Earn in agreement with Badger Minerals
Located in Nevada
Intermediate to Low –Sulfidation Epithermal
Esmeralda County, Nevada, USA
The Kalium Canyon project is a large, well-preserved epithermal system in the Walker Lane of Nevada. The target is an undrilled, 3.5 km long northeast trending structural zone on the western margin of the Silver Peak District. Historic underground mines exploited high grade silver from 3 parallel en echelon vein zones southeast of the project, including the Nivloc, 16-1, and Mohawk mines. Orogen’s claims control the next structural corridor to the west in the vein swarm, which cross-cuts the Silver Peak Caldera boundary and appears to be the best preserved cell in the district.
On July 15th 2021, Orogen announced it had signed an option agreement with Badger Minerals, a private mineral exploration company, for the Kalium Canyon gold project in Nevada, USA. To earn a 100% interest in the Kalium Canyon project, Badger will make cash payments of US$1.75 million and exploration expenditures of US$5.0 million over a five-year period. Orogen will retain a 2% net smelter return(“NSR”) royalty of which 0.5% can be purchased for US$2.0 million.
About the project:
Kalium Canyon covers 101 claims in the Walker Lane trend (Figure 1) where many low sulfidation epithermal gold discoveries in Nevada have been found, including North Bullfrog, C-Horst/Lynnda Strip, Silicon, and Eastside. Locally, the project lies within the Red Mountain district where approximately 10 million ounces of silver was produced.
Kalium Canyon contains the Kalium and Argenta zones, north east trending mineralized structures that run parallel to the historic 16-1, Nivloc, and Mohawk mines where production came from large continuous veins underground.
The Kalium structure is an undrilled, one- to two-kilometre-long corridor overlain by a steam heated cell of alunite-kaolinite alteration. The Argenta structure to the southeast is approximately four to five kilometres long and hosts a known gold-rich stockwork vein system with historic chip channel samples from 1947 of 15 metres grading 3.74 grams per tonne (“g/t”) gold and later reverse circulation drilling returning up to 46 metres grading 1.2 g/t gold. The mineralization is hosted by high-angle breccias which are open to depth. Siliceous sinters exposed at the surface attest to the shallow level of exposure of this structural zone, similar to the shallow style of alteration exhibited by the Kalium structure.
Both structural zones have potential for hosting precious metal mineralization beneath shallow caps, and past drilling has been limited to small portions of these systems.
Terms of the Kalium Canyon Option
Under the terms of the Agreement, Badger can earn a 100% interest in Kalium Canyon by making cash payments of US$1.75 million and US$5.0 million in exploration expenditures subject the following schedule:
Upon exercising the option, Badger will grant to Orogen a 2% NSR of which 0.5% can be purchased for U$2.0 million. Upon commencement of commercial production, Badger will also make a one-time payment of US$5.00 per ounce gold equivalent contained on an NI 43-101 reserves and resources estimate on a Feasibility Study to a maximum of US$10.0 million.
The Kalium Canyon project also includes the “Marty” claims, that the Company recently acquired from Bridgeport Gold Inc. (“Bridgeport”), a wholly owned subsidiary of Sandstorm Gold Royalties (TSX:SSL). The Company paid Bridgeport a total consideration of 100,000 Orogen shares. The Company received conditional acceptance from TSX Venture Exchange on June 17, 2021.