Sandra-Escobar, Durango State, Mexico
Initial Resource Estimate:
On October 31, 2016, Orex announced a first resource estimate for the Boleras Silver Deposit on the Sandra-Escobar Project in Durango, Mexico, prepared by the consulting firm Mining Plus with an effective date of October 25, 2016. At a “Base Case” of 45 g/t Ag cut-off, the Inferred Resource Estimate yields 9.8 million tonnes (Mt) grading 106 g/t Ag for a total of 33.3 million ounces (M-oz) of silver.
|Boleras Silver Deposit – Inferred Resource Estimate by Cut-Off Grade|
|Ag (g/t)||Ag (g/t)||Ag (oz/t)||(M-g)||(oz)|
|45 – BASE CASE||9,800,000||106||3.4||1,040||33,300,000|
Note: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the estimated Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The Mineral Resource was estimated by Dr. A. Fowler, MAusIMM, CP (Geo), Independent Qualified Person under NI 43-101. Data was verified by Mr. Michael Collins, P.Geo., Independent Qualified Person under NI 43-101, of Mining Plus Consultants. A copy of the Technical Report titled “Sandra Escobar Project Technical Report, Boleras Mineral Resource Estimate”, dated December 1, 2016, (effective date: October 25, 2016, commissioned and prepared for Orex by J.M. Collins, P. Geo., A. Fowler, MAusIMM CP (Geo), and S. Butler, P. Geo., of Mining Plus Canada Consulting Ltd., is attached below for reference.
Please click here to see Resource Estimate Report
Sandra Escobar is located 200 km northwest of the city of Durango, Mexico, in the heart of the “Mexican Silver Trend”, with excellent access and infrastructure. This prolific trend hosts some of the world’s largest silver camps and deposits, with many past and present producing mines and significant silver-gold deposits. The project area hosts multiple mineralized epithermal quartz veins and breccia structures. These veins and structures form high level silver-gold-base metal systems, hosted in andesitic and rhyolitic rocks, and are centered on a large rhyolite dome complex in the north and silver-dominant systems around smaller rhyolite dome complexes to the southeast.
The property is located within easy access from Canasil’s operating base in Durango, with excellent infrastructure provided by paved roads (leading directly on to the property), power lines and water access in the district. Canasil holds 100% interest in 6,333 hectares Sandra project concessions. In 2012 Canasil earned a 40% interest in the adjacent 634-hectare Escobar claims of Pan American Silver through fulfilling the terms of an earn-in agreement.
The silver, gold and base metal mineralized system observed at Sandra-Escobar is indicative of a potentially large gold-silver system, similar to other large deposits associated with altered intrusive complexes, such as La Pitarrilla, El Cairo and San Agustin, located within this well-recognized mineral trend in Durango State.
Google Image of Sandra-Escobar Project Area Showing Classic Physical and Geological Features of
Large Intrusive Hosted Disseminated Gold-Silver Systems: Rhyolite Dome Complex with
Argillic and Potassic Alteration Envelopes Surrounded by Vein Systems on the East, West and South
Exploration history: programs 2005 - 2015:
The following exploration programs have been completed by Canasil since staking the claims in 2005 through to 2015:
These programs have identified multiple targets within the project area with both high-grade epithermal vein silver-gold-base metal mineralization and disseminated silver mineralization.
Canasil-Orex Option Agreement, Sept. 2015:
Under the Canasil-Orex agreement, Orex has a first option to earn 55% interest in the Sandra-Escobar project by making a payment of $500,000 to Canasil upon signature of the Agreement and completing US$2,000,000 in exploration expenditures within three years. Following exercise of the first option, Orex has a second option to earn an additional 10% interest, for a total 65% interest in the project, by completing an additional US$2,000,000 in expenditures within two years of exercising the first option, and by making a payment to Canasil of $500,000 in cash and/or Orex shares, at the option of Orex.
Orex 2015-16 Exploration Program:
Starting December 2015 Orex Minerals Inc. has completed 3 Phases of core drilling for a total of 8.732 metres in 62 drill holes in the in the southeast of the project area on an area hosting disseminated near-surface silver mineralization, referred to as the “Boleras Silver Deposit”. This area has been previously mapped, sampled and trenched by Canasil. Silver mineralization is hosted along the north flank of a rhyolite volcanic dome. An altered and highly permeable volcanoclastic unit is the primary target, particularly where it is marked by broadly-spaced stockwork veinlets and disseminated silver mineralization. The volcanoclastic unit is overlain by a massive, fresh porphyritic rhyolite. The current working model envisages the porphyritic rhyolite unit acting as an impermeable cap, which may have focused mineralizing fluids into the underlying permeable volcanoclastic host.
Sandra-Escobar 2015-16 Drill Program – Phase 1 to 3 Drill Plan Map:
|Sandra-Escobar Southeast Area Drill Hole Intercepts – 2015-2016 Phases 1 - 3 Drill Programs|
|Cherro Chato Zone|
|Puma Ridge Zone|
|Reconnaissance Drill Holes West and South of Main Zone|
The drill program is managed by Orex and the above results were prepared by and provided by Orex. Orex maintains a QA/QC sampling protocol for the programme, including the insertion of commercial analytical standards and blank samples. Analytical testing was performed by SGS Mineral Services and Bureau Veritas. Silver was determined by fire assay with an atomic absorption finish. Multi-element analyses are also determined using a 4-acid digestion and ICP-MS (Inductively Coupled Plasma Mass Spectrometry).