Orogen options Gilbert Sud property to Eminent Gold
Vancouver, BC June 24, 2021 (TSX-V: OGN) Orogen Royalties Inc. (“Orogen” or the “Company”) is pleased to announce that it has entered into an agreement (the “Agreement”) with Eminent Gold Corporation (TSX.V: EMNT) (“Eminent”) to opt for Gilbert of the Company’s Southern Gold Property in the Walker Lane Epithermal Belt in Nevada, United States.
Eminent can acquire a 100% stake in the Gilbert South Project by making installment cash payments totaling $ 875,000, issuing 500,000 shares over a five-year period, assuming underlying supplier obligations, and granting to Orogen a 2% net smelter return (“NSR”) royalty of which 1% can be purchased for US $ 1.0 million. The shares issued under the Agreement are subject to acceptance by the TSX Venture Exchange.
“We are delighted that Eminent Gold is advancing the Gilbert South Project, a transaction which represents Orogen’s ninth partnership in its joint venture portfolio,” commented Orogen CEO Paddy Nicol. “Orogen has several exploration and development programs underway with partner-funded exploration expenses estimated at C $ 3.5 million on joint venture projects and over C $ 60 million in exploration costs. and development on projects in its royalty portfolio. ”
About the Gilbert Sud gold property
The 890 hectare Gilbert South property is located 42 kilometers west of Tonopah, Nevada, in the Walker Lane low sulfur epithermal belt.
Highlights of the project
Low sulphidation epithermal gold system with a large vein swarm outcropping one kilometer by two kilometers;
High-grade gold at the surface with gold visible in crustiform quartz veins as well as in hydrothermal breccia that locally exceeds 30 g / t gold;
Long series of anomalous gold mineralization in historic shallow reverse circulation drilling (including 50 meters of 0.46 g / t Au) hosted in pseudomorphic quartz after breccias of calcite and quartz veins on the margins of the domes of andesite;
A new geological model defines the dome field as a possible source of mineralization. Drilling did not target feeding structures for domes that could define higher grade cells in the district; and
Gilbert South is accessible by road on Bureau of Land Management (BLM) land and could be quickly cleared for exploration drilling
Figure 1: Gilbert South location map showing approximate historical production of gold and silver deposits in Walker Lane
The Gilbert South property is located in the historic district of Gilbert where gold was first discovered in the 1800s. The district contains two types of mineralization; silver lead ores hosted in limestones peripheral to Mesozoic quartz monzonite intrusions, and epithermal gold and silver associated with Tertiary volcanic rocks. Numerous small shafts and galleries on the Gilbert Sud property are developed along free-standing auriferous epithermal quartz veins and vein stockworks.
Modern exploration on the property has focused on bulk tonnage gold targets near the surface, with most of the drill holes extending within 150 meters of the surface. This drilling intercepted strongly anomalous gold in many different target areas indicating a large gold system. Minimal exploration has focused on identifying zoning in the gold system and looking for feeder structures at depths greater than 100 meters.
Orogen’s geological mapping has identified a sequence of andesite and dacite domes controlling the mineralization of epithermal veins. Clay mineralogy maps paired with vein texture mapping were used to reconstruct the geological domains of the property. Multiple target areas have been identified where shallow quartz veins with abnormal mercury outcrop on the margin of the domed complexes. The root zones and pressure shadows of these domes are the primary target for the next round of exploration drilling.
Fig 2: Domes and intrusions recently mapped on the Gilbert South property located in Nevada, USA
Gilbert Sud transaction conditions
Eminent can acquire a 100% stake in the Gilbert South Project by making cash payments totaling $ 875,000, issuing 500,000 shares and granting Orogen a 2% NSR royalty of which 1% can be purchased for $ 1.0 million:
USD 25,000 and 50,000 shares on the date of signing of the Agreement;
USD 50,000 and 100,000 shares no later than the first anniversary;
100,000 USD and 150,000 shares no later than the second anniversary;
100,000 USD and 200,000 shares no later than the third anniversary;
100,000 USD no later than the fourth anniversary; and
$ 500,000 no later than the fifth anniversary;
Once Eminent exercises its option on Gilbert South, Eminent will grant Orogen a 2% NSR royalty on the “G / L” claims, of which 1% can be purchased for US $ 1.0 million. Orogen also retains the right to a 1% NSR royalty on the Timberline claims, subject to Orogen purchasing a pre-existing 1% NSR royalty from the seller for US $ 1.5 million. Eminent will be responsible for all other underlying obligations of the supplier.
Qualified Person Declaration
All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo .., Exploration Manager for Orogen. Dr. Pryer is a Qualified Person within the meaning of National Instrument 43-101.
About Orogen Royalties Inc.
Orogen Royalties Inc. focuses on the creation of organic royalties and royalty acquisitions on precious and base metal discoveries in western North America. Orogen’s royalty portfolio includes the Ermitaño West gold deposit in Sonora, Mexico (2% NSR royalty) under development by First Majestic Silver Corp. and the Silicon gold project (1% NSR royalty) in Nevada, United States, advanced by AngloGold Ashanti NA. The company is well funded with several projects actively developed by joint venture partners.
On behalf of the board
OROGEN ROYALTIES INC.
President and CEO
To learn more about Orogen, please contact Paddy Nicol, President and CEO at 604-248-8648, and Liliana Wong, Director of Marketing and Investor Relations at 604-248-8648. Visit our website at www.orogenroyalties.com.
Orogen Royalties Inc.
1201 – 510 Hastings Street West
Canada V6B 1L8
This press release includes certain statements which may be considered “forward-looking statements”. All statements contained in this presentation, other than statements of historical fact, which relate to events or developments that Orogen Royalties Inc. (the “Company”) expects to occur, are forward-looking statements. Forward-looking statements are statements which are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intentions”, “estimates” , “Projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “could”, “could” or “should” occur.
Forward-looking information relates to statements regarding the future prospects of the Company and anticipated events or results, as well as the expectations of the management of the Company regarding the proposed business combination (the “Transaction”). This document also contains forward-looking statements regarding the anticipated completion of the Transaction and the timing thereof. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company, including expectations and assumptions regarding the timely receipt of regulatory and market approvals relating to the Transaction.
Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results may differ materially from those of forward-looking statements. Factors that could cause actual results to differ materially from those of forward-looking statements include market prices, operating and exploration successes, and the continued availability of capital and financing, and economic conditions, general market or commercial. Additionally, 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 measures taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the duration or severity of these developments and their financial impact on the date of approval of these condensed interim consolidated financial statements, maintaining the conditions in force could have an impact. material unfavorable impact on the Company’s financial position and operating results for future periods.
Investors are cautioned that these statements are not guarantees of future performance and that 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 management of the Company on the date the statements are made. Except as required by securities laws, the Company assumes no obligation to update these forward-looking statements in the event that the beliefs, estimates or opinions of management, or other factors, should change.