Royal Road Minerals Ltd (CVE:RYR) (OTCMKTS:RRDMF) has said it is encouraged by first drilling at its Luna Roja gold project in northeastern Nicaragua, from where it posted results from the final three holes of a 17 hole, 2,472-metre scout program.
This is the first drilling program to have been completed on the project, which is part of the firm's strategic alliance with Hemco Mineros Nicaragua in the so-called Golden Triangle area of the project.
Hemco Mineros owns and operates the Bonanza gold mine which is about 26km to the northwest of Luna Roja.
Highlights of the work included diamond drill assays of 49 metres (m) at 2.8 grams per ton (g/t) gold in one hole and 80 metres at 1.1 g/t of the yellow metal.
In addition, the final and southernmost hole of the program was sunk around 450 meters to the southeast of previous drilling and hit eight meters (m) at 0.9 grams per tonne gold from surface.
"These final drilling results are a fitting close to what has been an exciting initial scout drilling program at Luna Roja," said Dr Tim Coughlin, Royal Road's President and CEO.
Coughlin said that one hole had provided the size potential and evidence the firm needs to extend geophysics southwards and target the skarn below the overlying sequence of marble rocks.
"In addition, we will be giving some thought to depth extensions and to where the source intrusion for the skarn mineralization is located, as so far we have not been able to conclusively map it on surface. All-in-all we are set-up for an exciting follow up drill program at Luna Roja."
Late last month, the company saw shares surge after it updated on its progress in Colombia, where it had now been granted a 30-year mining contract.
In May this year, with its acquisition of a portfolio of exploration assets from mining major AngloGold Ashanti (JSE:ANG), Royal Road became the largest exploration holder of claims in the country - at around 600,000 hectares. Anglo's assets are contained within a northern block grouping and a southern block.
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