Val-d'Or Mining Enters into Mining Option Agreement

Rhea-AI Summary

Val-d'Or Mining has entered into a mining option agreement with Kirkland Lake Discoveries Corp. for its Amikougami and Winnie Lake properties in Ontario. Under the agreement, Kirkland Lake Discoveries will issue 1.75 million common shares to Val-d'Or Mining and must incur expenditures of $1.2 million within four years. Upon acquiring 100% interest, Val-d'Or Mining will receive a Net Smelter Returns royalty of 0.75% to 2%. The Amikougami property spans 388 hectares with multiple historical gold occurrences, while the Winnie Lake property covers 795 hectares and shows potential for VMS Cu-Zn-Ag-Au mineralization. A notable historical drill hole at Winnie Lake reported 22.5 meters with 2.58% Cu, 2.83% Zn, 0.5 oz/tn Ag, and 0.03 oz/tn Au.

Positive

• Option agreement provides immediate value through 1.75 million shares of Kirkland Lake Discoveries
• Guaranteed $1.2 million in exploration expenditures over four years
• Retains potential future revenue through NSR royalty of 0.75-2%
• Properties are strategically located near the prolific Kirkland Lake gold district

Negative

• Company giving up 100% interest in potentially valuable properties
• Exploration results and success not guaranteed despite historical findings
• Share value received depends on Kirkland Lake Discoveries' market performance

Val-d'Or, Québec--(Newsfile Corp. - May 7, 2025) - Val-d'Or Mining Corporation (TSXV: VZZ) (the "Company") announces that it has entered into a mining option agreement (the "Option Agreement") with an arms' length party, Kirkland Lake Discoveries Corp. (the "Optionee") (TSXV: KLDC) dated April 25, 2025, pursuant to which the Company granted an option (the "Option") to the Optionee to acquire a 100% interest in the mineral claims comprising the Amikougami and Winnie Lake properties, located in Ontario, Canada (the "Properties"), as described below.

In consideration of the grant of the Option, the Optionee shall issue to the Company 1,750,000 common shares in the capital of the Optionee, upon receipt of approval from the TSX Venture Exchange (the "Exchange"). In addition, the Optionee is required to incur expenditures on the Properties in an aggregate amount of $1,200,000 on or before the fourth anniversary of the receipt of Exchange approval. Further, upon the Optionee acquiring a 100% interest in all or a portion of the Properties pursuant to exercise of the Option, the Optionee shall automatically be deemed to thereupon grant to the Company a royalty of Net Smelter Returns of the portion of the Properties for which the Option was exercised, ranging from 0.75% to 2%, subject to an underlying royalty of 1.25% on certain claims comprising the Properties in favour of Gold Royalty Corp.

The Amikougami Prospect consists of 18 mining claims (approximately 388-Ha) centered in southern Bernhardt Township, approximately 7-km northwest of Kirkland Lake, Ontario. Multiple gold occurrences have been reported within the property from historical work (Ansara; Assad; Bourzk-Mondoux; Erie-Canadian, Soloman) dating back to the early 1900's and then again since the property was acquired by staking in the 1980's (Tundra Gold Mines, Pamorex Minerals, Golden Valley Mines). Numerous excavations found within the group (pits, trenches, shafts) attest to the prior work, much of which was stimulated by the early discoveries in the Kirkland Lake Gold Camp, following the original discoveries in the 1930's. Exploration programs more recently have included ground-based geophysical surveys (magnetic, Induced Polarization) and limited testing by drilling (approximately 1000-metres in 8 ddh's).

The Winnie Lake Prospect consist of 37 mining claims (approximately 795-Ha), centered in northwest Teck Township, some 9-km northwest of Kirkland Lake. Interest in this group has been focused on VMS Cu-Zn-Ag-Au style mineralization since the discovery of massive sulphides in outcrop in the 1920's. Historical exploration and development work then, includes a description of limited direct shipping to the Horne Smelter in Rouyn-Noranda, followed by ground-based geophysical programs and limited diamond drilling (Ottawa-Teck Syndicate, Winnie Lake Mining Co., Erie Canadian Mines, Macassa Mines and Lynx Canada). Work since staking in the 1980's has included programs by Tundra Gold Mines, Pamorex Minerals, Golden Valley Mines and prospector-funded programs. Much of the more recent work was stimulated by a 1989 drill hole ("TWL-89-01") which reported 22.5-metres returning 2.58% Cu, 2.83% Zn, 0.5 oz/tn Ag and 0.03 oz/tn Au ) in the area under the original "shaft" occurrence. Ground based geophysical surveys included magnetic, TDEM, HLEM, Induced Polarization and downhole geophysical surveys (mise-a-la-masse). The two properties are considered prospective for either gold or VMS-style base metals mineralization. The Winnie Lake Stock intrudes intermediate to mafic volcanics considered part of the Blake River Group. The Blake River Group has been a prolific source of VMS precious and base metals mineralization further east (Rouyn-Noranda to Cadillac, Quebec) and the Rouyn-Noranda area has been host to significant Cu-Zn-Au-Ag production for over 100-years, and is generally considered to continue to be high potential terrain for further discoveries. The VMS deposits of the Noranda Camp contain a cumulative in-ground metal endowment of 2.7 million tonnes (Mt) Cu, 3.0 Mt Zn, 625 t Au (~20.1 Moz), 4,554 t Ag (~146 Moz). (Monecke et al, 2017)

