Precious Metals

TSXV:OGN) Orogen Royalties Inc. is pleased to announce initial production at the Ermitaño deposit where the Company holds a 2% net smelter return royalty. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022 Note: The following information has been extracted from First Majestic's June 30, 2021 NI 43-101 Technical Report on Mineral Reserves and Mineral ...

TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to announce initial production at the Ermitaño deposit where the Company holds a 2% net smelter return ("NSR") royalty. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022

Note: The following information has been extracted from First Majestic's June 30, 2021 NI 43-101 Technical Report on Mineral Reserves and Mineral Resources on the Santa Elena Mine in Sonora, Mexico, announced November 24, 2021, and is available at www.sedar.com. The study references gold and silver prices of US$1,700 per ounce and US$22.50 per ounce, respectively, in its economic analysis of production at Ermitaño.

First Majestic Silver Corp. ("First Majestic") released a positive NI 43-101 Prefeasibility Study ("PFS") on its Santa Elena mine and Ermitaño deposit that extends the Life of Mine ("LOM) by at least seven years based on Proven & Probable ("P&P") Reserves.

The study indicates strong cash flow for Orogen with significant upside through the conversion of Inferred Resources into Measured and Indicated Resources and ultimately into P&P Reserves. In addition, mineralization remains open to the east along strike of the Ermitaño gold and silver deposit.

"Initial production at First Majestic's Ermitaño deposit is an important milestone for Orogen," stated Paddy Nicol, Orogen's CEO and President.

"The PFS indicates that over the next seven years Orogen could see revenue of US$12.25 million with only 35% of the total resources presently converted to the currently defined P&P Reserves. There is potential to increase P&P reserves through the incorporation of existing resources into the mine plan. In addition, there is potential for new gold and silver discoveries on 120 square kilometres of surrounding royalty lands. The Company is debt free and generating revenue from one of its royalties, demonstrating the power of our organic royalty generation business model."

Ermitaño Prefeasibility Study Highlights (Effective Date June 30, 2021)

  • P&P Reserves of 2,835 kilotonnes ("kt") grading 3.69 grams per tonne ("g/t") gold and 54 g/t silver containing 337,000 ounces gold and 4.9 million ounces silver
  • Measured and Indicated Resources of 2,958 kt grading 4.27 g/t gold and 61 g/t silver containing 406,000 ounces gold and 5.8 million ounces silver (Note: Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.)
  • Inferred Resources of 5,072 kt grading 2.70 g/t gold and 64 g/t silver containing 440,000 ounces gold and 10.6 million ounces silver
  • First Majestic's PFS considers only revenue from Proven and Probable Mineral Reserves. The analysis considers current and projected costs incurred at the Santa Elena mine, processing plant, including costs for development in the Santa Elena mine and at the Ermitaño project.
  • LOM capital and operating provisions recommend an annual 5,000 metres of underground infill drilling to increase the confidence of indicated and inferred resources and 15,000 metres of near mine drilling explore for expansions to the known mineralized areas.

The following table outlines Ermitaño's LOM production schedule:

Ermitaño LOM

Units

Total

2021

2022

2023

2024

2025

2026

2027

Total Ore

Kt

2,835

77

384

629

669

486

380

210

Silver Grades

g/t Ag

54

40

40

45

70

51

57

44

Gold Grades

g/t Au

3.69

3.47

4.32

4.90

3.60

2.92

2.64

3.01

Silver Mined

MOz

4.9

0.1

0.5

0.9

1.5

0.8

0.7

0.3

Gold Mined

kOz

337

9

53

99

77

46

32

20

Orogen's expected revenue on P&P Reserves over the LOM is as follows:

Units

Total

2021

2022

2023

2024

2025

2026

2027

Orogen's expected Revenue

US$M

$12.25

$0.3

$1.85

$3.45

$2.95

$1.7

$1.25

$0.75

About the Ermitaño Deposit

The 120 square kilometre Ermitaño project in Sonora, Mexico contains the Ermitaño deposit, a low-sulphidation epithermal gold-silver system. It is located in the Rio Sonora Valley, an area known to host epithermal gold-silver deposits and active mines including the Santa Elena Mine (First Majestic), Mercedes Mine (Equinox Gold Corp.) and Las Chispas deposit (SilverCrest Metals Inc.). Ermitaño is situated four kilometres east of the Santa Elena mine and processing plant.

Since 2016, 88,056 metres of drilling has been completed on the Ermitaño deposit to delineate one primary quartz vein and several sub-parallel quartz veins within an area measuring 1,800 metres along strike and up to 550 metres down dip. The Ermitaño Vein averages 5.9 metres in width while the Aitana Vein, the second most prominent structure, averages approximately 2 metres wide. Other veins average between 1 metre and 4 metres wide.

