June 21, 2017 – Toronto, Ontario: Royal Road Minerals Limited (TSXV:RYR) (“Royal Road” or the “Company”) is pleased to announce results from saw-cut channel sampling at its 100% owned Piedra Imán copper-gold project in northwestern Nicaragua (results are presented in Table 1).
The Piedra Imán concession area is located in Chinandega District, 200km northwest of Managua via the Pan American Highway and 30km north of B2 Gold’s El Limon Mine (Figure 1). The concession extends over approximately 8000Ha and is in force for a further 20 years. Royal Road acquired 100% of Piedra Imán through its acquisition of Caza Gold Corporation in May 2017 (see press release May 23, 2017).
Piedra Imán is a copper and gold project which shares many geological similarities with “cordilleran-style” Iron Oxide Copper Gold (IOCG) systems such as those which occur in Chile and Peru. Detailed geological controls remain unclear at Piedra Imán and a mapping program is currently underway, but observations to-date indicate that copper mineralization (malachite, chalcopyrite and bornite) occurs in steeply dipping veinlets and vein-stockworks oriented at a high-angle to gently tilted layering (see Figure 2). Gold is associated with molybdenite in an intrusive rock which appears to be located subjacent to the copper mineralization. Alteration related with copper and gold mineralization at Piedra Imán is characterized by magnetite-hematite-actinolite and albite.
The Piedra Imán project was initially explored in the early 1970’s by Noranda Inc (“Noranda”). Noranda’s work included the drilling of 17 shallow diamond drill holes and the development of one exploration adit. Noranda’s drilling and underground sampling intersected significant widths of copper mineralization including DDH-851 (36.6 meters at 1.13% Copper), DDH-876 (14.8 meters at 1.65% Copper), DDH-846 (14.3 meters at 1.42% Copper) and DDH-818 (9.1 meters at 1.50% Copper). Samples were only sporadically assayed for gold, but drilling results included one interval of 3.6 meters at 6.3 g/t gold. These results were provided in analogue format, are historic in nature and have not been verified by a qualified person. Historic maps indicate that the exploration adit intersected gold and copper along its strike length with gold only mineralization dominating the southwestern end of the adit and combined copper and gold mineralization dominating the northeastern extent of the adit (see Figure 4). There are no reports available to verify the style of adit sampling or to confirm the underground grades labelled on historic maps. Noranda abandoned the project due to the onset of hostilities related with the Sandinista revolution in 1978.
In order to assess the continuity and local extent of copper and gold mineralization at Piedra Imán, horizontal channels were cut across exposed rock faces with a rock saw to an average depth of approximately 3cm and to an average width of approximately 10cm (see Figure 3). A total of 9 channels were cut and sampled on 1 meter intervals over a total strike distance of approximately 400m (see Figure 4). Results are presented in Table 1. Best results are:
- Channel 4 – 20 meters at 1.10% copper and 5 meters at 0.95% Copper
- Channel 8 – 8 meters at 1.05% copper and 1.13 grams per tonne gold
- Channel 7 – 5 meters at 0.28% copper and 2.50 grams per tonne gold
- Channel 2 – 9 meters at 0.70% copper
- Channel 5 – 6 meters at 0.87% copper
Highest individual results for copper and gold were 1 meter at 2.69% and 1 meter at 7.5 grams per tonne respectively.
The Company has recently submitted application for a drilling permit at Piedra Imán and, if successful, intends to commence drilling at the project in either Q3 or Q4 of this year.
“The results of our limited work to-date at Piedra Imán coupled with these encouraging saw-cut channel results suggest we are dealing with a style of copper and gold mineralization which until now has not been recognized in Nicaragua” said Dr Tim Coughlin, Royal Road’s President and CEO. “Soil geochemistry indicates that the mineralized system remains open to the north and southwest and our ongoing geological work will assist us in confirming our IOCG model and in outlining the principal controls on the distribution of gold and copper at the project. We plan to complete some ground geophysics before the end of Q3 and look forward to drill testing the project soon after that”.
Other Information
Neither the 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.
The information in this news release was compiled, reviewed and verified by Dr. Tim Coughlin, BSc (Geology), MSc (Exploration and Mining), PhD (Structural Geology), FAusIMM, President and CEO of Royal Road Minerals Ltd and a qualified person as defined by National Instrument 43-101. Royal Road Minerals employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. More information can be found on Royal Road Minerals web site at www.royalroadminerals.com
Cautionary Statement on Forward-looking Information
Cautionary statement: This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur and include statements regarding the Option Agreement. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the hiring and retention of directors and officers, exploration and development of mineral properties, mine site planning and development, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors”, which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information please contact:
Royal Road Minerals contact: Dr. Tim Coughlin, President and Chief Executive Officer, by phone: USA-Canada toll-free (800) 638-9205, +44 (0)1534 887166, or +44 (0)7797 742800, or by email at info@royalroadminerals.com
