VANCOUVER, BC, April 15, 2021 /CNW/ - (TSXV: OGN) Orogen
Royalties Inc. ("Orogen" or the "Company") is pleased to announce
three active drill programs on gold exploration targets in
Sonora, Mexico and Nevada,
USA. In Sonora, Orogen and exploration partner Hochschild plc
("Hochschild") have commenced a planned 3,100-metre drilling
program on the Sarape project, and Heliostar Metals Limited
("Heliostar") has initiated a 1,500-metre drilling
program1 on the La Lola project. In Nevada, U.S.
Gold Corp. ("U.S. Gold") has plans to drill up to 1,500 metres at
the Maggie Creek project2.
"Sarape and La Lola are located (Figure 1) in the Rio Sonora
Valley near the Mercedes Mine (Premier Gold Mines), the Santa Elena
Mine (First Majestic Silver), Las Chispas deposit (SilverCrest
Metals), and the Ermitaño gold-silver deposit (First Majestic
Silver), where Orogen also holds a 2% net smelter return ("NSR")
royalty," commented Orogen CEO Paddy
Nicol. "The Maggie Creek project is located on the Carlin
Trend within two kilometres of Nevada Gold
Mines' Gold Quarry Mine. All programs are fully funded
by our exploration partners and reduces our financial and
exploration risk, while giving us upside exposure of a potential
discovery."
About the Sarape drilling program
The 57.8 square kilometre Sarape epithermal gold-silver project
is located near excellent infrastructure with road and power
access. The property hosts the six-kilometre-long Sarape vein
and the 2.6-kilometre long Chiltepin vein (Figure 2). Both
veins are multi-stage quartz carbonate veins with multiple pulses
of hydrothermal fluid flow. Vein textures at the surface
include abundant boiling textures and are consistent with the upper
portions of the epithermal environment. Significant lateral
fluid flow is indicated by recent fluid inclusion work indicating
that the deeper hotter portions of the system have not yet been
intercepted.
The Sarape vein will be drilled with approximately eight holes
in multiple fans over 2.5 kilometres of strike length to test for
high grade gold-silver shoots. In 2019, nine holes
drilled within a 380-metre-long segment of the vein defined a
structural dilation zone at 100-350 metres depth (Figure 2).
In this zone the vein thickens to 23.6 metres in width. The
2021 drill program will target this horizon approximately 350
metres northwest and southeast along strike to test for higher
grade mineralized zones. A deeper horizon will also be
drilled to identify if the grade of the vein improves with
depth. Using visual and XRF results from the initial fans,
step-out holes will be spaced at 200-450 metre intervals and test
multiple and potentially productive horizons.
The Chiltepin vein will be targeted with two holes at 100-200
metres depth. At the surface gold mineralization occurs in
multiple splays of the vein with up to 2.36 grams per tonne ("g/t")
gold and 72 g/t silver in 1.0 metre chip channels. Two holes
are planned approximately 1.5 kilometres to the south of the
previous drilling.
Should Hochschild exercise their option on Sarape, Orogen will
hold a 3% NSR royalty of which 1% can be purchased for US$2.0 million.
About the La Lola Project
On March 4, 2021, Heliostar
announced a 1,500 metre drilling program on the 63.6 square
kilometre at the La Lola property. La Lola contains the
prospective La Barra vein, a
five-kilometre-long quartz-carbonate-fluorite vein with elevated
values of gold, silver and pathfinder elements. In outcrop
the vein is up to 40 metres wide and has textures typical of
shallow epithermal formation. Broad clay alteration, fluorite
and low temperature textures suggest that the surface expression of
the La Barra vein is the top of an
epithermal system and that the metal-rich zone of the epithermal
system may exist at depth.
Precious metals values in rocks generally contain low values, as
would be expected, based on the shallow level expression of the
geological model. However, values up to 56.6 g/t gold and up
to 424 g/t silver have been found within the larger vein zone and
are believed to represent stronger pulses of mineralization which
were able to propagate closer to the surface. Historic mining
on the vein has focused on fluorite that occurs near surface within
the vein zone and is a shallow level feature of other productive
systems such as at the Los Gatos mine in Chihuahua. On
March 29th Heliostar
released that the first three holes had intercepted the vein with
hole LOLA21-02 returning 2.5 metres grading 92 g/t
silver3. The program is ongoing with deeper drill
tests of the vein pending results.
