Royal Road Minerals Ltd (CVE:RYR) may have a "compelling" drill-ready porphyry copper and gold target at Los Andes in Nicaragua, it told investors.
As reported last month, Royal Road acquired over 90% of Nicaragua-focused Caza Gold and is currently completing compulsory acquisition of the remaining 10%.
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Caza's two key projects, believes Royal Road, are the Los Andes and Piedra Iman projects.
This potential target has been confirmed by recent field reviews.
Very thorough Terraspec alteration analyses, conducted by Caza, using a database containing more than 4,500 rock-chip samples identified that the most intense hydrothermal alteration at Los Andes is related to an outcropping porphyry body with strongly pyritic breccia peripheral to it.
Meanwhile, one hole sunk in 2014 collared into the porphyry body and hit around 130 meters of intensely altered and pyritic breccia which is anomalous in copper, the firm added.
Dr Tim Coughlin, Royal Road’s president and chief executive, said: "We are very excited by these observations and the potential of an underlying porphyry copper-gold body at Los Andes.
"We believe this target, which is technically well-constrained, is simple to test and very much fits our mandate of finding something new, large and exciting."
Shares in Toronto were unchanged at $0.09.