Comstock Acquires Plain Sight Innovations Corporation

 

Extensive Portfolio of Pioneering Clean Technologies; Cellulosic Biofuels

VIRGINIA CITY, Nev., Sept. 09, 2021 (GLOBE NEWSWIRE) — Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced its acquisition of 100% of the issued and outstanding equity of Plain Sight Innovations Corporation (“PSI”) in exchange for 8,500,000 restricted shares of its common stock, and all of the intellectual property assets of PSI’s affiliate, FLUX Photon Corporation (“FPC”), in exchange for a performance-based cash payment equal to 20% of the Company’s future consolidated net cash flow from operations up to $18,000,000.

PSI’s management team has deep experience in a diverse array of industries, including renewable fuels, hazardous waste, agriproducts, and other commodities with almost thirty years of clean technology research, development, and commercialization expertise, with an emphasis on the extraction and valorization of natural resources.

PSI owns an array of patented, patent-pending and proprietary process technologies that were designed to convert low cost, ubiquitous woody biomass feedstocks into cellulosic ethanol, while producing a portfolio of co-products, including renewable diesel and an extraordinary new form of biomass-derived crystalline graphite, or biographite, with compelling applications in the production of carbon neutral batteries and other electrification components. PSI also operates a commercial pilot cellulosic fuel facility based on its technologies in Wisconsin, where it has already proven the ability to efficiently convert various forms of woody biomass into cellulosic ethanol and co-product precursors for renewable diesel, biographite, bioplastics, and a portfolio of carbon neutral alternatives to fossil fuels.

The Path to Decarbonization is in Plain Sight

The transportation sector is expected to dramatically increase the production of electric vehicles to more than 30% of all auto sales by 2030. However, more than two thirds of the energy required to power those electric vehicles is expected to come from burning fossil fuels, and the direct combustion of liquid fuels will most certainly continue to be the dominant source of power for transportation for decades. Burning less, burning smarter, and reusing emissions are therefore critical objectives as the world moves to clean energy and decarbonization.

“Renewable fuels provide a critical pathway for decarbonization, however, most current forms of renewable fuel draw from the same pool of conventional feedstocks, including corn and various vegetable oils in the U.S., and the entire universe of those feedstocks only represents a tiny fraction of the domestic burn,” said David Winsness, PSI’s founder and Chief Executive Officer. “Unfortunately, the lifecycle carbon benefits of growing, harvesting, and using conventional feedstocks are extremely limited. Our technologies were designed to address that dilemma by converting abundantly available forestry wastes, short rotation energy crops, and other low-cost sources of woody biomass into natural liquid fuels with vastly superior benefits for a fraction of the refining costs of conventional renewable fuels.”

The U.S. Department of Energy has estimated that more than one billion tons of forestry wastes and other forms of biomass will be produced annually by 2027 with continued growth thereafter. That’s enough new feedstock to produce as much as 70 billion gallons per year of advanced carbon neutral fuels with PSI’s proven technologies, or more than one third of the U.S. transportation demand on an energy equivalent basis.

Cellulosic Fuels

“That’s enough feedstock to rapidly neutralize motor fuel emissions in conjunction with America’s transition to electrification and renewable energy,” added Winsness. “PSI’s cellulosic fuels facilities will be the first of their kind, with an expected financial, natural, and social impact far in excess of any other platform, renewable or otherwise.”

PSI’s first facility is expected to scale up to an initial capacity exceeding 330,000 tons per year of forestry wastes over its first three years of operations, as it extracts, converts, and refines biomass into ethanol, renewable diesel fuel, and biographite to generate annualized revenues exceeding $86,000,000, $173,000,000, and $346,000,000 per year during the facility’s first three full years of operations, respectively, as shown in the following summary projections:

Comstock’s Executive Chairman and Chief Executive Officer, Corrado De Gasperis, commented, “Cellulosic fuel production, like lithium-ion battery recycling and industrial hemp production, is poised for, and we are planning for, exponential growth. Our guidance for these three businesses represents just one facility each and we are planning for over one hundred cellulosic fuel facilities in the U.S. alone. That level of production barely dents the transportation fuels market, yet it represents a meaningful impact on shifting consumption and the resulting decarbonization.”