It has been noted by many explorationists that the Kirkland Lake camp is unique in this part of the Abitibi Greenstone Belt in not having produced significant VMS discoveries, which have been common in other Abitibi gold camps including Val-d'Or, Malartic, Cadillac, Rouyn-Noranda and Timmins. Much of the new program being envisaged by Kirkland Lake Discoveries is designed to test potential near the contact environment along the east side of the Winnie Lake Pluton. In Kirkland Lake, seven mines have collectively produced over 24 million ounces of gold, with Timiskaming assemblage rocks, particularly those related to the Kirkland Lake Main Break, playing a significant role in this high-yielding gold region. The Kirkland Lake Main Break is a structure subparallel to the Cadillac-Larder Lake Break. The seven mines, including the Macassa, Kirkland Lake, Teck-Hughes, Lake Shore, Wright-Hargreaves, Toburn, and Sylvanite mines, are all associated with this Main Break (DigiGeoATLAS,2025).

Mr. Michael Rosatelli, M.Sc., P.Geo., the Vice-President Exploration of the Company, is a qualified person as defined by National Instrument 43-101. Mr. Rosatelli has verified the referenced data disclosed in this press release and has approved the technical information presented herein.

About Val-d'Or Mining Corporation

Val-d'Or Mining Corporation is a junior natural resource issuer involved in the process of acquiring and exploring its diverse mineral property assets, most of which are situated in the Abitibi Greenstone Belt of NE Ontario and NW Québec. To complement its current property interests, the Company regularly evaluates new opportunities for staking and/or acquisitions. Outside of its principal regional focus in the Abitibi Greenstone Belt, the Company holds several other properties in Northern Québec (Nunavik) covering different geological environments and commodities (Ni-Cu-PGE's).

The Company has expertise in the identification and generation of new projects, and in early-stage exploration. The mineral commodities of interest are broad, and range from gold, copper-zinc-silver, nickel-copper-PGE to industrial and energy minerals. After the initial value creation in the 100%-owned, or majority-owned properties, the Company seeks option/joint venture partners with technical expertise and financial capacity to conduct more advanced exploration projects.

For additional information, please contact:

Glenn J. Mullan
2772 chemin Sullivan
Val-d'Or, Québec J9P 0B9
Tel.: 819-824-2808, x 204
Email: Glenn.Mullan@GroupZedZed.com

Forward-Looking Statements:

This news release contains certain statements that may be deemed "forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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 news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251079

FAQ

What are the key terms of VDOMF's option agreement with Kirkland Lake Discoveries?

Val-d'Or Mining will receive 1.75 million common shares from Kirkland Lake Discoveries, who must spend $1.2 million in exploration over 4 years. Upon 100% acquisition, Val-d'Or Mining will retain a 0.75-2% NSR royalty.

Where are Val-d'Or Mining's Amikougami and Winnie Lake properties located?

The properties are located in Ontario, Canada. Amikougami is approximately 7km northwest of Kirkland Lake in Bernhardt Township, and Winnie Lake is about 9km northwest of Kirkland Lake in Teck Township.

What historical mining results were found at VDOMF's Winnie Lake property?

A notable 1989 drill hole (TWL-89-01) reported 22.5 meters returning 2.58% Cu, 2.83% Zn, 0.5 oz/tn Ag and 0.03 oz/tn Au in the area under the original shaft occurrence.

What is the size and potential of Val-d'Or Mining's optioned properties?

Amikougami consists of 18 mining claims (388 hectares) with multiple gold occurrences, while Winnie Lake has 37 mining claims (795 hectares) showing potential for VMS Cu-Zn-Ag-Au style mineralization.

How does the Kirkland Lake region's historical gold production compare?

The Kirkland Lake region has produced over 24 million ounces of gold from seven mines associated with the Kirkland Lake Main Break structure.