In December he told Proactive Investors the aim was to “become the top tier South American exploration company”.
And no doubt, steps towards that ambitious goal are taking place. The group is settling down and getting to know its position in Colombia, where it has a significant land holding, while it sees potential for significant gold and copper discoveries in Nicaragua via its combination with Caza Gold (CVE:CZY), announced two months ago.
Last week, Royal Road brought in C$3.6mln from a private placing at 10 cents a share to finance its Colombia plans and its anticipated operations in Nicaragua.
Caza controls a large land position in the highly prospective but largely undeveloped gold belts of Nicaragua – the properties are the Los Andres district, Piedra Iman, Las Lajas, Cerro Pedernal, El Diamente, Teustepe and Cerro La Vaca.
The deal, though not yet completed, sees Royal Road Minerals offering 0.16 of a Royal Road share to buy 100% of the equity in Caza.
In December, Coughlin revealed the transaction had been in the making for some time and was intended to represent the first of a proposed series of evolutionary step-changes for Royal Road.
“Our initial footprint at La Golondrina in southern Colombia has led to other local deals and to the submission of more than 160,000 hectares in concession contract applications in Colombia, over what we believe is one of Latin America’s most prolific and prospective gold belts.
“The Caza acquisition would provide us with an additional portfolio of projects that would each be 100%-owned, prospective for porphyry copper-gold, iron-oxide copper-gold and epithermal gold-silver deposits, and located in Nicaragua, which is fast becoming known for its mineral potential”.
Of course, Coughlin is no stranger to discovering deposits. Over a decade ago he was part of the team that stumbled across the multi-million-ounce Amulsar gold deposit in southern Armenia, and was formerly the chief at Lydian International (TSE:LYD), which is now building a huge mine there.
He also knows Colombia, and helped to take AngloGold to the South American country and worked there between 2001 and 2005.
Within the past 14 years or so more than 50mln ounces of gold has been discovered in Colombia, and that’s just what’s been reported.
And now this experienced mining executive is going for plus million ounce deposits again.
Meanwhile, in January this year the group revealed first drill results from its Golondrina gold project in Colombia, where it has a three year option deal.
It was the first drilling done at the site – from the first three diamond drill holes of a four-hole scout campaign.
The findings, the company said, indicated the potential for a “significant vertically and laterally extensive bulk tonnage intrusion-related gold system”.
La Golondrina is in an underexplored region of high grade deposits and lies some 700 metres above other active mines and similar style veining such as at Royal Road’s nearby La Redencion project.
Previous rock- chip sampling of vein material at La Golondrina has shown an average 13g/t (grams per ton) of gold from 51 samples
The deal to buy 100% of the property, struck in 2015, means over three years, Royal Road must drill a minimum of 1,500 meters and produce a feasibility study.
It paid $50,000 to the owner when it started the drilling program and has to pay the owner of US$20,000 per year, while the option is in force.
If the feasibility study proves positive and Royal Road decides to start construction, it will exercise the option and acquire 100% of the project.
Story by ProactiveInvestors