Ecosystem of Strategic Feedstocks, Processes, and Products

PSI’s technologies are especially important to the Company’s plans to build a synergistic ecosystem of strategic lines of business and production facilities with complimentary feedstocks and products, supported by world class technological and engineering talent. The Company’s ability to systemically discover, develop, engineer, manufacture and commission its own solutions, represents a remarkable competitive advantage that enables speed.

Benchmark Mineral Intelligence estimates that the major automakers have committed over $300 billion to developing electric vehicles (“EVs”) and that over 2,000 GWh of lithium-ion battery (“LIB”) production capacity is in the pipeline. That amount of production in turn equates to 1.4 million tons of new annual graphite demand by 2028. Conventional graphite comes from natural deposits or the carbonization of petroleum products, with market values ranging from about $10,000 per ton for natural graphite to $20,000 per ton for synthetic graphite.

De Gasperis continued, “Most of my relevant experience comes from managing the global manufacturing of carbon-based, material-science products, particularly synthetic graphite. I was literally stunned by PSI’s discovery of a natural source of carbon neutral biographite. When we consider that every cathode in every lithium-ion battery needs an anode, and most anodes are made from synthetic graphite which is substantially all produced with carbon intensive fossil fuel derivatives, then we understand that that industry is not climate smart or clean. We can fundamentally change the game by introducing the world’s first scalable carbon neutral alternative to fossil fuel derived graphite.”

PSI’s intellectual property portfolio also includes remarkably advanced new approaches to carbon capture and utilization, atmospheric water harvesting, waste heat and energy recovery, and industrial photosynthesis for terascale decarbonization and the sustainable production of very large agricultural outputs for fractional inputs.

About Comstock Mining Inc.
Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging innovator and leader in the sustainable extraction, valorization, and production of scarce natural resources, with a focus on high value strategic materials that are essential to meeting the rapidly increasing global demand for clean energy, carbon-neutrality, and natural products. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so.

Forward-looking statements include statements about matters such as: future industry market conditions; future explorations or acquisitions; future changes in our exploration activities; future prices and sales of, and demand for, our products; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, taxes, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, mercury remediation and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mercury remediation, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with mercury remediation, metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; ability to achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology, mercury remediation technology and efficacy, quantum computing and advanced materials development, and development of cellulosic technology in bio-fuels and related carbon-based material production; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Coeur Provides Exploration Update

 

CHICAGO–(BUSINESS WIRE)–Coeur Mining, Inc. (“Coeur” or the “Company”) (NYSE: CDE) today reported an update on its 2021 exploration programs at its Palmarejo and Kensington operations, following its update on February 17, 2021. The Company also highlighted new drilling results at its Silvertip and Wharf mines. Coeur drilled approximately 698,100 feet (212,775 meters) from 27 active rigs at six different locations through the first seven months of 2021, reflecting a year-over-year increase of roughly 58%. The Company plans to invest approximately $75 million¹ in exploration this year, nearly 50% higher than last year’s record exploration investment, representing one of the sector’s largest exploration programs.

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Key Highlights^2,3

• Ongoing drilling success at Palmarejo leading to new high-grade growth – Coeur has been successfully generating results from its infill and expansion drilling campaign within the Independencia and Guadalupe deposits. Specifically, assays across multiple target areas, including the Hidalgo zone located at the northwest end of Independencia near existing infrastructure, have returned high-grade intercepts that demonstrate significant near-mine growth potential. Key highlights include:

Hidalgo zone (Independencia deposit) – Infill

• Hole HGDH_050 returned 142.7 feet (43.5 meters) of 0.11 ounces per ton (“oz/t”) (3.8 grams per tonne (“g/t”)) gold and 7.9 oz/t (270.9 g/t) silver
• Hole HGDH_069 returned 55.1 feet (16.8 meters) of 0.14 oz/t (4.8 g/t) gold and 15.5 oz/t (531.4 g/t) silver
• Hole HGDH_072 returned 12.8 feet (3.9 meters) of 0.69 oz/t (23.7 g/t) gold and 23.9 oz/t (819.4 g/t) silver

