Palladium One Announces Resource Estimate for Haukiaho Zone, Doubles Endowment at LK Project, Finland

 

Highlights

• Total Mineral Resource Estimates at the LK Project are now:
  • 0.6 million ounces Palladium Equivalent (“Pd_Eq”) of Indicated Resources (1.60 g/t, 11 million tonnes).
  • 1.7 million ounces Pd_Eq of Inferred Resources (1.19 g/t, 44 million tonnes).
• Haukiaho, NI43-101 Pit Constrained Resource Estimate announced.
  • 1.21 million ounces Pd_Eq grading 1.15 g/t in 32.7 million tonnes.
  • Shallow deposit with a low 1:1 strip ratio.
  • Haukiaho is base metal-rich with two-thirds of the value in nickel and copper, whereas Kaukua is Platinum-Group-Elements (“PGE”) rich with two-thirds of the value in palladium and platinum.
  • Resource estimate comprises 3-kilometers of strike length; part of the 17-kilometer long Haukiaho Trend.
  • Two-kilometers of strike extent, immediately east of the Haukiaho Resource Estimate, contains two significant Induced Polarization (“IP”) chargeability anomalies with sufficient historical drilling to potentially be upgraded to Inferred Resources with modest additional drilling.
  • Remaining twelve-kilometers of Haukiaho Trend has not been drill tested by the Company, however, widely spaced historic drilling has demonstrated that the trend is mineralized. This historic drilling provides a high level of confidence for potential additional nickel-copper resources to be delineated.
• Resource definition drilling for the Company’s primary focus area, Kaukua and the Western half of Kaukua South (“Kaukua Area”), has been completed.
  • An updated Kaukua Area NI43-101 Resource Estimate is scheduled at year end.

September 7, 2021 – Toronto, Ontario – Resource definition drilling at the Kaukua Area has been completed and an updated National Instrument (“NI43-101”) compliant Mineral Resource Estimate is scheduled at year end (Figure 1).  Without including an updated Mineral Resource Estimate at the Kaukua Area, today’s addition of a NI43-101 compliant Resource Estimate for the Haukiaho zone (Figure 2) has doubled the Company’s Mineral Resource endowment.  The quality and scale of the Company’s overall resource potential at the LK Project continues to impress, said Palladium One Mining Inc. (“Palladium One” or the “Company”) (TSXV: PDM, FRA: 7N11, OTC: NKORF) today.

Derrick Weyrauch, President and CEO of Palladium One said, “In two short years LK has grown significantly, and we have the next Mineral Resource update at the Kaukua Area scheduled at year end. LK is clearly shaping up to be a globally significant project in a best-in-class mining jurisdiction.  With Finland’s exceptionally well-designed mining and development laws and our existing resources, we believe that LK is well on its way to demonstrating the critical mass needed for a robust mining scenario. Based on the significant number of drill targets still to be tested, we see a tremendous amount of resource expansion potential remaining to be defined.”

Table 1. LK Project Total National Instrument 43-101 Pit Constrained Resource Estimate

Deposit	Class	Tonnes (Mt)	Pd g/t	Pt g/t	Au g/t	PGE (Pd+Pt+Au) g/t	Ni %	Cu %	Co ppm	Pd_Eq*		Spot Au_Eq** g/t	Spot Cu_Eq** %
										g/t	Oz
Kaukua	Indicated	11.0	0.81	0.27	0.09	1.17	0.09	0.15	—	1.60	566,000	1.90	1.17
Kaukua	Inferred	10.9	0.64	0.20	0.08	0.92	0.08	0.13	—	1.31	459,000	1.55	0.96
Haukiaho	Inferred	32.7	0.25	0.10	0.10	0.45	0.13	0.18	53	1.15	1,210,000	1.26	0.78
Total	Inferred	43.6	0.35	0.12	0.10	0.57	0.12	0.17	40	1.19	1,669,000	1.33	0.82

* Pd_Eq calculated using prices from the 2021 NI43-101 Haukiaho Mineral Resource Estimate; $1,600/oz Pd, $1,100/oz Pt, $1,650/oz Au, $3.50 Cu, and $7.50 Ni

** Spot Au_Eq and Cu_Eq is calculated for comparison only, using recent prices, $2,500/oz Pd, $1,000/oz Pt, $1,800/oz Au, $4.25/lb Cu, and $8.50/lb Ni.

