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Royal Road Minerals' Nicaraguan ambitions starting to take shape

Caza, which it has now bought, controlled land in the highly prospective but undeveloped gold belts of Nicaragua
Royal Road Minerals' Nicaraguan ambitions starting to take shape
Pictured - Royal Road channel sampling

Royal Road Minerals Ltd's (CVE:RYR) exploration and development plans for Nicaragua are starting to crystallise and its latest strategic alliance with Hemco underscored this.

In July this year, Royal Road finalised its internal reorganization and dispose of its non-operational assets in Mexico, while weeks earlier in May, it finalised its acquisition of Caza Gold Corp (CVE:CZY), thereby gaining its assets.

Caza controlled land in the highly prospective but largely undeveloped gold belts of Nicaragua - the Los Andres district, Piedra Iman, Las Lajas, Cerro Pedernal, El Diamente,  Teustepe and Cerro La Vaca.

The latest Hemco deal allows Royal Road the potential wherewithal and know-how to get cracking on evaluating these exciting prospects.

Sharing experience and data ...

Royal Road and Hemco will share collective experience and databases, co-finance early-stage exploration and jointly seek to advance current projects and pursue new ones in Nicaragua, Royal Road told investors.

"We are proud to be aligned with such a respected partner in Nicaragua and excited to have acquired access to the Golden Triangle area which, in addition to our Narino project in Colombia, provides the company with another region of gold and copper exploration potential," said Dr Tim Coughlin,  RYR's president and chief executive.

"Moreover, with funding expected to be contributed by Hemco, we anticipate being in a position to drill test the underlying potential of the exciting Los Andes porphyry copper and gold target, whilst also commencing the planned drilling program at Piedra Iman on an accelerated basis."

Piedre Iman drilling first up?

Piedre Iman drilling is likely to be the initial program approved under the alliance, it reckons, and will consist of drilling, mapping, and heliborne magnetics and radiometrics in Hemco's Golden Triangle licensed areas.

This will be followed by drilling two deep holes to test the porphyry copper and gold potential of Royal Road's Los Andes project.

Royal Road's management estimates that the budget for this program will be around $1.8mln and financed on a 50/50 basis by the parties.

If an area is defined as a designated project area (DPA), the applicable rights and licences for such will be held by a newly formed joint venture company, with Royal Road and Hemco each initially holding 50%.

Piedra Iman already looking promising ...

In July, encouraging sampling from nine channels were  found at the wholly-owned Piedra Iman copper-gold project in northwestern Nicaragua.

The site spans over around 8,000 hectares and lies 30km north of  B2 Gold's El Limon mine.

Highlights included 20 metres at 1.10% copper and a five metre intersection at 0.95% copper.

In Southern Colombia, the group has its La Golondrina project in the Narino Province -   currently a small-scale underground gold mining operation, and the company reckons it can define a significant high-grade plus million ounce resource there and to modernise current operations.

There is sure to be more plenty more news to come from Royal Road in coming month so watch this space.

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