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Properties

– Mexico Properties

– Sandra-Escobar, Durango State, Mexico

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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
Cut-off Grade Tonnes Grade Grade Silver Silver
Ag (g/t)   Ag (g/t) Ag (oz/t) (M-g) (oz)
15 12,100,000 92 3.0 1,120 35,800,000
30 11,500,000 96 3.0 1,100 35,400,000
45 – BASE CASE 9,800,000 106 3.4 1,040 33,300,000
60 8,000,000 118 3.8 950 30,400,000
75 6,400,000 131 4.2 840 26,900,000
90 5,000,000 145 4.7 720 23,100,000

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

Project Summary:

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:

Phase 1 to 3 Drill Plan Map

Sandra-Escobar 2015-16 Drill Program – Drill Plan and Cross Sections 4580E and 4950E:

4580E  4950E

  Sandra-Escobar Southeast Area Drill Hole Intercepts – 2015-2016 Phases 1 - 3 Drill Programs
Hole From
(m)
To
(m)
Core Lgth.
(m)
True Thick.
(m)
Ag
(g/t)
Hole From
(m)
To
(m)
Core Lgth.
(m)
True Thick.
(m)
Ag
(g/t)
Main Zone
SA-15-001 1.00 62.00 61.00 43.13 359 SA-16-030 3.00 6.00 3.00 2.12 51
SA-15-002 1.00 52.00 51.00 45.00 218 SA16- 032 67.00 80.00 13.50 11.48 23
SA-15-003 1.00 54.00 53.00 40.60 139 SA-16-033 46.00 55.00 9.00 7.65 51
SA-16-004 2.00 49.00 47.00 39.00 91 SA-16-034 52.00 84.00 32.00 29.00 52
SA-16-005 13.00 59.00 46.00 33.31 186 SA-16-035 46.00 70.00 24.00 22.00 36
SA-16-006 13.00 50.00 37.00 33.50 328 SA-16-040 67.00 117.00 50.00 45.32 90
SA-16-007 14.00 19.00 5.00 4.00 112 SA-16-041 2.00 69.00 67.00 58.02 192
SA-16-008 11.00 17.00 6.00 4.80 143 SA-16-042 27.00 83.00 56.00 48.50 129
SA-16-009 11.00 43.00 32.00 30.00 255 SA-16-043 40.00 95.00 55.00 47.63 56
SA-16-010 18.00 47.50 29.50 25.00 59 SA-16-047 8.00 66.00 58.00 46.00 113
SA-16-011 9.00 61.00 52.00 48.00 74 SA-16-048 22.00 87.00 65.00 56.00 114
SA-16-012 8.00 49.00 41.00 28.99 89 SA-16-049 1.00 42.00 41.00 35.00 106
SA-16-013 43.00 102.00 59.00 41.72 93    and 82.00 107.00 25.00 21.00 63
SA-16-014 35.00 64.00 29.00 28.01 63 SA-16-050 2.00 59.00 57.00 46.00 118
SA-16-015 32.00 76.00 44.00 36.04 129    and 109.00 132.50 23.50 18.00 48
SA-16-016 11.50 41.00 29.50 22.60 97 SA-16-051 0.70 36.00 35.30 31.00 88
SA-16-017 13.50 41.00 27.50 21.07 69    and 75.00 81.00 6.00 5.50 26
SA-16-018 50.00 89.00 39.00 31.95 119 SA-16-052 4.00 40.00 36.00 29.00 40
   and 120.50 137.00 16.50 13.52 46    and 104.00 106.00 2.00 1.75 28
SA-16-019 24.00 84.00 60.00 49.15 205 SA-16-053 1.00 51.00 50.00 32.00 40
SA-16-020 46.00 113.00 67.00 63.50 88    and 97.00 103.00 6.00 5.00 16
SA-16-021 44.50 75.00 30.50 28.50 110 SA-16-057 62.00 103.00 41.00 33.58 108
SA-16-022 69.00 94.00 25.00 24.00 70 SA-16-058 101.00 115.00 14.00 11.47 28
SA-16-023 44.00 90.00 46.00 40.50 218    and 151.50 162.00 10.50 8.60 18
SA-16-024 23.00 68.00 45.00 38.50 143 SA-16-059 52.50 55.00 2.50 2.05 24
SA-16-025 37.00 57.00 20.00 19.00 133    and 72.00 85.00 13.00 10.65 16
SA-16-026 9.00 58.00 49.00 34.65 46 SA-16-060 72,00 112.00 40.00 32.76 55
SA-16-027 12.00 43.00 31.00 28.54 73            
Cherro Chato Zone
SA-16-029 10.00 46.00 36.00 25.46 39 SA-16-054 5.00 21.00 16.00 12.26 36
SA-16-029 1.00 31.00 30.00 22.98 32    and 89.00 98.00 9.00 6.89 46
SA-16-055 7.00 17.00 10.00 7.66 32    and 128.00 131.00 3.00 2.30 31
Burro Zone
SA-16-044 0.70 25.00 24.30 24.00 144 SA-16-046 3.00 14.00 11.00 8.25 32
SA-16-045 11.00 17.00 6.00 4.50 51            
Puma Ridge Zone
SA-16-061 2.48 17.00 14.52 10.89 55            
Reconnaissance Drill Holes West and South of Main Zone
SA-16-036 13.00 17.00 4.00 2.83 43 SA-16-038 1.85 48.00 46.15 26.00 156
SA-16-037 2.60 17.00 14.40 13.50 101 SA-16-039 55.00 63.00 8.00 7.25 67

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).