• 2019 Kaukua Mineral Resource Estimate used a 0.3 g/t Pd cut off which equates to ~0.6 g/t Pd_Eq using the 2021 Haukiaho Mineral Resource Estimate prices.
• Kaukua Mineral Resource Estimate is previously released (see press release September 9, 2019).

Table 2. Haukiaho National Instrument 43-101 Pit Constrained Inferred Resource Estimate at incremental cut-offs

$ Value Cut-Off ($/t)	Tonnes (Mt)	Pd g/t	Pt g/t	Au g/t	PGE (Pd+Pt+Au) g/t	Ni %	Cu %	Co ppm	Pd_Eq		Cu Eq %	Ni Eq %	Spot Au_Eq* g/t
									g/t	Oz
$15	42.6	0.21	0.09	0.08	0.38	0.12	0.15	54	1.01	1,385,000	0.68	0.32	1.10
$20	37.7	0.23	0.10	0.09	0.42	0.12	0.16	54	1.08	1,310,000	0.72	0.34	1.18
$25	32.7	0.25	0.10	0.10	0.45	0.13	0.18	53	1.15	1,210,000	0.77	0.36	1.26
$30	27.5	0.27	0.11	0.11	0.49	0.14	0.19	54	1.23	1,090,000	0.82	0.38	1.35
$35	22.0	0.29	0.12	0.12	0.53	0.15	0.20	56	1.33	940,000	0.89	0.41	1.45
$40	16.4	0.33	0.13	0.13	0.59	0.16	0.22	59	1.45	765,000	0.97	0.45	1.59

* Spot Au_Eq is calculated for comparison only, using recent prices, $2,500/oz Pd, $1,000/oz Pt, $1,800/oz Au, $4.25/lb Cu, and $8.50/lb Ni.

• Domains were modelled in 3D to separate mineralized rock types from surrounding waste rock.  The domains were modelled based on Pd-equivalent grade continuity above a 0.25 g/t cut-off.
• Raw drill hole assays were composited to 5 m lengths broken at domain boundaries.
• Capping of high grades was considered necessary and was completed for each domain on assays prior to compositing.
• Block grades for gold were estimated from the composites using ordinary kriging interpolation into 10 x 10 x 10 m blocks coded by domain.
• A dry bulk density of 2.0 g/cm3 was used for overburden material. Densities of 2.7 g/cm3, 2.9 g/cm3 and 3.0 g/cm3 were used for basement, gabbro/peridotite/pyroxenite and diabase, respectively.
• Blocks were classified as Inferred Resources in accordance with CIM Definition Standards 2014.
• Blocks were classified into the Inferred Resource category if the block fell within 120 m of a composite.  Due to limitations with QAQC for historic drillholes, the wide-spaced drilling and the early-stage of metallurgical testwork, there are currently no Indicated Mineral Resources.
• The Mineral Resource Estimate is constrained within an optimised pit with a maximum slope angle of 55^°. A slope angle of 45° was used on the south side of the pit. The optimised pit strip ratio is 0.53 (using the $15/t cut-off at which the pit was modelled) and is 0.93 using a $25/t cut-off within the bounds of the $15/t pit envelope.
• Metal prices of $1,650/oz, $3.50/lb, $7.50/lb, $20.00/lb, $1,600/oz and $1,100/oz were used respectively for Au, Cu, Ni, Co, Pd and Pt.  Metallurgical recoveries of 65.2%, 89.2%, 63.7%, 63.7%, 79.8% and 80.1% for Au, Cu, Ni, Co, Pd and Pt were applied respectively. A $15/t value cut-off (equivalent to 0.4 g/t Pd_Eq) was estimated based on estimated total processing and G&A cost of $15/t of ore mined. Block dollar values use both metal prices and metallurgical recoveries.  Palladium One chose to use an elevated cut-off of $25/t (equivalent to 0.6 g/t Pd_Eq) to report the base-case Haukiaho Mineral Resource Estimate.
• Palladium equivalent is calculated using the formula Pd_Eq = Pd + Cu*(Cu% Unit Value/Pd Unit Value) + Ni*(Ni% Unit Value/Pd Unit Value) + Co*(Co% Unit value/Pd Unit Value) + Pt*(Pt Unit Value/Pd Unit Value) + Au*(Au Unit value/Pd Unit Value).  Metallurgical recoveries of 100% are assumed for the Pd-equivalent calculation.
• The contained metal figures shown are in situ.  No assurance can be given that the estimated quantities will be produced.  All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements.  Summations within the tables may not agree due to rounding.
• Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
• The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and there has been insufficient exploration at this stage to upgrade these Inferred Resources to Indicated or Measured Mineral Resources, and it is uncertain if further exploration will result in an upgraded resource category.

