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Royal Road Minerals Limited (TSXV:RYR) (“Royal Road” or the “Company”) is pleased to announce that its 50%-owned Saudi Arabian subsidiary, Royal Road Arabia (“RRA”) has entered into an Option Agreement (the “Agreement”) to acquire up to 100% of Izughar Resources S.R.L (“Izughar”) a Moroccan company holding certain exploration titles located within an agreed Area of Interest (“AOI”) incorporating the Alouana copper-gold polymetallic project in eastern Morocco.

Royal Road Arabia is a Saudi Arabian joint-venture company owned on a 50-50% partnership basis by Royal Road and MSB Holdings Limited (“MSB”). The company has been established for the purpose of copper, gold and other metals exploration, acquisition and development in an area of interest comprising the Kingdom of Saudi Arabia, Morocco and any other geographical area as may be agreed between the partners. Royal Road is operator and the Board of RRA is made up of an equal number of Directors appointed by Royal Road and MSB (see Press Release June 1st, 2023).

The AOI is an area of approximately 680 km2 which contains Izughar’s wholly-owned exploration licenses and is located in the provinces of Taourirt and Guercif, in Morocco’s Eastern Region (see Figure 1). Small-scale mining commenced at the Alouana license areas at the beginning of the last century and some 35 small-scale copper, gold and silver workings have been identified from within the Izughar license areas.

Figure 1. Location of the Alouana AOI and the Izughar license areas

Geologically the AOI is situated in Morocco’s Eastern Meseta terrane and comprises an erosional window of Palaeozoic age metamorphic and intrusive igneous rocks from within surrounding and overlying Mesozoic and Tertiary age sedimentary strata. The host rocks to copper, gold and polymetallic mineralization at Alouana are primarily Devonian age schists which have been intruded by a Permian age granite and related porphyry dykes. The granite underlies and has contact metasomatized the schistose sequence (see Figure 2). Copper, gold and polymetallic mineralization (silver, tungsten and zinc) has been emplaced parallel to the shallow-dipping schistosity (layer-parallel) and also in steeply-dipping northwest and northeast striking vein, breccia and porphyry dyke bodies (see Figure 3). Copper mineralization is characterised by chalcocite, chalcopyrite and the oxide assemblages of azurite and malachite.

Figure 2. Geology and surface geochemistry of the Alouana license areas

Figure 3. Left, disseminated copper oxides from underground development at Alouana. Right, layer parallel (cleavage parallel) copper mineralization from the Alouana ridge top occurrence

Izughar collected 92 grab rock-chip samples from mineralized occurrences at Alouana. Results were encouraging with copper returning up to 21.02% (minimum 0.001% and average 1.31%), gold returning up to 5.89 grams per tonne (minimum 0.01 and average 0.17 grams per tonne) and other elements such as silver returning up to 493.84ppm (minimum 0.53 and average 22.28ppm) and tungsten up to 0.36% (minimum 30ppm and average 365ppm). The Alouana project has not been drill-tested.

RRA has completed soil geochemical sampling and geological mapping across the Alouana license areas (see Figure 2). A total of 1718 soil samples were collected across 100m spaced lines and on 50m intervals. Results mapped out an approximately 2km long ridge-top zone of shallow-dipping layer-parallel style copper mineralization at Alouana, delineated the steep dipping mineralized vein, breccia and porphyry bodies and highlighted new and previously unknown anomalies from within the granite body.

The Company plans to complete further rock-chip and channel rock-chip sampling together with ground magnetics and radiometrics at Alouana and elsewhere throughout the AOI with a view to scout-drilling in early 2024. It is anticipated that the Company’s initial focus will be on drill-testing the grade and volume potential of the layer-parallel copper, gold and polymetallic mineralization at Alouana.

“Alouana is a very typical thermal aureole copper and gold system formed above and adjacent to a granitic intrusion. This style of deposit hosts some of the worlds largest copper and gold resources and is a target style of key interest for Royal Road Arabia. A particularly important component of the Alouana occurrence is the shallow-dipping layer-parallel style of copper and gold mineralization which, when coupled with high-grade steep-dipping mineralized fractures, infers significant mineable volume potential at and close to surface” said Dr Tim Coughlin, Royal Road’s President and CEO

Summary terms of the Option Agreement are as follows:

  • RRA have paid to the Shareholders of Izughar an aggregate sum of USD$50,000 upon execution of the Option Agreement
  • Within 270 days of the date of execution of the Option Agreement (October 12, 2023), RRA has the right to advance one or more of the Licences to the point of making a drilling decision, by conducting such exploration activities as RRA shall elect. RRA will act as operator in relation to such matters
  • If RRA elects to drill test one or more of such properties, it shall commit to a program of at least 2,000 total meters and shall commence application for all requisite drilling permissions from the relevant authorities
  • Upon receipt of all requisite drilling permissions RRA shall make a one-time payment of US$200,000 to the Shareholders or its nominees, on or immediately after commencement of the Drilling Program
  • On or before the date being 60 days after the completion of the drilling program or fourteen days following receipt of all the relevant and final geochemical analyses to the satisfaction of RRA (whichever date is the later), RRA shall have the right to acquire 90% of Izughar in exchange for a one-time payment of US$750,000 to the Shareholders
  • The remaining 10% shall be free carried to Bankable Feasibility at which point it shall convert to a 2% Net Smelter Returns royalty
  • Additional Payments: Subject to completion of the Option to the satisfaction of RRA, RRA shall make a further payment of US$375,000 in total to the Shareholders upon completion and publication of the first Joint Ore Resource Committee compliant resource report in respect of the Licences and RRA shall pay a further amount of US$2000,000 to the Shareholders upon the first bankable Feasibility Study completed in respect of the Licences