Carmanah Minerals Signs Joint Venture Agreement with Marvel Discovery on its Walker Uranium Leases in the Athabasca Basin

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October 5e2022 – TheNewswire – Vancouver, BC – Carmanah Minerals Corp. (CSE: CARM), (“Carmanah” or the “Company”) is pleased to announce that it has signed a joint venture (“JV”) agreement with Marvel Discovery Corp. (“Marvel”) (TSX.V: MARV), to acquire a 50% interest in the Walker Claims (the “Property”) located in the Athabasca Basin, Saskatchewan (Figure 1). Upon completion of the Carmanah acquisition, Marvel and Carmanah would each own 50% of the project, with Carmanah financing $1.5 million in exploration expenditures, paying $400,000 in cash and issuing $3.5 million. shares and 3.5 million warrants of the company over a 3 year period.

“We are very pleased to have reached an agreement with Marvel Discovery on this project, it is ideally located along the Key Lake fault, home to the highest quality uranium in the world. The project is also directly related at Fission and the Cameco field which runs along the Key Lake shear zone and hosts 10 uranium showings and several EM targets This corridor represents a tremendous opportunity to emulate the success of the subsurface hosted uranium deposits found on the western side of the Athabasca Basin, as NexGen Energy’s Arrow Marvel has done an outstanding job moving the project forward and we look forward to working with our new partner towards a Tier 1 discovery,” said Latika. Prasad, CEO of the company.

The Walker and KLR properties are located in the Wollaston-Mudjactic Transition Zone (WMTZ) of the Eastern Athabasca Basin, home to the highest-grade uranium mines in the world, including:

The WMTZ is home to the richest uranium mines in the world, including (Figure 1):

  • cigar lake50% owned by Cameco, which houses reserves of 221.6 million pounds (lb) of U at 16.7%U8

  • McArthur River, 70% owned by Cameco which hosts reserves of 392 million pounds. of you at 6.91% U

  • Wheeler Project, 90% owned by Denison Mines which houses reserves of 109 million pounds. of you in two deposits with an average of 11.23% U

Figure 1. Location of the Walker-KLR Uranium Project in the WMTZ zone which hosts the highest grade uranium deposits in the world.

Regional geology and mineralization

In Saskatchewan, uranium deposits have been discovered at, above and up to 300 meters below the Athabasca Group unconformity in bedrock. Mineralization can occur hundreds of meters below ground or up to 100 meters above in sandstone of the Athabasca Group. Typically, uranium occurs as uraninite/pitchblende which occurs as semi-massive to massive veins and replacement bodies. Mineralization is also spatially associated with steeply dipping graphitic basement structures and may have been remobilized during successive structural reactivation events. Such structures can be important fluid pathways as well as structural or chemical traps for mineralization, as reactivation events likely introduced more uranium into the mineralized zones and provided a means for remobilization (Jefferson et al. 2007) (Figure 2).

Figure 2. Classical Athabasca Basin uranium deposits at the unconformity between Athabasca sandstone and crystalline bedrock in the WMTZ. The Triple R, Eagle Point, Cluff Lake and Arrow deposits occur in basement rocks of the crystalline granulite domain in the western Athabasca Basin. The KLR and Walker properties are located in bedrock just south of the former Key Lake mine in the WMTZ. Source Searchlight Resources.

Marvel still controls 100% of the Highway North and KLR claims (Figure 3). These groups of claims straddle the Key Lake Fault Zone, an important corridor for structure-controlled Athabasca Basin-type uranium deposits. The Arrow deposit4, owned by NexGen Energy, sits along a similar structural corridor as Marvel properties. The Arrow deposit, which has had a positive feasibility study with strong economics, contains probable reserves of 239.6 million pounds of U3O8 at an average of 2.37% U3O8 and measured and indicated resources of 256.7 million pounds at an average grade of 3.1% U3O8. The Arrow deposit is the largest undeveloped uranium deposit in Canada.

Picture 3. Location of Walker JV and Highway North and KLR claim groups along the Key Lake Fault with prominent VTEM conductor trends.

Qualified person

Mike Kilbourne, P. Geo, an Independent Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical content of this press release on behalf of the Company.

References

Jefferson, CW, Thomas, DJ, Gandhi, SS, Ramaekers, P., Delaney, G., Brisbin, D., Cutts, C., Portella, P. and Olson, RA 2007. Uranium deposits associated with unconformities in the Athabasca Basin, Saskatchewan and Alberta. In EXTECH IV: Geology and Uranium Exploration Technology of the Proterozoic Athabasca Basin. Edited by CW Jefferson and G. Delaney. Geological Survey of Canada, Bulletin 588, p. 23–68.

cigar lake1 : Cigar Lake Operation, Northern Saskatchewan, Canada, Report date March 29, 2016, Prepared by C. Scott Bishop, P.Eng., Alain G. Mainville, P.Geo. and Leslie D. Yesnik, P.Eng.

McArthur River2 : Operation McArthur River, Northern Saskatchewan, Canada, Report date March 29, 2019, Prepared by Linda Bray, P.Eng., Gregory M. Murdoch, P.Eng. and Alain D. Renault, Eng.

Wheeler Project3 : Prefeasibility Study Report for the Wheeler River Uranium Project, Saskatchewan, Canada, Effective date September 24, 2018, prepared by SRK Consulting.

arrow deposit4 : Arrow Repository, Rook I Project, Saskatchewan, NI 43-101 Technical Report on Feasibility Study, Effective Date February 22, 2021, Prepared by Stantec, Wood and RPA.

About Carmanah Minerals Corp.

Carmanah is focused on mineral exploration in Canada. It is currently actively exploring the Loljuh project, located in Omineca’s mining division in British Columbia.

For more information, please consult the documents filed by the Company on www.sedar.com.

ON BEHALF OF COUNCIL

Latika Prasad

Chairman and Chief Executive Officer and Director

E-mail: This email address is protected from spam. You need JavaScript enabled to view it.

Phone: +1 (604) 802-8492

Disclaimer for forward-looking information

Certain statements contained in this release are forward-looking statements that reflect management’s expectations. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intentions regarding the future. The forward-looking statements contained in this press release relate to, among other things, the completion of the proposed arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There can be no assurance that the closing conditions will be satisfied. Forward-looking statements reflect the beliefs, opinions and projections as of the date the statements are made and are based on a number of assumptions and estimates which, while believed to be reasonable by the respective parties, are inherently subject subject to significant business, economic, competitive conditions, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this press release regarding such periods. Except as required by law, the Company undertakes no obligation to update forward-looking statements of beliefs, opinions, projections or other factors, should they change, except as required by law.

Neither the Canadian Securities Exchange, nor 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 appropriateness or accuracy of this release..


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