Carlin-style gold deposit

Location: Lander County, Nevada, USA

Size: 15.7 km2

On August 11th, 2021, Orogen announced two agreements with Meridian Gold Company, a wholly owned subsidiary of Yamana Gold Inc., for the option of the Raven and Callaghan gold projects, and a three-year partner-funded generative exploration alliance in Nevada.

Under the terms of the Option Agreement, Meridian can earn up to a 100% interest in the Raven and Callaghan projects by making cash payments totaling US$300,000 and exploration expenditures of US$4.625 million over a five-year period.  Orogen will retain a 2.5% net smelter return (“NSR”) royalty on the Raven Project and a 3% NSR royalty on the Callaghan project, with a buy-down right up to 1.5% on each NSR for up to US$10 million. 

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Terms of the Option Agreement and Alliance Agreement

Under the terms of the Option Agreement, Meridian can earn a 100% interest in the Raven and Callaghan projects by making cash payments of US$300,000 and US$4.625 million in exploration expenditures subject the following schedule:

·       $50,000 cash on the date of signing the Option Agreement;

·       $50,000 cash and $375,000 in exploration with a minimum $100,000 spend on each project on or before the first anniversary;

·       $50,000 cash and $500,000 in exploration on or before the second anniversary;

·       $50,000 cash and $750,000 in exploration on or before the third anniversary;

·       $50,000 cash and $1,000,000 in exploration on or before the fourth anniversary; and

·       $50,000 cash and $2,000,000 in exploration on or before the fifth anniversary.

Orogen will retain respective 3% and 2.5% NSR royalties on the Callaghan and Raven projects.  In the case of each project, Meridian has a buy-down right of up to 1.5% which can be purchased for up to US$10 million. 

Under the terms of the Alliance Agreement, Meridian, at its discretion, will fund generative exploration programs operated by Orogen within a 4,000 square kilometre AOI in Nevada, for a three -year period.  Properties staked by Orogen and selected by Meridian will be subject to the same earn-in terms as described in the Option Agreement.  Orogen will retain a 1% NSR royalty on all ground acquired within the Alliance AOI, with no buy-down.

About Callaghan and Raven

The Callaghan and Raven projects are Carlin-type gold targets covering multiple windows of prospective lower plate carbonate host rocks and Paleozoic normal faults, including extensions of the Roberts Mountain thrust. Both projects are within 25 kilometres of the town of Austin in Lander County, Nevada.

At the Callaghan Project, a window of lower plate carbonates and siltstones is exposed within an anticline. Anomalous gold values and elevated arsenic, antimony and mercury occur within decalcified sandstone, siltstones and jasperoid breccias that occur as outcropping islands along a 7.5 kilometre strike length.

Historic drilling intercepted shallow Carlin-style mineralization associated with high angle structures and along the contact between upper and lower Cambrian rocks with drill intercepts up to 1.6 g/t gold over 10 metres. Similar targets exist immediately east and within the untested hinge of the anticline concealed under shallow pediment.

Drill targets will be developed at both projects following geological mapping, geochemical sampling and geophysical surveys in 2021.

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