Table 3. Kaukua National Instrument 43-101 Pit Constrained Resource Estimate (see press release September 9, 2019)

Class	Tonnes (Mt)	Pd g/t	Pt g/t	Au g/t	PGE (Pd+Pt+Au) g/t	Ni %	Cu %	2019 Pd_Eq*		2021 Pd_Eq**		Spot Au_Eq*** g/t
								g/t	Oz	g/t	Oz
Indicated	11.0	0.81	0.27	0.09	1.17	0.09	0.15	1.80	635,600	1.60	566,000	1.90
Inferred	10.9	0.64	0.20	0.08	0.92	0.08	0.13	1.50	525,800	1.31	459,000	1.55

* Pd_Eq calculated using prices from the 2019 NI43-101 Kaukua Mineral Resource Estimate, $1,100/oz Pd, $950/oz Pt, $1,300/oz Au, $3.00/lb Cu, and $7.00/lb Ni

** Pd_Eq calculated using prices from the 2021 NI43-101 Haukiaho Mineral Resource Estimate, $1,600/oz Pd, $1,100/oz Pt, $1,650/oz Au, $3.50 Cu, and $7.50 Ni

*** Spot Au_Eq is calculated for comparison only, using recent prices, $2,500/oz Pd, $1,000/oz Pt, $1,800/oz Au, $4.25/lb Cu, and $8.50/lb Ni.

• 2019 Kaukua Mineral Resource Estimate used a 0.3 g/t Pd cut off which equates to ~0.6 g/t Pd_Eq using the 2021 Haukiaho Mineral Resource Estimate prices

Figure 1. Historic and current drilling in the Kaukua and Western portion of the Kaukau South area. Background is IP Chargeability.

Figure 2. LK Project location map showing NI43-101 compliant Kaukua and Haukiaho Mineral Resource Estimate along with  IP grids (blue lines). Yellow lines represent Exploration Permits, red lines represent Exploration Permit Applications and Exploration Reservations held by the Company.

Figure 3. Inclined view looking northeast of the Haukiaho geological model showing the western (purple) and eastern (light blue) mineralized wireframes and later cross cutting diabase dyke (green).

Figure 4. Inclined view looking northeast of the Haukiaho Mineral Resource Estimate block model and $15/t cut-off Optimized Whittle Pit Shell.

Figure 5. Cross section, looking west through the Haukiaho block model and $15/t Optimized Whittle Pit Shell.

Palladium Equivalent
Revised price assumptions – The Company is now calculating Palladium equivalent using US$1,600 per ounce for palladium, US$1,100 per ounce for platinum, US$1,650 per ounce for gold, US$3.50 per pound for copper, and US$7.50 per pound for nickel consistent with the calculation used in the Company’s September 2021 NI 43-101 Haukiaho Resource Estimate.

Spot Gold Equivalent
Spot palladium and gold equivalents are calculated using recent spot prices for comparison purposes using US$2,500 per ounce for palladium, US$1,000 per ounce for platinum, US$1,800 per ounce for gold, US$4.25 per pound for copper, and US$8.50 per pound for nickel.

Qualified Person
The Haukiaho National Instrument 43-101 Mineral Resource Estimate was independently prepared by Mr. Julian Aldridge C. Geol. (1014722), a Qualified Person as defined by the National Instrument 43-101 and a Principal Consulting Geologist of Mining Plus UK Ltd.

The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo., Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101

About Palladium One
Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on established NI 43-101 open pit Mineral Resource Estimates.

