2.0% NSR + cash payments and exploration expenditures
Project Overview and History
The Si2 project covers the northeast four square-kilometres of a large steam heated alteration cell hosted by a rhyolite flow dome complex. Alteration is dominated by pervasive alunite and chalcedony replacement of breccias with mercury values up to 20 ppm. Breccias and altered domes define an annular zone cored by a large recessive area mostly covered by shallow alluvium. Small, altered exposures in the central portion of the target include milled hydrothermal breccias with leached silica textures and cross-cutting chalcedonic silica veins. No drilling has targeted this area, or any of the steam heated alteration at the appropriate depth for gold mineralization.
On January 19, 2022, Orogen completed an agreement with K2 Gold Corporation (“K2”) to option the Si2 gold project. K2 can earn a 100% interest in the Si2 project by making cash payments totaling US$2.5 million, spending US$2.5 million in exploration expenditures over a five-year period, and granting to Orogen a 2.0% NSR royalty.
In January, 2023 K2 made the 1st anniversary payment and met the minimum cumulative work requirement.
Recent Exploration Activities
In 2022, K2 completed a geochemical and geophysical program on the Si2 project outlining a region of strong mercury anomalism coincident with surface alteration. Induced Polarization and ELF surveys define a number of prospective structural targets that will be the focus of a 2023 drill program.
In 2023, K2 completed 1,777 metres, of core drilling on the Si2 project testing theorized structures beneath a barren steam cap at surface. Broad weakly anomalous gold intercepts (up to 185 metres) encountered in all four holes demonstrate the potential of the system with hole SD-23-001 ending in 3.2 metres of 0.52 g/t gold.