Royal Road Minerals Announces New Exploration Results and Advances Caribe and Los Andes Projects to Drilling Stage; Nicaragua
Royal Road Minerals Announces New Exploration
Results and Advances Caribe and Los Andes Projects to
Drilling Stage; Nicaragua
Toronto, Ontario--(Newsfile Corp. - June 27, 2018) - Royal Road Minerals Limited (TSXV: RYR) ("Royal Road" or the
"Company") is pleased to announce new results from deep auger soil-sampling and a ground magnetic survey at its Caribe
prospect, and from alteration mapping and soil geochemical sampling at its Los Andes project, Nicaragua. Both projects have
been advanced to drilling-stage with permitting now underway.
The Caribe and Los Andes projects form part of the Company's 50-50 Strategic-Alliance agreement (see press release;
September 6, 2017) with Mineros Nicaragua (a subsidiary of Colombia's Grupo Mineros S.A. MINEROS:CB).
Caribe
Gold Project
The Caribe project was discovered by Royal Road's exploration team during reconnaissance follow-up of airborne geophysical
anomalies in February of 2018. The project is located in the highly prospective Golden Triangle of northeastern Nicaragua
(Figure 1), a region characterized by gold veins, skarn and porphyry-style mines that have combined to produce in excess of an
estimated 8 million ounces of gold since the early 1900's. Topographically, the Caribe prospect area is relatively flat and there is
no outcrop. Initial grab sampling of strongly weathered, altered and brecciated felsic volcanic float material returned anomalous
gold with associated anomalous values in molybdenum. Two programs of deep auger soil sampling have now been conducted
across the area using a 3-meter long hand-auger to access residual soils located below the weathered saprolitic layer. Soil-
sampling to-date has identified a strongly anomalous, "semi-circular" area which new ground magnetic data suggests
corresponds to magnetic lows, possibly located at the intersection of northwest and east-northeast trending linear features (see
Figure 1). Soil gold geochemistry ranges from 20 to 983ppb (mean 149ppb gold) and covers some 1200m in strike-
circumference, 200 meters in width and remains open to the northeast and southeast (see Figure 1). The highest grab rock-chip
sample collected from hand dug shafts in the area returned 3.5 grams per tonne gold (range 0.01 to 3.536 grams per tonne gold;
note grab samples are selective samples and are not necessarily representative of the mineralization hosted on the property)
from quartz-veinlet stockwork hosted in strongly oxidized rhyodacite with potassium feldspar alteration.
Deep auger soil sampling is currently being extended to the east of the current anomaly but the Company now considers the
Caribe project as drill-ready. The exploration team has positioned a series of scout drill holes and commenced the application
process for drilling permissions.
Figure 1
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Los Andes
Copper Gold Project
Royal Road acquired the Los Andes project from Caza Gold Inc in 2017 ("Caza"). The project is located in Boaco province of
western Nicaragua. It is characterized by a 7 kilometer long, strongly altered caldera-controlled "lithocap" which hosts
anomalous copper, gold and pathfinder elements in rock-chip geochemical samples. Previous exploration was focused on
testing the gold potential of the project. Short exploratory drilling campaigns conducted by Caza in 2014-15 targeted silicified
lithocaps and localized breccias and intersected strong alteration and anomalous copper, silver, and gold in a few of the holes,
but failed to intersect any potentially economic intervals of mineralization. In 2015 Caza completed an airborne geophysical
survey over the area which highlighted a well-defined magnetic anomaly at the southern limit of the caldera structure (Carrao
porphyry prospect; see Figure 2). Three drill holes were drilled in the area (see Figure 2). All drill holes intersected anomalous
copper mineralization with one drill hole (QZP-003) in particular, intersecting some 150 meters of massive pyrite of a style
consistent with the upper parts (pyrite shell) of an underlying porphyry copper-gold system.
