logo-loader

Royal Road Minerals teams up with Hemco to uncover Nicaragua's mineral riches

Last updated: 17:27 06 Sep 2017 BST, First published: 12:27 06 Sep 2017 BST

1504715468_shutterstock_249210421-(1)
Under the terms of the alliance, Hemco and Royal Road will jointly finance, in equal share, initial project generation and exploration

Royal Road Minerals Ltd (CVE:RYR) is poised to uncover Nicaragua's mineral riches as it struck a strategic alliance with Hemco, a subsidiary of Grupo Mineros SA - Colombia's largest gold producer.

The latter holds licences covering around 200,000 hectares in the historic mining region of northeastern Nicaragua known as the 'Golden Triangle'.

Royal Road and Hemco will share collective experience and databases, co-finance early-stage exploration and jointly seek to advance current projects and pursue new ones in Nicaragua, said Royal Road.

Two million ounces and more...

"In particular, the alliance is initially focused on defining reserves in excess of two million ounces of gold (or gold equivalent) recoverable," the company said.

"We are proud to be aligned with such a respected partner in Nicaragua and excited to have acquired access to the Golden Triangle area which, in addition to our Narino project in Colombia, provides the company with another region of gold and copper exploration potential," said Dr Tim Coughlin,  Royal Road's president and chief executive.

"Moreover, with funding expected to be contributed by Hemco, we anticipate being in a position to drill test the underlying potential of the exciting Los Andes porphyry copper and gold target, whilst also commencing the planned drilling program at Piedra Iman on an accelerated basis."

Piedre Iman likely to be first target..

Piedre Iman drilling is likely to be the initial program approved under the alliance, reckons the firm, and will consist of drilling, mapping, and heliborne magnetics and radiometrics in Hemco's Golden Triangle licensed areas.

This will be followed by drilling two deep holes to test the porphyry copper and gold potential of Royal Road's Los Andes project.

Royal Road's management estimates that the budget for this program will be around $1.8mln and financed on a 50/50 basis by the parties.

Under the terms of the alliance, Hemco and Royal Road will jointly finance, in equal share, initial project generation and exploration.

If an area is defined as a designated project area (DPA), the applicable rights and licences for such will be held by a newly formed joint venture company, with Royal Road and Hemco each initially holding 50%.

All project costs of any such joint venture will be co-financed by the parties based on their respective ownership of the joint venture, it added.

Addressing the Copper Crunch: Royal Road Minerals' vision for bridging the...

At the Proactive One2One Investor Forum, Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF) CEO, Tim Coughlin, delivered a pressing message on the global copper demand for energy transition, emphasising the significant gap between current production levels and future needs. Coughlin pointed out...

on 14/2/24