Royal Road Minerals Ltd (CVE:RYR) is now positioned to being demonstrating value from its mineral properties, Echelon Wealth Partners said in a research note.
Shareholders have been patient while the Latin America-focused explorer laid the groundwork for the start of drilling at its assets in Nicaragua and Colombia, but things are starting to get moving.
READ Royal Road Minerals keen to get drills turning at Piedra Imán after permit
READ Royal Road Minerals advances Colombian aims with Ecomun framework deal
The government of Nicaragua recently issued an environmental permit for Piedra Imán, allowing Royal Road to begin drill-testing and other exploration work at the 100%-owned, 8,000 hectares copper-gold project.
The company intends to conduct an initial 2,000-metre drill program to test the geometry and extent of mineralization at the project; it will also conduct airborne magnetic and other geophysical surveys.
Funding for the C$400,000 drill program will come from both Royal Road and Hemco’s 50/50 pro-rata interest in the project, which includes the Piedra Imán project.
“Copper and gold mineralization at Piedra Imán appears most similar to that of Cordilleran type Iron Oxide Copper Gold (IOCG) deposits, such as those occurring in the coastal batholiths of Chile and Peru. IOCG deposits tend to be very valuable, due to their relatively higher-grade quantities of copper and gold compared to porphyry deposits,” Echelon said.
“We highlight Royal Road due to its district size properties, location and sparse previous historical exploration work. In particular, the large geochemical and geophysical anomalies at its Nicaraguan properties and longstanding history of alluvial mining in its Colombian Nariño department projects are early indicators of potential for generative exploration success,” the research house said.