mineralization within the Abitibi greenstone belt.

Key Details

• Drilling Program: Up to 2,925 metres of diamond drilling.
• Budget: $1.72 million approved by Sumitomo for the fall 2025 program.
• Timeline: Drilling activities expected to conclude by early December 2025.
• Target Geology: The program focuses on interpreted structures and coincident geophysical anomalies within a folded sequence of mafic volcanic and mafic-ultramafic intrusive rocks.
• Geophysical Work: Recent infill till sampling and induced polarization (IP) survey identified strong, discrete chargeability and conductivity anomalies.
• Historical Context: The target area was defined through five years of exploration, including geochemical surveys (2020-2021), airborne electromagnetic surveys, and detailed mapping (2023).
• Project Location: O'Sullivan project covers 27,587 hectares along the Casa Berardi deformation zone (CBDZ) in Quebec, approximately 50 km east of Lebel-sur-Quevillon.
• Partnership Terms:
  • Sumitomo holds an option to earn an initial 51% interest by incurring $4.9 million in exploration expenditures within three years ($1.2 million guaranteed in the first three years).
  • Kenorland acts as operator, receiving a 15% management fee of total expenditures during the first earn-in period.
  • Sumitomo may earn an additional 19% (total 70%) by delivering a NI 43-101 compliant feasibility study disclosing at least 1.5 million ounces of gold (or gold equivalent) in measured and indicated categories within seven years.
  • Kenorland retains a 4% net smelter return (NSR) royalty.
• Regional Significance: The CBDZ hosts major deposits including Casa Berardi (2+ million ounces produced), Douay, and Nelligan.

Notable Quotes

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