Orex and Pan American Sign Letter Agreement for Sandra Escobar Project in Durango, Mexico
Vancouver, BC -- Orex Minerals Inc. -- (TSX.V: REX -- OTCQB: ORMNF) ("Orex"), is pleased to announce that they have entered into an agreement (the "Letter Agreement") with Pan American Silver Corp. -- (TSX: PAAS -- NASDAQ: PAAS), through its subsidiary Plata Panamericana SA de CV ("Pan American"), regarding the Sandra Escobar Project, in northern Durango, Mexico.
Pan American has recently acquired all of the interests of Canasil Resources Inc. ("Canasil") in the Sandra Escobar Project, including the rights and obligations of Canasil under the 2015 agreement between Orex and Canasil (the "2015 Agreement"). For further information regarding Canasil's sale of their interests in the Sandra Escobar Project, see Canasil's press release of June 28, 2019.
Pursuant to the Letter Agreement, Pan American and Orex have agreed to negotiate a formal joint venture agreement to replace the 2015 Agreement, and will suspend the operation of the 2015 Agreement until the new agreement is entered into, or until December 31, 2019, whichever is earlier. During the suspension period, the parties will contribute pro-rata towards the cost of maintaining the Sandra Escobar Project in good standing.
Sandra Escobar is situated north of the town of Tepehuanes, Durango, in the heart of the "Mexican Silver Trend", midway between the mining districts of Tovar and Guanacevi and is 75 km west of Silver Standard's La Pitarrilla. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.
The project consists of the Sandra Property of 6,335 hectares and Escobar Property of 635 hectares of mineral concessions and covers multiple mineralized epithermal quartz veins, disseminated horizons and breccia structures. These veins form a high-level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations indicates the presence of bulk tonnage targets. Excellent infrastructure exists in the Sandra Escobar area, including paved road access, electrical power, water and manpower from nearby communities.
Technical Information and Qualified Person
Ben Whiting, P.Geo., Vice President of Exploration for Orex Minerals Inc., is a Qualified Person as defined in NI 43-101 and takes responsibility for the technical disclosure contained within this news release.
ABOUT OREX MINERALS INC.
Orex Minerals Inc. is a mineral exploration company focused on precious and base metals exploration in Mexico and Canada. Orex has several current projects: Three projects are located in Durango State, Mexico, including the Coneto Silver-Gold Project as a joint venture with Fresnillo PLC, the Sandra Escobar Silver Project with Pan American Silver Corp., and the San Luis del Cordero Silver-Copper-Zinc Project. The Company's fourth project is the Jumping Josephine Gold Project in British Columbia, Canada. Orex is under the management provided by the experienced Belcarra Group Management Ltd. ("Belcarra Group"). The Belcarra Group is comprised of highly qualified mining and financial professionals.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope President
For further information, please contact Orex Minerals Inc. at (604) 687-8566 x227, email or visit our website at www.orexminerals.com.
This News Release may contain forward-looking statements including but not limited to comments regarding the entering into a formal joint venture agreement between Orex and Pan American, 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 and Orex undertakes no obligation to update such statements, except as required by law.
For additional information on risks and uncertainties, see the Company's most recently filed annual management discussion and analysis ("MD&A"), which is available on SEDAR at www.sedar.com and on the Company's website at www.orexminerals.com. The risk factors identified in the MD&A are not intended to represent a complete list of factors that could affect the Company.
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.
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