Kirkland Lake, Ontario–(Newsfile Corp. – November 11, 2019) – RJK Explorations Ltd. (TSXV: RJX.A), (OTC: RJKAF) (“RJK” or “the Company”) has increased its land position surrounding the Company’s Bishop diamond exploration claims near Cobalt, Ontario, in search of the source of the historic 800 Carat Nipissing Diamond.
Over the past 9 months, RJK has conducted research and compiled data on potential kimberlite targets south of Cobalt, Ontario. The results of this work directed RJK to approach key land claim holders, which led to option agreements with prospector Alan Kon, First Cobalt Corp., and Power Group Projects Corp., adding a minimum of 17 potential kimberlite targets for exploration and drilling, while also securing the Kon Kimberlite showing.
The Kon Kimberlite is the only known kimberlite south of Cobalt between the major structural Lake Timiskaming and Montreal River faults. It has never been drilled or properly sampled to determine its diamond potential. Other potential targets on the Kon claims will be drill tested once permitting is obtained. Within the First Cobalt optioned claims lies the Peddie Kimberlite Pipe. Additionally, RJK has staked 177 new claim blocks, comprising some 4,000 hectares in the area.
The Exploration Agreement with Prospector Alan Kon:
The
terms of the Kon Kimberlite Property option are that, to earn 100%
interest in the claim block, RJK will pay $30,000 on signing and issue
250,000 Class A Common Shares to the property vendor, Alan Kon, with a
first-year anniversary payment of $50,000 and 250,000 Class A Common
Shares. A second-year anniversary and final payment will be made up of
$100,000 and 300,000 Class A Common Shares. A 2% Gross Overriding
Royalty (GORR) on the production of diamonds has been granted to the
vendor, which may be purchased, all or in part, by RJK at a rate of
$500,000 for each 0.5% up to 2%. A 2% Net Smelter Return Royalty on the
production of products other than diamonds has been granted to the
vendor except for one legacy claim unit whereby the Net Smelter Return
Royalty is reduced to 1%. The Royalty may be purchased, all or in part
by RJK, at a rate of $250,000 per 0.5% up to 2%.
The Exploration Agreement with First Cobalt Corp:
RJK
has three years to sample and then drill one diamond drill hole on
selected mineral claims held by First Cobalt Corp to earn 50% of the
selected target. In the event RJK elects to continue exploration on any
target subsequent to the first drill hole being completed, RJK will pay
$35,000 and spend $100,000 to earn 100% subject to a 2% GORR, of which
100% can be purchased by RJK for $1,500,000.
The Exploration Agreement with Power Group Projects Corp (“Power”):
The
term of the agreement is for a period of three years from the date of
acceptance. RJK will have the right to identify, sample and drill test
with one diamond drill hole, any identified potential Kimberlite targets
within the Power Group Projects Corp land position (Phase One).
Should
RJK determine to continue following its initial Phase One on any and
each identified target, then RJK and Power would enter into a
Participating Joint – Operating Agreement whereby RJK would have a 60%
interest and Power would have a 40% interest, with RJK being the
operator. RJK would then provide Power with a Phase Two exploration
budget at which time Power will have 60 days to agree to participate.
RJK will place their 60% of the proposed budget into a lawyer’s trust
account for the 60 days until the joint venture is triggered. Should
Power decide not to participate then it will be reduced to a carried
1.5% GORR. One half (50%) of the 1.5% GORR can be purchased by RJK for
$1,000,000. If RJK finds mineralized zone(s) other than a kimberlite,
the structure of the agreement will be 50% RJK and 50% Power with being
the operator. Power would then provide RJK Explorations with a Phase Two
exploration budget at which time RJK will have 60 days to agree to
participate. Power will place their 50% of the proposed budget into a
lawyer’s trust account for the 60 days until such time the joint venture
is triggered.
Should
RJK decide not to participate, then it will be reduced to a carried
1.5% NSR of which one half (50%) of the 1.5% NSR can be purchased by
Power for $1,000,000. Should Power as operator decide not to participate
then they will be reduced to a carried 1.5% NSR of which one half (50%)
can be purchased by RJK for $1,000,000. Subject to Phase Two
exploration by RJK, a 2-kilometer area of interest surrounding the
identified kimberlite, subject to claim availability, would be made
available for exploration and development by Power.
Exploration Update
On
February 5, 2019, RJK acquired the Bishop diamond exploration claims
south of Cobalt, Ontario. The Company drilled 5 short diamond drill
holes on two targets in February and March of 2019. The results of the
diamond drilling indicated a unique rock formation overlying the granite
in three of the holes that were sent for thin section analysis at
Lakehead University. The results came back indicating that it was a
granite breccia without mantle materials present. This target will be
revisited when the data from the indicator sampling, SGH sampling, and
new geophysics has been received, and on the advice of the consultants
who reviewed the core and existing data.
In
the summer, RJK continued its extensive kimberlite indicator mineral
sampling program, and sent those samples for chemical analysis to better
define its potential kimberlite targets. The Company completed detailed
airborne drone magnetic surveys on its targets while it negotiated the
property deals with the neighbouring companies. RJK gathered soil
samples for SGH testing, to help prioritize targets, in an effort to
reduce drilling costs. Once RJK receives all its sampling results,
potential Kimberlite targets will be ranked for drilling. These targets
are either on the RJK claims or the First Cobalt/Power Group claims.
A
detailed airborne magnetic survey is currently being prepared for the
Kon claims to better define other potential targets on the claim block.
Drill permitting applications have been filed with the Ministry for
diamond drilling.
William
MacRae P.Geo., a qualified person as defined by National Instrument
43-101, is the qualified person responsible for reviewing and approving
the technical contents of the news release.
Neither
the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This
news release includes certain forward-looking statements, which may
include, but are not limited to, statements concerning future mineral
exploration and property option payments. Any statements contained
herein that are not statements of historical facts may be deemed to be
forward-looking, including those identified by the expressions “will”,
“anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”,
“propose” and similar expressions. Forward-looking statements involve
known and unknown risks and uncertainties that could cause actual
results, performance, or achievements to differ materially from those
expressed or implied in this news release. Factors that could cause
actual results to differ materially from those anticipated in this news
release include, but are not limited to, the financial resources of the
Corporation being inadequate to carry out its stated plans. RJK assumes
no obligation to update the forward-looking statements or to update the
reasons why actual results could differ from those reflected in the
forward-looking statements except as required by applicable law.
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