Royal Road Minerals Limited (TSXV: RYR) (“Royal Road” or the “Company”) is pleased to announce that it has received the rights to a newly-granted mining Concession Contract, at its Margaritas gold project in the department of Antioquia, Colombia.
The Margaritas gold project is located in the Anza mining district, approximately 50 Km west of Medellin. Margaritas was initially acquired as an application for title through the Company’s purchase of Northern Colombia Holdings Limited, an affiliate of AngloGold Ashanti Limited (“AGA”; see Press Release May 31, 2019). The Margaritas project, together with the neighboring Guintär and Niverengo project areas, are subject to a Strategic Alliance Agreement between the Company and Mineros S.A. (“Mineros”; see Press Release March 2, 2020). Under the terms of the Agreement, Mineros currently own a 25% interest in the Guintär-Niverengo and Margaritas project areas and may acquire a further 25% (up to a total 50%) interest by providing a further USD $1.5M of exploration funding. Royal Road Minerals are operators of the Strategic Alliance.
The process of acquiring a mining Concession Contract in Colombia requires amongst other things, the Company to present a Social Management Plan and the Secretaría de Minas de Antioquia to complete a Concertation seeking the approval of local authorities, followed by a Public Hearing with local communities. The Public Hearing for the Margaritas Concession Contract (SGL-09001), was conducted on May 27, 2021 and the Concession Contract was granted on August 27, 2021. Mining Concession Contracts have an initial term of 30-years which is extendable for a further 30 years.
During the period 2012-2017, AGA completed geological mapping, reconnaissance rock-chip sampling, ridge and spur soil sampling and an airborne magnetic and radiometric survey over the Margaritas area. Royal Road has conducted grid-based surface geochemical sampling and further geological mapping at Margaritas. The Company now considers the project “drill-ready”, subject to the fulfilment of the Social Management Plan, environmental baseline studies and the receipt of all necessary permissions.
