Mr. Tim Coughlin reports
ROYAL ROAD MINERALS ANNOUNCES FINAL DRILLING RESULTS FROM GOMEC PROJECT; WESTERN TURKEY, TERMINATION OF OPTION AGREEMENT AND NEW STRATEGIC FOCUS ON LA GOLONDRINA AND GOLD EXPLORATION IN COLOMBIA
Royal Road Minerals Ltd. has released final drill results from its Gomec gold project and has decided to discontinue work in Turkey and focus activities on La Golondrina and Colombia. All reported intersections are downhole widths as true widths cannot be determined from the currently available information.
The Gomec project comprises five contiguous exploration licences and is an early-stage gold exploration project located in the hinterland of Ballkesir province, western Turkey. Royal Road Minerals was granted an option to earn a 50-per-cent interest in the Gomec property and in other exploration properties under the same ownership by spending an aggregate of $2-million (U.S.) on exploration and development work to earn a 20-per-cent interest and a further $2-million (U.S.) of such expenditures to earn an additional 30-per-cent interest. In addition, on or before Dec. 31, 2016, the company would pay an amount equal to $3-million (U.S.) to the sole owner of the properties which would result in the company acquiring a 50-per-cent shareholding.
Royal Road Minerals has spent a total of $1.2-million (U.S.) in exploration work at Gomec and at other gold and copper-gold exploration licences covered under the option agreement. At Gomec the company has completed 4,494 metres of combined reverse circulation and diamond drilling in two separate drilling campaigns during 2014 and 2015. The 2015 drilling program, comprising 2,571 m, is now complete with all final analytical results returned on Oct. 22. Of the final drill holes, five reverse circulation drill holes (GRC 29-33) were drilled into specific targets over an approximately five km strike length along the Gomec ridge to the southeast. None of these drill holes returned significant gold. GRC-28 which was drilled in the Kubaslar area returned 10 m at one gram per tonne gold, whereas diamond drill holes GK 11 and GK 12, which aimed to test the potential for deeper, higher-grade gold mineralization at Kubaslar (see press release dated Aug. 17), have not returned any significant intersections for gold.
In light of these results and after a full technical assessment of all available geological data, management's view is that any potentially economic gold mineralization at Gomec will likely be low grade and as such does not fit the company's focus at this time and given current market conditions. The company has thoroughly explored new partnership and alternative deal and funding structures for Gomec, however, the enervating influence of political and regulatory uncertainty in Turkey has generally served to impede any possible third party interest. Consequently Royal Road Minerals has terminated the option agreement covering the Gomec property.
As a consequence of the above and given the company's new focus on Colombia and on what management believes is a promising high-grade gold project at La Golondrina, the company has taken the decision to divest all other interests in Turkey as soon as practicable.
"We are working on various exit deals with partners who have been close to the company since it commenced exploration operations in Turkey," commented Tim Coughlin, Royal Road's president and chief executive officer. "The March, 2013, peace process in southeast Turkey provided us with a remarkable opportunity for the discovery of potentially large gold and copper resources in a previously underexplored and prospective region. Since August of this year, however, there has been a significant increase in ethnic tension in that region to the extent that it is now considered difficult to work there. This convergence of recent drill results and political events in Turkey, when contrasted with promising high-grade prospects at La Golondrina and in Colombia as a whole, have led to what we consider is a necessary and logical strategic shift in focus."
The information in this news release was compiled, reviewed and verified by Dr. Tim Coughlin, BSc (geology), MSc (exploration and mining), PhD (structural geology), FAusIMM, president and chief executive officer of Royal Road Minerals and a qualified person as defined by National Instrument 43-101. Royal Road Minerals employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Reverse circulation drill chips are bagged on-site in one-metre intervals and split on-site into two-metre composite samples. All assay work for released results are carried out by ALS-Chemex-certified analytical laboratory in Izmir, Turkey. More information can be found on Royal Road Minerals website.
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