Kesselrun Prepares for Further Drilling and Provides Update on Brokered Private Placement

HUNDER BAY, ON, November 26, 2020 – Kesselrun Resources Ltd. (TSXV:KES) (“Kesselrun” or the “Company”) is pleased to provide final results from the initial drill program on the Huronian Gold Project as it prepares for the next phase of drilling. Results reported are from the McKellar and Huronian Zones.

 

Highlights

 

 

 

Figure 1: Schematic Block Section – Huronian Project

 

Michael Thompson, P.Geo., President and CEO of the Company, commented, “Our drilling on the McKellar Zone is the first step in our plan to extend mineralization down dip and along the more than two kilometres of strike length to the southwest. To the northeast of the McKellar zone lies the Huronian Zone where historic mining was focused on the narrow high-grade quartz veins which are hosted within a wide mineralized shear zone. We believe there is enormous potential to outline remnant mineralization amongst the historic workings as well as down dip and north east strike extents”.

 

The 2020 Huronian drill program targeted four zones; Fisher, Fisher North, McKellar and Huronian. The four zones are in close proximity along an approximate 1500 m strike length in the area of the historic Huronian Mine. The zones include multiple generations of quartz veins that carry high grade gold values in association with altered, sheared and variably mineralized mafic volcanics, feldspar-quartz porphyries and iron formation. 

 

Previous operators have focused on the Fisher, Fisher North and McKellar Zones where drilling has been concentrated at near surface depths of 75 metres or less, while the Huronian Zone has been mostly unexplored since the closure of the mine in 1936. As a result, Kesselrun believes there to be significant upside potential on all zones.

 

 

Figure 2: Schematic Plan Map – Huronian Project

 

Update on Brokered Private Placement

 

The Company is also pleased to announce that it has been notified by Red Cloud Securities that the brokered financing announced on November 16, 2020, upsized from up to $3.0 million to up to $5.0 million, has been fully subscribed and allocated. The Company will notify the market when the financing has closed.

 

About the Huronian Gold Project

 

The 100% owned Huronian Gold Project hosts the past producing Huronian Mine, Northwestern Ontario’s first gold mine with an historic resource estimate of 44,592 oz Au @ 15.3 g/t Au in the indicated category and 501,377 oz Au @ 14.4 g/t Au in the inferred category. The resource estimate presented for the Huronian Project is historic in nature. Kesselrun Resources’ qualified person has not completed sufficient work to confirm the results of the historical resource. Kesselrun Resources is not treating this as a current mineral resource but is considering it relevant as a guide to future exploration and is included for reference purposes only. The historic resource was estimated by Minescape Exploration Inc. in 1998. Further drilling will be required by Kesselrun Resources to verify the historic estimate as current mineral resources.

 

As well, the Huronian Gold Project hosts the same lithological package of rocks, as interpreted from both Government of Ontario and Kesselrun Resources mapping, compilation and modelling, on strike from Wesdome Gold’s (TSX:WDO) adjacent Moss Lake Gold Deposit with a resource estimate of 1,377,300 oz Au @ 1.1 g/t Au in the indicated category and 1,751,600 oz Au @ 1.1 g/t Au in the inferred category as outlined in their 2013 PEA. Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on Kesselrun Resources’ property.

 

About Kesselrun Resources Ltd.

 

Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.

 

For additional information please contact:

 

Kesselrun Resources Ltd.

Michael Thompson, P.Geo., President & CEO

807.285.3323

michaelt@kesselrunresources.com

 

Corporate Communications

1.866.416.7941 information@kesselrunresources.com