Royal Road Minerals (CVE:RYR) has penciled in an exclusivity agreement over the Mina La Redención gold project, close to its La Golondrina project in Colombia.
The company has signed a letter of intent that provides it with the exclusive right to conduct exploration and legal due diligence on the Mina La Redención gold project property for a period of three months commencing January 27, 2015.
The project is located some 450 metres north of the license boundary of La Golondrina in the Nariño Province of southern Colombia, and is a locally owned and operated vein-hosted gold mine held under a 25 hectare mining license.
The project has not yet been drill-tested , Royal Road said, but exposure in underground development reveals that the mineralized system has the same geological characteristics to La Golondrina.
“Where exposed, gold mineralization at La Redención is most similar to the 'vein-zone' style of gold mineralization at La Golondrina and comprises three or more parallel veins with subsidiary linking vein structures extending over widths that can exceed one metre.
Mineralized bodies at Mina La Redención are shallow-dipping, and occur at the same topographic level to, and just 450 metres along strike to, the north from veins and vein-zones at La Golondrina suggesting they are part of the same mineralizing system,” the company said.
Tim Coughlin, Royal Road's president and chief executive officer, said he was pleased to have the chance to give La Redención the once-over.
“It is our view that gold mineralization at La Redención is an exposed along-strike extension of the same high-grade gold system at La Golondrina, testifying to the lateral extent of vein and hornfels-hosted gold mineralization in this area and thus to its plus million ounce potential,” said Coughlin.
“Underground channel sampling at La Golondrina is now drawing to a close and once complete the sampling teams will move across to commence work on the underground development at La Redención. This sampling work is helping us assess the resource potential of vein and hornfels-hosted gold mineralization and will provide valuable geostatistical information for the interpretation of drilling results,” he added.
Shares in Royal Road were unchanged.