North Independencia (Independencia deposit) – Infill

• Hole VIDH_161 returned 11.2 feet (3.4 meters) of 0.27 oz/t (9.3 g/t) gold and 15.7 oz/t (538.3 g/t) silver

Hidalgo zone (Independencia deposit) – Expansion

• Hole HGDH_062 returned 1.3 feet (0.4 meters) of 4.03 oz/t (138.2 g/t) gold and 18.2 oz/t (624.0 g/t) silver

La Patria zone (Guadalupe deposit) – Infill

• Hole LPDH_254 returned 42.7 feet (13.0 meters) of 0.18 oz/t (6.2 g/t) gold and 3.8 oz/t (130.3 g/t) silver

• Drilling at Kensington identifying additional high-grade growth opportunities – Building on late last year’s infill program, Coeur began 2021 by drilling on the Elmira vein located approximately 2,700 feet (825 meters) east of the Kensington Main deposit while also testing expansion targets beyond Elmira, including the Johnson vein. Coeur’s elevated level of exploration investment at Kensington the past two years is intended to extend mine life and generate future potential growth opportunities beyond its existing reserves and resources. Notable assay results include:

Elmira – Infill & Expansion

• Hole EL21-0850-192-X30 returned 14.6 feet (4.5 meters) of 1.06 oz/t (36.3 g/t) gold
• Hole EL21-0850-192-X23 returned 19.7 feet (6.0 meters) of 0.48 oz/t (16.5 g/t) gold
• Hole EL21-0850-156-X11 returned 10.4 feet (3.2 meters) of 0.81 oz/t (27.8 g/t) gold, 0.8 feet (0.2 meters) of 6.43 oz/t (220.4 g/t) gold and 1.4 feet (0.4 meters) of 1.54 oz/t (53.7 g/t) gold

Johnson – Expansion

• Hole JN21-0900-181-X02 returned 1.2 feet (0.4 meters) of 1.31 oz/t (45.7 g/t) gold
• Hole JN21-0900-181-X04 returned 4.3 feet (1.3 meters) of 0.34 oz/t (11.7 g/t) gold
• Hole JN21-0900-181-X05 returned 3.6 feet (1.1 meters) of 0.72 oz/t (24.7 g/t) gold

• New Southern Silver zone at Silvertip continues to demonstrate growth potential – New surface and underground drilling has discovered a flat-lying “manto” portion of the Southern Silver zone. As highlighted below, the manto appears to be thicker in places than the previously drilled vertical breccia zones interpreted as mineralized feeder structures. After further analysis, the Company believes several other manto-feeder relationships may be present at the Discovery, Camp Creek and Central zones, and that underground drilling is the best approach to test these types of structures. Notable expansion drilling assay results from the Southern Silver zone manto mineralization include:

• Hole 65Z21-485-007-005 returned 65.6 feet (20.0 meters) of 2.7 oz/t (92.5 g/t) silver, 16.9% zinc and 0.5% lead
• Hole 65Z21-485-DDS1-015 returned 35.4 feet (10.8 meters) of 13.0 oz/t (445.7 g/t) silver, 19.4% zinc and 7.5% lead and 17.1 feet (5.2 meters) of 18.0 oz/t (617.1 g/t) silver, 7.7% zinc and 12.0% lead

• Positive results from largest drilling campaign at Wharf since acquisition – New significant oxide-gold assays were recently returned from the Portland Ridge – Boston claim group and Flossie area. Key highlights from the 2021 infill drilling campaign include:

• Hole W21R-4781 returned 120 feet (36.6 meters) of 0.22 oz/t (7.5 g/t) gold
• Hole W21R-4826 returned 200 feet (61.0 meters) of 0.12 oz/t (4.1 g/t) gold
• Hole W21R-4812 returned 40 feet (12.2 meters) of 0.31 oz/t (10.6 g/t) gold
• Hole W21R-4827 returned 70 feet (21.3 meters) of 0.14 oz/t (4.8 g/t) gold

