Angold Resources Resumes Trading, Targets District-Scale Uranium Exploration in Saskatchewan’s Athabasca Basin

Jan 16, 2024

Vancouver, British Columbia January 16, 2024 Angold Resources Ltd. (TSXV: AAU) (OTC PINK: AAUGF) (FSE: 13L0) (“Angold” or the “Company“) is pleased to announce its shares resumed trading at the opening of the market on January 15, 2024. This follows the Company’s recently announced definitive agreement (the “Transaction”) to acquire 1443904 B.C. Ltd. Upon closing of the Transaction, the Company will secure options on three highly prospective, permitted, drill-ready projects in Saskatchewan’s Uranium City area from Fortune Bay Corp (“Fortune Bay”) and Standard Uranium Ltd. (“Standard Uranium”). Additionally, the company is awaiting approval to change its name to Aero Energy Limited (“Aero Energy”).

Overview

  • District-Scale Opportunity: Following the Transaction and name change, Aero Energy will outright own or have options on 250,000 acres of consolidated mineral rights along the frontier northwestern edge of the Athabasca Basin.
  • Shortcut To Shallow Drill-Ready Targets: Since 2020, property vendors Fortune Bay and Standard Uranium have invested $7.6M in exploration, including first-pass drilling, revealing multiple uranium-fertile EM-conductor corridors and ten new uranium occurrences between 20 and 150 m below surface poised for immediate exploration.
  • New Exploration Focus: The Properties are significantly underexplored for basement-style mineralization, a deposit type that has only seriously emerged in the last decade, examples of which include NexGen Energy’s Arrow Deposit (TSX:NXE) and Fission Uranium’s Triple R Deposit (TSX:FCU).

Property Highlights

  • Murmac Property – Multiple Targets Developing: The Armbruster Corridor on the Murmac Property hosts a high-grade boulder that assayed 8.82% U₃O₈, located near naturally occurring radioactive springs measuring between 3,000 and 15,000 counts per second*, underscoring the potential for high-grade, basement-hosted mineralization.
  • Strike Property – Discovery Concept Confirmed: The L Corridor on the Strike Property hosts the Tena uranium showing, with 1,000 tons mined in the 1950s at grades between 0.6 and 3.5% U₃O₈¹, and where recent work shows exploration signatures consistent with Athabasca Basin-associated high-grade mineralization.
  • Sun Dog Property – History of Production: The Sun Dog Property hosts the Gunnar Mine, at one time the world’s largest uranium producer, yielding 18M lbs of U₃O₈ from 1953 to 1981² ³, with recent drilling identifying one new uranium occurrence along with extensive hydrothermal alteration.
  • Additional Exploration Upside: Collectively the Saskatchewan uranium properties are host to a preliminary cumulative EM-conductor corridor length exceeding 125 km where planned airborne and ground geophysics is expected to generate additional corridors of interest.

*Counts per second measured via handheld RS-125 spectrometer

Galen McNamara, Interim CEO, commented, “Following exchange approval we look forward to closing our acquisition of 1443904 B.C. Ltd. We are planning significant exploration in Saskatchewan in 2024. Project vendors Fortune Bay and Standard Uranium are remaining on as project operators, which provides a great advantage to all three companies. Both vendors have built extensive knowledge of the area and I believe the collective team is poised for discovery. After closing of the Transaction and renaming of our Company, Aero Energy will represent a rare and unique discovery opportunity in an emerging uranium marketplace.”

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District-Scale Uranium Exploration

Upon closing the Transaction, the Company will have a total of 250,000 acres of uranium-prospective mineral rights situated along the northwestern margin of the Athabasca Basin in Saskatchewan. This includes lands fully owned by the Company and those under option agreements (the “Owned Properties” and the “Optioned Properties”, collectively, the “Properties”) with Fortune Bay Corp and Standard Uranium Ltd (collectively, “Underlying Owners”).

The Optioned Properties

Since 2020, the Underlying Owners have invested approximately $7.6M in exploration activities on the Optioned Properties. Exploration on the Optioned Properties has included geological mapping, hand-held scintillometer prospecting, geochemical sampling, ground and airborne geophysical surveys, and first- pass drilling. These Properties feature multiple permitted, drill-ready targets where first-pass drilling efforts have intersected narrow zones of uranium mineralization and wide zones of hydrothermal alteration. Shallow, elevated uranium in the drill core on the Optioned Properties is associated with favourable brittle-deformed graphitic rocks and pathfinder elements typical of high-grade Athabasca Basin deposits. These results confirm that Athabasca Basin Unconformity-style mineralizing systems have been active across all three Properties.

Sun Dog Property

The Sun Dog Property (“Sun Dog”) optioned from Standard Uranium covers an area of 48,443 acres in nine mining claims and is host to the historic Gunnar uranium mine which produced approximately 18M lbs of U₃O₈ between 1953 and 19813. Sun Dog also hosts historical uranium mineralization at surface ranging between 0.1% and 3.58% U₃O₈. Standard Uranium has invested approximately $4M in exploration at Sun Dog with work including a ground gravity survey, a UAV-borne magnetic survey, field prospecting and geochemical sampling. Additionally, from 2022 to 2023, 13 first-pass holes were drilled which resulted in the identification of a new uranium occurrence and broad zones of strong hydrothermal alteration requiring follow-up.

