Kenorland and Auranova Commence Phase 4 Drill Program at the South Uchi Project, Ontario

Kenorland and Auranova launch 5,000m drill program at South Uchi with near-term results expected.

What the company is saying

Kenorland Minerals (TSXV:KLD, OTCQX:KLDCF, FSE:3WQ0) and Auranova Resources (TSXV:AURA) announce the start of a 5,000-metre, phase 4 diamond drill program at the South Uchi Project in Ontario’s Red Lake District, emphasizing technical progress and the project's scale. The release highlights previous intercepts at North Papa trend, including 14.00 m at 0.28 g/t Au, 65.45 m at 0.34 g/t Au (with 21.00 m at 0.58 g/t Au), and 35.65 m at 0.31 g/t Au, as well as higher-grade intervals such as 7.70 m at 1.13 g/t Au (including 1.00 m at 7.07 g/t Au) and 3.75 m at 3.65 g/t Au (including 1.45 m at 9.09 g/t Au). The companies frame the program as a methodical follow-up on previous mineralized intercepts and geophysical anomalies, with Kenorland as operator and drilling expected to conclude by mid-November. The announcement details the earn-in structure: Auranova has earned a 51% interest after $500,000 in cash payments, 9,242,267 Auranova shares issued to Kenorland, and confirmation of qualifying expenditures. Auranova can earn up to 70% by spending an additional $10,000,000. Kenorland retains a 30% carried interest until PEA and a 2% net smelter royalty. The tone is factual and technical, with both companies’ CEOs named and technical oversight by qualified persons explicitly stated.

What the data suggests

The announcement confirms the phase 4 drill program is underway, targeting 5,000 metres at the North Papa trend with step-outs from hole 26PADD046 and testing geophysical anomalies. Previous drilling produced broad, low- to moderate-grade gold intercepts (e.g., 65.45 m at 0.34 g/t Au, 21.00 m at 0.58 g/t Au) and some higher-grade intervals (1.00 m at 7.07 g/t Au, 1.45 m at 9.09 g/t Au), indicating a large mineralized corridor but not yet demonstrating economic grades at scale. The earn-in structure is clearly defined: Auranova has met the initial requirements for 51% ownership via $500,000 cash, share issuance (9,242,267 shares), and qualifying expenditures, with an option to reach 70% by investing an additional $10,000,000. Kenorland’s 30% carried interest and 2% NSR royalty provide ongoing exposure. The technical disclosure is detailed, with specific hole IDs, grades, and widths, but no new assay results from the current program are included. The financial trajectory is not addressed beyond the earn-in and royalty terms. The evidence supports the claim of systematic exploration progress but does not yet demonstrate a resource or economic threshold.

Analysis

The announcement is proportionate in tone, focusing on the commencement of a phase 4 drill program and providing detailed technical and transactional information. The majority of claims are factual and realised, such as the start of drilling, specific intercepts from previous campaigns, and the confirmation of Auranova's 51% earn-in. Forward-looking statements are limited to the expected completion of drilling by mid-November and the potential for Auranova to earn a further 19% interest through additional expenditures. The capital intensity flag is set due to the substantial qualifying expenditures ($8M and $10M) required for earn-in, with benefits (resource definition, potential economic studies) not immediate. However, as this is a pre-revenue exploration-stage update, the absence of revenue or profit data is not a deficiency. There is no narrative inflation or exaggerated language; the technical disclosures are specific and credible, and the timeline for the current drill program is near-term. The gap between narrative and evidence is minimal.

Risk flags

• ●Exploration risk remains high, as disclosed intercepts to date show broad but mostly low-grade mineralization; economic viability is unproven and depends on future results.
• ●The staged earn-in structure requires Auranova to spend an additional $10,000,000 to reach 70% ownership, introducing financing and execution risk if capital markets tighten or results disappoint.
• ●No new assay results from the current program are disclosed, so the immediate impact on project value is unknown and investors must wait for near-term updates.
• ●Ownership and project advancement are contingent on meeting specific expenditure and drilling milestones; failure to meet these could stall progress or alter the joint venture structure.
• ●While Kenorland retains a 2% NSR royalty and 30% carried interest through PEA, realization of royalty income or carried value depends entirely on successful delineation of an economic deposit.