“Our 2021 exploration program accelerated during the summer months with 27 rigs active across six sites,” said Hans J. Rasmussen, Coeur’s Senior Vice President of Exploration. “We remain on-track to deliver the largest exploration campaign in Company history and are regularly setting new monthly drilling records. We expect to complete roughly 1.2 million feet (365,750 meters) of drilling by the end of the year, with the primary objective of further extending mine lives across our portfolio. These goals, along with our track record of consistently growing our reserve and resource base through the drill bit, are true differentiators for Coeur. Assays from both Palmarejo and Silvertip continue to demonstrate significant growth potential, further validating our commitment to a higher-level of exploration investment at each site. The Hidalgo zone at Palmarejo represents the most significant near-mine opportunity since our focused exploration program began in 2012.”

Mr. Rasmussen continued, “Assay and drill thicknesses from the southern portion of Silvertip continue to exceed our expectations, specifically from the Southern Silver and Camp Creek zones. Additionally, airborne geophysical models suggest that these zones may continue another mile and a quarter (two kilometers) from our current drilling positions. Positive results like these, along with continued exploration success at Kensington and Wharf, give us confidence that we are making progress toward achieving our 2021 exploration objectives.”

For a complete table of all drill results, please refer to the following link: https://www.coeur.com/_resources/news/2021-09-09-Exploration-Update.pdf. Please see the “Cautionary Statements” section for additional information regarding drill results.

Palmarejo^2,3

Coeur has drilled a total of approximately 149,200 feet (45,475 meters) from up to eight diamond core rigs across six different zones (three infill targets and three expansion targets) through the first seven months of 2021, compared to roughly 118,600 feet (36,150 meters) during the same period in 2020.

Key highlights from the 2021 exploration program include:

Hidalgo zone (Independencia deposit)

• Up to four active rigs (two infill and two expansion)
• As previously discussed in Coeur’s February 17, 2021 news release, mineralization typically consists of several vein intercepts creating wide, high-grade “clavos” where mine planning could incorporate larger transverse stopes that support higher production rates
• Strategically located near existing mine infrastructure which has the potential to facilitate shorter development time to commence production
• Drill assay intervals have continued to produce the best grade-thickness at Palmarejo since drilling at the historic Clavo 76 prior to 2013

La Patria zone (Guadalupe deposit)

• Infill drilling with one drill rig has continued the exploration program that began in 2020, focusing on areas of historic drilling
• A second rig is currently being mobilized to test expansion targets to the southeast of the current resource area

North Independencia zone (Independencia deposit)

• Once the infill program is completed (currently estimated around mid-2022), Coeur plans to begin expansion drilling further northwest of the current resource limits

Guazapares district (greenfields exploration)

• Field reconnaissance has identified areas of surface alteration and quartz veining east of Palmarejo in the Guazapares district, which was acquired in 2015 as part of the acquisition of Paramount Gold and Silver Corp., sits outside the gold stream area of interest and totals nearly 15,000 hectares. Drill permitting at an initial target area (Carmela) is currently underway with the objective of commencing drilling at this new target by the end of the year

Coeur plans to transition its focus on various resource expansion targets in the remainder of 2021, while also continuing the infill program at the Independencia North, Hidalgo and La Patria zones. The Company’s priority targets for expansion drilling during the remainder of the year include (i) expanding the Hidalgo zone northwest towards the haul road, (ii) extending the North Independencia zone, (iii) drilling the southeast extension of the La Patria zone, (iv) scout drilling of the El Ojito zone, located in the northeastern portion of the Independencia deposit and subparallel to the Hidalgo zone, and (v) testing the new Carmela target located to the east within the Guazapares district.