ON BEHALF OF THE BOARD
“Derrick Weyrauch”
President & CEO, Director

For further information contact: Derrick Weyrauch, President & CEO
Email: info@palladiumoneinc.com

Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release includes “forward-looking information” that is subject to a few assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding listing of the Company’s common shares on the TSXV are subject to all of the risks and uncertainties normally incident to such events. Investors are cautioned that any such statements are not guarantees of future events and that actual events or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements represent management’s best judgment based on information currently available. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions and general business conditions. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those set out in the Company’s annual information form dated April 29, 2020 and filed under the Company’s profile on SEDAR at www.sedar.com. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.

enCore Energy and Azarga Uranium To Combine To Create Leading American Uranium ISR Company

 

CORPUS CHRISTI, Texas, Sept. 7, 2021 /CNW/ – enCore Energy Corp. (“enCore“) (TSXV: EU) (OTCQB: ENCUF) and Azarga Uranium Corp. (“Azarga“) (TSX: AZZ) (OTCQB: AZZUF) (FRA: P8AA) are pleased to announce that they have entered into a definitive arrangement agreement (the “Agreement“) whereby enCore will acquire all of the issued and outstanding common shares of Azarga pursuant to a court-approved plan of arrangement (the “Transaction“). The Transaction consolidates an industry leading pipeline of exploration and development staged in-situ recovery (“ISR“) focused uranium projects located in the United States, including the licensed Rosita & Kingsville Dome past producing uranium production facilities in South Texas, the advanced stage Dewey Burdock development project in South Dakota, which has been issued its key federal permits, the PEA-staged Gas Hills Project located in Wyoming, and a portfolio of resource staged projects throughout the United States. The combined company will possess a uranium resource base of 90.0 million pounds in the measured & indicated category, 9.9 million pounds in the inferred category, as well as 68.4 million pounds in the historic category*. 

Under the terms of the Agreement, Azarga shareholders will receive 0.375 common shares of enCore for each Azarga common share held (the “Exchange Ratio“). The Exchange Ratio implies consideration of $0.71 per Azarga common share based on the closing price of the enCore common shares on the TSX Venture Exchange on September 3rd, 2021.

Additionally, the Exchange Ratio will be subject to an adjustment mechanism at the closing of the Transaction (the “Closing Exchange Ratio“). The Closing Exchange Ratio shall be equal to the greater of: (i) the Exchange Ratio; or (ii) an exchange ratio calculated as $0.54 divided by enCore’s 15-day volume-weighted average price prior to the closing of the Transaction, subject to a maximum Closing Exchange Ratio of 0.49 common shares of enCore for each share of Azarga outstanding.

Transaction Highlights

• Creation of a top-tier American uranium ISR mining company with multiple assets at various stages of development;
• Two licensed ISR production facilities and multiple potential satellite exploration and development projects in South Texas;
• Advanced stage Dewey Burdock development project in South Dakota with key federal permits issued;
• Recently published preliminary economic assessment for the Gas Hills project in Wyoming;
• Large uranium resource endowment in New Mexico including the Marquez-Juan Tafoya project, for which a recent preliminary economic assessment was published and the Crownpoint and Hosta Butte project;
• Well positioned to benefit from America’s nuclear renaissance, which boasts bi-partisan political support; and
• Management team and board with unrivaled experience in the permitting, development, and mining of ISR uranium deposits in the USA.

Paul Goranson, CEO of enCore, commented: “enCore is delighted to combine our assets with those of Azarga. Dewey Burdock is an excellent ISR uranium project and we look forward to building upon Azarga’s successes to create additional value through development progress and eventually production. In addition to the execution of plans for near term production in Texas and a dominant mineral position in New Mexico, this combination will see enCore take another leap forward towards realizing the goal of becoming a larger and more diversified uranium development company during a time of positive sentiment for nuclear energy.”

Blake Steele, President & CEO of Azarga, further added: “We are pleased to partner with enCore as a result of this transaction, while realizing a material premium for shareholders in the process. Scale is important in the natural resource sector and this transaction will position the new company among the top uranium miners based in the USA. enCore possesses a great depth of uranium development and mining experience within its management team and board of directors. As such, we are confident that the combined portfolio will be in good hands for the benefit of both sets of shareholders.”