Bottom line

Kenorland and Auranova have begun a 5,000-metre drill program at the South Uchi Project, with prior drilling indicating a broad mineralized corridor but not yet confirming economic grades at scale. Auranova has earned a 51% stake after fulfilling $500,000 in cash payments and share issuance obligations, and can increase to 70% by spending an additional $10,000,000. Kenorland’s exposure is preserved through a 30% carried interest and a 2% net smelter royalty. The technical disclosure is robust, but the absence of new drill results means no immediate value uplift can be assessed. Near-term catalysts are expected as drilling concludes by mid-November, but the project remains high risk until assays confirm continuity and grade. Investors should focus on the quality of upcoming drill results and whether Auranova can maintain funding for further expenditures. The main takeaway: systematic exploration is progressing, but resource and economic potential are still unproven.

Announcement summary

(TSXV:KLD) (OTCQX:KLDCF) (FSE:3WQ0) (TSXV:AURA) Kenorland Minerals Ltd. and Auranova Resources Inc. have commenced the 2026 fall (phase 4) diamond drill program at the South Uchi Project, located in the Red Lake District of Ontario. The phase 4 program will comprise approximately 5,000 metres of diamond drilling focused on the North Papa trend within the Papaonga target area. Drilling will follow up on previous mineralised intercepts and test chargeability and resistivity anomalies defined by the summer's induced polarisation (IP) survey. The program will follow up on hole 26PADD046, testing along strike and at depth, building on mineralised intercepts reported from phases 2 and 3 drill campaigns. Previous drilling was completed along widely-spaced fences roughly 500m apart along the North Papa trend. The planned drill holes are designed as modest step-outs along strike from 26PADD046 and at depth to better define geometries of the approximately 200-metre-wide mineralised corridor. Drill hole 26PADD046 intersected multiple broad zones of gold mineralisation returning 14.00 m at 0.28 g/t Au, 65.45 m at 0.34 g/t Au including 21.00 m at 0.58 g/t Au, and 35.65 m at 0.31 g/t Au. Drilling has also been designed to test mineralisation related to the tholeiitic to calc-alkaline volcanic contact that includes 26PADD046 with 7.70 m at 1.13 g/t Au including 1.00 m at 7.07 g/t Au, and 26PADD043 (located 500m to the east) that returned 3.75 m at 3.65 g/t Au including 1.45 m at 9.09 g/t Au. Kenorland remains operator of the project, with drilling activities expected to be completed by mid November. Kenorland announced on December 2, 2024, that it had entered into a definitive agreement with Auranova, granting Auranova the right to earn up to a 70% interest in the Project. Auranova may earn an initial 51% interest by making cash payments totalling $500,000 to Kenorland, completing a diamond drilling program with at least $8,000,000 in qualifying expenditures or completing 15,000 metres of drilling within two years of receiving a drill permit, issuing Kenorland 19.9% of Auranova's common shares, and maintaining Kenorland's 19.9% share position until Auranova raises a minimum of $10,000,000 through share issuances, after which Kenorland's stake will remain at 10% on a pro-rata basis through to the completion of a Preliminary Economic Assessment (PEA). Kenorland has received the $500,000 in cash payments and currently holds 9,242,267 common shares of Auranova, confirming that Auranova has now earned a 51% ownership interest in the Project. Auranova may earn an additional 19% interest, for a total of 70%, by incurring an additional $10,000,000 in qualifying expenditures on or before the third anniversary of Auranova's election to proceed with the second option. Kenorland will retain a 30% carried interest in the Project through to the completion of the PEA, at which point a joint venture will be formed. Kenorland also holds a 2% net smelter return royalty on the Project. Kenorland holds a 4% net smelter return royalty on the Frotet Project in Quebec, which is owned by Sumitomo Metal Mining Canada Ltd. The Frotet Project hosts the Regnault gold system, which contains an Inferred Mineral Resource of 14.5 Mt at 5.47 g/t Au for 2.55 Moz of gold. The directors and major shareholders of Auranova Resources Inc. are Thomas Obradovich, Chris Taylor, Timothy Young, William Rand, and Blair Zaritsky. Zach Flood is President, CEO & Director of Kenorland Minerals. Thomas Obradovich is Chief Executive Officer of Auranova Resources.

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