Sanatana Announces 2022 Exploration Program and Initial 5,000 Metre Drilling at Oweegee Cu-Au Project in BC's Golden Triangle and Private Placement
- A 5,000 m contract with Atlas Drilling has been signed and drilling will commence as soon as conditions allow, likely in later June
- The initial target will be the Molloy Zone, a monzonite intrusion with porphyry-style quartz-chalcopyrite stockwork veins which averaged 0.35% Cu, 0.829 g/t Au and 4.15g/t Ag from 15 samples collected in 2021
- Contracts secured with drilling, helicopter, geophysical and camp providers, fieldwork is scheduled to begin June 1, 2022
- Sanatana has secured GeologicAI to assist with core logging by using infrared and x-ray scans to collected maximum information from drill core
- Private placement announced to raise gross proceeds up to $2.7 million
Vancouver, April 22, 2022 - Sanatana Resources Inc. (TSXV: STA) ("Sanatana" or the "Company") has completed the majority of the preparations required to carry out the 2022 exploration program on its Oweegee Dome project ("Oweegee"). Sanatana also announces a private placement that is expected to raise gross proceeds up to $2.7 million which will be used to fund the upcoming drill program at Oweegee.
Peter Miles, Sanatana's CEO commented, "Sanatana is pleased to announce the 2022 exploration and initial drilling program at Oweegee. We have assembled an outstanding team for the 2022 exploration program and, with the funds we have on hand and with the strong endorsement from Teuton Resources' recent investment in the Company, we are well positioned for an exciting initial drill program at Oweegee. Porphyry copper gold deposits are company makers and our drilling and exploration at Oweegee will be closely watched by both investors and mining industry veterans alike."
Oweegee Exploration Program Sanatana's management proactively began securing contracts for the 2022 exploration program for Oweegee in late 2021. The Company is pleased to report that all essential services have been secured for a 5,000 m drill program at Oweegee starting as soon as snow conditions allow. Field crews are scheduled to start on June 1, 2022.
A 5,000 m drill contract has been signed with Atlas Drilling to provide a helicopter-portable drill rig capable of drilling in excess of 500 m hole length of HQ core. Drilling will initially focus on geochemical and geophysical targets at the Molloy monzonite which hosts the strongest Cu-Au mineralization identified to date, but has never been drill tested.
Prior to drilling, field crews will be tasked with mapping and prospecting lower elevation areas of interest as well as preparing drill and helipad locations. Timbers for drill pad construction were delivered at the end of 2021 and are in position to be built at the first pad. Additional timbers have been pre-ordered and will be delivered throughout the summer.
Geophysical Induced Polarization (IP) surveying is scheduled to start in early July 2022. The 2022 lines will expand on the previous year's 3 x 1.6 km survey area around the Molloy zone as well as multi-kilometre reconnaissance IP lines at the Glacier and Skowill prospects. Results from the 2021 3-D IP survey revealed several anomalies with the most interesting anomaly being a high chargeability halo surrounding the Molloy monzonite (see Figure 1 below) which is interpreted to be a pyrite halo, a common characteristic of porphyry deposits.
Figure 1. IP chargeability at 200 m below surface and proposed 2022 drill pads
The Molloy copper bearing monzonite outcrop indicated in dashed red
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Sanatana will be using a core scanner from GeologicAI. The multi-scanner will log drill core in near real time with x-ray fluoresce (XRF), hyperspectral imaging and high definition core photos. The output is a consistent digital log and stripchart to be used to assist core logging geologists to identify alteration assemblages which are not visible to the eye as well as give immediate indications if economic minerals are present to aid efficient sample collection.
Project Manager Jeff Kyba stated: "Oweegee contains the right ingredients for a potential significant deposit but never been fully explored. The identification of porphyry style veins (Figure 2) and multiple intrusive phases during the 2021 field program significantly upgraded the project. Considering the Molloy zone is only 8 km east of Highway 37 and the northwest transmission line, Oweegee is more accessible than many projects in the Golden Triangle and this summer we will test if the Cu-Au grades extend to depth. The porphyry has been found, now our job is to determine the size of it."
Figure 2. Sample 420171: Typical Molloy monzonite stockwork -
0.36% Cu, 0.704 g/t Au, 2.25 g/t Ag
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Private Placement
Sanatana also announces a private placement (the "Private Placement") to raise up to $2.7 million through the issuance of up to 18,000,000 units (the "Units") of the Company priced at $0.15 per Unit. Each Unit will consist of one share and one-half of a share purchase warrant, each full warrant exercisable at $0.20 for two years.
Closing of the Private Placement is subject to prescribed conditions, including, without limitations, approval of the TSX Venture Exchange (the "TSX-V"). The securities to be issued under the Private Placement will be offered by way of private placement pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.
Securities issued under the Private Placement will be subject to a four-month hold period which will expire four months and one day from the date of closing of the Private Placement.
The net proceeds from the Private Placement will be used to fund the upcoming drilling and exploration of Oweegee and for general working capital purpose.
The Company may pay a finder's fee on the Private Placement within the amount permitted by the policies of the TSX-V.
The Private Placement is in addition to the $600,000 private placement announced with Teuton Resources Corp. (see the Company's news release dated March 1, 2022, a copy of which is available under the Company's SEDAR profile at www.sedar.com).
About the Oweegee Dome Project
In July 2021, the Company entered into an agreement with ArcWest to option up to 80% of ArcWest's 31,077-hectre Oweegee Dome porphyry copper-gold project in British Columbia's Golden Triangle. The Oweegee Dome project is situated 45 km east of Seabridge Gold Corp's KSM-Iron Cap porphyry Cu-Au project. The agreement is subject to TSX-V approval.
The Company can earn an initial 60% interest in the Oweegee Dome project by funding, over a four-year period, cumulative exploration expenditures of $6,600,000 and by making staged cash and share payments totaling $500,000 and 2,000,000 shares, respectively. Upon completion of the first option and receipt of the initial interest notice from Sanatana, Sanatana will have a 60-day period to elect to earn an additional 20% interest, for an aggregate 80% interest, or form a joint venture.
The technical information in this news release was prepared under the supervision of Buddy Doyle B.App Sc Geology, MAUSIMM. Mr. Doyle is a Qualified Person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and approved the technical information disclosed in this news release.
About the Company
Sanatana Resources Inc. is a mineral exploration and development company focused on high-impact properties in Canada. With an award-winning technical team and experienced management and board of directors, Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX-V: STA).
(signed) "Peter Miles"
Peter Miles
Chief Executive Officer
For additional information on the Company, please contact Mr. Peter Miles, Chief Executive Officer at (604) 408-6680 or email investor@sanatanaresources.com.
To be added to the email distribution list, please email ir@sanatanaresources.com with "Sanatana" in the subject line.
Cautionary Statement Regarding "Forward-Looking" Information
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements related to the Company's exploration program for Oweegee and the Private Placement.
Forward-looking statements and information can be identified by the use of words such as "plans", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933 , as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, US persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
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