Orogen Royalties Announces Mid-year Royalty Update and Forecast
Orogen Royalties Announces Mid-year Royalty Update and Forecast
Vancouver, B.C. August 16, 2023 (TSX.V:OGN) (OTCQX:OGNRF) Orogen Royalties Inc. (“Orogen”) or the
(“Company”) is pleased to provide an update on its royalty portfolio and forecast for the second half of
2023.
Paddy Nicol, CEO of Orogen, commented: “Our royalty portfolio consists of 24 projects including the
producing Ermitaño mine operated by First Majestic and a potential district scale discovery at the Silicon-
Merlin project operated by AngloGold Ashanti . At the Ermitaño mine, a 27% increase in production is
forecast for the second half of this year while recent drilling displays the potential for reserve
replacement. At the Silicon -Merlin project, AngloGold Ashanti announced significant progression at the
Merlin area with a 6 to 8 million ounce gold Exploration Ta rgetA, in addition to the existing 4.2 million
ounce gold resource at Silicon . In combination with other royalties including MPD South, West Kenya,
Cuprite, and Hank, the Company has exposure to potential exploration success on approximately 72,500
metres of drilling over an area of interest in excess of 1,900 square-kilometers. Most of our royalties were
generated organically through our prospect generation business and we benefit from exploration and
advancement on these assets with no capital or risk exposure to the company.”
Highlights
• Estimated 72,500 metres of drilling on pr ojects where Orogen holds a royalty interest , including
the Silicon-Merlin gold project, the Ermitaño gold-silver mine, and the MPD South (Axe) copper-
gold porphyry project. Including Orogen’s Project Generation business, total exposure to drill
projects in 2023 is estimated at over 100,000 metres.
• AngloGold Ashanti NA’s (“AngloGold”) 6 to 8 million ounces gold Exploration Target at Merlin adds
to the existing resources at Central Silicon of 3.4 million ounces gold indicated and 800,000 ounces
gold inferred, where Orogen holds a 1% net smelter return (“NSR”) royalty1,2.
• Potential for additional drilling on the Cuprite gold project , Hank copper-gold porphyry project
and Rosterman license in West Kenya.
• Portfolio of 24 royalties on a combined area of interest over 1,900 square-kilometres.
• Three new royalties created or acquired in 2023 in cluding the Ball Creek West copper-gold
porphyry and Ecstall VMS projects in British Columbia, and the La Rica project in Colombia.
Selected Royalty Update Information
Ermitaño Epithermal Gold-Silver Mine, Sonora
Orogen holds a 2% NSR royalty on First Majestic Silver Corp.’s Ermitaño mine with Proven and Probable
reserves of 274,000 ounces of gold and 4.6 million ounces of silver, Measured and Indicated resources
(inclusive of reserves) of 369,000 ounces of gold and 5.8 million ounces of silver, and Inferred resources
of 269,000 ounces of gold and 7.7 million ounces of silver as of Dec 31, 20223,4.
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.
First Majestic recently announced second quarter production results of 20,073 ounces gold and 142,037
ounces silver from the Ermitaño deposit. Record recovery rates were also achieved with the recent
introduction of a dual-circuit and a new filter press. Gold and silver recoveries averaged 94% and 52%,
respectively in Q2 2023. First Majestic also forecasts production for the second half of 2023 to increase
by 27% ranging 48,000 to 53,000 ounces gold and 700,000 to 800,000 ounces silver3,4.
First Majestic also announced a 20,000-metre drill program to infill and upgrade the resources at
Ermitaño3. Select drill hole results from deep drilling at the Ermitaño splay returned true width
intersections3,4:
• 4.27 grams per tonne ("g/t”) gold and 127 g/t silver over 13.3 metres in drill hole EWUG-23-01
• 5.98 g/t gold and 222 g/t silver over 15.55 metres in drill hole EWUG-23-02
• 13.73 g/t gold and 150 g/t silver over 6.42 metres in drill hole EWUG23-03
• 8.1 g/t gold and 348 g/t silver over 3.34 metres in drill hole EW-23-327
Drilling to the east of Central Ermitaño returned assays and true width intersections including:
• 2.67 g/t gold and 54 g/t silver over 1.86 metres in drill hole EW-23-330
• 3.39 g/t gold and 56 g/t silver over 1.96 metres in drill hole EW-23-339
Multiple veins are currently being drilled within five kilometres of the processing plant3 with First Majestic
reporting multiple secondary vein intersections within the hanging and footwall of the Ermitaño vein.
Figure 1 — West to East cross section displaying 2023 drilling at the Ermitaño Mine from 3,4.
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.
Silicon-Merlin Epithermal Gold Project, Nevada
Orogen holds a 1% NSR royalty on the Silicon -Merlin Project operated by AngloGold. As announced by
Orogen on August 8, 2023, AngloGold announced an Exploration TargetA for the Merlin area of 6 to 8
million ounces gold, with an estimated grade-tonnage range of 230 to 250 million tonnes grading 0.8 to
1.0 g/t gold. An initial Inferred Mineral Resource estimate for Merlin and a Concept Study is expected
during H2-2023. The Concept Study, integrating Central Silicon and Merlin, is expected to capture the
synergies from the increased economies of scale of these tw o deposits, with the potential for large scale
mining. Merlin is located south of the Silicon Deposit where resources of 3.4 million ounces gold Indicated,
and 0.8 million ounces gold Inferred were published by AngloGold earlier this year1.
Figure 2 — Map displaying Orogen's royalty area of interest within AngloGold Ashanti's land tenure.
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.
