Royal Road is committed to a new model of exploration and mining for a new world; one which reduces environmental impact, benefits communities and contributes to the development of our host countries. We identify new approaches and trial innovative initiatives to change the mining paradigm.
In most of our mining titles in Colombia there are generally small-scale and family-operated informal gold mines which operate outside of the mining and environmental regulatory frameworks. The Colombian government has established a process by which mining title holders can effectively carve out a portion of their title and provide that area to informal miners so that they may become legal and rightful owners of their mining operations.
Royal Road has established a contractual structure for these formalization initiatives which benefits the Company, the local miners, the community and of course the environment. In exchange for handing over part of its title and assisting the local miners with the formalization process, Royal Road is paid a quarterly royalty equivalent to 3% of the doré extracted from the newly formalized mining operations and has the exclusive right to carry out all exploration activities on an around these operations. If, through the exploration process, the Company discovers a project that meets its size criteria, it may earn back in to 70% of the formalized title area by achieving certain exploration goals.
We have a highly experienced team dedicated to the formalization process, but in order that we do not become distracted from our main aim of discovering very large gold and copper deposits, the Company has executed a Heads of Agreement with a Colombian mining company Latminco S.A.S, which aims to optimize the formalized mining operations by applying modern mining and treatment technologies. The agreement anticipates that Latminco and Royal Road will collaborate and agree with formalized miners to identify opportunities where production may be increased and processing may be centralized to the benefit of all parties.
Founded on January 1st of 1845 as a municipality. It has an extension of 809 square kilometers, with a population of 19.414. Its main economic activities are mining and agriculture.
Founded as a municipality in August 27, 1991. It has an area of 265 square kilometers, and a population of approximately 8,755. Its main economic activities are Mining and Agriculture.
Unlike the majority of gold deposits in the region, the La Candelaria and San Miguel gold mines are hosted in a silicified and folded sedimentary succession. Gold mineralization is predominantly related to steep to moderately-dipping and northeast trending brittle shear zones and is concentrated in 25 to 30 centimeter wide vein centers, surrounded by vein-stockwork zones of an unknown width. Rock-chip channel and grab sampling completed by AngloGold Ashanti at La Candelaria in 2010, returned best results of 2.0 meters at 50.4 and 2.0 meters at 16.1 grams per tonne gold (32 samples, mean 3.0 grams per tonne gold, lowest result below laboratory detection limit). The presence of gold related to vein stockwork mineralization in the sedimentary wall-rocks at La Candelaria and San Miguel, imply the possibility of gold mineralization over wider, more economic widths.
The La Esmeralda gold mine is a shallow-dipping, quartz-carbonate vein and vein-stockwork system located and hosted in the “roof-zone” and adjacent contact zone of a tonalite intrusion and overlying and adjacent carbonaceous shale sequences. The mine operation comprises approximately 41 tunnels extending vertically over some 50 meters from the base of a steep hillside. Ore is hand-selected, gold is coarse and free and recovered by gravity separation. Mining at La Esmeralda was suspended by regulatory authorities in 2016. There are no reliable records of previous production. In 2010 and 2011, AngloGold Ashanti conducted geological mapping, grab and channel rock-chip sampling and ground geophysics at La Esmeralda. 138 combined grab and rock-chip channel samples were collected and returned a maximum of 133.5 grams per tonne gold (average of 4.5 grams per tonne gold; lowest results at below laboratory detection limit). AngloGold Ashanti’s best underground rock-chip channel sample results from La Esmeralda are as follows:
The El Gualtal gold mine is a shallow-dipping, quartz-carbonate vein system, with 75 room and pillar style production adits, developed over at-least nine different levels and 140 meters of vertical separation. The mine is one of the largest informal mining operations located in the prolific La Llanada Goldfield. Today, 40 adits are active and the Company estimates that production from informal mining operations is currently between 100 and 150 tonnes of hand-picked ore per day. The gold mined at El Gualtal is coarse and free and is recovered by gravity separation. Underground rock-chip channel face sampling that has been carried out by Royal Road at the mine, has returned significant results including: