The Sandra Escobar Project is a silver and gold exploration property located 40 km north of the community of Tepehuanes and 180 km north of the City of Durango in Durango State, Mexico. Orex Minerals Inc. has an option agreement to earn up to 65% interest in the property from Canasil Resources Inc. Approximately 6,340 hectares of mineral concessions cover multiple epithermal targets, located halfway between the mining districts of Guanacevi (Endeavour Silver) and Tovar (Minera de Atocha) and 75 km west of the giant La Pitarrilla Deposit (Silver Standard), in the prolific "Mexican Silver Trend."
The geological setting of the Sandra Escobar property can be divided into three regions.
Orex has drilled 8,372 metres in 62 diamond drill holes in the southeastern region of the project. The first 59 diamond drill holes formed the basis for an initial resource estimate on the "Boleras Silver Deposit." At a "Base Case" of 45 g/t Ag cut-off, the Inferred Resource Estimate yielded 9.8 million tonnes grading 106 g/t Ag for a total of 33.3 million ounces of silver (See Orex news release of 31 October 2016).
For detailed information on the Inferred Resource Estimate, please refer to the "Technical Report" entitled:
Collins, J.M., Fowler, A. and Butler, S., 2016, "Sandra Escobar Project Technical Report, Boleras Mineral Resource Estimate, December 2016." Mining Plus Canada Consulting Ltd. on behalf of Orex Minerals Inc. and Canasil Resources Inc., 93 p. (effective date: 25 October 2016).
Terms of the Agreement
As announced in a News Release dated January 16, 2017, Orex Minerals Inc. and Canasil Resources Inc. entered into a joint venture with respect to Canasil's Sandra Escobar Project in Durango, Mexico. Orex has earned 55% ownership interest in the Project by making a payment of $500,000 to Canasil upon execution of the Option Agreement and conducting $2,000,000 of exploration and development expenditures.
Drilling by Orex commenced in December, 2015, on the disseminated and stockwork, bulk tonnage silver targets in the southeast region (Results of drilling here).