William Sheriff, Executive Chairman of enCore, stated: “This strategic acquisition fills the gap in enCore’s pipeline of projects with key intermediate development opportunities in Wyoming and South Dakota, in between initial production in Texas and longer-term opportunities in New Mexico.  This second major acquisition for enCore within the last 12 months is in keeping with our announced aggressive M&A strategy which was successfully employed at Energy Metals Corp, which was sold for $1.6 billion during the last cycle.  Consolidation in conjunction with an elite operational team are the keys to success in building a leading US ISR company.”

Transaction Details

Pursuant to the terms of the Agreement, all of the issued and outstanding common shares of Azarga will be exchanged for common shares of enCore at the Closing Exchange Ratio. Outstanding and unexercised warrants and stock options to purchase common shares of Azarga will be adjusted in accordance with their terms based on the Closing Exchange Ratio.

The Agreement includes standard deal protection provisions, including non-solicitation, right-to-match, and fiduciary out provisions, as well as certain representations, covenants and conditions that are customary for a transaction of this nature, along with a termination fee of $4 million payable to enCore in certain circumstances.

The proposed Transaction will be effected by way of a plan of arrangement completed under the Business Corporations Act (British Columbia). The Transaction will require approval by at least 66 2/3% of the votes cast by Azarga shareholders and, if required by Multilateral Instrument 61-101, a simple majority of the votes cast by Azarga shareholders excluding certain interested or related parties, in each case by shareholders present in person or represented by proxy at a special meeting of the shareholders of Azarga to be called in connection with the Transaction (the “Azarga Special Meeting“).

The Azarga Special Meeting is expected to be held in October or November 2021. An information circular detailing the terms and conditions of the Transaction will be mailed to the shareholders of Azarga in connection with the Azarga Special Meeting. All shareholders are urged to read the information circular once available, as it will contain important additional information concerning the Transaction.

Closing of the Transaction is subject to the receipt of applicable regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature, including, without limitation, court and stock exchange approval. Closing of the Transaction is anticipated to occur in November 2021.

None of the securities to be issued pursuant to the Transaction have been or will be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws, and any securities issuable in the Transaction are anticipated to be issued in reliance upon available exemptions from such registration requirements pursuant to Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Management and Board of Directors

The combined company will be managed by the current enCore executive team, led by Paul Goranson as CEO & Director, William Sheriff as Executive Chairman, Carrie Mierkey as Chief Financial Officer, and Dennis Stover, as Chief Technical Officer. Blake Steele, current President & CEO of Azarga, will continue as a Strategic Advisor to the combined company and John Mays, current COO of Azarga, will continue as Chief Operating Officer of the Azarga subsidiary, with a core focus to manage the continued advancement of the Dewey Burdock and Gas Hills projects.

Upon closing of the Transaction, Sandra MacKay, a current director of Azarga, will be appointed to the board of enCore.

In connection with the closing of the Transaction, enCore intends to seek the listing of its shares on the NYSE-AMEX or NASDAQ exchange which may include a share consolidation in order to meet initial listing requirements.

Board Recommendations and Voting Support

The Agreement has been unanimously approved by the boards of directors of both enCore and Azarga, and Azarga’s board unanimously recommends that its shareholders vote in favour of the Transaction.

Officers and Directors of Azarga holding approximately 7% of the outstanding shares of Azarga have entered into customary voting support agreements pursuant to which they have agreed, among other things, to vote their Azarga common shares in favour of the Transaction.

Clarus Securities Inc. has provided a fairness opinion to the Board of Directors of enCore, to the effect that, as of the date of such opinion, and based upon and subject to the assumptions, limitations and qualifications set out in such opinion, the consideration to be paid by enCore pursuant to the Transaction is fair, from a financial point of view, to enCore.

Each of Haywood Securities Inc. and Evans & Evans, Inc. have provided fairness opinions to the Board of Directors of Azarga, to the effect that, as of the date of such opinion, and based upon and subject to the respective assumptions, limitations and qualifications set out in such opinion, the consideration to be received by Azarga shareholders pursuant to the Transaction is fair, from a financial point of view, to Azarga shareholders.

Advisors and Counsel

PowerOne Capital Markets Ltd. is acting as financial advisor to enCore. Morton Law LLP is acting as legal counsel to enCore.

Haywood Securities Inc. is acting as financial advisor to Azarga. Blake, Cassels & Graydon LLP is acting as legal counsel to Azarga.

