K2 Gold Announces Agreement to Accelerate Acquisition of 100% of Si2 Project - Defines Vectors to Mineralization Through Alteration Study
K2 Gold (KTGDF) has announced an agreement to acquire 100% interest in the Si2 Project in Nevada from Orogen Royalties for C$250,000, payable in cash or common shares. The deal includes a 2% NSR royalty retained by Orogen. This follows a terminated Option Agreement where K2 made US$200,000 in cash payments and invested over C$2.3 million in exploration.
An alteration study on drill core samples revealed an intact low sulphidation epithermal gold system at Si2, with the most promising zones located within and adjacent to fault structures below current drilling depth. The study analyzed 108 spectral analyses on 95 samples, showing progression from surface alunite and kaolinite to deeper illite-chlorite formations. The highest gold mineralization was found at approximately 200m vertical depth, suggesting potential for higher-grade gold deposits at deeper levels.
The company plans to continue exploration at Si2 in 2025, including enhanced geological mapping, expanded geophysical surveys, and refined drill targets.
K2 Gold (KTGDF) ha annunciato un accordo per acquisire il 100% dell'interesse nel Progetto Si2 in Nevada da Orogen Royalties per C$250.000, pagabili in contanti o in azioni ordinarie. L'accordo include una royalty NSR del 2% mantenuta da Orogen. Questo avviene dopo un Contratto di Opzione terminato, in cui K2 ha effettuato pagamenti in contante di 200.000 USD e ha investito oltre 2,3 milioni di CAD in esplorazione.
Uno studio di alterazione sui campioni di nucleo di perforazione ha rivelato un sistema aurifero epitemale a bassa solfatazione intatto al Si2, con le zone più promettenti situate all'interno e adiacenti a strutture di faglia sotto la profondità attuale di perforazione. Lo studio ha analizzato 108 analisi spettrali su 95 campioni, mostrando una progressione dall'alunite e kaolinite superficiali a formazioni più profonde di illite-clorite. La maggiore mineralizzazione aurifera è stata trovata a circa 200m di profondità verticale, suggerendo un potenziale per depositi d'oro più ricchi a livelli più profondi.
La società prevede di continuare l'esplorazione al Si2 nel 2025, inclusa una mappatura geologica avanzata, survey geofisiche ampliate e affinamento degli obiettivi di perforazione.
K2 Gold (KTGDF) ha anunciado un acuerdo para adquirir el 100% del interés en el Proyecto Si2 en Nevada de Orogen Royalties por C$250,000, pagaderos en efectivo o en acciones comunes. El acuerdo incluye una regalía NSR del 2% mantenida por Orogen. Esto sigue a un Contrato de Opción terminado, donde K2 realizó pagos en efectivo de 200,000 USD e invirtió más de C$2.3 millones en exploración.
Un estudio de alteración sobre muestras de núcleo de perforación reveló un sistema de oro epitelial de baja sulfidación intacto en Si2, con las zonas más prometedoras ubicadas dentro y adyacentes a estructuras de falla por debajo de la profundidad actual de perforación. El estudio analizó 108 análisis espectrales de 95 muestras, mostrando una progresión desde alunita y caolinita de superficie hasta formaciones más profundas de ilita-clorita. La mayor mineralización de oro se encontró a aproximadamente 200m de profundidad vertical, sugiriendo un potencial para depósitos de oro de mayor grado a niveles más profundos.
La compañía planea continuar la exploración en Si2 en 2025, incluyendo una mapeo geológico mejorado, encuestas geofísicas ampliadas y refinamiento de los objetivos de perforación.
K2 Gold (KTGDF)는 Orogen Royalties로부터 네바다의 Si2 프로젝트에 대한 100% 지분을 C$250,000에 현금 또는 보통주로 지급하는 조건으로 인수하기로 합의했다고 발표했습니다. 이 거래에는 Orogen이 보유한 2% NSR 로열티가 포함되어 있습니다. 이 계약은 K2가 20만 달러의 현금 지급을 하고 230만 캐나다 달러 이상의 탐사에 투자한 옵션 계약이 종료된 후 이루어졌습니다.