Palmarejo 2021 Production & Exploration Guidance and Year-End 2020 Reserves and Resources:

• 2021E Production⁴: 100,000 – 110,000 ounces of gold and 6.5 – 7.8 million ounces of silver
• 2021E Exploration Investment¹: Approximately $14 million ($9 million expensed and $5 million capitalized)
• 2020 Proven and Probable Reserves: 849,000 ounces of gold at an average grade of 0.06 oz/t (1.9 g/t) and 59.4 million ounces of silver at an average grade of 3.9 oz/t (132.8 g/t)
• 2020 Measured and Indicated Resources: 613,000 ounces of gold at an average grade of 0.05 oz/t (1.6 g/t) and 51.1 million ounces of silver at an average grade of 3.8 oz/t (130.6 g/t)
• 2020 Inferred Resources: 280,000 ounces of gold at an average grade of 0.06 oz/t (2.2 g/t) and 14.5 million ounces of silver at an average grade of 3.3 oz/t (114.6 g/t)

   

Kensington^2,3

The 2021 Kensington exploration program started with two underground core rigs focused on infill drilling along the Elmira and Jualin vein structures. A limited number of expansion holes were also drilled into Johnson, located about 500 feet (150 meters) east of Elmira. Early in the third quarter, the Company ramped up to five core rigs, including three underground and two surface core rigs. Through the first seven months of 2021, Coeur drilled approximately 86,600 feet (26,395 meters) at Kensington compared to roughly 88,900 feet (27,100 meters) during the same period in 2020.

Elmira and the development drift established in late 2020 represent potential areas of future mining at Kensington. The Company plans to continue drilling these areas while focusing on refining the vein shapes through 2022. Coeur expects to declare a maiden reserve for Elmira at the end of the year with the goal of mining the deposit beginning in early 2023.

Additionally, Coeur has drilled the Johnson vein structure from the same platforms it used to test Elmira. The Company has completed approximately 23 holes into Johnson since the beginning of the year. Resource shapes for the new intercepts are still in the earliest phase of interpretation. Johnson also outcrops on surface where it has returned strong gold assays, representing about 1,000 feet (300 meters) of vertical dip length.

For the remainder of 2021, Coeur plans to (i) prioritize infill drilling at upper Kensington Zone 30, (ii) continue infill and expansion drilling around the edges of Elmira, (iii) conduct surface expansion drilling at upper Raven and Johnson, and (iv) execute helicopter-supported step-out drilling at the Comet, Big Lake and Gold King targets.

Kensington 2021 Production & Exploration Guidance and Year-End 2020 Reserves and Resources:

• 2021E Production⁴: 115,000 – 130,000 ounces of gold
• 2021E Exploration Investment¹: Approximately $13 million ($9 million expensed and $4 million capitalized)
• 2020 Proven and Probable Reserves: 331,000 ounces of gold at an average grade of 0.20 oz/t (6.8 g/t)
• 2020 Measured and Indicated Resources: 830,000 ounces of gold at an average grade of 0.23 oz/t (7.9 g/t)
• 2020 Inferred Resources: 394,000 ounces of gold at an average grade of 0.25 oz/t (8.5 g/t)

Silvertip^2,3

Coeur began the year drilling Silvertip with five surface rigs and one underground core rig focused on resource expansion, while also conducting infill drilling on select areas of the deposit to convert existing resources to reserves. Through first seven months of 2021, Coeur drilled approximately 199,900 feet (60,950 meters) at Silvertip compared to roughly 88,300 feet (26,925 meters) during the same period in 2020.

The Company’s news release on June 15, 2021 highlighted the discovery of the new Southern Silver zone, located adjacent to and enveloping the historic 65 zone manto mineralization. At that time, the new zone was interpreted to be primarily a series of vertically oriented breccia material with encouraging thicknesses and grades. Based on the positive results, the Company continued to advance underground development to support additional drilling in the area, which is now underway.

Recent drilling has encountered flat-lying, manto-style mineralization with meaningful thicknesses, highlighting the potential to grow resource tonnage with additional drilling. These results suggest that the ore body in the zone consists of both vertical- and flat-lying manto-style mineralization. Notably, this new interpretation may apply to other zones at Silvertip that have not yet had the benefit of underground drilling to test for both vertical- and flat-lying mineralization which could lead to higher angle structures that support additional resource tonnage.

