Orogen Royalties Announces Mid-year Royalty Update and Forecast
- Orogen's royalty portfolio includes 24 projects with a total exposure to drill projects in 2023 estimated at over 100,000 metres, highlighting significant exploration potential.
- The 27% increase in production forecast at Ermitaño mine and the potential 6 to 8 million ounce gold Exploration Target at Silicon-Merlin project demonstrate strong growth prospects for Orogen's royalty portfolio.
- Orogen's exposure to potential exploration success on approximately 72,500 metres of drilling over an area of interest in excess of 1,900 square-kilometers positions the company for significant upside potential.
- None.
VANCOUVER, BC / ACCESSWIRE / August 16, 2023 / (TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen") or the ("Company") is pleased to provide an update on its royalty portfolio and forecast for the second half of 2023.
Paddy Nicol, CEO of Orogen, commented: "Our royalty portfolio consists of 24 projects including the producing Ermitaño mine operated by First Majestic and a potential district scale discovery at the Silicon-Merlin project operated by AngloGold Ashanti. At the Ermitaño mine, a
Highlights
- Estimated 72,500 metres of drilling on projects where Orogen holds a royalty interest, including the Silicon-Merlin gold project, the Ermitaño gold-silver mine, and the MPD South (Axe) copper-gold porphyry project. Including Orogen's Project Generation business, total exposure to drill projects in 2023 is estimated at over 100,000 metres.
- AngloGold Ashanti NA's ("AngloGold") 6 to 8 million ounces gold Exploration Target at Merlin adds to the existing resources at Central Silicon of 3.4 million ounces gold indicated and 800,000 ounces gold inferred, where Orogen holds a
1% net smelter return ("NSR") royalty1,2. - Potential for additional drilling on the Cuprite gold project, Hank copper-gold porphyry project and Rosterman license in West Kenya.
- Portfolio of 24 royalties on a combined area of interest over 1,900 square-kilometres.
- Three new royalties created or acquired in 2023 including the Ball Creek West copper-gold porphyry and Ecstall VMS projects in British Columbia, and the La Rica project in Colombia.
Selected Royalty Update Information
Ermitaño Epithermal Gold-Silver Mine, Sonora
Orogen holds a
First Majestic recently announced second quarter production results of 20,073 ounces gold and 142,037 ounces silver from the Ermitaño deposit. Record recovery rates were also achieved with the recent introduction of a dual-circuit and a new filter press. Gold and silver recoveries averaged
First Majestic also announced a 20,000-metre drill program to infill and upgrade the resources at Ermitaño3. Select drill hole results from deep drilling at the Ermitaño splay returned true width intersections3,4:
- 4.27 grams per tonne ("g/t") gold and 127 g/t silver over 13.3 metres in drill hole EWUG-23-01
- 5.98 g/t gold and 222 g/t silver over 15.55 metres in drill hole EWUG-23-02
- 13.73 g/t gold and 150 g/t silver over 6.42 metres in drill hole EWUG23-03
- 8.1 g/t gold and 348 g/t silver over 3.34 metres in drill hole EW-23-327
Drilling to the east of Central Ermitaño returned assays and true width intersections including:
- 2.67 g/t gold and 54 g/t silver over 1.86 metres in drill hole EW-23-330
- 3.39 g/t gold and 56 g/t silver over 1.96 metres in drill hole EW-23-339
Multiple veins are currently being drilled within five kilometres of the processing plant3 with First Majestic reporting multiple secondary vein intersections within the hanging and footwall of the Ermitaño vein.
Figure 1 - West to East cross section displaying 2023 drilling at the Ermitaño Mine from 3,4.
Silicon-Merlin Epithermal Gold Project, Nevada
Orogen holds a
Figure 2 - Map displaying Orogen's royalty area of interest within AngloGold Ashanti's land tenure.
MPD South (Axe) Copper Gold Porphyry Target, British Columbia
Orogen holds a
To date, 5,000 metres of a 25,000 metres property wide program have been completed. Encouraging initial results for the first three drill holes in the West Zone magnetic anomaly are as follows14:
- AXE-23-001 intersected
0.28% copper, 0.28 g/t gold and 0.83 g/t silver over 158 metres within a broader interval of0.18% copper, 0.20 g/t gold, and 0.61 g/t silver over 533 metres - AXE-23-002 intersected
0.21% copper, 0.30 g/t gold and 1.36 g/t silver over 203 metres within0.15% copper, 0.16 g/t gold, and 0.80 g/t silver over 482 metres - AXE-23-003 intersected
0.22% copper, 0.27 g/t gold, and 1.08 g/t silver over 51 metres within0.13% copper, 0.20 g/t gold, and 0.61 g/t silver over 209 metres
Combined, these results have confirmed porphyry mineralization over a 300 by 300 metre surface area and to over 800 metres depth, extending well beyond historic drilling. The system is open in nearly all directions.
Drilling east beyond the magnetic anomaly in AXE-23-03 intersected a new, structurally controlled high-grade copper-gold-silver zone assaying
Figure 3 - Overview of the MPD property and Orogen's royalty AOI.
Figure 4 - Cross Section of drilling at Kodiak Copper's West Zone, MPD South from 7.
West Kenyan Royalty Package Orogenic Gold project
Orogen holds
Figure 5 - Area map showing Shanta Gold's land holdings including Rosterman (PL/2018/0212), Bukura (PL/2018/0210) and Sigalagala (PL/2018/0211) from 9.