굴착 샘플에 대한 변형 연구 결과, Si2에서 온전한 저황화 에피테르말 금 시스템이 발견되었으며, 가장 유망한 지역은 현재의 굴착 깊이 아래의 단층 구조 내 및 인근에 위치하고 있습니다. 이 연구는 95개 샘플에 대해 108개의 스펙트럼 분석을 실시하였으며, 표면의 알루나이트와 카올리나이트에서 더 깊은 일라이트-클로라이트로의 진행을 보여주었습니다. 가장 높은 금 광물화는 약 200m의 수직 깊이에서 발견되어, 더 깊은 수준에서 고품위 금 deposits의 가능성을 시사합니다.
회사는 2025년에 Si2에서 탐사를 계속할 계획이며, 여기에는 향상된 지질 매핑, 확대된 지구 물리 조사 및 정제된 천공 목표가 포함됩니다.
K2 Gold (KTGDF) a annoncé un accord pour acquérir un intérêt de 100 % dans le projet Si2 au Nevada auprès d'Orogen Royalties pour un montant de 250 000 $, payable en espèces ou en actions ordinaires. L'accord comprend une redevance NSR de 2 % retenue par Orogen. Cela fait suite à un contrat d'option résilié, où K2 a effectué des paiements en espèces de 200 000 USD et a investi plus de 2,3 millions de CAD dans l'exploration.
Une étude de modification sur des échantillons de carotte de forage a révélé un système aurifère épithermal de basse sulfidation intact au Si2, avec les zones les plus prometteuses situées à l'intérieur et à proximité de structures de failles en dessous de la profondeur actuelle de forage. L'étude a analysé 108 analyses spectrales sur 95 échantillons, montrant une progression allant de l'alunite et kaolinite de surface à des formations plus profondes d'illite-chlorite. La plus forte mineralisation aurifère a été trouvée à environ 200 mètres de profondeur verticale, suggérant un potentiel pour des gisements d'or de meilleure qualité à des niveaux plus profonds.
La société prévoit de poursuivre son exploration au Si2 en 2025, y compris une cartographie géologique améliorée, des enquêtes géophysiques élargies et des cibles de forage affinées.
K2 Gold (KTGDF) hat eine Vereinbarung bekanntgegeben, 100% Interesse am Si2-Projekt in Nevada von Orogen Royalties für C$250.000 zu erwerben, zahlbar in bar oder in Stammaktien. Der Deal umfasst eine von Orogen einbehaltene 2% NSR-Royalty. Dies folgt auf eine beendete Optionsvereinbarung, bei der K2 200.000 USD in Barzahlungen geleistet und über 2,3 Millionen CAD in Explorationsaktivitäten investiert hat.
Eine Veränderungsstudie zu Bohrkernproben ergab ein intaktes Niedersulfidations-Epithermal-Goldsystem am Si2, wobei die vielversprechendsten Zonen innerhalb und angrenzend an Störungsstrukturen unterhalb der aktuellen Bohrtiefe liegen. Die Studie analysierte 108 spektrale Analysen an 95 Proben, die eine Progression von oberflächlichem Alunit und Kaolinit zu tieferen Illit-Chlorit-Formationen zeigt. Die höchste Goldmineralisation wurde in etwa 200 m vertikaler Tiefe gefunden, was auf ein Potenzial für hochwertigere Goldvorkommen in tieferen Schichten hindeutet.
Das Unternehmen plant, die Erkundung am Si2 im Jahr 2025 fortzusetzen, einschließlich verbesserter geologischer Kartierung, erweiterter geophysikalischer Erhebungen und verfeinerter Bohrziele.