Ore processing at the 3,000 tonne per day ("tpd") Santa Elena plant is expected to consist of ‘campaigns' of Santa Elena ore (both underground and leach pad material) that will alternate with Ermitaño ore. These campaigns will address the differences between the two ores including hardness and metallurgical performance and provide clarity for accounting purposes.

Initial production trials, taking place in Q4 of 2021, will aid in refining the campaigns and commercial production is expected to be achieved in Q1 2022. It is estimated that the average daily throughput for processing Ermitaño ore will be 2,350 tpd once commercial production is achieved.

Figure 1 - Ermitaño Mine site looking northeast showing the east and west portals at left, and ore stockpile and road to processing plant in centre.

Qualified Person Statement

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 as defined under the terms of National Instrument 43-101.

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 deposit in Sonora, Mexico (2% NSR royalty) being developed by First Majestic Silver Corp. and the Silicon gold project (1% NSR royalty) in Nevada, USA, being advanced by AngloGold Ashanti N.A. The Company is well financed with several projects actively being developed by joint venture partners.

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.
1201 - 510 West Hastings Street
Vancouver, BC
Canada V6B 1L8
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.

Forward looking information relates to statements concerning the Company's future outlook and anticipated events or results, as well as the Company's management expectations with respect to the proposed business combination (the "Transaction"). This document also contains forward-looking statements regarding the anticipated completion of the Transaction and timing thereof. Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the receipt, in a timely manner, of regulatory and stock exchange approvals in respect of the Transaction.

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. Furthermore, 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 actions taken in Canada and other countries to contain and treat the disease. Although it is not possible to reliably estimate the length or severity of these developments and their financial impact as of the date of approval of these condensed interim consolidated financial statements, continuation of the prevailing conditions could have a significant adverse impact on the Company's financial position and results of operations for future periods.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Orogen Royalties Inc.



View source version on accesswire.com:
https://www.accesswire.com/675435/Orogens-Royalty-Sees-Production-at-Ermitao

News Provided by ACCESSWIRE via QuoteMedia

Orogen Royalties

Orogen Royalties

Overview

The price of gold hit all-time highs in 2020 when it reached US$2,070 per ounce. This surge in prices benefited gold producers who reported record-high margins as a result. However, this upswing in prices and increased margins for gold producers means that they are also subject to downswings in prices and decreased margins.

Gold royalty companies, on the other hand, effectively outperformed gold based on a 12-month analysis due to their robust business model. In the analysis, gold royalty companies produced attractive revenues and shareholder value while relying on less debt when compared to their gold counterparts. As a result, gold royalty companies present an exciting opportunity for investors seeking to invest in gold and hedge the market volatility of gold prices.

Keep reading... Show less
TDG Gold Corp. Samples Up To 32.9 g/t And 27.6 g/t Gold at Mets, Toodoggone, B.C.

TDG Gold Corp. Samples Up To 32.9 g/t And 27.6 g/t Gold at Mets, Toodoggone, B.C.

TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to announce the results of the 2021 exploration program at its former producing high-grade gold Mets Mining Lease located in the road accessible Toodoggone Production Corridor of north-central, B.C. Highlights include grab samples yielding 32.90 grams per tonne ("gt") gold ("Au") and 27.61 gt Au collected from locations of known historical drill collars (Table 1

TDG's Mets Mining Lease consists of 200 hectares located 23 kilometres ("km") by road from TDG's Baker Mine (Figure 1). A summary of historical exploration work completed at Mets was published by TDG in its news release dated May 19, 2021 (here). TDG has recompiled 7,944 metres ("m") of diamond drilling of the 8,784 m reported to have been drilled historically, along with review of the 2,622 m of historical trenching. Historical drill highlights include DDH MT86-08 which intersected 25.9 m of 9.52 g/t Au and MT86-05 intersecting 46.4 m of 3.57 g/t Au (including 11.8 m of 13.93 g/t Au).

Keep reading... Show less
Golden Independence Announces Management Change

Golden Independence Announces Management Change

Golden Independence Mining Corp. (CSE: IGLD) (OTCQB: GIDMF) (FSE: 6NN) (the "Company" or "Golden Independence") announces that Christos Doulis has resigned as the Chief Executive Officer and a director of the Company effective January 20, 2022 to pursue other endeavours. Jeremy Poirier, a director of the Company, has been appointed as Interim Chief Executive Officer until a suitable permanent replacement is located.

"Christos has been instrumental in the advancement of Independence Project and, specifically, in the recent formation of the joint venture with America's Gold Exploration Inc. to develop the project. The board would like to sincerely thank Christos for his significant contributions to the Company and wish him well in his future endeavours," commented Jeremy Poirier, Interim Chief Executive Officer.

