Silk Road To Acquire More Gold Properties at Kirkland Lake
Calgary, April 20, 2022 - Silk Road Energy Inc. (TSXV: SLK.H) reports that it is expanding its footprint in the Kirkland Lake mining camp through an option agreement to acquire a property known as the Grenfell-Four Nations gold property.
The agreement enables Silk Road to earn a 100 percent interest in five claim blocks comprising 5.2 square kilometres in the Grenfell Township located approximately 8.5 kilometres due west from the Macassa Mine near Kirkland Lake, Ontario.
The claims, known as the Four Nations-Grenfell property, host multiple gold occurrences according to historical work files submitted to the Ontario Government. There has also been drilling conducted on the property that intersected gold mineralization.
This transaction is considered arms-length in which Silk Road Energy will pay a private exploration company $50,000 in cash over three years and issue a total of two million shares.
The shares are paid over two years: one million payable upon closing and 500,000 shares each to be issued on the first and second anniversaries of the closing date. There are no work commitments on the properties. The agreement is subject to TSX, regulatory and board approvals.
Silk Road Energy will act as sole operator of the exploration program on the claims. The vendor will hold a 1.5% Net Smelter Royalty (NSR) on the Asset. One third of this NSR can be purchased by Silk Road for $400,000.
"We now have a land position that has north-south and east-west boundaries in this prolific gold-producing camp," said Director, Michael Judson.
In 1920, Grenfell Kirkland Gold Mines Ltd reportedly sank two shafts on a mineralized outcrop that assayed 3,274 grams per tonne gold (95.5 oz/t gold) and 166 grams per tonne gold (4.84 oz/t gold) across narrow veins. Two three-ton bulk samples taken in 1920 returned grades of 107 grams per tonne gold (3.11 oz/t gold) and 101 grams per tonne gold (2.96 oz/t gold), respectively.
In 1959, the Hecmac Syndicate, an exploration group, drilled four short-holes which assayed 3.5 grams per tonne gold over 1.07 metres (0.10 oz/t gold over 3.5 feet). Trenching in 1960 by another group reported assay values ranging from 1.7 grams per tonne gold (0.05 oz/t gold) to 16.4 grams per tonne gold (0.48 oz/t gold).
There has also been drilling, trenching and small-scale mining conducted on the adjacent property that intersected significant gold mineralization.
The assays values reported here are not NI 43-101 compliant and were extracted from a report by FR Ploeger in 1997.
Paraphrased From Historical Anconia Resources/Omai Gold Mines Reports:
At the nearby Four Nations property, the property that hosted earlier workings, an exploration shaft was sunk to 25 feet and extended to 536 feet between 1926 and 1928. Levels were established at 125 feet, 250 feet, 375 feet, and 500 feet. Approximately 2500 feet of lateral development was undertaken at this time, mostly on the 500 foot level. The underground workings of the mine are not accessible presently.
10 vein systems have been identified at surface, two of which, the "Allen Veins", were trenched by Four Nations Consolidated Gold Mines in 1934 and were determined at that time to carry gold averaging 8.57 grams per tonne across 2.38 metres for a length of 61metres (source: "Technical Report on the Kirkland Lake Gold Property, Grenfell Township Larder Lake Mining Division, Ontario" by Howard J. Coates M. Sc., P.Geo.).
According to 2014 Anconia news releases, the company sampled 7.81 grams gold per tonne over 7.55 metres from the Allen Veins. Grab samples from the Allen Veins area have yielded results up to 19.0 grams per tonne of gold (Anconia news releases of November 11 and October 23, 2014).
Qualified Person:
Edward Procyshyn, Geo, a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
For more information please contact:
Michael C. Judson, Director,
Silk Road Energy Inc.
T. +1-514-865-5496
Website: www.silkroadenergyinc.com
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