Earn-in agreement with Hoschild Mining
Located in Sonora
The Sarape Project is a 57 square-kilometre land package covering quartz-carbonate veins with high-level epithermal features developed on the margins of a horst. The Sarape vein, which varies in width from 3 to 12 metres, has been mapped and sampled over a strike length of five kilometres. The Chiltepin vein, which averages 3 metres in width on surface, has been traced over a strike length of 2.5 kilometres. Both veins display high-level epithermal features and elevated gold-silver values.
Coeur Mining completed a drill program in 2019 to test a range of elevations over 380 metres of strike length on the Sarape Vein. Drill results outlined a zone of brecciation and tan-green quartz development with subeconomic gold-silver values at approximately 150-200 metres below surface. More than 3 kilometres of the Sarape vein and over 2 kilometres of the Chiltepin vein remain untested by drilling.
Sarape is located within the Rio Sonora valley near Premier Gold’s Mercedes mine, First Majestic’s Santa Elena mine and First Majestic’s Ermitaño Project.
Sarape was identified through Orogen’s generative program in the Rio Sonora valley in early 2017 following the discovery of a high-grade gold-silver ore shoot on the Ermitaño vein. The project is 100% owned by Orogen with no underlying royalties and is located near excellent infrastructure with roads and power crossing the 5,776-hectare property. Sarape is currently under an earn-in agreement with Hoschild Mining. Hochschild can earn a 100% interest in theSarape project by making cash payments of US$5.35 million and completingexpenditures of US$5.0 million over a five-year period. Upon exercise of theoption, Hochschild will grant to Orogen a 3% net smelter return royalty (“NSR”)of which 1% can be purchased for US$2.0 million. Further information about the earn-in agreement can be found on Orogen’s news release from August 27, 2020.