Keep reading... Show less
Finlay Minerals drills 76.57m @ 0.45% copper, 14.6g/t silver, and 0.14g/t gold  in the Gaul Zone on the Silver Hope Property

Finlay Minerals drills 76.57m @ 0.45% copper, 14.6g/t silver, and 0.14g/t gold in the Gaul Zone on the Silver Hope Property

Finlay Minerals Ltd. (TSXV: FYL) (" Finlay " or the " Company ") is pleased to announce the results of its 1,968 metres (m), nine hole, oriented-core drill program completed in November, 2021 on its Silver Hope Property.  The Silver Hope property is located approximately 70 kilometres (km) southeast of Houston, BC and surrounds Newmont Corporation's former Equity Silver Mine.

Aimed at outlining shallow zones of open-pit copper-silver-gold (Cu-Ag-Au) mineralization, the program targeted Gaul, Superstition and Hope mineralized zones along with the Main Trend, which has the potential to host significant Cu-Ag-Au mineralization. The 2021 drill holes span a strike distance of over 1,750 m , within three distinct mineralized zones which are offset and truncated by cross-structures. Specifically, the Gaul Zone hosts significant copper with appreciable silver and gold grades that could be extracted by open pit methods. The Gaul Zone remains open along trend to the south, north, and at depth and has been drill tested for a strike length of 400m and a vertical depth of 100m . Within the Superstition and Hope Zones, the 2021 drilling intersected several narrower mineralized intervals.  However, historical drilling shows the potential for thicker mineralized intercepts at depth, suggesting that the northern zones may have formed higher up in the mineralizing system than in the Gaul. Potential remains to demonstrate continuity between the Superstition and Gaul Zones.

Keep reading... Show less
i-80 Gold Awards Contract for Lone Tree Autoclave Engineering Study

i-80 Gold Awards Contract for Lone Tree Autoclave Engineering Study

Bolsters Nevada Operation Team with Multiple Key Hires

i-80 Gold Corp. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the "Company") is pleased to announce it has awarded the engineering study for restart of the Lone Tree autoclave to Hatch Ltd. The study will complete a Pre-Feasibility Study ("PFS") level mechanical and operational review of all aspects necessary for the restart of the Company's autoclave processing facility located in northern Nevada. Additionally, as a part of its comprehensive plan to create a Nevada focused gold mining company, i-80 has recently filled multiple key positions continuing to build a tier-one operations team.

Keep reading... Show less
Leocor Gold Completes Phase 1 Soil Campaign at Hodges Hill Project, North Central Newfoundland, Canada

Leocor Gold Completes Phase 1 Soil Campaign at Hodges Hill Project, North Central Newfoundland, Canada

(TheNewswire)

Leocor Gold Inc.

Leocor Gold Inc. (the " Company " or " Leocor ") (CSE:LECR ) (CNSX:LECR.CN) ( OTC:LECRF ) ( FRA:LGO) is pleased to announce the completion of a soil sampling campaign, consisting of 4583 soils, on the Hodges Hill Property, consisting of nine mineral licenses totaling 1562 claims and covering 39,050 hectares (390 square km) in the southwest corner of the Western Exploit District, north central Newfoundland, Canada

Keep reading... Show less
FireFox Gold Moves Drill to Next Promising Target: Sarvi Project, Finland

FireFox Gold Moves Drill to Next Promising Target: Sarvi Project, Finland

FireFox Gold Corp. (TSXV:FFOX)(OTCQB:FFOXF) ("FireFox" or the "Company") is pleased to announce that the winter drilling program is progressing as planned with approximately 3,800 metres drilled to date on three separate projects. The Company is now set to begin its first drilling at the Sarvi Project, which adjoins Rupert Resources' Area 1 property. The first phase of diamond drilling at Sarvi is slated to start before the end of January and will include up to 500m in the northwestern portion of the project, where trenching and base-of-till (BOT) sampling have identified several gold and multielement anomalies. There is an ongoing BOT sampling program at Sarvi and results are not yet available for the southern and eastern portions of the property (see Figure 1: https:bit.ly357FBo0). The Company expects to bring the drill rig back to Sarvi during the second quarter for an estimated 2,000 metres of additional drilling

Carl Löfberg, President and CEO of FireFox, commented, "Our winter drill program is going very well so far. In fact, for the first time in FireFox's history we have a core rig operating at the same time as two base-of-till drilling rigs. We have already drilled three of our four permitted projects and are now advancing towards the first drilling on our Sarvi Project. Our integrated interpretation of geophysics, mapping, BOT sampling, and new trenching data has dramatically improved our understanding of the geology and targets at Sarvi. Our team believes that the southern portion of the Sarvi Project occupies a similar geologic setting to Rupert's Area 1 Project, so this is a very exciting time in the company's short history."

Keep reading... Show less

Latest Press Releases

Related News

×