Orex Minerals Inc.
Orex Minerals Inc. Orex Minerals Inc.
Orex Minerals Inc. News


RSS RSS Feed
Orex Minerals Inc. Orex Minerals Inc.
Orex Minerals Inc.
 
21-Jun-07

Orex Ventures Signs Option on Santa Cruz Property, Durango, Mexico

VANCOUVER, British Columbia - Orex Ventures Inc. (TSX.V - REX) is pleased to announce that it has entered into an option agreement with Silverex S.A. de C.V. to acquire up to 75% interest in the Santa Cruz Property in Durango, Mexico.

Located in the Sierra Madre Occidental Mountains, Otaez Municipality in northwestern Durango State, the Santa Cruz Property is in one of the World's most prolific mineral belts. The property hosts several known gold-silver bearing structures, as well as the previously operating Santa Cruz Mine.

Gary Cope, President of Orex, adds, "We are very pleased that we were able to acquire an option on the Santa Cruz Properties as we have been searching for some time for a high quality project for the Company. The Santa Cruz project certainly fits this criterion that of a very good exploration project combined with some immediate production capability"

Terms of the Agreement
Initially, to earn an undivided 50% interest, Orex must;

(a) issue 500,000 common shares and pay $800,000 to Silverex upon the TSX Venture Exchange (the "Exchange") acceptance of the agreement;

After one year from the date of acceptance, based on the success of the exploration, the Company may;

(b) issue an additional 500,000 common shares and pay an additional $800,000;

After the second anniversary, the Company may;

(c) make an additional cash payment to bring the total value of cash payments and share issuances to $4,000,000.

In addition, the Company is required to incur a minimum of $500,000 of expenditures on the property in each year from the acceptance date for a total period of four years.
At any time during this initial four-year program period, the Company has the option to earn an additional undivided 25% interest, having met the above share issue and cash payment requirements, by;
(a) issuing additional common shares having a deemed value of $1,000,000 and pay an additional $3,000,000.
Suite 2610 - 1066 West Hastings Street, Vancouver, BC Canada V6E 3X2 Phone: 604.684.4691 Fax: 604.684.4601 Email: info@orexgold.com Web : www.orexgold.com
Upon earning an undivided 75% interest, Orex and Silverex will participate on a joint venture basis in further exploration and development of the Santa Cruz Property.

Property Description
The Santa Cruz Property, a silver-gold-lead-zinc-copper epithermal vein and breccia camp, is located in Otaez Municipality, high in the Sierra Madre Occidental mountains at N 24o 43.6' W 106o 08.3'. It is 170 km NW of the state capital of Durango. It is accessible by driving 335 km via tarred and dirt roads and there is also a permitted airstrip on the north side of the property.
Mining concessions consist of a consolidation of 24 contiguous blocks totaling 11,875 hectares. The property can be viewed in terms of three structural districts. The Eastern District (San Pablo - La Fragua - Orozco) and Central District (Santa Cruz - Guadalupe
- Veta Grande) have seen the bulk of the historic exploration and production, but still have exploration potential. The Western District (Jesus Maria - Zambraneña - El Carmen) shows great promise and is considered to be under-explored.
Historic production goes back as far as the 1780s, when the operation was controlled by the Count of Zambrano. In 1908, the Santa Cruz Mining Company was created, but its operations were impeded due to the Mexican Revolution and stopped production in 1934. In 1967, the Dougherty family restarted operations under geologist Philip Beckley's direction, with a 50 tpd floatation plant. Mr. Beckley's untimely death in 1983 lead to another halt in operations. The family of Victor Salas Gamero took over operations in 1985 and ran both the floatation plant and Santa Cruz mine until 1996. A brief exploration program was conducted in 2005 in the Central and Eastern District under a joint venture between Minco and Sisa S.A. de C.V., including 2,700 metres of drilling. No drilling was conducted in the Western District.

Orex - 2007 Sampling
The Western District, which will be a major target area for Orex, has vein structures traced for over 2.5 km strike length. Ben Whiting, P.Geo., conducted a site visit for Orex in March 2007. The following sample results over true widths were obtained in 2007:

Sample Target Type Au (g/t) Ag (g/t) Ag-Eq (g/t) Cu (ppm) Pb (ppm) Zn (ppm)
100003 El Carmen Chip 1.5 m 0.370 197.0 219.2 24 918 1546
100004 El Carmen Chip 2.5 m 1.002 284.0 344.1 38 108 199
                 
100006 Zambraneņa Rock grab 1.233 433.7 507.7 29 52 99
                 
100009 Jesus Maria Chip 1.0 m 10.060 817.0 1420.6 112 470 647
100011 Jesus Maria Chip 1.1 m 1.444 663.6 750.2 114 826 1630
                 
100013 El Christian Chip 1.5 m 13.150 929.9 1718.9 134 187 382
100014 El Christian Chip 1.5 m 7.780 348.7 815.5 65 85 215
                 
100015 Santa Cruz Rock grab 6.500 882.1 1272.1 102000 95 2208

Historical Reserves
The Western District, which has not been mined in recent times, has some +100 year old adits on Jesus Maria and Zambraneña. Historical reserves were estimated for these deposits in 1973 (A.J. Terrones) of approximately 5.6 million ounces of silver and 10,000 ounces of gold contained within 272,430 tonnes grading 1.1 g/t Au and 644 g/t Ag for a Silver Equivalent of 711 g/t using 60 to 1 gold/silver ratio with metallurgical recoveries and net smelter returns assumed to be 100% (see table below). These historical reserves are not compliant with NI 43-101.
The historical estimates may be relevant and appear intact from an examination of the Jesus Maria adits, but the Zambraneña adits are not currently accessible. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

  Category Tonnes Au (g/t)   Ag (g/t)   Ag-Eq (g/t)
Jesus Maria              
  Proven 49,510   1.0   630 690
  Probable 26,390   1.0   638 698
  Possible 120,230   1.0   540 600
Zambraneņa              
  Proven 37,300   1.4   820 904
  Probable 39,000   1.4   820 904
Historical Total:   272,430   1.1   644 711

Existing Milling Potential
The 50 tonne per day floatation plant at the Santa Cruz mine was last operated in 2003, with ore from underground mining operations at the Orozco and Santa Cruz deposits in the Eastern and Central districts respectively. Orex management believes that the plant can be re-activated with minimal investment.
Ben Whiting, P.Geo., is the Qualified Person and takes responsibility for the technical disclosure in this news release.

About Orex Ventures Inc.
Orex is a junior mineral exploration company comprised of highly qualified mining professionals with a current focus on the exploration of prospective gold and gold-silver properties in Mexico and northern Peru. (Management is actively engaged in the acquisition of new properties in South America.) For more information visit www.orexgold.com, call (604) 684-4691 or email info@orexgold.com


ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope President

The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orex relies upon litigation protection for forward-looking statements.
 
 

You can view the Next News item: Thu Sep 27, 2007, Orex Announces Grant Of Options

You can return to the main News page, or press the Back button on your browser.

Orex Minerals Inc.