Conference Call & Webcast

enCore and Azarga will be hosting a joint online investor webinar on Thursday, September 9, 2021 at 10:00 AM EDT / 7:00 AM PDT to discuss the Transaction.

To register and attend the webinar please visit:  https://attendee.gotowebinar.com/register/1027177374309475597

Additionally, Mr. Goranson and Mr. Sheriff will join Smith Weekly Research in discussing the Transaction that will be available at this link:

Smith Weekly Research – enCore Energy & Azarga Uranium Business Combination

enCore Resource Summary

*A Qualified Person (as defined in NI43-101) has not done sufficient work to classify the historical estimates as current mineral resources. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resource categories prescribed under NI43-101. enCore is not treating the historical estimates as current mineral resources and they should not be relied upon.

Azarga Resource Summary

Qualified Persons

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed and approved on behalf of enCore by Douglas H. Underhill, PhD, CPG, and on behalf of Azarga by John Mays, P.E. and Chief Operating Officer of Azarga, each of whom are a “Qualified Person” as defined by NI 43-101.

About enCore

enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation. These short-term opportunities are augmented by our strong long term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources.

About Azarga

Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America (“USA”) (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, USA (the “Dewey Burdock Project”), which is the company’s initial development priority, has received its Nuclear Regulatory Commission License and Class III and Class V Underground Injection Control permits from the Environmental Protection Agency and the company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project.

Cautionary Statements

Certain information contained herein constitutes forward-looking information or statements under applicable securities legislation and rules. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend”, “indicate”, “scheduled”, “target”, “goal”, “potential”, “subject”, “efforts”, “option” and similar words, or the negative connotations thereof, referring to future events and results.  Forward-looking statements in this press release include, but are not limited to, statements related to the anticipated completion of the Transaction, the terms of the Transaction, the benefits of the Transaction, the combined company, the directors and officers of the combined company, the merits of the properties of enCore and Azarga, the potential share consolidation and listing of the shares of the combined company on a U.S. stock exchange and all statements related to the business plans, expectations and objectives of enCore and Azarga.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of enCore and/or Azarga to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: any inability of the parties to satisfy the conditions to the completion of the Transaction on acceptable terms or at all; receipt of necessary stock exchange, court and shareholder approvals; the ability of enCore and Azarga to achieve their stated goals and objectives; the costs associated with the companies’ objectives; risks and uncertainties related to the COVID-19 pandemic and measures taken to attempt to reduce the spread of COVID-19; and the risks and uncertainties identified in enCore’s Management’s Discussion and Analysis for the six months ended June 30, 2021 and Azarga’s Annual Information Form for the year ended December 31, 2020, each filed on SEDAR at www.sedar.com. Although management of each of enCore and Azarga has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Neither party will update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. The parties caution readers not to place undue reliance on these forward-looking statements and it does not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

This press release is not and is not to be construed in any way as, an offer to buy or sell securities in the United States. The distribution of the enCore common shares in connection with the transactions described herein will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) and the enCore common shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the enCore common shares, nor shall there be any offer or sale of the enCore common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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

SOURCE enCore Energy Corp.

For further information: enCore Energy Corp., William M. Sheriff, Executive Chairman, 972-333-2214, info@encoreenergycorp.com, www.encoreenergycorp.com; Azarga Uranium Corp., Blake Steele, President & CEO, 605-662-8308, info@azargauranium.com, www.azargauranium.com

Chakana Reports Significant Intercepts at Soledad, Peru Including 46M of 5.64% Copper, 592.9 g/t Silver and 0.36 g/t Gold Provides Update on Resource Drilling

 

Soledad Project Highlights Include:

• Resource definition holes at Breccia Pipe 1 (“Bx 1”) completed; 62 drill holes totalling 17,936m
• A total of 259 diamond core holes completed on the Soledad project to date for 60,225m
• Additional resource definition drill results pending for Bx 5 and Huancarama
• Gradient array and 3D induced polarization (IP) orientation surveys in progress

Vancouver, B.C., September 7, 2021 – Chakana Copper Corp. (TSX-V: PERU; OTCQB: CHKKF; FRA: 1ZX) (the “Company” or “Chakana”), is pleased to provide results from the final seven resource definition holes drilled in Bx 1 totaling 2,474.65m from the Soledad project, Ancash, Peru (Table 1). Drilling continues as part of a fully funded 26,000m exploration and resource drilling program planned for 2021 (Fig. 1). These results will increase confidence in the initial resource estimate, anticipated at the end of 2021.

