PRECIOUS METALS

Kenorland surges on Sumitomo earn-in and high-grade gold results

Shares in Kenorland Minerals surged yesterday as the explorer announced Sumitomo Metal Mining had earnt 80% of the pair’s Frotet gold project in Quebec, along with drilling results including 5.72m at 90.56g/t gold.

 Visible gold in core from drilling at Kenorland Minerals and Sumitomo’s Frotet JV in Quebec

Visible gold in core from drilling at Kenorland Minerals and Sumitomo’s Frotet JV in Quebec

Sumitomo's earn-in was completed well ahead of a November expenditure deadline.

The headline intercept also included 3.89m at 132.57g/t, while another hole intersected 25.33m at 6.29g/t.

The latest drilling was following up mineralisation identified during last year's discovery of the Regnault gold system. 

"This discovery continues to deliver high-grade gold intercepts, indicating the robust nature of the system," Kenorland CEO Zach Flood said yesterday.

Kenorland is contributing to Frotet exploration on a 20% basis and will remain operator of the joint venture. 

It had more than C$9.5 million in cash in January, having raised $10 million in a placement as part of its reverse takeover of Northway Resources and debut on the TSX Venture Exchange the same month.

The next exploration phase at Frotet is set to start in July and include up to 20,000m of diamond drilling.

Frotet is adjacent to the past-producing Troilus gold-copper mine.

Sumitomo has an option on another Kenorland project in Quebec, Chicobi, while gold major Newmont has an option on Chebistuan.

Kenorland's other key projects are in Alaska - 100%-owned Tanacross and Healy where it can earn 70% from Newmont.

Kenorland also acquired the "district-scale" South Uchi project in Ontario last month, through a combination of staking and an option agreement with a private company.

Its shares (TSXV: KLD) have so far ranged from 70c-$1.75.

They closed up 25.7% yesterday to $1.27, capitalising it at $58.3 million (US$48 million).

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