Business
Orogen's Royalty Sees Production at Ermitaño
VANCOUVER, BC / ACCESSWIRE / December 1, 2021 / (TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc...
About this update from Orogen Royalties Incorporation
[{"type":"text","content":"Orogen's Royalty Sees Production at ErmitañoVANCOUVER, BC / ACCESSWIRE / December 1, 2021 / (TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. (\"Orogen\" or the \"Company\") is pleased to announce initial production at the Ermitaño deposit where the Company holds a 2% net smelter return (\"NSR\") royalty. The first doré gold-silver pour occurred November 11, 2021 and commercial production is expected in Q1 2022.Note: The following information has been extracted from First Majestic's June 30, 2021 NI 43-101 Technical Report on Mineral Reserves and Mineral Resources on the Santa Elena Mine in Sonora, Mexico, announced November 24, 2021, and is available at www.sedar.com. The study references gold and silver prices of US$1,700 per ounce and US$22.50 per ounce, respectively, in its economic analysis of production at Ermitaño.First Majestic Silver Corp. (\"First Majestic\") released a positive NI 43-101 Prefeasibility Study (\"PFS\") on its Santa Elena mine and Ermitaño deposit that extends the Life of Mine (\"LOM) by at least seven years based on Proven & Probable (\"P&P\") Reserves.The study indicates strong cash flow for Orogen with significant upside through the conversion of Inferred Resources into Measured and Indicated Resources and ultimately into P&P Reserves. In addition, mineralization remains open to the east along strike of the Ermitaño gold and silver deposit.\"Initial production at First Majestic's Ermitaño deposit is an important milestone for Orogen,\" stated Paddy Nicol, Orogen's CEO and President.\"The PFS indicates that over the next seven years Orogen could see revenue of US$12.25 million with only 35% of the total resources presently converted to the currently defined P&P Reserves. There is potential to increase P&P reserves through the incorporation of existing resources into the mine plan. In addition, there is potential for new gold and silver discoveries on 120 square kilometres of surrounding royalty lands. The Company is debt free and generating revenue from one of its royalties, demonstrating the power of our organic royalty generation business model.\"Ermitaño Prefeasibility Study Highlights (Effective Date June 30, 2021)P&P Reserves of 2,835 kilotonnes (\"kt\") grading 3.69 grams per tonne (\"g/t\") gold and 54 g/t silver containing 337,000 oun...