Earn in agreement with Acme Gold Company Minerals
Located in British Columbia
The project covers the Lemon Lake stock and a copper-gold porphyry target defined by soils, IP and shallow percussion drilling through glacial till.
Located 6 kilometres east of the Hamlet of Horsefly in the Cariboo Mountains, British Columbia
The Lemon Lake Project is a 26 square kilometre early-stage property located 6 kilometres east of the Hamlet of Horsefly in the Cariboo Mountains, British Columbia. The project covers the Lemon Lake stock and a copper-gold porphyry target defined by soils, IP and shallow percussion drilling through glacial till.
The Lemon Lake stock is a 5 by 2.7 kilometre zoned composite gabbro to monzonite intrusion located within the Quesnel terrane. The stock is covered by thin till that limits bedrock exposures; however sparse outcrop (
Historic and more recent Orogen soil sampling highlight a 3.5 by 2.5 kilometre copper anomaly coincident with the Lemon Lake stock. In 1974, the Hudson Bay Oil and Gas Company drilled 11 shallow percussion holes into the soil anomaly and intersected 0.25% copper over 21.3 metres within a potassic-altered biotite monzonite from 21 metres within a 61 metre deep hole. The holes were not assayed for gold nor followed up with any additional drilling. Subsequent exploration programs tested gold and PGE targets in the gabbroic portion of the intrusion.
In 2012, a 3D Induced Polarization (IP) survey was completed over the soil anomaly and northern limit of the stock. The surveys outlined a 2,800 by 600 metre chargeability zone centred on the altered monzonite phase of the intrusion. The copper intercept in the historic percussion hole is located on the northeastern limits of the IP anomaly. The core of the IP anomaly has never been tested by drilling.
The property is ready for a shallow RC scout drilling program to test IP, mag and soil anomalies beneath thin till cover to provide lithologic and alteration vectors for deeper diamond drilling into the mineralized portions of the stock.
The Lemon Lake property is in the traditional territories of the Williams Lake Indian Band and Xatśūll First Nation with whom Orogen is committed to developing a positive and mutually-beneficial relationship based on respect and transparency.
Terms of the agreement with Acme
On March 1, 2021 Orogen Royalties announced it had signed an agreement with Acme Gold Company Limited (“Acme”), a private British Columbia based company to option the Lemon Lake copper-gold project in central British Columbia. Acme can acquire a 100% interest in the Lemon Lake by making cash payments of $575,000 and work expenditures of $3.0 million over a five-year period, and granting a 1% net smelter return (“NSR”) royalty to Orogen.
Acme can acquire a 100% interest in the Lemon Lake property, subject to an aggregate 2% NSR royalty held by certain underlying royalty holders of the Lemon Lake property, under the following cash payment and work expenditure schedule:
Upon earning a 100% interest in the Lemon Lake property, Acme will grant to Orogen a 1% NSR whereby 0.25% of the NSR can be purchased for $1.5 million. If Acme exercises the option, commencing on the fifth anniversary of the effective date of the Lemon Lake agreement, Acme will also make annual advance cash payments of $50,000 to Orogen to be set off against the 0.25% royalty buyback.
Acme will also make milestone cash payments to underlying vendors of the Lemon Lake property subject to the following provisions: