TSXV:OGN

Pending spinout approval

Golden Triangle in British Columbia

Location:
Description:

On August 18, 2021, Orogen announced that the Board of Directors have approved the spinout of the Ball Creek copper-gold porphyry target located in the Golden Triangle, British Columbia  into a new company (“SpinCo”) by way of a Plan of Arrangement under the British Columbia Business Corporation Act.   Upon completion of the Arrangement, Orogen’s shareholders will: (i) maintain their existing ownership of common shares in Orogen Royalties, that will continue to operate as an organic royalty and prospect generator in North America with its flagship Ermitaño and Silicon royalties, and (ii) gain new shares in SpinCo on a ratio to be determined, that will focus on the exploration and advancement of the 100% owned Ball Creek copper-gold porphyry project. Orogen will also retain a minority shareholding interest in SpinCo and a royalty in the Ball Creek Project.

To read the news release, click here.

About the Ball Creek project.

The Ball Creek copper-gold porphyry project consists of over 500 square-kilometres of mineral tenure in the heart of British Columbia’s prolific Golden Triangle, a region that has seen significant infrastructure development for access and power, and major mining company investments. Recent transactions include Newmont Mining’s acquisition of 50% of the Galore Creek project for US$275 million in July 2018 [1], Newcrest Mining’s acquisition of 70% of the Red Chris Mine for US$804 million in August 2019 [2], Newmont Mining’s acquisition of GT Gold (Tatogga Project) in May 2021 for C$393 million [3], and Royal Gold’s acquisition of a 1% net smelter return (“NSR”) royalty on the Red Chris Mine for US$165 million in August 2021 [4].

The Ball Creek Project has had CA$5.3 million invested by the Company and its exploration partners since 2015, which identified at least three intrusive suites associated with mineral deposits in the region: 

  • Stikine Suite, a Schaft Creek analog (indicated 1.3 billion tonnes at 0.26% copper and 0.16 grams per tonne (“g/t”) gold [5]);
  • Copper Mountain Suite, a Galore Creek analog (measured and indicated 1.1 billion tonnes at 0.47% copper and 0.26g/t gold [6]); and 
  • Texas Suite. a KSM analog (measured and indicated resources of 3 billion tonnes at 0.52g/t gold and 0.21% copper [7]). 

Porphyry style mineralization has been identified in all the suites across the property but more importantly, the Ball Creek Project is underexplored relative to the rest of the Golden Triangle. Furthermore, the project is fully permitted for exploration and drilling. 

The Ball Creek Main zone (“MZ”) is a 1,200 by 400 metre porphyry system that has returned drill intersects including  455 metres grading 0.28 g/t gold and 0.11% copper in drill hole BC12-47, and 231 metres grading 0.54g/t gold and 0.21% copper in drill hole BC07-12. The MZ remains open with anomalous intercepts at the extremities of the drilled area, untested internal areas, and open at depth. 

Outside of the MZ, the 12 square-kilometre Ball Creek Cluster is defined by highly anomalous copper, gold and molybdenum soil and rock geochemistry with multiple exposures of porphyry-style alteration. This region is largely unexplored. 

Other porphyry targets on the property, including More, Mess and Hickman, have seen limited exploration:

  • The More zone consists of an undrilled Galore Creek style megacrystic syenite porphyry occurrence partially hidden by Quaternary basalts with a potassically altered outcrop returning 6.8% copper, 0.20g/t gold and 10.3g/t silver;
  • The Mess zone consists of copper mineralization associated with the eastern contact of a monzonitic stock defining a fifteen-kilometre-long anomalous zone of mineralization at surface. There are greater than 500 metre internal gaps between drill holes and multiple strong soil anomalies remain untested; and
  •  The Hickman target, discovered in 2019, represents an undrilled porphyry target with copper-gold mineralization at surface in a potassically altered diorite just eight kilometres from Schaft Creek.

Multiple underexplored epithermal and volcanic-hosted-massive sulphide prospects exist outside these defined porphyry targets

Sources

1. https://www.gcmc.ca/news/

2. https://www.newcrest.com/sites/default/files/2019-10/190816_Market%20Release_Newcrest%20complete%27s%2070%25%20acquisition%20of% 20Red%20 Chris_0.pdf

3. https://www.mining.com/newmont-buys-canadas-gt-gold-for-325-million/

4. https://www.businesswire.com/news/home/20210811005778/en/Royal-Gold-Acquires-Royalty-on-World-Class-Red-Chris-Mine

5. https://copperfoxmetals.com/projects/schaft-creek-project/overview/

6. https://www.gcmc.ca/wp-content/uploads/2021/02/2014-09-30-Galore-Creek-Reserves-and-Resources.pdf

7. https://assets.website-files.com/5f8f6760f825687e7c1c6508/5fdb652460559d050e6cd7ef_12172020Reserves-Resources-Dec-2020-withSnowfield.pdf

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