TSXV:OGN

Earn in agreement with Eminent Gold

Located in Nevada

Walker Lane low-sulfidation epithermal gold vein swarms associated with dacite flow-dome field.

Location:

Gilbert South gold property is located in the Walker Lane epithermal belt in Nevada, USA. It is 42 km west of Tonopah.

Description:

On June 24th, 2021, Orogen announced it had entered an option agreement with Eminent Gold Corporation for the Gilbert South project in the Walker Lane trend in Nevada, U.S. Eminent may earn a 100% interest in the Gilbert South project by making cash payments totalling US$875,000, issuing 500,000 shares and granting to Orogen a 2% NSR royalty of which 1% can be purchased for US$1.0 million:

  • US$25,000 and 50,000 shares on the date of signing the Agreement;
  • US$50,000 and 100,000 shares on or before the first anniversary;
  • US$100,000 and 150,000 shares on or before the second anniversary;
  • US$100,000 and 200,000 shares on or before the third anniversary;
  • US$100,000 on or before the fourth anniversary; and
  • US$500,000 on or before the fifth anniversary;

Once Eminent has exercised its option on Gilbert South, Eminent will grant to Orogen a 2% NSR royalty on the “G/L” claims of which 1% can be purchased for US$1.0 million.  Orogen also retains the right to a 1% NSR on the Timberline claims subject to Orogen buying down a pre-existing 1% vendor NSR royalty for US$1.5 million.  Eminent will be responsible for all other underlying vendor obligations.

The Gilbert South property lies within the historic Gilbert District where gold was first discovered in the 1800's. The district contains two types of mineralization; silver-lead ores hosted in limestones peripheral to Mesozoic age quartz monzonite intrusions, and epithermal gold +/- silver associated with Tertiary age volcanic rocks. Multiple small shafts and adits on the Gilbert South property are developed along free-gold bearing epithermal quartz veins and vein stockworks.

Modern exploration on the property has focused on near surface bulk tonnage gold targets with most drill holes extending less than 150 metres from surface.  This drilling intercepted strongly anomalous gold in many different target areas indicating a large gold bearing system. Minimal exploration has focused on identifying zoning within the gold bearing system and testing for feeder structures at depths greater than 100 metres.

Geological mapping by Orogen identified a sequence of andesite and dacite domes controlling epithermal vein mineralization. Clay mineralogy maps paired with vein texture mapping were used to reconstruct the geologic domains on the property. Multiple target zones have been identified where shallow level quartz veins with anomalous mercury outcrop on the margin of dome complexes. The root zones and pressure shadows of these domes are the primary target for the next round of exploration drilling.

Project Highlights

  • Low sulfidation epithermal gold system with a large one kilometre by two kilometre outcropping vein swarm;
  • High grade gold at surface with visible gold in crustiform quartz veins as well as in hydrothermal breccias which locally exceed 30 g/t gold;
  • Long runs of anomalous gold mineralization in historic shallow reverse circulation drilling (including 50 metres of 0.46 g/t Au) hosted in pseudomorphed quartz after calcite and quartz vein breccias on the margins of andesite domes;
  • New geologic model defines dome field as possible source for mineralization. Drilling has not targeted feeder structures for domes which may define higher grade cells within district; and
  • Gilbert South is road accessible on Bureau of Land Management (BLM) land and could be rapidly permitted for exploration drilling Eminent may earn a 100% interest in the Gilbert South project by making staged cash payments totalling US$875,000, issuing 500,000 shares over a five-year period, assuming underlying vendor obligations, and granting to Orogen a 2% net smelter return (“NSR”) royalty of which 1% can be purchased for US$1.0 million. 


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