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Orogen Royalties eyeing more organic royalty growth in 2021 as it updates on activity

In the joint venture side of its business, Orogen has seven joint ventures/exploration alliances in Mexico, USA, and Canada focused on copper and gold

Orogen Royalties Inc. -
At the Maggie Creek gold project, Orogen's partner US Gold Corp has submitted a Notice of Intent (NOI) for a spring 2021 drill program

Orogen Royalties Inc (CVE:OGN) (OTCMKTS:EMRRF) (FRA:5EV) aims to create more organic royalties and joint ventures in 2021, the group told investors as it updated on the outlook for the first quarter of this year.

In the joint venture side of its business, Orogen has seven joint ventures/exploration alliances in Mexico, USA, and Canada focused on copper and gold.

Notably, it revealed, that at the Sarape project in Mexico, where it is in a joint venture with Hochschild Mining, preparations are afoot for a 2,500-metre drill program scheduled to start in late Q1 this year. If Hochschild exercises its option in the next five years, Orogen will retain a 3% net smelter royalty (NSR), of which 1% can be purchased for US$3 million.

READ: Orogen Royalties unveils C$3.7M investment, says current CEO Nicol has been appointed director

Elsewhere, at the Maggie Creek gold project in Nevada, Orogen said its partner US Gold Corp has submitted a Notice of Intent (NOI) for a spring 2021 drill program aimed at testing the northeast extension of the Chukar-Alunite fault zone.

US Gold has an option to earn up to 70% by spending C$4.5 million over seven years and producing a feasibility study by the end of the ninth agreement year.

Meanwhile, in British Columbia, Orogen and exploration partner Pacific Imperial Minerals have completed till sampling and around 12 kilometres of pole-dipole IP geophysics on the TREK-31 project.

Turning to Orogen's royalty assets, at the Ermitaño gold-silver deposit in Sonora, Mexico, where it has a 2% NSR, in January this year owner First Majestic Silver Corp announced a US$42.1 million investment for continued development.

First Majestic plans to release a preliminary economic assessment (PEA) by the end of March this year and is currently conducting hydrological studies and geotechnical drilling for an upcoming pre-feasibility study (PFS), expected to be released in the second half of 2021.

Exploration is also continuing with three drill rigs this year at the Silicon gold project - where Orogen has a1% NSR - in the Bare Mountain district of Nevada, adjacent to Coeur Mining's C-Horst and Corvus Gold's Lynnda Strip discoveries. Owner AngloGold Ashanti (AngloGold) resumed drilling on the Silicon property in the fourth quarter of 2020.

In terms of exploration, Orogen has in Canada acquired three land positions in the Nechako Plateau targeting Blackwater-Davidson-like intermediate sulfidation epithermal gold systems.

In Nevada, USA, the company has acquired the Pearl String high-sulphidation project with outcropping gold mineralization up to 12 grams per ton (g/t) gold, the Kalium Canyon gold project, a steam-heated alteration cell similar to Orogen's Silicon discovery, and the Callaghan gold project targeting Carlin-type systems in a large area of shallow alluvial cover southwest of Nevada Gold Mine's Cortez camp.

All of these exploration projects are being advanced to drill-ready stage, the company noted.

Contact the author a giles@proactiveinvestors.com

Quick facts: Orogen Royalties Inc.

Price: 0.305 CAD

TSX-V:OGN
Market: TSX-V
Market Cap: $52.88 m
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