Orogen Royalties options Lemon Lake for cash, exploration, and a royalty
Press Release
VANCOUVER, BC, March 1, 2021 – (TSXV: OGN) Orogen Royalties Inc. (“Orogen” or the “Company”) is pleased to announce it has signed an agreement with Acme Gold Company Limited (“Acme”), a private British Columbia based company to option the Lemon Lake copper-gold project in central British Columbia. Acme can acquire a 100% interest in the Lemon Lake by making cash payments of $575,000 and work expenditures of $3.0 million over a five-year period, and granting a 1% net smelter return (“NSR”) royalty to Orogen.
“The Lemon Lake property is the product of several individually owned claims that are now united under one group,” commented Orogen CEO Paddy Nicol. “This unification also brings together historic drilling, mapping, sampling and geophysics that collectively present an attractive drill target. Orogen is pleased to have Acme explore this exciting property.”
Orogen and Acme acknowledge that Lemon Lake is situated within the traditional territory of the Williams Lake Indian Band, Xatsull First Nation and the Neskonlith Indian Band. Both companies are committed to developing positive and mutually beneficial relationships with First Nations based on trust and respect and a foundation of open and honest communications.
About the Lemon Lake Property
The Lemon Lake project is a 26 square kilometre land package located 34 kilometres southeast of Imperial Metals’ Mt. Polley mine and 13 kilometres northeast of Consolidated Woodjam Copper Corp’s Woodjam project in central British Columbia (Figure 1). The property is centred on the Lemon Lake stock, a pluton hosted in volcanic units of the Quesnellia terrane. A compelling copper-gold porphyry target is defined by coincident soil geochemical and geophysical anomalies which have not been explored with modern drilling.
Soil sampling highlights a 3.5 by 2.5-kilometre copper anomaly which is spatially coincident with the Lemon Lake stock. In 1974, the Hudson Bay Oil and Gas Company drilled 11 vertical percussion holes to 61 metres each and intersected 0.25% copper over 21.3 metres within a potassic-altered biotite monzonite. The holes were not assayed for gold nor followed up with any additional drilling.
In 2012, a 3D Induced Polarization (IP) survey was completed over the soil anomaly and northern limit of the stock. The surveys outlined a 2,800 by 600 metre chargeability zone centred on the altered monzonite phase of the intrusion. The copper intercept in the historic drilling is located on the northeastern margin of the IP anomaly, and no historic drilling has tested the core of the chargeability anomaly.
The property is located close to infrastructure with nearby power and road access across the project.
Figure 1 – Lemon Lake location map*
Figure 2 – Map of Lemon Lake showing inferred geology
Terms of the Lemon Lake agreement
Acme can acquire a 100% interest in the Lemon Lake property, subject to an aggregate 2% NSR royalty held by certain underlying royalty holders of the Lemon Lake property, under the following cash payment and work expenditure schedule:
|
Cash Payments |
Work |
|
|
On signing |
$- |
$- |
|
First Anniversary |
$- |
$75,000 |
|
Second Anniversary |
$10,000 |
$75,000 |
|
Third Anniversary |
$65,000 |
$350,000 |
|
Fourth Anniversary |
$100,000 |
$1,000,000 |
|
Fifth Anniversary |
$400,000 |
$1,500,000 |
|
TOTALS |
$575,000 |
$3,000,000 |
Upon earning a 100% interest in the Lemon Lake property, Acme will grant to Orogen a 1% NSR whereby 0.25% of the NSR can be purchased for $1.5 million. If Acme exercises the option, commencing on the fifth anniversary of the effective date of the Lemon Lake agreement, Acme will also make annual advance cash payments of $50,000 to Orogen to be set off against the 0.25% royalty buyback.
Acme will also make milestone cash payments to underlying vendors of the Lemon Lake property subject to the following provisions:
|
Cash Payments |
|
|
On signing |
$- |
|
First Anniversary |
$7,500 |
|
Second Anniversary |
17,500 |
|
Completion of 10,000 metres of drilling |
$25,000 |
|
Resource of 200 million tonnes grading at least 0.5% copper equivalent |
$150,000 |
|
Commercial production announcement |
$500,000 |
|
TOTALS |
$700,000 |
Qualified Person Statement
All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo. a senior geologist for the company. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.
About Acme Gold Company Limited
Acme is a private British Columbia based resource company focused on the acquisition and exploration of gold or gold/copper property assets. Its objective is to locate and develop economic precious and base metal properties of merit.
About Orogen Royalties Inc.
Orogen Royalties Inc. is engaged in project generation for precious and base metal discoveries in western North America with a focus on organic royalty creation and royalty acquisitions. Orogen’s royalty portfolio includes the Ermitaño West gold deposit in Sonora, Mexico (2% NSR) being developed by First Majestic Silver Corp. and the Silicon gold project (1% NSR) in Nevada, USA, being advanced by AngloGold Ashanti N.A. The Company is well financed with several projects actively being developed by joint venture partners.
On Behalf of the Board
OROGEN ROYALTIES INC.
Paddy Nicol
President & CEO
Orogen Royalties Inc.
1201 – 510 West Hastings Street
Vancouver, BC
Canada V6B 1L8
info@orogenroyalties.com
For further information: To find out more about Orogen, please contact Paddy Nicol, President & CEO at 604-248-8648, and Liliana Wong, Manager of Marketing and Investor Relations at 604-248-8648. Visit our website at www.orogenroyalties.com.
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