Hank Copper-Gold Project, British Columbia
Orogen holds a
Drilling has commenced on the HWY 37 Project with plans for a 2,500 metre drill program focused on the Mary to Cliff porphyry to test a zone of undrilled copper rich stockwork, a covered geophysical target interpreted to be the offset extension of the Mary porphyry zone, and step out drilling on the historical Mary deposit10, 11.
Figure 6 - Overview of the mineral occurrences on the HWY 37 property from 12.
Cuprite Epithermal Gold Target, Nevada
Orogen created a
Cuprite is thought to be geologically similar to the nearby Silicon gold deposit held by AngloGold Ashanti. StrikePoint will utilize similar geochemical, geophysical, and structural vectoring techniques that led to the Silicon gold discovery.
Qualified Person Statement
All new technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo., VP. Exploration for Orogen. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.
Certain technical disclosure in this release is a summary of previously released information and the Company is relying on the interpretation provided by the relevant referenced partner. Additional information can be found on the links in the footnotes or on SEDAR (www.sedar.com).
About Orogen Royalties Inc.
Orogen Royalties Inc. is focused on organic royalty creation and royalty acquisitions on precious and base metal discoveries in western North America. The Company's royalty portfolio includes the Ermitaño gold and silver mine in Sonora, Mexico (
On Behalf of the Board
OROGEN ROYALTIES INC.
Paddy Nicol
President & CEO
To find out more about Orogen, please contact Paddy Nicol, President & CEO at 604-248-8648, and Marco LoCascio, Vice President, Corporate Development at 604-248-8648. Visit our website at www.orogenroyalties.com.
Orogen Royalties Inc.
1015 - 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
info@orogenroyalties.com
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.
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.
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.
Except where otherwise stated, the disclosure in this news release relating to properties and operations in which Orogen holds a Royalty are based on information publicly disclosed by the owners or operators of these properties and information/data available in the public domain as at the date hereof, and none of this information has been independently verified by Orogen. Specifically, as a Royalty holder and prospect generator, the Company has limited, if any, access to properties on which it holds Royalty or other interests in its asset portfolio. The Company may from time to time receive operating information from the owners and operators of the mining properties, which it is not permitted to disclose to the public. Orogen is dependent on, (i) the operators of the mining properties and their qualified persons to provide information to Orogen, or (ii) on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which the Company holds Royalty or other interests, and generally has limited or no ability to independently verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some reported public information in respect of a mining property may relate to a larger property area than the area covered by Orogen's Royalty or other interest. Orogen's Royalty or other interests may cover less than
References
- https://thevault.exchange/?get_group_doc=143/1677005072-YearEnd2022-Resultsreport.pdf
- https://thevault.exchange/?get_group_doc=143/1691123637-Interim2023MerlinExplorationTarget.pdf
- http://www.firstmajestic.com/_resources/presentation/fm-corporate-presentation.pdf?v=0.104
- http://www.firstmajestic.com/investors/news-releases/first-majestic-reports-high-grade-exploration-results-at-san-dimas-santa-elena-and-jerritt-canyon
- https://kodiakcoppercorp.com/news/news-releases/kodiak-provides-exploration-update-and-final-2022-drill-results/
- https://kodiakcoppercorp.com/news/news-releases/kodiak-to-commence-2023-exploration-program-at-its-mpd-copper-gold-porphyry-project/
- https://kodiakcoppercorp.com/news/news-releases/kodiak-adds-second-drill-rig-at-mpd-copper-gold-porphyry-project-in-southern-british-columbia-1/
- https://www.shantagold.com/_resources/Group%20Exploration%20Update.pdf
- https://www.shantagold.com/_resources/Investor%20Exploration%20Update.pdf
- https://kingfishermetals.com/kingfisher-signs-definitive-option-agreements-to-consolidate-362-square-km-copper-gold-project-in-golden-triangle-british-columbia
- https://kingfishermetals.com/kingfisher-announces-commencement-of-drill-program-at-hwy-37-project-in-the-golden-triangle-bc/
- https://strikepointgold.com/strikepoint-more-than-doubles-land-package-at-the-100-owned-cuprite-gold-project-located-within-nevadas-walker-lane-trend/
- https://strikepointgold.com/strikepoint-announces-2023-exploration-plans-for-cuprite-gold-project-walker-lane-nevada/
- https://kodiakcoppercorp.com/news/news-releases/kodiaks-west-zone-drilling-intersects-0.51-cueq-over-158-m-within-0.34-cueq-over-533-m-from-surface-and-discovers-new-high/
- Cautionary Note: The ranges of tonnage and grade of the Exploration Target are conceptual in nature and could change as the proposed exploration activities are completed. There has been insufficient exploration of the relevant property or properties to estimate a Mineral Resource at this point in time. It is uncertain if further exploration will result in the estimation of a Mineral Resource and the Exploration Target therefore does not represent, and should not be construed to be, an estimate of a Mineral Resource or Mineral Reserve. Given the conceptual stage of the project, a number of risks, uncertainties and opportunities, are evident in the confidence of the known orebody and the potential for upside at Silicon, Merlin and in the surrounding area. The Merlin Exploration Target grade and tonnage ranges have been determined by a preliminary review of the location and weighted average grade of the mineralised intercepts. The geology of the deposit contains a significant number of faulted offsets, which require detailed geological modelling to fully define the extent and continuity of the mineralisation. A bulk density value of 2.4 t/m3 was used. No economic constraint has been applied to the deposit to determine the extent of what material may ultimately be extracted.
SOURCE: Orogen Royalties Inc.
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