Sun Dog is under option to 1443904 B.C. Ltd from Standard Uranium. The option provides for the right to acquire a 100% interest in Sun Dog from Standard for $650,000 in cash and $650,000 in share payments payable in annual installments over a 2-year period, and a $6,500,000 work commitment over a 3-year period. Following exercise of the Sun Dog Option, Standard will retain a 2% net smelter returns royalty, which may be reduced to 1% for a $1,000,000 cash payment.

Murmac & Strike Properties

The Murmac Property (“Murmac”) optioned from Fortune Bay covers an area of 25,034 acres in seventeen mining claims. Murmac is host to multiple historical surface uranium showings exceeding 1% U₃O₈ and grading as high as 25% U₃O₈⁴. Fortune Bay has invested approximately $2.1M in exploration at Murmac having completed an aerial electromagnetic (“VTEM”™) survey, a ground gravity survey covering the conductors identified by the VTEM survey, field prospecting, and geochemical sampling all in the lead up to a 2022 maiden drill program totaling 15 holes. Anomalous uranium was intersected in six of the holes, up to a maximum individual assay of 0.18% U₃O₈. Follow-up and exploratory drilling are strongly warranted at 33 target areas.

The Strike Property (“Strike”) optioned from Fortune Bay covers an area of 24,083 acres in four mining claims. Strike is host to multiple historical surface uranium showings exceeding 1% U₃O₈ and grading as high as 27% U₃O₈⁵. In addition, historical small-scale mining was conducted at the Tena zone where approximately 1,000 tons was mined in the 1950’s with reported grades of 0.6% to 3.5% U₃O₈¹. Recent work completed by Fortune Bay has identified geological and geochemical features supporting an Unconformity-associated origin for Tena (i.e. not Beaverloge-style). Fortune Bay has invested approximately $1.5M in exploration at Strike and in 2021 completed a ground gravity survey to augment historical VTEM and geochemical surveys previously completed by Cameco. In 2022, nine drill holes were completed by Fortune Bay, three of which intersected anomalous uranium mineralization up to a maximum of 0.43% U₃O₈. Follow-up and exploratory drilling are strongly warranted at 12 target areas.

Strike and Murmac are under option to 1443904 B.C. Ltd from Fortune Bay. The option provides for the right to acquire up to 70% in the Strike and Murmac properties from Fortune Bay in three stages for $1,350,000 in cash and $2,150,000 in share payments payable in annual installments over a 3.5-year period. Additionally, the option includes a $6,000,000 work commitment over a 3-year period. The Murmac property is subject to an existing 2% net smelter returns royalty.

The Owned Properties

The Owned Properties were staked by the Company through proxies in September of 2023 and cover an area of 152,530 acres in four claim blocks that have not yet been named. No exploration has yet been completed by the Company on the Owned Properties, but preliminary review of the Saskatchewan provincial mineral assessment files shows that a number of undrilled EM conductors are present, sometimes in close proximity to historical high-grade uranium showings at surface (>1% U₃O₈). Early work will consist of historic data compilation followed by planned airborne and ground geophysics in the lead up to drill targeting.

Transaction

Completion of the Transaction remains subject to a number of conditions, including receipt of any required regulatory approvals and the delivery of customary closing documentation. The Transaction cannot be completed until these conditions have been satisfied, and there can be no assurance that the Transaction will be completed in a timely fashion, or at all. For further information regarding the Transaction, readers are encouraged to review the news release issued by the Company on December 22, 2023.

Qualified Person

The technical content of this news release has been reviewed and approved by Galen McNamara, P. Geo., the interim CEO of the Company and a qualified person as defined by National Instrument 43-101.

About Angold Resources Ltd.

Angold is an exploration and development company targeting large-scale mineral systems worldwide. The Company’s assets include projects in gold projects Chile and uranium projects Canada. The Dorado Project in Chile features a major porphyry-gold system where drill results include 302 m at 0.71 g/t Au. The Cordillera Project in Chile is strategically located between two multi-million ounce gold deposits and features multiple gold exploration targets. The uranium projects in Canada are prospective for high-grade uranium mineralization.

ON BEHALF OF THE BOARD OF DIRECTORS

“Galen McNamara”
Galen McNamara, Chairman and Interim CEO 778-716-7738

Further information on Angold can be found on the Company’s website at www.angoldresources.com and at www.sedarplus.ca, or by contacting the Company by email at info@angoldresources.com

References

  1. Information obtained from Saskatchewan Mineral Deposit Index, occurrence number 151.
  2. Gunnar Uranium Mine: From Cold War Darling to Ghost Town, L. Schramm, Saskatchewan Research Council, 2018.
  3. Geology and Genesis of Major World Hardrock Uranium Deposits, United States Geological Survey, Open-File Report 81-166, 1981.
  4. Historical geochemical results are sourced from the Saskatchewan Mineral Assessment Database (SMAD) references 74N07-0310 and 74N07-0311.
  5. Information obtained from Saskatchewan Mineral Deposit Index, occurrence number 1204.

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 contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance and include expectations regarding the use of proceeds from the Offering. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions. Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Forward-looking information are based on management of the parties’ reasonable assumptions, estimates, expectations, analyses and opinions, which are based on such management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect.

The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward- looking statements or information.

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