Orogen holds a 2% NSR royalty on La Lola of which 1% can
purchased for US$1.75 million.
About the Maggie Creek Property
On April 7th, 2021,
U.S. Gold announced that a core drilling program has been initiated
at the Maggie Creek Project in the Carlin Trend of
Nevada. The program is planned to test the northeast
extension of the Chukar-Alunite fault zone under post-mineral cover
(Figure 3). This structural corridor is one of the primary
controls on Nevada Gold Mines'
adjacent Gold Quarry deposit where it hosts more than 25 million
ounces of gold4. U.S. Gold intends to drill one to
two core holes totalling up to 1,500 metres to test this
target. U.S. Gold has an option to earn up to 70% interest in
the project by spending US$4.5
million in exploration over seven years and producing a
feasibility study on the project by the end of the ninth agreement
year.
Qualified Person Statement
All technical data, as disclosed in this press release, has been
verified by the Company's qualified person Mr. Daniel Pace, M.Sc., Vice President of
Exploration, who is Registered Member 4202658 of the Society for
Mining, Metallurgy and Exploration.
About Orogen Royalties Inc.
Orogen Royalties Inc. is engaged in project generation for
precious and base metal discoveries in western North America with a focus on organic royalty
creation and royalty acquisitions. Orogen's royalty portfolio
includes the Ermitaño West gold deposit in Sonora, Mexico (2% NSR) being developed by
First Majestic Silver Corp. and the Silicon gold project (1% NSR)
in Nevada, USA, being advanced by
AngloGold Ashanti N.A. The Company is well financed with several
projects actively being developed by joint venture partners.
On Behalf of the Board
OROGEN ROYALTIES
INC.
Paddy Nicol
President & CEO
Visit our website at www.orogenroyalties.com.
Orogen Royalties Inc.
1201 - 510 West Hastings Street
Vancouver, BC
Canada V6B 1L8
info@orogenroyalties.com
-
https://www.heliostarmetals.com/news-articles/heliostar-commences-mexican-exploration-including-drilling-at-la-lola-project-sonora-mexico
- https://ir.usgoldcorp.gold/press-releases/detail/121
-
https://www.heliostarmetals.com/news-articles/heliostar-drills-2-5-metres-of-92gt-silver-in-first-holes-lalola-mexico
- Muntean, J.L., 2020, Carlin-Type Gold Deposits in Nevada: Geologic Characteristics, Critical
Processes, and Exploration, SEG Special Publication no. 23, pp.
775-795
Forward Looking Information
This news release includes
certain statements that may be deemed "forward looking statements".
All statements in this presentation, other than statements of
historical facts, that address events or developments that Orogen
Royalties Inc. (the "Company") expect to occur, are 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.
Forward looking information relates to statements concerning the
Company's future outlook and anticipated events or results, as well
as the Company's management expectations with respect to the
proposed business combination (the "Transaction"). This document
also contains forward-looking statements regarding the anticipated
completion of the Transaction and timing thereof. Forward-looking
statements in this document are based on certain key expectations
and assumptions made by the Company, including expectations and
assumptions concerning the receipt, in a timely manner, of
regulatory and stock exchange approvals in respect of the
Transaction.
Although the Company believe the expectations expressed in such
forward looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in the forward looking
statements. Factors that could cause the actual results to differ
materially from those in forward looking statements include market
prices, exploitation and exploration successes, and continued
availability of capital and financing, and general economic, market
or business conditions. Furthermore, the extent to which
COVID-19 may impact the Company's business will depend on future
developments such as the geographic spread of the disease, the
duration of the outbreak, travel restrictions, physical distancing,
business closures or business disruptions, and the effectiveness of
actions taken in Canada and other
countries to contain and treat the disease. Although it is not
possible to reliably estimate the length or severity of these
developments and their financial impact as of the date of approval
of these condensed interim consolidated financial statements,
continuation of the prevailing conditions could have a significant
adverse impact on the Company's financial position and results of
operations for future periods.
Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments
may differ materially from those projected in the 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 securities laws, 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 the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Orogen Royalties Inc.
