July 13, 2020 – Toronto, Ontario: Royal Road Minerals Limited (TSXV:RYR) (“Royal Road” or the “Company”) is pleased to announce initial interim drilling results from its current diamond drilling campaign at its Luna Roja gold project in northeastern Nicaragua.
The Luna Roja project forms a part of the Company's Strategic-Alliance agreement (see press release; September 6, 2017) with Hemco Mineros Nicaragua (“Hemco” a subsidiary of Colombia’s Grupo Mineros S.A. MINEROS:CB) and is located in the highly prospective Golden Triangle of northeastern Nicaragua, a region that has produced some eight million ounces of gold since the early 1900's. Hemco Mineros Nicaragua own and operate the Bonanza gold mine which is located approximately 26 kilometers to the northwest of Luna Roja. Royal Road Minerals is operator of the Strategic Alliance.
In 2019, Royal Road and Hemco completed an initial 17-hole (2472 meter), scout drilling program at Luna Roja (see press release October 2nd 2019) . This was the first drilling program to be completed on the project. Promising results included; LR-DDH-3, 49m at 2.8 g/t gold (including 22m at 5.3 g/t gold); LR-DDH-12, 49m at 2.4 g/t gold, (including 18m at 5.4 g/t gold) and LR-DDH-016, 69m at 1.5 g/t gold (including 15m at 2.5 g/t gold).
A follow-up drilling program commenced at Luna Roja on May 2nd of this year. The program comprises some 3000 meters of diamond drilling aimed at locally extending known gold mineralization and exploring newly identified and deeper ground microgravity targets.
Results have been returned for the first 9 drill-holes (see Table 1; intersections are not true widths and the Company does not have sufficient information to make a determination of the true widths of the drill hole intersections of the mineralized zones). Significant intersections include:
LR-DDH-19 30m at 1.2 g/t gold and;
22m at 1.1 g/t gold
LR-DDH-22 65m at 6.9 g/t gold (including 41 meters at 10.0 g/t gold)
LR-DDH-23 12m at 2.7 g/t gold
LR-DDH-24 13m at 1.2 g/t gold
Drill hole LR-DDH-22 was drilled to test the downdip extension of LR-DDH-3 (see Figure 1) and passed through a hanging-wall of low-grade skarn mineralization before intersecting a higher grade breccia body at depth. The breccia-body effectively extends breccia-controlled gold mineralization from exposure at surface and over a vertical distance of at-least 120 meters.
An east-northeast trending fault is interpreted to downthrow the gold-skarn system to the south (see Figure 1) and defines a “deeper-domain” where skarn mineralization may be concealed at depth below outcropping marlstone. Low-grade skarn mineralization is evident in this domain at surface in artisanal workings, in soil geochemistry and in 2019 drilling (LR-DDH-17, 8 meters at 0.9 g/t gold). Microgravity data collected from this deeper-domain has identified a curved gravity high feature which management believe may be indicative of higher grade gold-skarn mineralization (possibly endo-skarn) at depth. Drill holes LR-DDH-20 and 21 were both terminated above this gravity high anomaly (see Figure 2) and failed to reach objective. Further deeper drilling is planned to fully test the gravity high anomaly.
“These drill results answer key questions in respect of grade distribution and depth-potential at Luna Roja” said Dr Tim Coughlin, Royal Road’s President and CEO. “It appears that the gold-skarn system is characterized by steeper-dipping, higher-grade, breccia bodies, surrounded by lower-grade gold mineralization which is oriented broadly parallel to bedding. Both styles of mineralization show promise in respect of extending gold mineralization at depth, which will be an important parameter in terms of quantifying plus million ounce potential at Luna Roja”.