KTRI Kootenay Resources Inc

VANCOUVER, BC, May 15, 2024 /CNW/ - Rokmaster Resources Corp. (TSXV: RKR) (OTCQB: RKMSF) (FSE: 1RR1) ("Rokmaster" or "RKR") and Kootenay Resources Inc. (TSXV: KTRI) ("Kootenay Resources" or "KTR") are pleased to announce the finalization of a letter of intent ("LOI") between the Companies for the road accessible Fox-Coconut and  Mystery Properties, which are both located south of Highway 16 between Prince George and Smithers in west-central British Columbia (the "Nechako Project") (Figure 1).

The Nechako Basin region in central British Columbia is host to several significant past producers and current development projects. The Fox-Coconut Property is south of Centerra Gold's Endako molybdenum porphyry deposit which was in production for nearly 50 years and has a current measured and indicated mineral resource ("M&I") of 169.3 Mt at 0.04% Mo¹. The Equity Silver Mine was another past producer in the region which produced 71 Moz silver, 0.51 Moz gold, and 185 million lbs copper from 33.8 Mt mined between 1981 and 1994². The Blackwater Mine, located south of the Fox-Coconut Property, is currently being constructed by Artemis Gold to begin production on an M&I mineral resource of 11.7 Moz gold and 122.4 Moz of silver later this year³.

The Mystery Property is located northeast of Imperial Metal's Huckleberry Mine which produced over 1.0 billion lbs copper and associated molybdenum, silver, and gold from the 153 Mt mined between 1997 and 2016⁴. Surrounding to the Huckleberry Mine, Surge Copper Corp. is advancing the Berg deposit (M&I 1,009 Mt containing 5.1 billion lbs of copper) and the Ox and Seel deposits (combined M&I 438.6 Mt containing 1.7 billion lbs of copper)⁵. Other explorers in the Mystery Property area include Vizsla Copper Corp., Equity Metals Corp., and Quartz Mountain Resources.

The 4,988 hectare Fox-Coconut Property (Figure 2) is underlain by Eocene Ootsa Lake volcanic rocks in the west where a topographic high exposes fractured and silicified rhyolite volcanics hosting quartz veins and breccias. The Fox Showing area was hand-trenched and channel sampled in 2014 with results up to 45.3 g/t Au and 7,342 g/t Ag over 1.0 m⁶ (Figure 3). The eastern portion of the Property is characterized as a complex assemblage of volcanic and sedimentary rocks which hosts several structurally controlled vein/dyke corridors hosting high-grade gold and silver and coincident base metals. The Coconut Showing area features a broad zone of propylitic alteration with more focused zones of quartz-barite+/-tourmaline, chlorite, magnetite related to northwest trending structures. 

Riocanex was the first documented operator on the Fox-Coconut Property, collecting 2,369 soil samples west of Island Lake in 1983 to test a lake bottom sediment sample anomalous in Ag, Cu, Pb. Since 2011, the Property has been steadily explored by the team at Kootenay Resources, including the Kennedy family, resulting in the collection of 762 soil samples and 985 rock samples. The Fox Showing and immediate area recently received approval for a five year exploration permit allowing for up to 30 diamond drill sites and 30 trenches with associated exploration trails.

The 12,193 hectare Mystery Property is situated over the Shelford Hills, a circular uplifted volcanic block exposing Cretaceous Kasalka Group volcanic rocks intruded by a stock of porphyritic monzonite belonging to the Late Cretaceous Bulkley Plutonic Suite (Figure 4). The Bulkley Plutonic Suite hosts the calc-alkalic porphyry Cu-Mo mineralization at the nearby Huckleberry, Ox, and Seel deposits⁷. 

Historic soil geochemical anomalies for copper, lead, zinc, silver associated with a coincident magnetic high were returned from work completed by previous operators such as Kennco Exploration (1970), BP-Selco (1980's), Canamax (1983), and Noranda Exploration (late 1980's). More recent airborne geophysical surveys were completed by Quartz Mountain Resources in 2012 and Copper Mountain Mining in 2017, but those did not control a key group of claims covering the central area hosting anomalous geochemistry at the time. In 2022, Kootenay Resources conducted a prospecting program collecting 89 rock samples to successfully verify historic results and also identified a brand new showing of breccia-hosted sulphide mineralization associated with a large pyrite±tourmaline alteration zone.      

Field work planned to advance the Nechako Project in 2024 includes detailed geological and geochemical surveys with a possibility for advanced geophysical surveys to refine drill targets. Trenching is planned for the Fox Showing to further expose the 2014 hand trenches with the potential for drill testing shortly after.   

John Mirko, President and CEO of Rokmaster, comments:

"Rokmaster is pleased to enter into this friendly option arrangement with Kootenay Resources to evaluate and advance the Fox-Coconut and Mystery properties. The northern Nechako Basin is home to many past producing deposits with associated infrastructure and is currently seeing a resurgence of development and exploration activity. Our technical team is experienced with the geology and mineralizing systems in this prolific district and eager to refine and test the multiple targets on the Fox-Coconut and Mystery properties."

Jim McDonald, President and CEO of Kootenay Resources, comments:

"The Kootenay team has worked hard over the years to build a highly prospective portfolio of exploration properties in this prolific yet under-explored region of British Columbia. We are excited to welcome the Rokmaster team onto Mystery and Coconut-Fox, both excellent early stage exploration projects. We look forward to watching the projects evolve as Rokmaster sets about their work."

The LOI outlines the terms to be set out in an option agreement (the "Option Agreement") for RKR to be granted an option to acquire a 60% in the Properties by:

• Incurring $142,000 of exploration work on the Properties prior to September 18, 2024;
• Commencing on the first anniversary date of the Option Agreement, issuing to KTR 500,000 common shares of RKR each year on or before each of the first, second, third and fourth anniversary dates of the Option Agreement; and
• On or prior to the fourth anniversary date of the Option Agreement, RKR having completed a total of 10,000 metres of diamond drilling on any or all of the Properties.

Once Rokmaster has acquired the initial 60% interest, (the "Initial Interest"), KTR would grant RKR an exclusive option (the "Second Option") to acquire the remaining 40% interest in the Properties (the "Second Interest") by issuing an additional 5,000,000 common shares of RKR to KTR within 60 days of having acquired the Initial Interest.

Upon RKR acquiring the Second Interest, RKR would grant KTR a 1.5% net smelter returns royalty (the "Royalty") in respect of the Mystery and Coconut group of mining claims.  The Fox group of mineral claims have an existing underlying 2% net smelter returns royalty (the "Underlying Royalty"), and KTR has the right to buy back the entirety of such Underlying Royalty at any time at a price of $500,000 per 0.5% (the "Buy Back Right").  Should KTR buy back the entirety of such Underlying Royalty within 90 days after the date of the commencement of commercial production on the Fox group of claims, then RKR would also grant KTR the Royalty on such claims.  If KTR does not so exercise the Buy Back Right, then KTR would transfer it to RKR.

The LOI is subject to the execution by the parties of a definitive Option Agreement and receipt of all requisite regulatory approvals.

The scientific and technical information presented above has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and reviewed and approved by Jim McDonald, P.Geo. President & CEO of Kootenay Resources Inc., who is independent of Rokmaster and who acts as the Qualified Person for the purpose of this news release. Mr. McDonald is not independent of Kootenay Resources.

On Behalf of the Board of Directors of

Rokmaster Resources Corp.                                Kootenay Resources Inc.
John Mirko,                                                             James McDonald,
President & Chief Executive Officer                       President & Chief Executive Officer.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term in defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This news release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Rokmaster's or Kootenay Resources operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future vents or results or otherwise.

SOURCE Rokmaster Resources Corp.