Orogen Royalties Announces Mid-year Royalty Update and Forecast - Seite 2

Ermitaño Epithermal Gold-Silver Mine, Sonora

Orogen holds a 2% NSR royalty on First Majestic Silver Corp.'s Ermitaño mine with Proven and Probable reserves of 274,000 ounces of gold and 4.6 million ounces of silver, Measured and Indicated resources (inclusive of reserves) of 369,000 ounces of gold and 5.8 million ounces of silver, and Inferred resources of 269,000 ounces of gold and 7.7 million ounces of silver as of Dec 31, 2022^3,4.

First Majestic recently announced second quarter production results of 20,073 ounces gold and 142,037 ounces silver from the Ermitaño deposit. Record recovery rates were also achieved with the recent introduction of a dual-circuit and a new filter press. Gold and silver recoveries averaged 94% and 52%, respectively in Q2 2023. First Majestic also forecasts production for the second half of 2023 to increase by 27% ranging 48,000 to 53,000 ounces gold and 700,000 to 800,000 ounces silver^3,4.

First Majestic also announced a 20,000-metre drill program to infill and upgrade the resources at Ermitaño³. Select drill hole results from deep drilling at the Ermitaño splay returned true width intersections^3,4:

• 4.27 grams per tonne ("g/t") gold and 127 g/t silver over 13.3 metres in drill hole EWUG-23-01
• 5.98 g/t gold and 222 g/t silver over 15.55 metres in drill hole EWUG-23-02
• 13.73 g/t gold and 150 g/t silver over 6.42 metres in drill hole EWUG23-03
• 8.1 g/t gold and 348 g/t silver over 3.34 metres in drill hole EW-23-327

Drilling to the east of Central Ermitaño returned assays and true width intersections including:

• 2.67 g/t gold and 54 g/t silver over 1.86 metres in drill hole EW-23-330
• 3.39 g/t gold and 56 g/t silver over 1.96 metres in drill hole EW-23-339

Multiple veins are currently being drilled within five kilometres of the processing plant³ with First Majestic reporting multiple secondary vein intersections within the hanging and footwall of the Ermitaño vein.

Foto: Accesswire

Figure 1 - West to East cross section displaying 2023 drilling at the Ermitaño Mine from 3,4.

Silicon-Merlin Epithermal Gold Project, Nevada

Orogen holds a 1% NSR royalty on the Silicon-Merlin Project operated by AngloGold. As announced by Orogen on August 8, 2023, AngloGold announced an Exploration Target^A for the Merlin area of 6 to 8 million ounces gold, with an estimated grade-tonnage range of 230 to 250 million tonnes grading 0.8 to 1.0 g/t gold. An initial Inferred Mineral Resource estimate for Merlin and a Concept Study is expected during H2-2023. The Concept Study, integrating Central Silicon and Merlin, is expected to capture the synergies from the increased economies of scale of these two deposits, with the potential for large scale mining. Merlin is located south of the Silicon Deposit where resources of 3.4 million ounces gold Indicated, and 0.8 million ounces gold Inferred were published by AngloGold earlier this year¹.