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.
Backround 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 (source), 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 a “significant intercept” from a geotechnical hole (ground water testing) drilled 900m north of the resource delineated at the Silicon Deposit.
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