WestKam Gold Finalizes Purchase Agreement to Acquire the Powerline One Uranium Project in Utah
August 27 2024 - 8:30AM
WestKam Gold Corp. (TSX-V:WKG) (the “Company” or
“WestKam”) is pleased to announce that it has finalized
and executed the Purchase Agreement with Ameranium Resources Corp.
(“Ameranium”) for the purchase of a 100% legal and beneficial
interest in 131 lode claims in Grand County, Utah, covering 2,649
acres (1,072 ha), called the Powerline One Project (the
“Powerline”).
The Powerline lies within sedimentary rocks of the Colorado
Plateau, the most prolific uranium mining region in the United
States which has produced over 328 million pounds U3O8 (at 0.2 to
0.4 per cent U3O8) since the 1950’s. Peter Laipnieks, President of
Westkam stated “ This project checks a lot of boxes: Utah is a
mining-friendly state ; field work can be carried out year-round
and is relatively inexpensive; the required environmental and
archaeological surveys have been completed; drilling permits have
been issued; uranium prices have doubled recently and most
importantly, we believe this project has real discovery
potential.”
Prior work on the project identified a prospective target zone
extending across the Powerline property. Logs from historical
abandoned oil and gas wells indicate zones of anomalous, off-scale
API readings (greater than 400 API) (API is an American Petroleum
Institute scale of radioactivity). These anomalous values reported
by the gamma ray logs from these wells are indicative of high-grade
radioactive material.
The Samson 12-1 well is the primary well of interest with
multiple anomalies identified in the Chinle formation with readings
well in excess of 400 AP. Gamma ray geophysical logs indicate a
35.4-metre-(116-feet)-thick zone of uranium mineralization within
which a 19.0 m (62.4 ft) thick section is estimated to have uranium
grade of 0.0258 per cent U3O8 by Robert J. Hite,
Senior USGS Geologist. This zone is well below the
potable water table and has potential to be mined by in situ leach
and recovery methods (“ISL”). The buried deposits are thought to
lie at depths ranging from 300 to 1,000 m and are considered to be
attractive targets due to the advent of ISL. Approximately 56
percent of uranium mined in the world is now extracted by ISL
methods
Reanalysis and reinterpretation of historical seismic data in
the area around the project’s historical abandoned oil and gas
wells, including the Samson 12-1 well, was cross-analyzed against
gamma ray logs from the wells. The seismic data has confirmed that
the stratigraphy at depth has lateral continuity creating an
environment appropriate to host large volumes of
mineralization.
A multi-phased exploration program is planned to explore the
Powerline One Property. The first phase will verify the relatively
flat and undisturbed stratigraphy observed in re-interpreted
historical seismic data completed by Ameranium in 2023. The focus
is on obtaining information close to the three historical oil and
gas wells that lie within the claim group. A second phase will
consist of at least one drill hole designed to obtain core, fresh
sample material, confirm extent and grade of the mineralized zones,
and complete down-hole geophysical surveys.
Pursuant to the terms of the Purchase Agreement, the purchase
price payable by WestKam will be:
(i) At
closing, WestKam will issue and deliver to Ameranium 4,500,000 of
its common shares;
and (ii) At
closing, WestKam will pay Ameranium US$105,000. |
All WestKam shares issued to Ameranium will be subject to a hold
period expiring four months and one day after their date of issue
pursuant to applicable Canadian securities laws and the policies of
the TSX Venture Exchange (“TSX-V”).
This acquisition, and issuance of the WestKam shares thereunder,
is subject to TSX-V approval.
Qualified person
Lorne Warner P.Geo, a qualified person as defined by National
Instrument 43-101 - Standards of Disclosure for Mineral Projects,
has read and approved all technical and scientific information
contained in this news release.
About WestKam
WestKam Gold Corp. is a Canadian-listed junior
gold exploration company focused on exploring and developing
projects in Western North America.
ON BEHALF OF THE BOARD OF
DIRECTORS
“Peter Laipnieks”Peter Laipnieks, President
& CEO
Contacts:
WestKam Gold Corp. |
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Suite 900, 570 Granville Street |
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Vancouver, BC V6C 3P1 |
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Contact:Investor Relations |
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250.216.5674 |
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westkam007@gmail.comwestkamgoldcorp.com |
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Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-looking information
All statements included in this press release
that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. These forward-looking statements
involve numerous assumptions made by the Company based on its
experience, perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. In addition, these statements
involve substantial known and unknown risks and uncertainties that
contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company’s control.
Readers should not place undue reliance on forward-looking
statements. Except as required by law, the Company does not intend
to revise or update these forward-looking statements after the date
hereof or revise them to reflect the occurrence of future
unanticipated events.
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