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. Orogen’s Royalty sees Production at Ermitaño
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.
Orogen’s Royalty sees Production at Ermitaño
Vancouver, B.C. December 1, 2021 (TSX.V: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. T he 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 kilomet res 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.
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.
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 average s 5.9 m etres 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.
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.
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% N SR 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
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.
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
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 "Compan y“) 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 inform ation relates to statements concerning the Compan y’s future outlook and anticipated events or results, as well as the Compan y’s
management expectations with respect to the proposed business combination (the “Transaction”). This document also contains fo rward-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. Facto rs 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 prevail ing 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 t he 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.