December 19, 2022, Silk Road Energy Inc. (TSXV: SLK) reports that it has entered into an option agreement to acquire a 100 percent interest in the Doran Lithium Property located approximately 200 kilometres east of Red Lake in northwestern Ontario.
The Doran Lithium property is located 60 kilometres east of Green Technology Metals Inc.’s Root Lake Lithium Project that is currently being developed to production. The Doran Lithium Property sits along the same terrane boundary fault structure as the Root Lake Lithium discovery.
The area surrounding the Doran property was reviewed by the Ontario Geological Survey for potentially hosting significant lithium deposits. They undertook geochemical sampling of lake- bottom sediments and the mapping of intrusive complexes and pegmatite dikes that could produce economic lithium deposits.
The Doran property was found to contain elevated levels of lithium oxide in lake-bottom sediment samples. This is a positive criterion for the presence of lithium mineralization.
As well, satellite photo images of Doran property show both white linear and irregular spotted clusters of outcrops, which may be interpreted as pegmatite, a host rock for lithium mineralization.
The Doran Lithium property consists of 3,474 hectares in close proximity to the English River- Uchi terrane boundary and is also adjacent to second order faults. The presence of these structural and tectonic elements is significant since, to date, most significant lithium discoveries occur adjacent to terrane boundaries and second order fault structures.
Silk Road is acquiring the property by issuing 900,000 shares and by making cash payments over the next three years for a total of $111,000. There are no work commitments on the properties. The agreement is subject to TSX and other regulatory approvals.
Silk Road Energy will act as sole operator of the project. The vendor will hold a 1.5% Net Smelter Royalty (NSR) on the property. One third of this NSR can be purchased by Silk Road for $600,000.
Qualified Person:
Edward Procyshyn, P.Geo, a qualified person in accordance with National Instrument 43-101, has reviewed and approved the technical information contained in this news release.