Apr 04, 2022 (ACCESSWIRE via COMTEX) -- VANCOUVER, BC / ACCESSWIRE / April 4, 2022 / CAT Strategic Metals Corporation /zigman2/quotes/207109431/delayed CA:CAT 0.00% ("CAT" or the "Company") announces that it has completed the 7-hole diamond drilling campaign on its Burntland property in New Brunswick, and the core processing is completed. 904m of the total 1416m drilled were sampled and are currently being processed to be assayed at the ALS laboratory in Vancouver. Patrick Laforest, P.Geo, the Company's field project manager and designated QC/QA geologist stated, "The core logs and visual analysis of the core itself are quite promising, with locally moderate to medium visual content of Chalcopyrite (copper sulfide), particularly in drill hole #6. In addition, the Pyrite, Pyrrhotite and Sphalerite content in the 7 holes is a beacon of optimism for the Assay results. " Assay results are expected to be provided by ALS this quarter.
Rimrock Gold Property
CAT also announces that it has entered into a Share Purchase Agreement (the "Agreement") with EXLA Resources Inc. ()EXLA"), a Colorado corporation, whereby EXLA will purchase all of the shares of 124006 BC Ltd. ()124006"), a wholly owned subsidiary of CAT. The sole asset of 124006 is a Property Earn-In and Joint Venture Agreement concerning the Rimrock Gold property located in Nevada, USA. Terms of the Agreement are as follows:
EXLA will Pay CAT One Hundred Twenty-Five Thousand United States Dollars (USD$125,000);
Issue to CAT One Hundred-Ten Million Shares (110,000,000) in the capital of the company and;
Grant CAT a One Percent (1%) Net Smelter Royalty ("NSR")
Following a review of CAT's property portfolio by the Company's Board of Directors, it was determined that the Company would be in a position to better serve its shareholders by focusing its efforts on its Canadian projects, in particular the South Preston Uranium Project located in the Prolific Athabasca Basin, which is slated to become CAT's flagship project.
According to CAT CEO Robert Rosner, " The work conducted thus far on the Rimrock Gold Property has provided some interesting preliminary results and the property certainly warrants further exploration. However, our management team and consulting geological staff believe that any ongoing exploration work on Rimrock will require more significant financial resources than the Company first envisioned. Additionally, it appears that there is a longer time frame than expected wherein work programs and drill plans would ultimately correspond to any appreciable results. We now know that any potential deposits on Rimrock are at a much deeper stratigraphy than we expected and pursuing this project no longer fits with the Company's exploration philosophy."
Acceptance of the transaction may be subject to review and approval of any regulatory body that may have jurisdiction attendant to the Agreement.
South Preston Uranium Project
The South Preston Uranium Property is located in the southwest area of Canada's Athabasca Basin, which is known to host some of the world's highest-grade uranium deposits. Recent discoveries in the region include the Arrow uranium deposit discovered by NexGen Energy Ltd. and the Triple R (PLS) uranium deposit being advanced by Fission Uranium Corp. The CAT property is comprised of 29,395 hectares and shares more than 10km of the adjacent property border with NexGen Energy, as well as more than 18.5 km of continuous project boundary with Orano (a leading global uranium producer), and 50 km of contiguous claim border with Azincourt Energy Corp.
In October, CAT announced that it had engaged Watt, Griffis and McOuat Limited, Geological and Mining Consultants ("WGM"), for the purpose of discovering economically viable uranium mineralization on CAT's South Preston uranium property.
Discussions with WGM began in earnest in September in order to determine the best and most productive methods to advance the South Preston Uranium Project in the most desirable and expeditious manner possible. After an initial review of historical exploration information dating back as far as the 1960s, WGM expressed significant interest in pursuing the project with CAT and provided a proposal to the Company outlining the scope of work required to ascertain uranium mineralization that is consistent with unconformity-type deposits that have been confirmed to exist in the Athabasca Basin. These types of deposits are the highest-grade uranium deposits known.
Most of the South Preston property is situated south and therefore outside of the area currently covered by the Athabasca Formation sandstone although the unconformity crosses the eastern portions of the property. This setting offers obvious advantages with respect to the ‘visibility' of uranium mineralization versus other areas where many hundreds of metres of sandstone cover the potential uranium host rocks. Radiometric anomalies are known in the western part of the property and a small historical uranium occurrence is reported in the eastern part.
Particular interest in the South Preston property occurred as a result of CAT's neighbour, Azincourt Energy, discovering a conductive zone on its East Preston property a short distance to the north of CAT's dispositions; Azincourt's SSW-trending zones project directly onto CAT's exploration property.
Established in 1962, WGM is Canada's longest running independent firm of geological and mining consultants providing professional services of the highest standards to the global mineral resource industry. The professional staff and associates have amassed decades of experience in areas ranging from grassroots exploration - design, management and implementation - to mine planning, including processing and recovery options. Significant mineral discoveries and new mines have been developed as a result of WGM's expertise and exploration efforts, notably the Mary River iron deposits on Baffin Island and Asbestos Hill in Quebec as well as the Greens Greek silver-gold-zinc mine and the Pogo gold mine, both in Alaska. According to Cominco, owner of the massive Red Dog zinc mine, WGM played a major role in its recognition as high-priority exploration target.
The project will be directed by Senior Geologist and WGM Vice President Al Workman, P.Geo, SEG., F.AusIMM. Mr. Workman's experience as an exploration geologist included 6 years working for Gulf Minerals Canada Ltd., the company whose landmark Rabbit Lake discovery opened the Athabasca Basin to the existence of unconformity-type uranium deposits. In addition to having worked in the eastern Athabasca Basin, he has significant additional uranium exploration experience.