0.5% NSR royalty + cash payments and exploration expenditures
The Spring Peak project features a low-sulfidation epithermal gold system with hydrothermal breccias and banded epithermal quartz veins exposed at surface. Rock sampling returned up to 35.7 grams per tonne gold with anomalous pathfinder elements that coincide with a soil geochemical anomaly. The epithermal gold system is fully preserved from surface sinters to basement, contains classic banded veins and quartz after calcite boiling textures, all of which indicate exploration potential at depth.
On July 13, 2021, Orogen announced it has signed an option agreement with Headwater Gold Inc. (“Headwater”) for the Spring Peak gold project in Nevada, USA. To earn a 100% interest in the Spring Peak project, Headwater will provide a cash payment of US$10,000, a cash or share payment totaling US$250,000 (subject to receipt of certain permits from the United States Forest Service), incur exploration expenditures of US$250,000 within 24 months of signing the agreement, and maintain all required underlying vendor payments and royalties. Orogen will retain a 0.5% net smelter NSR royalty and an option to purchase an additional 0.5% NSR royalty for US$1.0 million.