Vancouver, B.C. -- Orex Minerals Inc. -- (REX: TSX-V) ("Orex")
is pleased to report that a Final Agreement to acquire the Barsele gold project in Sweden has been signed with Northland Resources S.A. (TSX:NAU, OSE:NAUR -- "Northland") on March 22, 2011, replacing the Letter of Intent previously announced October 27, 2010.
Northland will receive a total of US $5 million in cash over two years from signing, and US $3.5 million worth of Orex shares to be issued over a period of four years from signing of the Final Agreement. Orex has also guaranteed a minimum US $3 million to be spent on the Barsele project in the first two years. Finally, Northland will retain a 2% NSR, which can be purchased at any time by Orex for US $4 million in cash. Northland will also have the right to appoint a Director to the Board of Orex.
The closing is subject to receipt of approval for the transaction from the TSX Venture Exchange. A finders fee will be payable upon closing.
Gary Cope, President of Orex, says, "We are happy to have finalized the agreement and are eager to start our 2011 exploration program shortly with an airborne geophysical survey, which will outline drill targets to hopefully expand the known resource."
The Barsele Project is located some 40 kilometres southeast of the town of Storuman in Västerbottens Län, a regional district of northern Sweden approximately 600 km due north of Stockholm. The geographic coordinates for the Project are approximately 65°05' north latitude and 17°30' east longitude.
An independently verified mineral resource estimate has been completed on the Barsele Gold Project. The study concludes that drilling to date on the Central-Avan-Skiråsen gold zones, at a 0.6g/t cut-off, has outlined an Indicated Resource of 9.97 million tonnes grading 1.19 Au grams per tonne (g/t) or 382,000 contained ounces of Au. In addition, the study has estimated additional Inferred Resources of 21.04 million tonnes grading 0.96 Au grams per tonne (g/t) or 648,000 contained ounces of Au.
In addition, a new estimate has also been prepared at the Norra volcanogenic massive sulphide (VMS) deposit, at a 0.6g/t Au cut-off, that has outlined an Indicated Resource of 110,000 tonnes grading 3.13 Au g/t, 30.27 g/t Ag, 0.53% Cu and 0.72% Zn . The study has also estimated additional Inferred Resources of 310,000 tonnes grading 1.62 g/t Au, 12.69 g/t Ag, 0.26% Cu and 0.42% Zn.
Orex plans an aggressive exploration program which will include an airborne geophysical survey, a ground IP geophysical survey followed by diamond drilling to test the strike extensions as well as the depth potential of the deposits. Orex's technical team feels there is a good chance to expand the known dimensions of the deposits outlined to date. In addition, there is also evidence to suggest that the grade could also be increased. A one tonne bulk sample collected on the project from the surface expression of the Central Zone returned a grade of 5.1 g/t Au; which is considerably higher grade than the average grade of the nearby drill hole samples.
In 2007, Northland completed an Environmental Impact Assessment, which allowed the permits hosting the Central-Avan-Skiråsen gold deposits and the Norra VMS deposit, to be converted to exploitation concessions.
Orex would also like to update the information contained in its March 4, 2011 press release. The correct number of units issued as finder's fees is 159,425 with each unit consisting of one common share and one half share purchase warrant. Each whole warrant is exercisable for one common share at a price of $1.00 for a period of two years from closing of the private placement. All securities issued under the private placement are subject to a hold period under securities law of four months and a day from the date of the closing.
The Barsele resource estimates were prepared by Gary Giroux, P.Eng., MASc., and were previously released on February 28, 2011. George Cavey, P.Geo., a director of Orex, is a 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
For further information, contact Orex Minerals Inc. at (604) 687-6310,
email email@example.com or visit our website at www.orexminerals.com
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.