- Acquisition of 100% interest in Si2 Project provides full control over project development
- Alteration study confirms presence of intact low sulphidation epithermal gold system
- Identified high-potential gold mineralization zones for future exploration
- Project shows similarities to the 13.3Moz Silicon discovery
- Additional capital expenditure of C$250,000 required for acquisition
- 2% NSR royalty obligation to Orogen reduces future revenue potential
- Most promising zones require deeper drilling, increasing exploration costs
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2025) - K2 Gold Corporation (TSXV: KTO) (OTCQB: KTGDF) (FSE: 23K) ("K2" or the "Company") today announced the signing of an agreement to acquire a
Highlights
The alteration study determined that an intact low sulphidation epithermal gold system is present on the Si2 property, with the most prospective horizons occurring within and adjacent to fault structures below the depth of current drilling.
The alteration mineralogy indicates potential for higher-tenor gold mineralization slightly deeper than the current extent of drilling.
K2 will acquire a
100% interest in Si2 by paying C$250,000 in cash or common shares of K2, at the discretion of K2. Orogen will retain a2% net smelter return ("NSR") royalty. The Agreement follows on from the now terminated Option Agreement between Orogen and K2 (January 19, 2022) whereby K2 made cash payments to Orogen totaling US$200,000 and incurred over C$2.3 million in exploration expenditures. (The common shares issued pursuant to the Agreement are subject to the regulatory approval of the TSX Venture Exchange.)
"The results of this study confirm that the southern targets at Si2 host a typical low-sulphidation epithermal alteration assemblage but suggest that we did not test deep enough in this portion of the system. The encouraging alteration and increasing gold values intersected at relatively shallow depths leave us with highly prospective follow up targets beneath and along strike of the extent of our 2023 drilling. Fully acquiring the Si2 Project allows us the flexibility to advance the project at our own pace as we approach the final steps in permitting at K2's flagship Mojave Project," stated Anthony Margarit, K2's President and CEO.
Alteration Survey Results
Samples were collected approximately every 25m along the length of each of the 2023 diamond drill holes, which were drilled in the AOI 1 and AOI2 target areas at the project. The samples were submitted to a Reno-based consultant who analysed each sample by hand and Shortwave Infrared ("SWIR") mineral analyzer to characterise the alteration assemblage present in the drilled area. A total of 108 spectral analyses were completed on 95 samples using a FieldSpec Pro spectroradiometer.
Figure 1: Alteration schematic developed from the results of the alteration study.
To view an enhanced version of this graphic, please visit:
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Figure 2: Schematic of the zoned alteration model of a typical low sulphidation epithermal gold system, from Hedenquist et al., 2000.
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The alteration defined by the study shows an irregular progression from shallow, near-surface steam-heated alunite and kaolinite/dickite downward into smectite, followed by illite-smectite, illite, and illite-chlorite. Silicified zones and minor quartz veining were observed in the core of the drilled area, and possible adularia was noted in an interval in hole SD-23-001.
Variations in the amount and presence of illite observed in the core of the drilled area beneath the steam-altered cap may represent proximity to fluid flow zones, and anomalous gold appears to coincide with areas of illite-quartz ± adularia alteration. This is best observed in holes SD-23-001 and SD-23-002, which drilled into the AOI1.5 fault: a normal fault which juxtaposes smectite altered latite against quartz-illite ± adularia altered dacite and rhyolite. The fault hosts an approximately 6m thick interval of quartz veining intersected at 200m vertical depth. The highest tenor gold mineralization intersected in the drilling occurs slightly deeper than and adjacent to this vein and fault, suggesting the same structure, as well as additional faults noted closer to surface in the 2023 drilling, may be prospective when intersected at a deeper level.
Additional Work
The alteration study demonstrates that an intact low sulphidation epithermal gold system is present on the Si2 property, with the most prospective horizons occurring within and adjacent to normal fault structures below the depth of current drilling.
Key targets for follow up work include:
Immediately down-dip and along strike of the quartz veining and gold mineralization intersected in hole SD-23-001.
Similar structural targets at depths >250m below surface at the AOI3, AOI4, and AOI5 target areas, which remain undrilled.
