October 5th, 2022, Vancouver, B.C. – Carmanah Minerals Corp. (CSE: CARM), (“Carmanah” or the “Company”) is pleased to announce that it has signed a joint venture (“JV”) agreement with Marvel Discovery Corp. (“Marvel”) (TSX.V: MARV), to earn a 50% interest in the Walker Claims (the “Property”) located in the Athabasca Basin, Saskatchewan (Figure 1). Upon completion of the earn-in by Carmanah, Marvel and Carmanah would each own 50% of the project with Carmanah funding $1.5 million in exploration expenditures, paying $ 400,000 in cash and the issuance of 3.5 million shares and 3.5 million warrants of the Company over a 3-year period.
“We are very excited to have reached an agreement with Marvel Discovery on this project, it is ideally situated along the Key Lake fault which is home to some of the highest-grade Uranium in the world. The project is also directly tied on to Fission and Cameco’s ground which runs along the Key Lake Shear Zone and hosts 10 Uranium showings and multiple EM Targets. This corridor represents a tremendous opportunity in mimicking the success of basement-hosted uranium deposits found on the western side of the Athabasca Basin like NexGen Energy’s Arrow Deposit. Marvel has done a remarkable job advancing the project and we look forward to working with our new partner with the goal of a Tier 1 Discovery,” stated Latika Prasad, Chief Executive Officer of the Company.”
The Walker and KLR Properties lie within the Wollaston-Mudjactic transition zone (WMTZ) of the eastern Athabasca basin, which is host to the highest-grade uranium mines in the world, including:
The WMTZ hosts the highest-grade uranium mines in the world including (Figure 1):
• Cigar Lake1, 50% owned by Cameco, which hosts reserves of 221.6 million pounds (lbs.) of U3O8 at 16.7% U3O8
• McArthur River2, 70% owned by Cameco which hosts reserves of 392 million lbs. of U3O8 at 6.91% U3O8
• Wheeler Project3, 90% owned by Denison Mines which hosts reserves of 109 million lbs. of U3O8 in two deposits averaging 11.23% U3O8.
Regional Geology and Mineralization
In Saskatchewan, uranium deposits have been discovered at, above and up to 300 metres below the Athabasca group unconformity within basement rocks. Mineralization can occur hundreds of metres into the basement or can be up to 100 metres above in Athabasca group sandstone. Typically, uranium is present as uraninite/pitchblende that occurs as veins and semi-massive to massive replacement bodies. Mineralization is also spatially associated with steeply dipping, graphitic basement structures and may have been remobilized during successive structural reactivation events. Such structures can be important fluid pathways as well as structural or chemical traps for mineralization as reactivation events have likely introduced further uranium into mineralized zones and provided a means for remobilization (Jefferson, et al. 2007) (Figure 2).
Marvel still controls 100% of the Highway North and KLR claims (Figure 3). These claim groups straddle the Key Lake fault zone, an important corridor for structurally controlled Athabasca-basin-type uranium deposits. The Arrow deposit4, owned by NexGen Energy, lies along a similar structural corridor as the Marvel properties. The Arrow deposit, which has undergone a positive feasibility study with robust economics contains probable reserves of 239.6 million pounds of U3O8 at an average of 2.37% U3O8 and measured and indicated resources of 256.7 million pounds at an average grade of 3.1% U3O8. The Arrow deposit is the largest undeveloped uranium deposit in Canada.
Mike Kilbourne, P. Geo, an independent qualified person as defined in National Instrument 43-101, has reviewed, and approved the technical contents of this news release on behalf of the Company.
Jefferson, C.W., Thomas, D.J., Gandhi, S.S., Ramaekers, P., Delaney, G., Brisbin, D., Cutts, C., Portella, P., and Olson, R.A. 2007. Unconformity-associated uranium deposits of the Athabasca Basin, Saskatchewan and Alberta. In EXTECH IV: Geology and Uranium Exploration Technology of the Proterozoic Athabasca Basin. Edited by C.W. Jefferson and G. Delaney. Geological Survey of Canada, Bulletin 588, pp. 23–68.
Cigar Lake1: Cigar Lake Operation, Northern Saskatchewan, Canada, Report date March 29, 2016, Prepared by C. Scott Bishop, P.Eng., Alain G. Mainville, P.Geo. and Leslie D. Yesnik, P.Eng.
McArthur River2 : McArthur River Operation, Northern Saskatchewan, Canada, Report date March 29, 2019, Prepared by Linda Bray, P.Eng., Gregory M. Murdoch, P.Eng. and Alain D. Renault, P.Eng.
Wheeler Project3 : Prefeasibility Study Report for the Wheeler River Uranium Project, Saskatchewan, Canada, Effective date September 24, 2018, prepared by SRK Consulting.
Arrow Deposit4 : Arrow Deposit, Rook I Project, Saskatchewan, NI 43-101 Technical Report on Feasibility Study, Effective date February 22, 2021, prepared by Stantec, Wood and RPA.
About Carmanah Minerals Corp.
Carmanah is focused on mineral exploration in Canada. It is currently actively exploring the Loljuh Project located in located in the Omineca Mining Division, British Columbia.
For more information, please refer to the Company’s prospectus dated April 4, 2022, available on SEDAR (www.sedar.com).
On Behalf of the Board of Directors
Chief Executive Officer and Director
Chief Executive Officer and Director
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward-looking statements in this press release relate to, among other things: completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law
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