Orko is a silver explorer with a large land position in an historic silver mining region in Durango State, Mexico. All three projects are located on large contiguous mineral concession packages. This is home to several mines including Hecla’s San Sebastian Mine; which has had annual production of up to 2.8 million ounces of silver.
1. Orko controls 100% of its “La Preciosa” project.
Orko has conducted geological mapping, geophysical testing and has systematically drilled a portion of the known strike length of epithermal silver-gold veins on the property. Two of the veins, La Gloria and Abundancia, have been drill tested each along 1.2 km strike length which established the first NI 43-101 compliant Inferred Resource Estimate released on January 19th, 2006. Data from 26 drill holes totaling 11,579 metres form the basis of an Inferred Resource of 2.72 million tonnes grading silver 227.2 g/t and gold 0.464 g/t, for a silver-equivalent grade of 255 g/t. Contained metal in the Inferred Resource equals 618 million grams silver (19.9 million ounces silver) and 1.26 million grams gold (40,400 ounces gold) for a silver-equivalent content of 694 million grams (22.3 million ounces silver-equivalent).
The second NI 43-101 compliant Inferred Resource Estimate was released on September 7th 2006. This Resource Estimate was based on the first 24 holes drilled by Orko in 2005 and 7 historical holes from 1981-82. Using the identical methodology and adding the results of the 7 historical holes plus another 7 holes for a total of 38; an Inferred Resource Estimate of 3.42 million tonnes grading 235.0 silver grams per tonne (g/t) and 0.435 gold g/t, for a silver-equivalent grade of 261.1 g/t. This represents a significant increase of 30% in the contained silver-equivalent metal content to 892 million grams (28.7 million ounces).
The third NI 43-101 compliant Inferred Resource Estimate was released on March 13th 2007; and is based upon assay results up to and including 79 of 111 drill holes on La Preciosa Ridge. An Inferred Resource of 4.39 million tonnes grading 229.9 silver grams per tonne (g/t) and 0.396 gold g/t, for a silver-equivalent grade of 253.7 g/t. This represents a contained silver-equivalent metal content of 1,114 million grams (35.8 million ounces).
The resource estimates have been prepared on vertical longitudinal sections for each vein, with changes in dip of veins taken from 100 metre cross sections for volumetric adjustments. On the longitudinal sections, multiple ore-shoot locations were interpreted, defined by structure and underground sampling utilizing minimum cut-offs of 150 g/t Ag-Eq. Veins on “La Preciosa” have been traced for 5 kilometres north-south, as well as multiple east-west veins. Veins include Abundancia, La Gloria, Luz Elena, Carmen, Esperancita, Transversal, Incognita, Nueva, Sur, Ramal Sur, El Orito, El Orito Norte, Zona Sur, Nancy, Martha etc… Currently, less than 30% of the targets have been drilled and only to a true depth of 340 metres. The deposit, consisting of multiple veins, remains open along strike and at depth.
Drilling is underway using 2 rigs, working 7 days a week, 24 hours a day. Orko is presently drilling holes 112 and 113. So far, over 45,000 metres of drilling has been completed to date. The Company will be releasing a new resource estimate by the end of Q3 2007.
2. A larger mineral concession land package to the north and east, called “Santa Monica” project, has also been optioned from Goldcorp. Under the terms of the Joint Venture Agreement, Orko Silver can earn a 75% interest in the project by incurring US $1.5 Million on exploration expenditures over a 5 year period. This is a more preliminary exploration project, containing float boulders of epithermal style silver-gold mineralization. Soil and quartz float surveys have been completed. Currently, Geophysics is being conducted and exploration is set to begin in the near future.
3. To the west of “La Preciosa” and “Santa Monica” is the large mineral concession property called the “San Juan” project. An agreement has been reached with Silver Standard to option this land package. Orko can earn a 75% interest in the San Juan project by incurring US $750,000 over a 5 year period. Thus far, three silver-gold epithermal veins have been located; La Plomosa, El Vacaro and San Juan veins are known to outcrop on this property. Preliminary surface sampling has been conducted and a Soil Survey is underway.
Overall, “La Preciosa”, “Santa Monica” and “San Juan” represent an excellent land position. Successes over the past year on “La Preciosa” bode well for future successful expansion of the resources.
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