“Results for the final seven resource definition holes for Bx 1 are excellent as expected and consistent with previous drill results. These results, combined with previous drilling at Bx 1, will be part of the initial resource estimate that will also include Bx 5, Bx 6, Paloma East, Paloma West, and Huancarama. We look forward to releasing additional drill results from our ongoing drill program and are committed to having the initial resource estimate out by the end of the year,” stated President and CEO David Kelley.

Drill Results

Table 1. Mineralized intervals:

Bx 1 (Resource Definition)

DDH #	From – To (m)		Core Length (m)	Au g/t	Ag g/t	Cu %	Cu-eq %*	Au-eq g/t*
SDH21-211	0.0	27.0	27.0	4.61	14.2			4.80
and	39.0	83.0	44.0	4.86	60.8	1.58	5.28	8.07
and	133.0	159.0	26.0	0.68	256.1	3.72	6.35	9.72
and	198.0	241.7	43.7	0.29	54.0	0.93	1.58	2.42
and	255.4	257.8	2.5	0.26	83.1	1.88	2.76	4.22
SDH21-213	0.0	24.0	24.0	5.90	20.3			6.17
and	37.0	106.3	69.3	3.38	71.4	1.34	4.16	6.36
including	38.0	46.0	8.0	10.42	32.1	2.85	9.94	15.20
and	146.0	192.0	46.0	0.36	592.9	5.64	10.94	16.74
including	152.0	167.0	15.0	0.56	1207.6	11.52	22.21	33.97
and	208.0	216.0	8.0	0.12	129.4	1.93	3.11	4.76
and	232.0	259.0	27.0	0.80	132.2	1.31	2.96	4.53
and	297.0	329.2	32.2	0.64	48.2	0.90	1.73	2.65
SDH21-216	0.0	113.0	113.0	3.60	62.2	0.81	3.70	5.65
and	125.0	132.0	7.0	0.45	42.4	0.61	1.27	1.94
and	175.9	178.0	2.1	0.43	152.4	3.13	4.71	7.21
and	189.0	201.0	12.0	0.36	83.3	0.45	1.40	2.14
and	225.0	228.0	3.0	0.10	237.8	1.13	3.23	4.94
and	240.0	253.0	13.0	0.23	43.8	0.74	1.26	1.93
and	319.0	320.7	1.8	0.64	18.3	1.11	1.68	2.58
and	371.0	372.0	1.0	1.58	140.0	8.46	10.69	16.35
SDH21-218	288.10	319.15	31.05	0.48	29.7	0.33	0.90	1.37
SDH21-221	257.85	278.75	20.90	0.06	69.8	0.31	0.95
and	310.25	348.00	37.75	0.88	56.2	0.44	1.50	2.29
SDH21-223	284.00	308.00	24.00	0.34	47.8	0.36	0.99	1.52
SDH21-225	137.30	140.00	2.70	0.48	418.5	1.07	4.96	7.59
and	163.00	172.00	9.00	0.76	86.0	2.84	4.07	6.23
and	196.00	280.00	84.00	1.35	211.5	1.73	4.42	6.76

* Cu_eq and Au_eq values were calculated using copper, gold, and silver. Metal prices utilized for the calculations are Cu – US$2.90/lb, Au – US$1,300/oz, and Ag – US$17/oz. No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries are not yet available. The formulas utilized to calculate equivalent values are Cu-eq (%) = Cu% + (Au g/t * 0.6556) + (Ag g/t * 0.00857) and Au-eq (g/t) = Au g/t + (Cu% * 1.5296) + (Ag g/t * 0.01307).

Bx 1
There are two breccia pipes at Bx 1, the Main Zone that crops out at surface, and the North Zone that is 40 metres north of the Main Zone and begins 125m below surface (Figs. 3 and 4). Drill holes in this release were designed to fill in gaps in previous drilling to contribute to the initial resource estimate. Three holes were drilled to the north from a central platform where the Main Zone crops out at surface. These holes cut the Main Zone and the North Zone. Four additional holes were drilled to the southwest from a platform located northeast of Bx 1 and were designed to fill in gaps on the southwest margin of the Main Zone.