Furthermore, the latest drill core is beginning to demonstrate that the mineralization within the Southern Silver zone continues to the southwest, south and southeast, connecting with the Camp Creek, Tour Ridge and Discovery zones, respectively.

Silvertip 2021 Exploration Guidance and Year-End 2020 Reserves and Resources:

• 2021E Exploration Investment¹: Approximately $18 million ($15 million expensed and $3 million capitalized)
• 2020 Proven and Probable Reserves: 14.6 million ounces of silver at an average grade of 8.1 oz/t (278.2 g/t), 296.1 million pounds of zinc at an average grade of 8.2% and 193.2 million pounds of lead at an average grade of 5.4%
• 2020 Measured and Indicated Resources: 17.4 million ounces of silver at an average grade of 7.4 oz/t (255.0 g/t), 442.1 million pounds of zinc at an average grade of 9.4% and 216.5 million pounds of lead at an average grade of 4.6%
• 2020 Inferred Resources: 12.0 million ounces of silver at an average grade of 8.3 oz/t (283.3 g/t), 308.7 million pounds of zinc at an average grade of 10.6% and 143.9 million pounds of lead at an average grade of 5.0%

   

Wharf^2,3

In early 2021, Coeur initiated the largest drilling campaign at Wharf since it acquired the operation in 2015. The Company plans to invest approximately $5 million¹ on exploration at Wharf this year – roughly the same amount spent cumulatively since acquisition⁵. Through the first seven months of 2021, Coeur drilled approximately 85,800 feet (26,175 meters) at Wharf compared to roughly 10,600 feet (3,225 meters) during the same period in 2020.

The Company has essentially achieved its target drill footage for the year, efficiently reaching its goal approximately 30% under budget. Building on this momentum, Coeur plans to keep one active rig turning at Wharf for the rest of the year.

Coeur is targeting oxide-gold hosted in the Deadwood Formation. The team has received about half the outstanding drill assays with roughly 40% of the holes returning results above resource grade thickness cutoff. Based on information received thus far, the Company expects to incorporate these results into its year-end 2021 resource model.

Wharf 2021 Production & Exploration Guidance and Year-End 2020 Reserves and Resources:

• 2021E Production⁴: 85,000 – 95,000 ounces of gold
• 2021E Exploration Investment¹: Approximately $5 million (substantially all capitalized)
• 2020 Proven and Probable Reserves: 720,000 ounces of gold at an average grade of 0.03 oz/t (0.9 g/t)
• 2020 Measured and Indicated Resources: 605,000 ounces of gold at an average grade of 0.02 oz/t (0.8 g/t)
• 2020 Inferred Resources: 67,000 ounces of gold at an average grade of 0.02 oz/t (0.7 g/t)

   

About Coeur

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, the Wharf gold mine in South Dakota, and the Silvertip silver-zinc-lead mine in British Columbia. In addition, the Company has interests in several precious metals exploration projects throughout North America.

Cautionary Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding exploration efforts and plans, exploration expenditures, drill results, growth, extended mine lives, grade, thickness, investments, mine expansion and development plans, resource delineation, expansion, upgrade or conversion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated additions or upgrades to reserves and resources are not attained, the risk that planned drilling programs may be curtailed or canceled due to budget constraints or other reasons, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves, the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, changes that could result from Coeur’s future acquisition of new mining properties or businesses, the loss of any third-party smelter to which Coeur markets its production, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

Christopher Pascoe, Coeur’s Director, Technical Services and a qualified person under Canadian National Instrument 43-101, approved the scientific and technical information concerning Coeur’s mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, Canadian investors should refer to the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.

Notes

The potential quantity and grade for the deposits described herein are conceptual in nature. There is insufficient exploratory work to define a mineral resource and it is uncertain if further exploration will result in the applicable target being delineated as a mineral resource.

1. Reflects midpoint of guidance as published by Coeur on July 28, 2021.
2. For a complete table of all drill results included in this release, please refer to the following link: https://www.coeur.com/_resources/news/2021-09-09-Exploration-Update.pdf.
3. Rounding of grades, to significant figures, may result in apparent differences.
4. Guidance as published by Coeur on July 28, 2021.
5. Reflects cumulative investment in exploration at Wharf between 2015 and 2020.