Ongoing work at the Si2 Gold Project includes age dating of the host rocks to better understand the geological context which hosts the alteration system, as well as petrographic and fluid inclusion analysis of thin sections collected from key intervals in holes SD-23-001 and 002. The Company intends to return to the Si2 Project in 2025 to enhance existing geological mapping, expand on the existing geophysical surveys and continue to refine drill targets for a future drill test.
About the Si2 Gold Project
The Si2 Gold Project is located in Esmeralda County, approximately 60km northwest of Tonopah, Nevada, and 20km northwest of Allegiant Gold's Eastside deposit (1.4Moz Au, 8.8 Moz Ag). The project is road accessible and consists of 118 BLM lode claims covering 986 Ha, 65 of which are under option from Orogen Royalties Inc. (TSXV: OGN). The claims cover an 8 km2 area of steam heated alunite-kaolinite-buddingtonite alteration within a sequence of felsic to intermediate volcanic rocks displaying brecciation and strongly anomalous mercury.
K2's 2023 diamond drill program at the Si2 Project confirmed that the system is gold bearing. The project was initially identified using the same methods, and by the same exploration team that identified AngloGold Ashanti's 4.21 Moz Au Silicon project1 near Beatty, Nevada, and was staked based on its strong geological similarities to Silicon.
Qualified Person ("QP")
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Eric Buitenhuis, M.Sc., P.Geo., K2's QP and Vice President of Exploration.
About K2 Gold
K2 is a proud member of Discovery Group and currently has three projects in Southwest USA and the Yukon.
The Mojave Project is a 5,830-hectare oxide gold project with base metal targets located in Inyo County, California. Multiple previously recognized surface gold targets have been successfully drilled in the past, most notably by Newmont and BHP. Since acquiring the property, K2 has completed geochemical and geophysical surveys, geologic mapping, LiDAR, a WorldView 3 alteration survey, and successfully completed a 17-hole RC drill program focused on the Dragonfly and Newmont Zones. Highlights from K2's drilling program include 6.68 g/t Au over 45.72m from surface at the Dragonfly Zone, and 1.69 g/t Au over 41.15m from 44.20m depth at the Newmont Zone.
The Wels Project lies approximately 40km east of the community of Beaver Creek and 60km south of Newmont Goldcorp's Coffee deposit discovered by Kaminak Gold Corporation (formerly a Discovery Group company prior to its acquisition by Goldcorp-Newmont). Both the Coffee project and the Wels project lie within the Tintina Gold Belt, share similar characteristics, and are host to structurally controlled gold mineralization within intrusive rocks exhibiting multiple trends of mineralization.
K2's 2023 Reverse Circulation drilling program at the Wels Project intersected gold in every drill hole, including the discovery of a new mineralized corridor at the Saddle South target. The Wels land position consists of 350 contiguous quartz claims covering 7,200 hectares and lies within the traditional territory of White River First Nation.
K2 is committed to transparency, accountability, environmental stewardship, safety, diversity, inclusion, and community and indigenous engagement.
On behalf of the Board of Directors
Anthony Margarit
President and CEO
For further information about K2 Gold Corporation or this news release, please visit our website at k2gold.com, contact our office at 778-266-1456, or by email at info@k2gold.com.
K2 Gold Corporation is a member of Discovery Group based in Vancouver, Canada. For more information please visit: discoverygroup.ca.
Cautionary Statement on Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts. Forward- looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding the exploration program at Si2, Wels, and Mojave, including results of drilling, and future exploration plans at Si2, Wels, and Mojave. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's inability to obtain any necessary permits, consents or authorizations required for its planned activities, and the Company's inability to raise the necessary capital or to be fully able to implement its business strategies. The reader is referred to the Company's public disclosure record which is available on SEDAR (www.sedarplus.ca). Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. No securities of the Company have been or will, in the foreseeable future, be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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FAQ
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How much has K2 Gold invested in Si2 Project exploration before this acquisition?
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