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F A C T S H E E TThe Los Andes district is located 90km from Managua in the Department of Boaco (see Figure 1).  Access is via paved highway from Managua. Royal Road controls 100% of six mineral exploration concessions covering the Los Andes District. The total concession package is approximately 18,500 hectares.

Royal Road Minerals acquired the Los Andes project from Caza Gold in 2017.

Within the district, the dominant rocks are andesitic volcanics belonging to the Late Oligocene to Early Pliocene Coyol Group.  Numerous intrusive rocks cut the volcanic sequence, with at least one large dioritic porphyry identified at Los Andes. Hydrothermal alteration extends over some 7km throughout the licence areas and is typically a combination of argillic (silica-clay), advanced argillic (silica-alunite), and silicification. Royal Road believes the fundamental control to alteration and mineralization at Los Andes is a collapse caldera (see Figure 2).

Caza conducted two short exploratory drilling campaigns in 2014-15 which targeted silicified lithocaps and localized breccias while one drill hole QZP-003, was collared into an outcropping porphyry body in the south of the project area (see Figure 2). Around the porphyry body over 1,500 rock chip samples were collected with 123 returning values greater than 200ppm copper and 31 greater than 500ppm copper. Very thorough Terraspec® alteration analyses, conducted by Caza Gold and using a database containing in excess of 4,500 rock-chip samples has identified that the most intense hydrothermal alteration at Los Andes is related to the outcropping porphyry body with strongly pyritic breccia located peripheral to it (see Figure 2). QZP-003 intersected approximately 130 meters of intensely altered and pyritic breccia which is anomalous in copper and which we interpret as a “pyrite-shell”, possibly related to underlying porphyry-style copper (± gold) mineralization (see Figure 2).

Figure 1.

Location of Los Andes License Area

Ground Floor, 4 Wharf Street, St Helier, JE2 3NR, Jersey, CIT: +44 1534 887 166 www.royalroadminerals.com

L O S A N D E S

Ground Floor, 4 Wharf Street, St Helier, JE2 3NR, Jersey, CIT: +44 1534 887 166 www.royalroadminerals.com

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Terraspec alteration intensity map of the Los Andes project area. Based on a data set in excess of 4500 rock-chip samples, alteration intensity increases to a local maximum adjacent to the only mapped porphyry occurance in the area. One drill hole (QZP-003) was drilled into the area and intersected approximately 130 metres (to end of hole) of up to 30% pyrite (B) in predominantly breccia. It is possible that this drill hole has intersected the pyrite-shell (see shcematic diagram C), commonly located at the base of the lithocap environment and above the copper and gold mineralised potassic core. Deeper drilling will be conducted to test this model.

Figure 1a.

L O S A N D E S

Ground Floor, 4 Wharf Street, St Helier, JE2 3NR, Jersey, CIT: +44 1534 887 166 www.royalroadminerals.com

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F A C T S H E E TIn 2015 Caza completed an airborne geophysical survey over the Los Andes area which highlighted a well-defined magnetic anomaly corresponding to the area of most intense hydrothermal alteration (see Figure 3). 3D modelling of this data implies a magnetic body, possibly related to a potassic core (see Figure 2, C), at a depth of approximately 500 meters below the porphyry outcrop mapped at surface.

The Los Andes target is fully permitted for drill testing. Royal Road and Hemco are planning to drill two holes to test the deep porphyry potential in early 2018.

Figure 2.

Airborne magnetic data over Los Andes area (RTP on DEM). See figure 1 for location. The most discrete and intense magnetic anomaly is spatially related to the area of most intense hydrothermal alteration.