2020 Year-End Proven and Probable Reserves

2020 Year-End Measured and Indicated Resources

2020 Year-End Inferred Resources

Notes to above Mineral Reserves and Resources:

1. The qualified person for Mineral Reserve and Mineral Resources estimates is Christopher Pascoe, Coeur’s Director, Technical Services.
2. Mineral Reserve and Mineral Resource estimates are effective December 31, 2020.
3. Assumed metal prices for estimated Mineral Reserves were $1,400 per ounce of gold, $17.00 per ounce of silver, $1.15 per pound of zinc, $0.95 per pound of lead.
4. Assumed metal prices for estimated Mineral Resources were $1,600 per ounce of gold, $20.00 per ounce of silver, $1.30 per pound of zinc, $1.00 per pound of lead, except Lincoln Hill and Wilco at $1,350 per ounce of gold and $22.00 per ounce of silver, and La Preciosa at $1,500 per ounce of gold and $20.00 per ounce of silver.
5. Mineral Resources are in addition to Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of Mineral Reserves, and there is no certainty that the Inferred Mineral Resources will be realized.
6. Rounding of tons and ounces, as required by reporting guidelines, may result in apparent differences between tons, grade, and contained metal content.
7. Excludes the impact of the gold stream agreement at Palmarejo.
8. For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical Reports for Coeur’s properties on file at www.sedar.com.

Conversion Table

Aurania Completes its First Environment, Social and Governance Report

 

Toronto, Ontario, September 7, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to announce that it has completed its first, annual Environment, Social and Governance (“ESG”) report, through the assistance of Onyen Corporation’s innovative ESG software solution for resource companies.  The report is presented as an ESG scorecard and can be accessed via a link on the Company’s website.

This report dovetails with the Company’s ISO14001 certification for its environmental work achieved in 2020 and renewed in 2021.  Both the ISO registration and the ESG report provide yardsticks against which Aurania can measure its efforts to minimize its already small environmental footprint, find ways of makings its social outreach more effective, while maintaining its strict governance standards through its Board of Directors and entire management team.  A short video that captures some of the challenges and aspirations of our local stakeholders, the Shuar indigenous people, is available on Aurania’s website and can be viewed here.

Aurania’s Chairman and CEO, Dr Keith Barron commented, “President Guillermo Lasso has provided unequivocal guidance as to how he would like to see the resource industry develop in Ecuador; to drive economic growth through leadership that provides exemplary social engagement and environmental stewardship.  Our entire team has heard the President’s message and is rising to that challenge.  Our maiden ESG report, coupled with our ISO14001 registration, provide evidence of our commitment, but more importantly, help us to measure our progress and challenge us to do better.”

About Onyen

Onyen Corporation is a Canadian company that offers resource companies an innovative software solution to efficiently complete their Environmental, Social, and Governance (ESG) reporting obligations; manage their risks; heighten their ESG profile; and be included in institutional funding channels and potentially provide access to alternative sources of capital.  For more information on Onyen – planet earth’s ESG reporting system -, please visit www.onyen.com.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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 Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Wednesday, September 08, 2021

Chakana Copper Corp (CHKKF)(PERU:CA)
The Initial Resource Estimate Is Not Expected to Be an End Point

Noble Capital Markets research on Chakana Copper Corp is published under ticker symbols CHKKF and PERU:CA. The price target is in USD and based on ticker symbol CHKKF. Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the high-grade gold-copper-silver Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 33,353 metres of drilling has been completed to-date, testing nine (9) of twenty-three (23) confirmed breccia pipes with more than 92 total targets. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver.

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.

Latest drill results. Resource definition drilling at Breccia Bx 1 has entailed 62 drill holes, representing 17,936 meters of drilling. Chakana released drill results from the final 7 resource definition holes from Bx 1 that provided strong readings that were consistent with previous drill results. Additional resource definition drill results for Bx 5 and Huancarama are pending.


