Orogen Royalties Inc (CVE:OGN) said Tuesday that exploration work near the Silicon project in Nevada uncovered high-grade intervals that could have “meaningful implications” for Orogen’s 1% net smelter return royalty on the property.
New drill results by Coeur Mining Inc (NYSE:CDE) and Corvus Gold Inc (TSE:KOR) on claims that buttress the southern border of the project suggest “significant” expansion potential of Silicon, which is owned by AngloGold Ashanti NA.
Highlights of the latest drill results include 71.6 metres grading 1.8 grams per ton (g/t) gold from 192 metres (m); 97.5m grading 1.4 g/t gold from 164.6m, and 80.8m grading 1.1 g/t gold from 163.1m.
"These results are exciting and have potentially meaningful implications for Orogen's royalty on the Silicon project,” Orogen CEO Paddy Nicol said in a statement.
“The drill holes are located approximately 1,500 metres from the southern extent of AngloGold's drilling on the main Silicon area. The intervening Silicon ground, which has yet to be drill-tested, holds potential for similar oxide gold intercepts."
Photograph looking south from the Silicon project towards recent drilling results on Corvus Gold and Coeur Mining lands
Orogen told shareholders that AngloGold has recently received approval of their plan of operations permit, allowing 155 acres of additional surface disturbance with 109 approved Phase 1 drill sites on the main Silicon area.
Silicon is an epithermal gold system that covers a large area in the Bare Mountain district of Nevada. AngloGold has drilled 47 holes totaling approximately 19,000 metres and has permitted an additional 155 acres of surface disturbance, including 109 approved drill sites in their Phase 1 program.
Orogen also holds a 2% royalty on the Ermitaño West gold-silver deposit in Sonora, Mexico, owned by First Majestic Corp, and eight early-stage royalty assets in Mexico, Nevada, and Argentina and a broad portfolio of exploration projects in Canada, USA, and Mexico.
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