Up to 1.0% NSR royalty + cash payments and exploration expenditures
Partner
Headwater Gold Inc https://headwatergold.com/
Project Overview and History
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 the basement and contains classic banded veins and quartz after calcite boiling textures, all of which indicate exploration potential at depth.
Transaction Summary
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$1.0 million.
Recent Exploration Activities
In November 2021, Headwater announced the discovery of a new blind gold discovery with drill hole SP 21-03 returning 38.1 metres grading 1 g/t gold including 9.2 m grading 2.49 g/t gold.
In August 2022, Headwater announced an Earn-In Exploration Agreement with Newcrest with a minimum of US$ 5 million expenditure on Spring Peak within 36 months of Execution. Newcrest can spend US$60 million to earn a 75% interest in the project.
In January 2023, Headwater announced results from Drill hole SP22-13 which intersected two individual veins that assayed 15.92 grams per tonne gold (“g/t Au”) over 2.38 metres (“m”) and 10.43 g/t Au over 2.01 m respectively. The highest individual assay returned 69.6 g/t Au over 0.34 m. These intervals are part of a broader zone which assayed 2.73 g/t Au over 34.72 m;
In March 2023, additional drill results were released including:
- Drill hole SP22-11 intercepted 43.7 g/t Au over 0.63 metres (“m”) within a broader interval of 40.63 m grading 1.86 g/t Au;
- Drill hole SP22-12 intercepted 23.5 g/t Au over 0.33 m within a broader interval of 42.61 m grading 0.94 g/t Au;
- Drill hole SP22-13 (previously announced) intercepted 34.72 m grading 2.73 g/t Au, including 15.92 g/t Au over 2.38 m and 10.43 g/t Au over 2.01 m.
March 2023: https://headwatergold.com/2023/headwater-gold-announces-additional-high-grade-assays-from-spring-peak/
September 2021: https://headwatergold.com/headwater-gold-completes-drill-program-at-spring-peak-project-nevada/
August 2021: https://headwatergold.com/headwater-gold-commences-drilling-at-spring-peak-project-nevada/
July 2022: https://www.orogenroyalties.com/news/orogen-options-the-spring-peak-project-to-headwater-gold