Royal Road Minerals Ltd (CVE:RYR) released news Tuesday that initial deep-auger sampling results underlined the potential of its Luna Roja gold skarn project in Nicaragua.
The Luna Roja project is located in a historic mining region that is known as the 'Golden Triangle' of northeastern Nicaragua and is part of the resource firm's 50/50 strategic alliance with Mineros Nicaragua-Hemco, a subsidiary of Grupo Mineros SA -- Colombia's largest gold producer. Mineros Nicaragua-Hemco owns and operates the Bonanza gold mine in the Golden Triangle. Royal Road Minerals is operator of the strategic alliance.
According to the company, deep auger soil sampling has identified an anomalous area of 1500 by 500 meters, and 184 soil samples were collected. Results range from below detection limit to a maximum of 21.9 grams per tonne gold and the mean of all results is 0.32 gram per tonne gold.
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"This is a strong and coherent soil geochemical anomaly consistent with the rock-chip channel sampling results from last year," said Dr. Tim Coughlin, Royal Road Minerals president and chief executive officer. "Luna Roja is just one of our current stable of quality gold and copper projects and is a reminder of the largely untapped potential of Nicaragua's Golden Triangle."
The Luna Roja project is a gold-skarn mineralized system, which generally occurs as massive bodies with individual outcrops ranging from two to 25 metres wide and two to 50 metres in strike length.
The skarn system extends over a known strike distance of 1,100 metres and over a width of 380 metres.
Shares of Royal Road Minerals were up 4.0% at C$0.13.
Contact Katie Lewis at katie@proactiveinvestors.com