MPD South (Axe) Copper Gold Porphyry Target, British Columbia
Orogen holds a 2% NSR royalty subject to a 0.5% NSR buydown on Kodiak Copper Corp .’s MPD South
property (formerly Axe). MPD South is located within the greater MPD project and approximately 10
kilometres south on the same structural trend as Kodiak’s Gate Zone discovery. Two rigs are currently
testing the West, South and Adit targets with plans to test the 1516 zone later in 20237.
To date, 5,000 metres of a 25,000 metres property wide program ha ve been completed. Encouraging
initial results for the first three drill holes in the West Zone magnetic anomaly are as follows14:
• AXE-23-001 intersected 0.28% copper, 0.28 g/t gold and 0.83 g/t silver over 158 metres within a
broader interval of 0.18% copper, 0.20 g/t gold, and 0.61 g/t silver over 533 metres
• AXE-23-002 intersected 0.21% copper, 0.30 g/t g old and 1.36 g/t silver over 203 metres within
0.15% copper, 0.16 g/t gold, and 0.80 g/t silver over 482 metres
• AXE-23-003 intersected 0.22% copper, 0.27 g/t gold , and 1.08 g/t silver over 51 metres within
0.13% copper, 0.20 g/t gold, and 0.61 g/t silver over 209 metres
Combined, these results have confirmed porphyry mineralization over a 300 by 300 metre surface area
and to over 800 metres depth , extending well beyond historic drilling. The system is open in nearly all
directions.
Drilling east beyond the magnetic anomaly in AXE-23-03 intersected a new, structu rally controlled high-
grade copper-gold-silver zone assaying 0.93% copper, 0.64 g/t gold, and 3.2 g/t silver over 16 metres and
drilling to depth in hole AXE -23-02 intersected over 175 metres of mineralized breccia returning up to
0.29% copper, 0.22 g/t gold and 0.72 g/t silver at the bottom of the hole indicating continued depth
potential.
Figure 3 — Overview of the MPD property and Orogen's royalty AOI.
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 4 — Cross Section of drilling at Kodiak Copper's West Zone, MPD South from 7.
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.
West Kenyan Royalty Package Orogenic Gold project
Orogen holds 3% net smelter royalties on the Rosterman, Sigalagala, and Buk ura licenses operated by
Shanta Gold and proximal to the Isulu-Bushiangala deposits (1.285 million ounces grading 10.6 g/t gold)
in western Kenya. Shanta Gold is drilling up to 26,000 metres 8 on the broader West Kenya project with
an active drill target for Rosterman in 2023/2024, while both Sigalagala and Bukura are marked as active
prospects.
Figure 5 — Area map showing Shanta Gold's land holdings including Rosterman (PL/2018/0212), Bukura
(PL/2018/0210) and Sigalagala (PL/2018/0211) from 9.
Hank Copper-Gold Project, British Columbia
Orogen holds a 3% NSR royalty subject to a 1% buydown for US$3 million and a US$2.5 million payment
on 17 square kilometres of land, including the Hank epithermal gold target and Williams copper -gold
porphyry area, that comprise part of the 362 square kilo metre HWY 37 copper -gold porphyry project in
the Golden Triangle in British Columbia. The 345 square kilometre Ball Creek East claims also form part
of the HWY 37 project and were optioned by Orogen to Kingfisher in March 2023. The integrated projects
now provide for a greater understanding of the relationships between the Hank project and Ball Creek
East claims and increase the opportunity for advancement of the overall area.
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.
Drilling has commenced on the HWY 37 Project with plans for a 2,500 metre drill program focused on the
Mary to Cliff porphyry to test a zone of undrilled copper rich stockwork, a covered geophysical target
interpreted to be the offset extension of the Mary porphyry zone , and step out drilling on the historical
Mary deposit10, 11.
Figure 6 — Overview of the mineral occurrences on the HWY 37 property from 12.
Cuprite Epithermal Gold Target, Nevada
Orogen created a 1.5% NSR royalty on the sale of the Cuprite gold project to Strikepoint Gold Inc. in
January 2023. Strikepoint has since doubled the land package at Cuprite 12 to 4,468 hectares and filed a
NI 43-101 Technical Report. Strikepoint has also initiated a permitting process with plans for drilling in
the second half of 2023. 13
Cuprite is thought to be geologically similar to the nearby Silicon gold deposit held by AngloGold Ashanti.
StrikePoint will utilize similar geochemical, geophysical, and structural vectoring techniques that led to
the Silicon gold discovery.
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.
Qualified Person Statement
All new technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D.,
P.Geo., VP. Exploration for Orogen. Dr. Pryer is a qualified person as defined under the terms of National
Instrument 43-101.
Certain technical disclosure in this release is a summary of previously released information and the
Company is relying on the interpretation provided by th e relevant referenced partner. Additional
information can be found on the links in the footnotes or on SEDAR (www.sedar.com).
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 mine in Sonora, Mexico (2% NSR royalty) being mined by First Majestic Silver Corp. and the
Silicon-Merlin gold project (1% NSR royalty) in Nevada, USA, being advanced by AngloGold Ashanti NA.
The Company is well financed with several projects actively being explored under joint ventures.
On Behalf of the Board
OROGEN ROYALTIES INC.
Paddy Nicol
President & CEO
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.
1015 – 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
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 “Company“) 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 “e xpects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or
conditions “will”, “would”, “may”, “could” or “should” occur.
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 lookin g statements.
Factors that could cause the actual resu lts 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.
Investors are caut ioned 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 the Company’s management on the date the statements are made. Except as required by securities laws, the Company undertake s no
obligation to update these forward looking statements in the event that management’s beliefs, estimates or opinions, or o ther factors, should
change.