Orex Minerals Inc.
Orex Minerals Inc. Orex Minerals Inc. Subscribe
Orex Minerals Inc.
Orex Minerals Inc. Projects
Coneto Barsele
Photos Technical Reports
QA/QC Procedures
Orex Minerals Inc. Orex Minerals Inc.
Barsele Property
Barsele | Photos | Technical Reports

August 4, 2011


Located 600 km north of Stockholm, the Barsele project has 398 diamond drill holes completed since 1985. Orex plans to spend at least $3,000,000 in the next five years to continue surface exploration and surveying on the property. Our goal is to expand the known open pit resource with definition drilling. Mining exploitation concessions are in place since 2007, so there are no environmental delays anticipated. Our total mineral claims on the property are 32,709 hectares. Management believes there is an excellent upside potential as a one tonne bulk sample returned 5.1 g/t Au.

Orex's Barsele gold and base metal project contains inherent value and excellent potential.

Identified value from NI 43-101 compliant resources at Barsele Project NI 43-101 compliant resource from February 28, 2011 (using 0.6g/t Au cutoff):
Indicated: 382,000 oz @ 1.2 g/t Au (9.97 million tonnes grading 1.19 Au g/t)
Inferred: 648,000 oz @ 1.0 g/t Au (21.04 million tonnes grading 0.96 Au g/t).
  • Upside Potential
    • Expand known open pit resource with definition drilling, >1.5 million oz footprint
    • High grade intercepts, potential underground mining scenario
    • New discoveries and known prospects
  • Great Address
    • Close proximity to operating mines and known mineral areas
  • Substantial exploration equity in place
  • Excellent infrastructure in a politically stable and mining-friendly country
The main objective for the Barsele exploration program is to define a gold deposit in the order of 1.5 - 2 million ounces of gold or larger. This is a realistic objective as nearby Bjorkdal (Gold-Ore), Faboliden (Lappland Gold) and Svartliden (Dragon Mining) deposits exceeded this amount.


Click to enlarge


Sweden is one of Europe's leading producers of metals with a long and successful history of mining. Many international and Swedish companies are actively exploring and currently developing mines in the region. Revised mining law in 1992 abolished statutory State holdings in mining projects, opening the door to foreign investment in mining. Taxation incentives exist for project development from local and regional governments. There is a low 28% corporate tax rate and no mineral tax, plus low mineral license costs and good security of tenure. Well developed access and infrastructure exist on this property, including roads, nearby rail, power lines, and telecommunications, as well as a local labour market. There is very little political risk in Sweden with few impediments to the exploration and development of a project, with a mature and well-defined environmental requirements and permitting process.

RESOURCE ESTIMATE

Central-Avan-Skiråsen Gold Zones:
Au Cut-off
(g/t)		 Zone Resource
Category		 Tonnes Au Grade
(g/t)		 Contained
Ounces Au
0.60 Central Indicated 9,530,000 1.20 368,000
Central-Skiråsen Inferred 7,350,000 1.11 262,000
Avan Indicated 440,000 0.973 14,000
Inferred 13,690,000 0.876 386,000
TOTAL Indicated 9,970,000 1.19 382,000
Inferred 21,040,000 0.96 648,000


Norra VMS Zone:

Indicated Resources of 3.13 gold g/t (11,000 oz), 30.27 g/t silver, 0.53% copper and 0.72% zinc and Inferred Resource of 1.62 g/t Au (16,000 oz) , 12.69 g/t Ag, 0.26% Cu and 0.42% Zn. for a total of 27,000 oz Au plus 233,000 oz Ag, 3 million lbs of Cu and 4.5 million lbs of Zn

Au Cut-off
(g/t)		 Tonnes> Cut-off
(tonnes)		 Grade > Cut-off
Au (g/t) Ag (g/t) Cu (%) Zn (%) Au Oz Ag Oz Cu lbs Zn lbs
INDICATED
0.60 110,000 3.13 30.27 0.53 0.72 11,000 107,000 1,286,000 1,746,000
INFERRED
0.60 310,000 1.62 12.69 0.26 0.42 16,000 126,000 1,777,000 2,871,000

Planned Exploration:
  • Airborne Geophysical Survey completed and results are being analysed to choose drilling targets
  • Ground Induced Polarization and Magnetic Surveys
  • Diamond Drilling to Expand Known Zones Both Laterally and Vertically
  • Diamond Drill Testing of New Anomalous Areas Resultant from Prospecting, Mapping, Sampling and Geophysics
  • Bulk Sampling of Central Zone
  • Environmental Studies / New Acquisitions
Planned Drill Holes, Barsele Project, February 2012

Click to enlarge

Terms of the agreement with Northland Resources S.A. to acquire the Barsele project:

Time Cash (US$) Orex Stock (US$ value) Work Commitment (US$)
On Signing $2,000,000 1,152,997 shares  
1st Anniversary $1,000,000 $500,000 $1,000,000
2nd Anniversary $2,000,000   $2,000,000
3rd Anniversary   $1,000,000  
4rd Anniversary   $1,000,000  
Total $5,000,000 $3,500,000 $3,000,000
(*- The lesser of 2,000,000 shares or common shares worth US$ 1,000,000)

  • Northland Resources S.A. receives staged payments of cash and shares
  • Northland retains a 2% NSR which can be purchased for US$4 Million
  • Orex to purchase 100% for maximum US$15.5 Million commitment



 		 Orex Minerals Inc.