Silicon Gold 1.5% NSR Royalty, Nevada
The Silicon Project is located near Beatty in Nye County, southern Nevada. It was originated in 2014 under a generative exploration focused grubstake agreement between Renaissance Exploration (since merged to form Orogen Royalties) and Callinan Royalties (since merged with Altius) that resulted in the creation of a 1.5% NSR royalty.
On February 22, 2022 AGA published an initial 3.37 M ounce maiden inferred mineral resource estimate (120.44 million tonnes at 0.87 g/t gold) for the oxide portion of the Silicon (Central) deposit. AGA has subsequently provided an update for the ‘Expanded Silicon Project’, which includes both the Silicon and Merlin gold deposits, which was highlighted by the announcement of an initial Inferred Mineral Resource of 9.05 million ounces at the Merlin deposit (283.9 Mt at 0.99 g/t). This is in addition to the now updated more than 4 million ounce Mineral Resource estimate (121.56 at 0.87 g/t Indicated Mineral Resource for 3.4 Moz and 36.03 at 0.70 g/t Inferred Mineral Resource for 0.81 Moz) previously published for the adjacent Silicon deposit.
With an update on Feb 19, 2025, AGA has added approximately 3 Moz to the Merlin resource for a total Inferred Resource at Merlin of 12.1 Moz gold in oxide (355.11 Mt @ 1.06 g/t gold). Exploration and delineation drilling are ongoing. The table below summarizes the current Mineral Resource estimate for various deposits held by AGA in the Beatty district, including Merlin and Silicon, effective as of Dec 31, 2024.
Notes on Mineral Resource Table:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AGA reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces. The Mineral Resource tonnages and grades are reported in situ and stockpiled material is reported as broken material.
All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
1Based on US$1,900/oz gold price unless otherwise stated
2Property currently in a development stage
3Property currently in exploration stage
4 The Expanded Silicon project includes the Silicon and Merlin deposits. The Mineral Resource Silicon deposit is based on a gold price of $1,750/oz.
5Property currently in exploration stage
Background and Summary
In June 2017, Renaissance signed an exploration option agreement with AGA for Silicon following an initial geological mapping and prospecting program that identified an extensive area of alteration deemed highly prospective for epithermal gold mineralization.
In early 2018, AGA proceeded to drill test the target area resulting in the almost immediate discovery of gold mineralization in the Silicon (Central) area. The first hole was lost but the second hole (“SD-0004”) intersected 79m @ 1.76 g/t Au and marked the discovery of the Silicon deposit. The initial resource estimate was announced by AGA in March 2022 and updated in February of 2023. A maiden Merlin resource estimate was released in February, 2024.
AGA went on to meet its exploration spending and option payment commitments to earn a 100% interest in the project, subject to a 1% NSR royalty in favour of Orogen, which is separate from the 1.5% NSR in favour of Altius. Altius is also a major shareholder of Orogen.
In 2024 AGA published a Technical Report Summary as part of its Annual Report (Form 20-F) that provides an initial and assessment of the Merlin resource along with a conceptual mining scenario, which suggests a 14-year life of mine with substantial gold production in the early years. A pre-feasibility study ("PFS") for the Expanded Silicon Project is currently in progress.
The basis of the ongoing PFS targets oxide ore only while AGA recently stated there is "significant upside potential from deeper ore horizons and nearby exploration targets" and that infill and extension drilling programs continue.
Recent drill results published by AGA show some of the most significant oxide gold drill results to date at Merlin, including:
- 161.6 metres @ 5.85 g/t gold (MER-23-243-RD)
- 190.4 metres @ 5.12 g/t gold (MER-23-245-RD)
- 144.5 metres @ 10.53 g/t gold (MER-24-0267-RD)
Moreover, AGA also reported in their Q1 2024 Exploration Report a “significant intercept” from a geotechnical hole (ground water testing) drilled 900m north of the resource delineated at the Silicon Deposit.
Subsequently, AGA has reported in its Q4 2024 Exploration Report (released February 19, 2025) that “During Q4, 29 km of drilling was completed, continuing the resource definition drilling at Merlin. A deeper drillhole was also completed to the east that tested the hanging wall of the Bare Mountain Fault, with encouraging visual observations and results pending”, which provides some verification of ‘Target 2”. See figure below.
Finally, AGA has recently noted that it is evaluating the new discoveries as part of a “Tier 1 production opportunity in Nevada” with the potential to produce >500,000 ounce per year, with the Technical Report Summary filed by AGA stating potential production rates as high as 1 – 1.8 Moz of gold per annum in years 3-4. AGA’s conceptual development plan for the district envisions the North Bullfrog deposit being developed with initial production expected in the next three years, to be followed by Merlin and Silicon.
The technical information presented herein has been reviewed and verified by Lawrence Winter, Ph.D., P.Geo., Vice President Generative & Technical for Altius, a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Silicon Royalty Agreement