Initial resource estimate expected in Q4′ 2021.  The company expects to release an initial resource estimate in the fourth quarter of 2021 which will include Bx 1, Bx 5, Bx 6, Paloma East, Paloma West, and Huancarama down to a depth of 300 meters. While Chakana’s near-term focus is the completion of the initial resource estimate, the company still has ground to cover in terms of defining Soledad’s …

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. 

Wednesday, September 08, 2021

Palladium One Mining Inc. (NKORF)(PDM:CA)
Doubling Up At LK With Ample Room for Growth

Palladium One Mining Inc is a palladium dominant, PGE, nickel, copper exploration and development company. Its assets consist of the Lantinen Koillismaa and Kostonjarvi PGE-Cu-Ni projects, located in north-central Finland and the Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada. LK is targeting disseminated sulphide along 38 kilometers of favorable basal contact. The KS project is targeting massive sulphide within a 20,000-hectare land package covering a regional scale gravity and magnetic geophysical anomaly. Tyko is a 13,000-hectare project targeting disseminated and massive sulphide in a highly metamorphosed Archean terrain. Disraeli is a 2,500-hectare project targeting PGE-rich disseminated and massive sulphide in a highly productive Proterozoic mid-continent rift.

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.

Haukiaho resource estimate. Palladium One released results a NI 43-101 compliant resource estimate for the Haukiaho zone which doubles the LK PGE-Cu-Ni project mineral resource to 0.6 million ounces of palladium equivalent indicated resources and 1.7 million ounces of palladium equivalent inferred resources. The resource estimate for Haukiaho adds 1.21 million ounces of palladium equivalent inferred resources. Resource definition drilling in the Greater Kaukua area has been completed and an updated NI 43-101 compliant mineral resource estimated is expected to be completed by year-end. A preliminary economic assessment is expected in mid-2022.


Ample room for resource growth.  In addition to an updated mineral resource estimate for the Greater Kaukua area, the remaining 12 kilometers of the Haukiaho Trend has not been drill tested although historic drilling has affirmed that the trend is mineralized. The company has identified two significant anomalies immediately east of the Haukiaho resource area that could potentially be upgraded to …

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. 

Aurania Completes its First Environment, Social and Governance Report

 

Toronto, Ontario, September 7, 2021 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to announce that it has completed its first, annual Environment, Social and Governance (“ESG”) report, through the assistance of Onyen Corporation’s innovative ESG software solution for resource companies.  The report is presented as an ESG scorecard and can be accessed via a link on the Company’s website.

This report dovetails with the Company’s ISO14001 certification for its environmental work achieved in 2020 and renewed in 2021.  Both the ISO registration and the ESG report provide yardsticks against which Aurania can measure its efforts to minimize its already small environmental footprint, find ways of makings its social outreach more effective, while maintaining its strict governance standards through its Board of Directors and entire management team.  A short video that captures some of the challenges and aspirations of our local stakeholders, the Shuar indigenous people, is available on Aurania’s website and can be viewed here.

Aurania’s Chairman and CEO, Dr Keith Barron commented, “President Guillermo Lasso has provided unequivocal guidance as to how he would like to see the resource industry develop in Ecuador; to drive economic growth through leadership that provides exemplary social engagement and environmental stewardship.  Our entire team has heard the President’s message and is rising to that challenge.  Our maiden ESG report, coupled with our ISO14001 registration, provide evidence of our commitment, but more importantly, help us to measure our progress and challenge us to do better.”

About Onyen

Onyen Corporation is a Canadian company that offers resource companies an innovative software solution to efficiently complete their Environmental, Social, and Governance (ESG) reporting obligations; manage their risks; heighten their ESG profile; and be included in institutional funding channels and potentially provide access to alternative sources of capital.  For more information on Onyen – planet earth’s ESG reporting system -, please visit www.onyen.com.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir VP Investor Relations Aurania Resources Ltd. (416) 367-3200 carolyn.muir@aurania.com

Dr. Richard Spencer President Aurania Resources Ltd. (416) 367-3200 richard.spencer@aurania.com

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 Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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. 

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.

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

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.