Vancouver, B.C. - Orex Minerals Inc. - (REX: TSX-V)
is pleased to announce that it has signed an agreement with La Cuesta International, S.A. de C.V. to option the "Las Mesas" gold-silver project in northern Durango State, Mexico.
Las Mesas is a large grassroots exploration project located along an altered portion of a major regional fault structure, with associated geophysical and geochemical anomalies. It is interpreted to contain the surface expressions of buried mineralized intrusive centres. Pathfinder elements match the "tops" halo pattern for gold-silver mineralization.
A program of geological mapping and geochemical sampling has commenced to evaluate five target areas. A Phase-I diamond drilling program in early 2011 is planned for the first target area.
Gary Cope, President of Orex, says; "We are very pleased to obtain an option on the mineral concessions at Las Mesas and to establish this relationship with the discovery team of La Cuesta. Geologists Perry Durning and Frank (Bud) Hillemeyer of La Cuesta have been involved in multiple major discoveries in Mexico, including the San Sebastian gold-silver mine, The San Agustin gold deposit, the Pitarrilla silver deposit and the Camino Rojo gold deposit."
Las Mesas Project is a large mineral concession of 24,732 hectares. It is located on the Mesa Central, a high plateau region on the eastern flanks of the Sierra Madre Occidental mountains. The project is centred about 43 km south of the mining town of Santa Maria del Oro and is about 45 km west-northwest of the Pitarrilla Ag-Au deposit of Silver Standard, in the "Mexican Silver Trend".
Terms of Agreement
Orex Minerals Inc. has signed an option agreement for 100% of Las Mesas mineral concessions from La Cuesta. The option is based on a series of cash payments and exploration work commitments in US dollars (see below). The option can be purchased for a payment of $ 4,000,000, less the aggregate of the series of maintenance payments made up to the time of full exercise of the option.
There is a one-time initial payment of $ 35,000, followed by a series of maintenance payments to maintain the Las Mesas project option in good standing, according to the following schedule:
- $ 15,000 on or before January 15, 2011.
- $ 5,000 on or before June 1, 2011.
- $ 7,500 on or before December 1, 2011.
- $ 10,000 on or before June 1, 2012.
- $ 10,000 on or before December 1, 2012.
- $ 15,000 on or before June 1, 2013.
- $ 15,000 on or before December 1, 2013.
- $ 20,000 each six months thereafter.
In addition to the maintenance cash payments, Orex has committed to conduct a minimum of $ 50,000 in exploration expenditures prior to December 1, 2011, and in subsequent years sufficient exploration to keep the mineral concessions in good standing.
There is a 3 kilometre area of interest around the mineral concessions. If either company were to acquire additional hectares within the area of interest, these additional mineral concessions would fall within the option agreement.
La Cuesta retains a "production royalty / net smelter return royalty" on the property. If a mining operation on Las Mesas goes into production, the greater of either a production royalty of US$ 20,000 (less option maintenance payments), or a net smelter return (NSR) royalty of one percent (1%) on the original concession and one-half percent (0.5%) on concessions in the area of interest, is due to be paid on a quarterly basis. If the full option amount of $ 4,000,000 is exercised, then the royalty terminates.
Ben Whiting, P.Geo., is the Qualified Person as defined in NI43-101 and takes responsibility for the technical disclosure in this news release.
About Orex Minerals Inc.
Orex Minerals Inc. is a junior mineral exploration company comprised of highly qualified mining professionals with a focus on the exploration of prospective gold and gold-silver properties.
ON BEHALF OF THE BOARD OF DIRECTORS
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.