Glenmark Acquires Key Lake Road Project

Vancouver, BC / ACCESSWIRE / October 16, 2014 / Glenmark Capital Corp. (TSX.V: GLM) ("Glenmark") is pleased to announce that it has entered into an agreement with an arm's length vendor to acquire the Key Lake Road ("KLR") Project, a prospective uranium project in northern Saskatchewan. The Project covers 5590 hectares, approximately 89km south of the Key Lake Mine, an open pit mine which has produced ~200 million pounds of uranium. The project is 520km north of the city of Saskatoon and is easily accessed by the Key Lake haulage road, which is maintained by Cameco. In 2005-2007, Forum Uranium carried out a systematic investigation of the project area with a variety programs, including prospecting, an airborne geophysical survey and a small number of diamond drill holes. The KLR projects hosts two high value targets: the Molly Trend and Hobo Zone.

MOLLY TREND

The Molly Trend is a series of northeast trending conductors, 42 kilometers in length, identified through a VTEM survey, that run parallel to the haulage road. The conductors, which are coincident with numerous surface uranium showings, are thought to represent prospective graphitic shear zones. The Molly trend includes the historic Nuclear Lake Radioactive Occurrence, or Wyoming Minerals Radioactive Zone 9, located 1.69 km (1.05 miles) northeast of Nuclear Lake. The showing consists of a zone of discontinuous uraninite mineralization which has been traced over a width of 60.9 m for a strike length of 0.60 km. The uranium mineralization consists of nodules of uraninite which range in size from 0.15 to 3.81 cm in diameter. The highest grade mineralization occurs near the ends of a large boudinaged horizon. Graphite and minor disseminated pyrite are common in the calc-silicate host rock. The showing was trenched and chip sampled. In 1978, the average grade for trench D was given at 0.114% U3O8 and trench E was given at 0.194% U3O8.

In the fall of 2007, B. Tan P.Geo. and Ken Wheatley P.Geo. supervised the drilling of two short holes on the C1 conductor in the Molly Trend. Their conclusions were as follows:

"Several pegmatite uranium occurrences have been discovered in the Molly area. The largest occurrence was found in the Molly Graphite showing. Anomalous radioactivity from 500 to 5000cps were discovered in an area of about 200m x 50m. Hole M-01 was drilled to test the C-1 conductor and the down-dip extension of uranium mineralization outcropping in the pegmatite. Uranium mineralization in pegmatite with an average grade of 219 ppm over 5.3m was intersected near the surface at 8.5 to13.8m depth. The radioactivity in outcrops extends for several 10's of metres east of hole M-01. In addition to the Molly Graphite showing, other pegmatite uranium occurrences in the Molly area should also be investigated for the potential of an Alaskite uranium deposit."

HOBO Zone

The HOBO Zone lies on the westernmost perimeter of the project area, some 3km west of the Molly Trend. In the winter to 2007 Forum tested portions of the Hobo Zone conductor with diamond drilling, encouraged by positive radiometric prospecting results in 2006; uranium showings with uranium values in grab samples ranging from 500 ppm to over 10,000 ppm U were encountered 200m west of the conductor. The best results are summarized below:

"Four holes (H-06, H-06, H-07 and H-08) were drilled to test the southern part of the Hobo zone. Uranium mineralization was intersected in two holes, holes H-06 and H-08, which were located 40 metres apart. The uranium mineralization is hosted by a rehealed breccia which occurs in the graphitic pelitic gneiss. The mineralization is associated with late potassic alteration and with strong hydrothermal pyritization. Occurrences of euhedral pyrite and pyrite veins were observed. The type of mineralization is similar to that found in the DD zone, which also occurs in breccia containing potassic alteration.

Hole H-06 intersected an average of 0.077% U3O8 over 1.2m at 40.1 to 41.3m depth, which include intervals of 0.12% U3O8 over 0.2m and 0.147% U3O8 over 0.2m. Hole H-08 intersected mineralized intersections at 7.8 to 8m (0.038% U3O8 over 0.2m), at 10.65 to 11.25 m (0.068% U3O8 over 0.6m) and 18.65 to 19.05m (0.154% U3O8 over 0.4m). The occurrence of larger accumulations of similar type of uranium mineralization in the Hobo area is possible, and additional drilling is recommended."

Glenmark is extremely pleased with this acquisition as historic programs have significantly advanced the project and produced several high value shallow targets for exploration. Glenmark will be collating and further analyzing previous data, the majority of which is available in digital format, to define a comprehensive go-forward exploration program.

Under the terms of the agreement Glenmark can earn a 100% interest in the KLR project by issuing 250,000 shares within 5 days of receipt of TSX Venture Exchange approval, issuance of a further 500,000 shares within 6 months of signing of the agreement, payment of $340,000 over 36 months and completing $2,500,000 in exploration expenditures over 4 years. The 100% interest is subject to a 1% GOR, of which 1/2 % can be purchased for $1,000,000. This acquisition is subject to TSX Venture Exchange approval.

The technical contents of this news release have been prepared under the supervision of Peter Born, P.Geo. Mr. Born is a Qualified Person as defined in NI 43-101, and has approved this news release.

For further information regarding this news release please contact:

Richard W. Grayston, President

(604) 990-1012

rwgrayston@telus.net

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 release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. 

SOURCE: Glenmark Capital Corp.