Royal ROAD Minerals Provides an Update of Its Exploration Activities IN Colombia and Details of the Caza Acquisition Projects IN Nicaragua
NEWS RELEASE
ROYAL ROAD MINERALS PROVIDES AN UPDATE OF ITS EXPLORATION ACTIVITIES IN
COLOMBIA AND DETAILS OF THE CAZA ACQUISITION PROJECTS IN NICARAGUA
March 16, 2017 – Toronto, Ontario: Royal Road Mine rals Limited (TSXV:RYR) (“Royal Road” or the
“Company”) is pleased to provide an update of its ex ploration activities in Colombia and details of the
Caza Gold acquisition projects (see press release, March 15, 2017) in Nicaragua.
COLOMBIA
With positive developments and the new political landscape in Colombia, Royal Road is actively
expanding its presence by making application for over 450,000 hectar es of concession contracts in
Nariño Province (See Fig. 1) and by reviewing other pr omising gold opportunities in the region of its La
Golondrina and La Redención gold projects and elsewhere throughout the country.
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The Company is liaising regularly and actively pursui ng alliances with Colombia n Government bodies in
order to responsibly align itself with the country’s po st-conflict aspirations. One such initiative involves
the potential joint acquisition of airborne magnetic and radiometric data covering the Company’s
concession contract applications and areas of stat e mining reserve in Nariño Province. The proposed
survey will cover areas known to be prospective for high-grade intrusion-related gold mineralization in
the east and for porphyry copper and gold mineralizatio n in the west (see Fig.1). The Company’s plan is
to rationalize and reduce its application areas and focus on newly generated targets following
completion of the airborne survey and subse quent reconnaissance field work and community
consultation programs.
NICARAGUA
The Company has acquired more than 90% of Nicaragua -focused Caza Gold Corporation (“Caza”) and is
currently completing compulsory ac quisition of the remaining 10% (see press release, March 15, 2017).
Caza holds close to 75,000 hectares of exploration license in the prospective Chortis Belt of western
Nicaragua (see Fig.2).
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The two key projects in the portfolio of Caza assets which management believe to illustrate significant
size-potential are the Los Andes and Piedra Imán projects.
Los Andes Porphyry Cu-Au project
The Los Andes district is located 90 km from Managua in the Department of Boaco. Access is via a major
paved highway from Managua. Caza controls 100% of six mineral exploration concessions covering the
Los Andes District. The total concession package is approximately 18,500 hectares.
Within the district the dominant rocks are volcanic s of andesitic composition belonging to the Late
Oligocene to Early Pliocene Coyol Group. Numerous intrusive rocks cut the volcanic sequence, with at
least two large dioritic porphyries id entified to date. Associated with the intrusive/volcanic activity are
numerous breccia pipes and diatremes. Hydrothermal alteration is extensive throughout the licence
areas and is typically a combination of argillic (silica-clay), advanced argillic (silica-alunite), and
silicification.
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In 2015 Caza completed an airborne geophysical surv ey over the area which highlighted a number of
well-defined structural trends and radiometric anomalies. Short exploratory drilling campaigns
conducted in 2014-15 targeted silic ified lithocaps and localized br eccias and intersected strong
alteration and anomalous copper, silver, and gold in a number of holes but failed to intersect any
potentially economic intervals of mineralization.
Immediately around the lower slopes of Cerro Quizal tepe over 1,500 rock chip samples were collected
by Caza geologists with 123 returning values grea ter than 200ppm copper and 31 greater than 500ppm.
A similar halo of elevated gold was also recorded with 82 rock chips returning greater than 50ppb. When
viewed alongside the airborne geophysics, this larg e area of copper-gold anomalous geochemistry is
thought to be indicative of a copper-gold mineralized porphyry body at depth. Drilling at Cerro
Quizaltepe was too shallow to fully test the deep porphyry potential but it did intersect alteration and
anomalous copper mineralization (211.7m greater than 200ppm Cu in hole QZP-003 and 10.95m @
0.19% Cu in hole QZP-002) supporting the interpretation of potential for an underlying higher grade
porphyry copper and gold body.
Recent modelling and interpretation of this data, su ggests that the Los Andes area is represented by a
circular caldera-style structure located immediately adjacent to and to the north of Cerro Quizaltepe
(see Figs. 3 and 4). Management interpret the caldera to be a late-stage feature having developed late in
the history of deep porphyry emplacement at Cerro Quizaltepe and hosting alteration that, whilst
impressive in its extent, maybe distal to the ma in mineralized body and thus lower grade and sub-
economic.
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Managements view is that the principal target at Los Andes is a deep copper or copper and gold
porphyry body located beneath Cerro Quizaltepe and at the southern margin of the Los Andes caldera
(see Fig. 5). Testing of this body will require fu rther geological modelling and then deep drilling. The
Company is actively seeking a joint-venture partner to assist it with drill testing at Cerro Quizaltepe.
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Piedra Iman IOCG Cu-Au project
The Piedra Iman licence area is located 100km no rthwest of Managua via the Pan American Highway
and 30 km north of B2 Gold's El Limon Mine. Within the greater region numerous small artisanal gold
mines, including over 80 small gold processing plan ts, have been recorded. Ca za, controls 100% of the
7,947.27 hectare Aguas Calientes Concession encompassing the Piedra Iman project
Piedra Imán was initially explored in the 70’s by a Noranda subsidiary and included drilling to 200m
depth and the completion of one exploration adit. This drilling and underground sampling intersected
significant widths of copper mineralization. Most samples were not assayed for gold and results are
historic in nature and cannot be verified. A selectio n of the better historic results included the following
(see Fig 6):
DDH_818 9.1m @ 1.50% Cu
DDH_846 14.3m @ 1.42% Cu
DDH_851 36.6m @ 1.13% Cu
DDH_876 14.8m @ 1.65% Cu
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Gold and copper mineralization is associated with biotite, quartz veining and brecciation with the
presence of magnetite, specularite and rose actinolite having been recorded in both historic drill core
and hand specimen.
Recently rock-chip sampling by Caza reported grades of up to 60g/t Au and numerous copper samples
grading +1% from Piedra Imán, (see Fig. 7). Roya l Road Minerals plans to complete a ground-based
magnetic survey as soon as possible to assist in identifying the areal extent of the potentially
mineralized magnetic body. If possible, access to the underground adit will also be obtained, this will
provide valuable information as to the mineralization style and characteristics at depth.
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“2017 will be an exciting year for Ro yal Road,” said Dr Tim Coughlin, Royal Road’s President and CEO,
“our shareholders have given us a clear mandate to find something new, large and exciting and we are
establishing the land package, the team and the stru cture to ensure we have the best chance of doing
exactly that. In Colombia we have a dominant position in the highly exciting region of Nariño which is
known to be underexplored and prospective for high-g rade gold and copper and in Nicaragua, a country
best known for vein deposits, we have two of the very few and potentially large bulk-tonnage
occurrences currently identified in that region. We look forward to keeping the market informed as we
advance our exciting initiatives throughout Latin America.”
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (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 informat ion can be found on Royal Road Minerals web site at
www.royalroadminerals.com
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, “forwa rd-looking statements”) and