Additionally some 1500 rock-chip samples were collected in the Carrao area some of which returned over 500ppm copper (see
Figure 2). Recent modelling and re-interpretation of the geochemical data collected from these rock samples together with
Short-wave Infrared (SWIR) satellite imagery have highlighted an area of porphyry core-indicator (K-Alunite, Natroalunite, etc.)
and porphyry core-specific (Topaz, Pyrophyllite, Zunyite) minerals. These minerals suggest an underlying porphyry copper-gold
body. The results were used to define an area for a recently completed soil sampling program. Multi-element classification of soil
sample results have corroborated the rock-chip geochemical work and further confirmed the targeting model.
The geochemical model, together with the airborne geophysical data suggests that the center of the Carrao area is the upper
core of an underlying porphyry copper-gold system, which shows classic zonation and extensive lithocap formation. The
geochemical and geophysical anomalies indicate that any potentially economic mineralization would be located at a depth in
excess of 200 meters below surface.
The exploration team has positioned two scout drill holes to test the underlying porphyry target and has commenced the
application process for drilling permissions.
Figure 2
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"By virtue of our Strategic Alliance with Mineros Nicaragua we are the largest exploration license holder in that country," said Dr
Tim Coughlin, Royal Road's President and CEO. "Our alliance aims to identify and responsibly develop multiple copper and
gold projects with at-least plus two million ounce gold or gold-equivalent potential. We view the Caribe and Los Andes projects
as excellent proof of concept and great examples of rigorous exploration technique."
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
.
Samples
are
prepared in Bureau Veritas laboratories Nicaragua and sent to Bureau Veritas
Mineral Laboratories Canada for analysis. Gold is analyzed by fire assay fusion with an AAS finish and base metals by 4-
acid digest ICP-MS.
Cautionary statement:
This news release contains certain statements that constitute forward-looking information
and forward-looking statements
within the meaning of applicable securities laws
(collectively, "forward-l
ooking statements") including e
statements relating to
the
Alliance
and
those describing
the Company
'
s
future plans and the expectations of its management that a state
d result or
condition will occur
. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors that
may
cause the actual results, performance or achievements of
the Company
, or
developments in
the Company
's business or
in the
mineral resources
industry, or with respect to
the
Alliance
, to differ materially from the anticipated results, performance,
achievements or developments expressed or implied by such forward-looking statements.
Forward-looking statements
include all disclosure regarding possible events, conditions or
results of operations that is based on assumptions about,
among other things, future
economic conditions and courses of action, and assumptions related to government
approvals,
and anticipated costs and expenditures.
The words "
plans
", "
prospective
", "expect", "intend", "intends to" and similar
expressions identify forward looking
statements, which
may also include, without limitation, any
statement relating to future
events, conditions or circumstances. Forward-looking statements
of the Company contained in this news release, which may
prove to be incorrect, include, but are not limited to,
those related to the Alliance, Hemco, and
the
Company's plans
exploration plans
.
The Company
caution
s
you not to place undue reliance upon any such forward-looking statements, which
speak only as of
the date they are made. There is no guarantee that the anticipated benefits of the
Alliance
and the Company
's
business
plans or operations
will be achieved. The risks and uncertainties that may affect
forward-looking statements include, among
others: economic market conditions, anticipated
costs and expenditures, government approvals, and other
risks detailed
from time to time in
the Company's
filings with Canadian provincial
securities regulators
or other applicable regulatory
authorities
. Forward-looking statements included herein are based
on
the
current plans, estimates, projections, beliefs and
opinions
of the Company
management and
, in part,
on
information provided to the Company by Hemco
, and, except as
required by law,
the Company
do
es
not undertake any
obligation to update forward-looking statements should assumptions
related to these plans,
estimates, projections, beliefs and opinions change.
For further information please contact:
Dr. Tim
othy
Coughlin
President and Chief Executive Officer
USA-Canada toll free 1800 6389205
+44 (0)1534 887166
+44 (0)7797 742800