Kenorland options South Uchi to Barrick

Kenorland Minerals says Barrick Gold can acquire up to 80% of its new South Uchi project in Ontario’s Red Lake district under an agreement announced yesterday.

Staff reporter
 Kenorland Minerals’ assets in Ontario and Quebec

Kenorland Minerals’ assets in Ontario and Quebec

The deal follows Barrick president and CEO Mark Bristow telling Mining Journal last week: "Barrick has rediscovered Canada and we're investing."

Barrick could earn the initial 70% by spending C$6 million on exploration within six years, establishing a minimum 1 million ounce gold resource and reimbursing Kenorland for its sunk costs on the project.

Barrick could earn a further 10% by sole-funding a feasibility study before the 10th anniversary of the agreement, the junior said.

South Uchi has gold and lithium prospectivity, according to Kenorland.

It had acquired the "district-scale" property in April through staking and an option agreement with a private company.

The Barrick option marks Kenorland's latest deal with a mining major.

In Quebec, it's optioned its Chebistuan project to Newmont and its Chicobi project to Sumitomo Metal Mining Canada and has a joint venture with Sumitomo at Frotet.

In Alaska, it can earn up to 70% of Newmont's Healy project and owns the Tanacross copper-gold project.

It started the year with more than $9.5 million in cash after a $10 million private placement as part of its reverse takeover of Northway Resources.

Kenorland listed on the TSX Venture Exchange (TSXV: KLD) in mid-January and its shares have since ranged between 65c-$1.75.

They closed up 1.4% yesterday at 71c, capitalising it at $33 million (US$26 million).

Barrick gained 2% to close at $23.85, valuing it at $42 billion (US$33 billion).

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