VR Resources Ltd. reported second batch of geochemical data for the two drill holes completed last fall on the South Rim of the Hecla-Kilmer complex (“H-K”) located in northern Ontario. Data from the last remaining drill holes are expected shortly. Five drill holes were completed at Hecla-Kilmer in November, 2022, for 1,437m.

The 21 drill holes completed to date, provided are the key REE critical metal intersections which span an area of approximately 2 x 3 km in the western half of the multiphase alkaline complex at H-K. The mineralization at South Rim with 2.7% TREO; apatite veins associated with carbonatite dykes and vein breccia, in country rock that is 100% replaced by hydrothermal alteration. The volume potential for this new, mineralized structure on the South Rim, on a detailed magnetic plan map and cross-section through the 3D MVI magnetic inversion model. Significance: Multiple zones.

This is the second large area of > 1% TREO mineralization discovered at Hecla-Kilmer. The new data are from two holes on the South Rim zone which is located approximately 2.5 km to the south of the REE intersections previously reported for Pike zone, such as the 461 m intersection in Hole 13 (NR23-001, January 17, 2023). Intersections in three additional areas will be followed-up in 2023: around Hole 17 to the west of Pike Zone; around Hole 16 in the center of the complex, and; around Hole 1 to the southeast of Pike Zone.

PMREO grade. The consistent 16% – 28% proportion of PMREO in the TREO mineralization at South Rim is consistent with mineralization at Pike Zone located 2.5 km to the north. This ratio is important because of the high value of the PMREOs in response to the demand for permanent magnets in EVs and wind turbines.

For comparison, published resources for most Canadian LREE deposits in carbonatite generally contain between 12%-15% of the high value PMREO (e.g. neodymium), which is roughly 40% lower than the proportion at Hecla-Kilmer. Lateral scale. Like at Pike Zone, REE mineralization in Holes 15, 19 and 20 at the South Rim is associated with carbonatite dykes, veins and vein breccia within high temperature, hydrothermal potassic alteration that is both intense and widespread, characterized by mineral assemblages dominated by magnetite, biotite, apatite, carbonate and disseminated sulfide.

Importantly, these broad alteration envelopes on structure are also mineralized, as in the carbonatite dyke swarm of sovite breccia in Hole 19; the sovite breccia is the southern shoulder to the mineralized structure which was intersected in Holes 15 and 20, which were inclined to the north and northeast respectively. Vertical extent. The veins and vein breccia with up to 2.7% TREO with 28.5% PMREO in Hole 20 occur within an intersection of 212 m of continuous mineralization grading 0.7%TREO, with the most intense polymetallic mineralization of REE + Nb2O5 in the lower 48 metres, and open to depth.

This is similar to the intense REE mineralization at the bottom of the 461 m intersection in Hole 13 at Pike Zone, which is also open to depth.