Earn-in agreement with Stampede Metals
Located in Nevada
Gold-rich, carbonate replacement (Ag-Pb-Zn) targets hosted in the Cambro-Ordovician unconformity
The Manhattan Gap property is located 20 kilometers (6.5 miles) west of Pioche in Lincoln County, Nevada.
The property lies within the historic Highland mining district, and adjacent to the Pioche and Bristol districts, which have a history of Ag-Pb-Zn mining from carbonate replacement deposits, minor skarn and quartz-sulfide veins. There was also a small amount of production from Au-Ag rich fissure veins and minor Cu and Mn production.
On April 27th, 2021, Orogen Royalties announced that it had signed an option agreement with Stampede Metals Corp., a private Nevada company, whereby Stampede can acquire a 100% interest in the Manhattan Gap porphyry/polymetallic carbonate replacement project in eastern Nevada, USA. To earn a 100% interest in Manhattan Gap, Stampede will make a cash payment of US$18,243, issue 7.5% of Stampede shares (approximately US$158,000 in value), incur up to 7,500 metres of drilling over a six-year period, and grant to Orogen a 1.5% net smelter return (“NSR”) royalty.
About the project
The Manhattan Gap project is a porphyry and polymetallic carbonate replacement target located in the historic Pioche mining district in Lincoln County, Nevada. Multiple target areas exist in the district associated with a large zoned Cretaceous porphyry system that has been tilted and dismembered by post-mineral faulting (Figure 1). By combining Orogen’s 8.2 square kilometre land package with Stampede Metals’ 8.5 square kilometre land package, the project can be explored effectively as a unified district-scale project.
Orogen’s claim block covers a four-kilometre-long polymetallic fissure vein swarm hosted in Cambrian and Ordovician carbonates. The vein swarm is preserved in a down-dropped graben, which extends from the Manhattan Stock to the eastern edge of exposures with rock samples returning <0.005 to 4.9 grams per tonne (“g/t”) gold, <0.1 to 422 g/t silver, and <0.005 to 1% copper. A possible igneous source for mineralizing fluids is the porphyritic Manhattan Stock complex, which occurs just west of Orogen’s claim block within Stampede Metals’ project area. The top of the Manhattan Stock has been cut off by the Lucky Boy Fault and the hanging wall portion of the porphyry has not been identified. Multiple targets exist in the hanging wall of the Lucky Boy Fault including the West Graben Target on Orogen’s claim block. This target is defined by a spatially coincident gravity low and magnetic high in an alluvial covered basin (Figure 2). Recent IP work carried out by Stampede Metals has identified a high resistivity -and high chargeability anomaly in the West Graben Target. The geophysical signature of this target is similar in size and style to that of the breccia pipes hosting the Peñasquito deposit in the Sierra Madre Oriental in Mexico (12.7 million ounces gold, 527 million ounces silver, 3,600 million pounds lead, 8,000 million pounds zinc)*. Stampede Metals is planning a 6,000 metre drilling program for 2021 to explore for porphyry-style copper-gold mineralization. The program will include a minimum of 500 metres of drilling on Orogen’s West Graben Target.
Terms of the Manhattan Gap Option Agreement
Stampede can earn a 100% interest in the Manhattan Gap project subject to the following terms:
In the event Stampede has not completed the 7,500 metres on the sixth anniversary, Stampede will make a cash payment of US$500,000 to Orogen. Upon commencement of commercial production, Stampede will pay to Orogen US$2.50 per gold-equivalent ounces classified as Mineral Reserves under JORC (2012) guidelines.
Stampede will also grant a 1.5% NSR royalty to Orogen.