Royal Road Minerals Limited (CVE:RYR) (OTCMKTS:RRDMF) reported Wednesday the first highly encouraging drill results from the Luna Roja gold project in Nicaragua, which suggest further gold mineralization exists.
Royal Road is the operator of the strategic alliance struck with Hemco Mineros Nicaragua in 2017, of which the project forms a part.
The companies have completed an initial 17-hole, 2,472 meter, scout drilling program and results have been returned for the first 13.
The program aimed to test the sub-surface extension of surface gold in channel samples last year, where intersections included 23.5 meters (m) at 5.1 grams per tonne (g/t).
Royal Road revealed that results showed that gold mineralization remained open at depth and management believe that potential exists for further gold mineralization to the southeast. Highlight assays included 23m at 2.1 g/t gold and 49m at 2.4 g/t gold.
"These drilling results are a great start at Luna Roja," said Dr Tim Coughlin, Royal Road's president and CEO in a statement.
"This discovery is a product of great teamwork and of an exemplary collaboration with our partners, Hemco-Mineros-Nicaragua.
Possibility of extensions
"The possibility of extensions to gold mineralization at depth and under faulted cover to the southeast at Luna Roja is enticing. We are also excited to have established our first Designated Project Area and look forward to advancing the Luna Roja project with our partners Hemco Mineros Nicaragua and with the local community, local authorities and other valuable regional stakeholders."
Also in today's announcement, Royal Road and Hemco mutually elected to define the Luna Roja project as a so-called designated project area (DPA) and the applicable rights and licenses for the DPA will be held by a newly formed joint venture company (JVCo), with Royal Road and Hemco each holding an equal 50% interest.
Royal Road is on the hunt for Tier 1 gold and copper mines in Nicaragua and Colombia.
Shares in Toronto surged 10.5% to stand at C$0.21 each.
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