January 9th, 2017 – Toronto, Ontario: Royal Road Minerals Limited (TSXV:RYR) (“Royal Road Minerals”, “Royal Road” or the “Company”) a gold and copper focused mineral exploration and development company, announces results from the first three diamond drill holes of its four‐hole exploration scout‐drilling program at the La Golondrina Gold Project, Nariño Province Colombia. All reported intersections are down‐hole widths as true widths cannot be determined from the currently available information.
Results for drill holes GOL-16-01, GOL-16-02 and partial results for GOL-16-03 are presented in Table 1 and a map and cross‐section of drill holes is presented in Figure 1. Results for the remainder of GOL-16-03 and those for the fourth drill hole, GOL-16-04, are currently in the laboratory.
This was the first exploration scout drilling program ever to be completed at La Golondrina and in the immediate region which includes the Company’s nearby La Redención gold project and many other high-grade, small‐scale gold mines. Drill holes targeted subhorizontal stacked quartz‐ carbonate veins and veinlet systems hosted in very strongly altered (biotite, amphibole, silica) tonalite and hornfelsed sediments with corresponding ground magnetic and induced polarization anomalies. Higher grade gold intersections (e.g. GOL-16-02; 47.8 grams per tonne gold over 0.25m), with elevated bismuth and copper are associated with quartz‐carbonate pyrrhotite veins up to 30cm wide and lower grade, broad intercepts (e.g. GOL-16-02; 24.9 meters at 1.0 grams per tonne, 14.3 meters at 1.0 grams per tonne and entire drill hole, 195.2 meters at 0.4 grams per tonne gold) are generally related with stacked subhorizontal zones of decimeter‐scale veins and shallow‐dipping interconnecting veinlets and stringer zones.
Evidence from previous underground saw‐cut channel sampling (see press release March 1st, 2016) indicates that gold mineralization at La Golondrina is very coarse‐grained and irregular such that assay results are consequently highly variable. In some cases, gravimetric repeat assays of drill samples returned up to ten‐times more gold than the corresponding fire assay. However, gold mineralization was notably continuous and pervasive in both tonalite and hornfels rock‐types along the entire length of each drill hole with no results returning below laboratory detection limit (Entire drill hole results for GOL-16‐02 were 195.2 meters at 0.4 grams per tonne gold) and in all cases with gold mineralization and indicative alteration remaining open at depth.
As illustrated in the schematic cross section on Figure 1, La Golondrina is located some 700m structurally and topographically above other active mines and known occurrences of similar style veining such as at the Company’s nearby La Redención project. The Company believes that these results indicate potential for a significant vertically and laterally extensive bulk tonnage intrusion‐related gold system.
“This is the first drilling ever conducted at La Golondrina and in the immediate region and although relatively shallow and limited in its extent, it has so‐far revealed a lot in terms of the nature and potential of intrusion related gold mineralization in this highly prospective region” said Dr. Tim Coughlin, Royal Road’s President and CEO “La Golondrina occurs some 700m topographically above other similar style gold mineralization at and around our La Redención project and the fact that gold mineralization and related alteration is locally pervasive and continues to the bottom of all our scout drill holes and across all rock types, implies potential for the extension of gold mineralization to significant depths. Under the terms of our agreement at La Golondrina we must drill just over a further 900m and complete an in‐house feasibility study in order to exercise our Option and acquire 100% of the project before October 2018. However, in our view this drilling, in particular the long mineralized intercept of 195.2m @ 0.4g/t gold, has somewhat extended the potential of the La Golondrina project beyond the confines of the current mining license. Consequently, before commencing any further drilling on the license, our plan is to complete our proposed airborne geophysical survey over the La Golondrina ‐ Redencion area and the Company’s recent concession applications in Colombia which now cover over 66,000 hectares and extend over 100km to the southwest towards the border with Ecuador”
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. Where possible, drilling was PQ in diameter or if necessary was reduced to HQ in some instances. Drill core visually identified as strongly mineralized was cut either over 50cm downhole intervals or at quartz vein boundaries such that three quarters of that drill core was collected for assay and a quarter of the core was retained at the project.
Weakly mineralized drill core was cut over 1m downhole intervals with 50% of that core sent for assay and 50% retained at the project. Samples were sent to internationally certified SGS laboratories in Medellin Colombia. Gold assays were conducted initially by 30g fire assay and then all samples returning in excess of 0.1g/t gold were resubmitted for coarse gold metallic screen and gravimetric analyses. More information can be found on Royal Road Minerals web site at www.royalroadminerals.com
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:
Dr. Tim Coughlin President and Chief Executive Officer
USA‐Canada toll free 1800 6389205
+44 (0)1534 887166 +44 (0)7797 742800
In Colombia Royal Road Minerals operates through its wholly-owned Colombian companies Minerales Camino Real SAS founded in 2015 and Exploraciones Northern Colombia SAS acquired from previous owners in 2019. In Argentina Royal Road Minerals operates through its wholly owned Argentinian company, Minerales Camino Real Argentina. In Saudi Arabia and Morocco the Company operates through its 50% owned Saudi Arabian registered subsidiary, Royal Road Arabia.