All currency listed in CAD dollars unless otherwise stated.
Vancouver, British Columbia--(Newsfile Corp. - May 13, 2025) - Barksdale Resources Corp. (TSXV: BRO) (OTCQX: BRKCF) (FSE: 2NZ) ("Barksdale" or the "Company") is pleased to announce that it has completed its required 7,620 metres (25,000 feet) of drilling and $6 million defined expenditures that entitles it to acquire an initial 51% interest in the Sunnyside project.
The Company can trigger the acquisition of 51% by making payments of $1.0 million cash and 5.0 million Barksdale shares to Regal Resources USA ('Regal") any time before September 2025. Once triggered, the Company has 20 days to decide whether it will stay at 51% ownership or increase its interest to 67.5% by going to Phase 2 which requires another 7,620 metres of drilling, payment of an additional $550k cash and the issuance of another 4.9 million common shares to Regal within two years of triggering the original 51%.
The Company has already spent $6.0 million of the additional, defined expenditure ($12 million cumulative) on the property required under the agreement to increase its ownership interest to 67.5%. The Barksdale board is currently debating the merits of remaining at 51% or increasing to 67.5% as Regal has been delisted since 2016. The Company anticipates making this decision by June 30, 2025.
The Sunnyside project is approximately 26 kilometres (16 miles) northeast of Nogales, Arizona, in the Patagonia Mountain Range.
Barksdale interim CEO William Wulftange said, "Surpassing the Phase I drill footage earn-in requirement to maintain 51% ownership while testing the near-surface porphyry intrusive located solely on the Sunnyside project are two significant accomplishments the Barksdale team has made in early 2025. We believe that the Sunnyside project hosts more than the down-dip extensions of South 32's Taylor and Peake deposits. Results from this recent round of drilling will begin to support this belief."
Near Surface Copper-base metal Porphyry Drill Program
The spring 2025 drill program is focused on testing surficial volcanics and the underlying intrusive porphyry lithologies known to host shallow Manto and Porphyry style copper and base metal deposits, as described in an internal ASARCO Summary Report dated July 1993. This report identifies three targets, including:
"…a deep chalcopyrite zone, a shallow upper-level chalcocite zone in breccias above the Sunnyside zone, and deep carbonate Pb-Zn-Ag in sediments."
Considering the extensive surficial alteration, previous drill intercepts, and known copper mineralization at the Sunnyside project, a three-hole exploration program was designed (Figure 1, inset 1) and carried out to initiate definition of this near surface target.
Visual analysis by stereomicroscopy of the chips from the RC drill program shows extensive alteration and mineralization in all three drill holes, consistent with the Company's geologic model. The drill program collared in felsic volcaniclastic rock with the quartz-monzonite and monzonite porphyry intrusions encountered at depth. The contact between these rock types appears to be either a steep paleo-topography, unconformable surface, or faulted and veined, suggesting it was once a conduit for hydrothermal fluids.
Alteration observed in the three holes varied from argillic dominant in volcaniclastic rocks to intense quartz-sericite-pyrite with silicification and quartz veins present in the intrusive rocks. Both rock types contained narrow potassic zones.
Mineralization within the porphyritic intrusive includes several percent disseminated sulfide with quartz-sulfide veins; the sulfide primarily consists of pyrite but also contains chalcocite and chalcopyrite, along with minor sphalerite and galena.
The completion of this drill program brings the total drilled footage from the 2023, 2024 and 2025 drill programs to 7,936 metres (26,038 ft), thus completing the required 7,620 metres (25,000 ft) of drilling as part of the earn-in agreement with Regal. Sulfide dominant intervals from the three holes have been sent to American Assay Lab in Sparks, Nev., for ICP analysis. Initial results are expected by the end of May 2025.
Next Phase of Drilling
The Company remains in discussions with a global drilling company to complete some or all the next phase of drilling at Sunnyside for either equity or a combination of equity and cash. The plan would be designed to test both down-dip extensions of South 32's Taylor and Peake deposits and to follow-up on the potential positive results on the near-surface porphyry intrusive. We expect this next drill phase planning to be completed in conjunction with the decision to trigger the 51% ownership interest and the decision on whether to increase our ownership to 67.5%.
Figure 1, Inset 1
Location map of drill holes SUN25-001,002 and 003 drilled on the same platform.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8531/251765_84a1170e44c378bd_002full.jpg
Barksdale Begins the FAST-41 Application Process
Given the recent positive changes towards the role and importance of mining strategic metals such as copper, zinc and antimony by the new U.S. administration and the acceptance of the Taylor/Hermosa project into the Fast-41 process, Barksdale has begun the Fast-41 application process to expedite permit approvals and Records of Decision as outlined in the links below.
The Trump administration announcement may be found here.
The Fast-41 process is legislatively establish for improving federal agency coordination and timeliness of environmental reviews for infrastructure projects. More information may be found here and here.
Corporate Update
Mr. Ira M. Gostin, MBA, APR, of Reno, Nev., an independent advisor to the Company, has been hired to lead our investor relations outreach for the Company. He is an award-winning, veteran investor relations and strategic communications executive with extensive experience in the mining sector. Gostin begins with a six-month contract with the Company, which began on May 1, 2025.
Gostin will be paid a fee of USD$10,000 per month and provide oversight for all investor relations, marketing, communications and social media functions for the Company.
He will be focused on delivery of both retail and institutional outreach strategies as the Company grows its resource base through ownership of the Sunnyside project and successful on-going drill results.
Management Option Awards
The Company announced it has granted stock options to certain directors, officers, employees and consultants of the Company to acquire an aggregate of 2.45 million common shares in the capital of the Company, pursuant to the Company's stock option plan. The stock options are each convertible into a common share at an exercise price of $0.12 until May 9, 2028. With respect to vesting provisions, a total of 1/3 of the stock options vest on May 9, 2025 (the "Grant Date"), 1/3 on the date that is six months from the Grant Date, and the final 1/3 on the date that is 12 months from the Grant Date.
Qualified Person
William Wulftange, a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this release. He is interim CEO and a director of Barksdale.
About Barksdale Resources Corp.
Barksdale is a base metal exploration company headquartered in Vancouver, focused on the acquisition, exploration and advancement of highly prospective base metal projects in North America. Barksdale is currently advancing the Sunnyside copper-zinc-lead-silver and San Antonio copper projects, both of which are in the Patagonia mining district of southern Arizona, as well as the San Javier copper-gold project in central Sonora, Mexico. The Company was named an OTCQX Best 50 Company in 2023. For more information, visit www.BarksdaleResources.com.
On Behalf of Barksdale Resources Corp:
William Wulftange
Interim Chief Executive Officer and Director
info@barksdaleresources.com
604-398-5385
Ira M. Gostin
Investor Relations
604-398-5385 x3
ir@barksdaleresources.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements:
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or" should" occur or be achieved. All statements, other than statements of historical fact, included herein, without limitation, statements relating to triggering the acquisition by making the requisite payments and, if triggered, potentially increasing the Company's interest in the Sunnyside project, the anticipated receipt of assay results by the end of May 2025, and further exploration are forward-looking statements. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Barksdale, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the Company has made assumptions and estimates based on or related to many of these factors. All forward-looking statements contained in this news release are qualified by these cautionary statements and those in the Company's continuous disclosure filings available on SEDAR+ at www.sedarplus.ca. Readers should not place undue reliance on the forward-looking statements contained in this news release concerning these items. Barksdale does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251765
SOURCE: Barksdale Resources Corp.
