Our Coneto Silver-Gold Project is located in the Mesa Central, on the eastern flank of the Sierra Madre Occidental Mountains. It is situated in the region around the village of Coneto de Comonfort, in Durango, Mexico.
Coneto de Comonfort has a municipal population of approx. 4,000 people, which provides a good source of local labour & services.
Also, the local infrastructure is excellent:
Orex has 100% ownership of 15,700 hectares of mineral concessions at Coneto. Fresnillo brings to the joint venture a further 1,900 hectares, for a contiguous land package of 17, 600 hectares. (about 45,000 acres)
CONETO MINING DISTRICT
The historic Coneto Mining District is situated in the heart of the "Mexican Silver Trend" which stretches from Guanajuato in the southeast, through to the states of Zacatecas and Durango.
The trend hosts some of the world's largest silver deposits, including:
CURRENT OREX PLAN
Orex's initial exploration program consisted of detailed structural geology mapping & geochemical sampling in the areas around Estrellas-Calaveras, Colimanito, Descubridora, Bufa, Promontorio, Promontorio Sur, Loma Verde, Sauces-Palma, Durazno and Impulsora. Fresnillo continues exploration in these areas as well as Indio, San Maritano, Santo Nino, and Impulsora Sur.
Exploration objectives for our Coneto Silver-Gold Project are similar to our sister project - Orko Silver Corp's La Preciosa Silver-Gold Deposit. Orex is exploring for a target deposit size of more than 100 million oz of silver equivalent.
ASSOCIATION AGREEMENT WITH FRESNILLO PLC
Orex has signed an Association Agreement with Fresnillo PLC to explore the Coneto Silver-Gold Project. Orex and Fresnillo hold extensive contiguous mineral concessions in the Coneto Mining District, which collectively total approx. 17,600 hectares (43,000 acres) and cover more than 40 known mineralized epithermal quartz veins. A joint technical committee, with both Orex and Fresnillo representation, will manage Coneto.
Fresnillo PLC will complete the following work:
Fresnillo PLC has an option to spend up to US $6,000,000 USD before February 2015 to explore the Coneto Silver-Gold Project in order to earn 55% ownership, and has the right to earn 70% ownership by advancing Coneto to the pre-feasibility stage, or by spending US $21,000,000. As of August 2013, Fresnillo PLC has spent $3,400,000.
Silver-equivalent determined as silver grade plus 60 times gold grade, the 10-year average metal price ratio on the London Metal Exchange. This also assumes 100% recovery, and does not include a contribution from base metals, nor fluorite.
The central vein system was mined most recently by private companies for silver & gold in the 1970s, but closed in the early 1980s due to a drop in silver prices. The Palma and the Sauce veins were mined down to the water table.
The eastern vein system has been mined to extract 'fluorite' from the Durazno and Impulsora veins. In places, the vein is 20 m thick. These operations mark a high level in the epithermal vein system. The eastern vein system shows an increase in sulphides & precious metals with depth.
The western vein system was drilled with one hole in the late 1970s, in the Loma Verde vein. Gold & silver results were strong and while a follow-up program was planned, it was never executed. In Phases I and II a further 12 holes have been drilled in Loma Verde.
Additional vein systems are located in target areas to the North (La Bufa, Cerro Prieto, Rosario), the South (Calaveras, Colemanito, Promentorio, Indio, San Maritano) and the West (Naga Nega).