2021 Resource and Exploration Drill Program
Results reported here are part of the fully funded 2021 drill program of 26,000m.  Combined with the drilling in the second half of 2020, approximately 32,000m is anticipated through the end of 2021. Of this, 18,414m have been reported to date in 83 drill holes.  Additional resource definition drill results for Bx 5 and Huancarama are pending. In addition, new targets located in the northern half of the project that have not been drilled previously but are strategic to any eventual development at Soledad will be tested. Exploration targets have been ranked based on their technical merit, access, and logistics.

Geophysical Surveys
Two different types of geophysical surveys are being tested to identify new breccia pipe targets and help refine the ranking of our existing 110 targets identified to date. Orientation surveys based on gradient array induced polarization and 3D induced polarization are underway over the known and well understood mineralized breccia pipes. Once the parameters of the surveys are optimized, the surveys will be completed throughout the 12-km² footprint of the Soledad mineral system where tourmaline breccias are known. These techniques will improve our understanding of the structural controls on fertile corridors that host the breccia pipes, help identify additional breccia pipes that may not come to surface, and refine the existing targets that we have.

About Chakana Copper
Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade copper-gold-silver mineralization hosted in tourmaline breccia pipes. A total of 60,225 metres in 259 diamond core holes for exploration and resource definition drilling have been completed since 2017, testing 15 of 110 total exploration targets, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside.  Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to base and precious. For more information on the Soledad project, please visit the website at www.chakanacopper.com.

Sampling and Analytical Procedures
Chakana follows rigorous sampling and analytical protocols that meet or exceed industry standards. Core samples are stored in a secured area until transport in batches to the ALS facility in Callao, Lima, Peru.  Sample batches include certified reference materials, blank, and duplicate samples that are then processed under the control of ALS. All samples are analyzed using the ME-MS41 (ICP technique that provides a comprehensive multi-element overview of the rock geochemistry), while gold is analyzed by AA24 and GRA22 when values exceed 10 g/t by AA24.  Over limit silver, copper, lead and zinc are analyzed using the OG-46 procedure. Soil samples are analyzed by 4-acid (ME-MS61) and for gold by Fire Assay on a 30g sample (Au-ICP21).

Results of previous drilling and additional information concerning the Project, including a technical report prepared in accordance with National Instrument 43-101, are made available on Chakana’s SEDAR profile at www.sedar.com.

Qualified Person
David Kelley, an officer and a director of Chakana, and a Qualified Person as defined by NI 43-101, reviewed and approved the technical information in this news release.

ON BEHALF OF THE BOARD

(signed) “David Kelley”
David Kelley
President and CEO

For further information contact:

Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email: jjobin@chakanacopper.com

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

Forward-looking Statement Advisory: This release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Chakana to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward looking statements or information relates to, among other things, the interpretation of the nature of the mineralization at the Soledad copper-gold-silver project (the “Project”), the potential to expand the mineralization, and to develop and grow a resource within the Project, the planning for further exploration work, the ability to de-risk the potential exploration targets, and our belief in the potential for mineralization within unexplored parts of the Project. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.

Tuesday, September 07, 2021

Aurania Resources (AUIAF)(ARU:CA)
Epithermal Gold Targets In the Line-Up

As of April 24, 2020, Noble Capital Markets research on Aurania Resources is published under ticker symbols (AUIAF and ARU:CA). The price target is in USD and based on ticker symbol AUIAF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Drilling program. Six drill holes have been completed at the Tsenken N1 sediment-hosted copper-silver target with Hole TSN1-007 still underway. We think management intends to complete 10 drill holes at Tsenken N1. Three drill holes have been completed at the Tiria-Shimpia silver-zinc-lead target. While the first two holes intersected more mineralized layers than anticipated, grades were lower than expected. Results from Hole 3 are expected to be similar. The rig is being moved to a different location than the first three holes and drilling will begin later this month.


Epithermal gold targets.  Aurania will resume drilling on the epithermal gold-silver systems, including Latorre C, later this year while management prioritizes various targets that continue to emerge in the southwestern portion of the project area. While recent drilling activity has centered on Tsenken N1 and Tiria-Shimpia, epithermal gold targets will likely get renewed attention later this year …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.