The Margaritas gold project is located in the Anza mining district, approximately 50 kilometers west of Medellin. Margaritas was initially acquired as an application for title through the Company’s purchase of Northern Colombia Holdings Limited, an affiliate of AngloGold Ashanti Limited. The Margaritas project, together with the neighboring Guintär and Niverengo project areas, are subject to a strategic alliance agreement between the Royal Road and Mineros S.A. Under the terms of the agreement, Mineros currently own a 25% interest in the Guintär-Niverengo and Margaritas project areas and may acquire a further 25%, up to a total 50% interest by providing a further $1.5 million USD of exploration funding. Royal Road Minerals is the operating partner in the strategic alliance.

Among other requirements, the process of acquiring a mining concession contract in Colombia requires Royal Road to present a Social Management Plan, and the Antioquia Secretary of Mines to complete a concertation seeking the approval of local authorities, followed by a public hearing with local communities. The Public Hearing for the Margaritas Concession Contract (SGL-09001), was conducted on May 27, 2021 and the concession contract was granted on August 27, 2021. Mining concession contracts have an initial term of 30-years, extendable for an additional 30 years.

From 2012 to 2017, AngloGold Ashanti completed geological mapping, reconnaissance rock-chip sampling, ridge and spur soil sampling and an airborne magnetic and radiometric survey over the Margaritas area. Royal Road has conducted grid-based surface geochemical sampling and further geological mapping at Margaritas, as indicated in the below figure. The company now considers the project “drill-ready”, subject to the fulfilment of the Social Management Plan, environmental baseline studies and the receipt of all necessary permissions.

Royal Road has conducted grid-based surface geochemical sampling and further geological mapping at Margaritas.