Orko Silver Corp. (TSX Venture Exchange: OK.V) is developing one of the world’s largest primary silver deposits, La Preciosa, located near the city of Durango, in Durango State, Mexico. The La Preciosa silver project and adjacent mineral concessions cover 80,000 acres of contiguous mining claims.
On February 18, 2009, the Company released its 6th NI 43-101 compliant Resource Estimate. The La Preciosa deposit now comprises 47% Indicated Resources and 53% Inferred Resources. Current Indicated Resources are 10.64 million tonnes grading 0.27 g/t Au and 185 g/t Ag for a Silver-Equivalent grade of 201 g/t. at a cut off grade of 100 g/t. The contained metal equals 63.2 million ounces of Silver and 94,000 ounces of Gold for a Silver Equivalent of 68.9 Million Ounces. Current Inferred Resources are 12.0 million tonnes grading 0.25 g/t Au and 185 g/t Ag for a Silver-Equivalent grade of 200 g/t. at a cut off grade of 100 g/t. The contained metal equals 71.8 million ounces of Silver and 97,000 ounces of Gold for a Silver Equivalent of 77.6 Million Ounces.*
*Estimated at a 60 to 1 Silver/Gold ratio with metallurgical recoveries and net smelter returns assumed to be 100%.
The current resource estimate is based on all of Orko Silver’s drilling to date, including the 2008 drilling of an additional 205 holes (79,021 metres). There remains significant potential for defining a larger resource.
On April 14th, 2009 Pan American Silver Corp. and Orko Silver announced that they have agreed to form a joint venture to develop the La Preciosa project. Pan American will contribute its demonstrated mine development expertise, as well as 100% of the funds necessary to develop and construct an operating mine, in consideration for a 55% interest in the joint venture. Orko Silver retains a 45% interest fully carried to production.
Key aspects to the joint venture and the development strategy for La Preciosa include:
* Pan American currently operates 7 primary silver mines
* Pan American has completed 3 successful mining project in the past 4 years
* Pan American will fast track the deposit to production
* Orko Silver retains a 45% fully carried interest to production
* No financing risk or further dilution for Orko Silver shareholders
Orko Silver’s shareholders will benefit from the financial capacity and extensive mine development expertise that Pan American brings to the joint venture as well as retain the upside potential for the discovery of additional resources from Orko Silver’s exploration team.
Going forward, the Joint Venture partners have already begun releasing results from the 2009 exploration program which will include trenching, detailed metallurgical tests as well as more than 35,000m of diamond drilling both in the known deposit but also in the exploration targets previously identified by Orko Silver. Recent August 2009 drill results include assays such as hole BP09374, which yielded a true thickness of 32.68 meters grading 0.376 g/t gold and 245.4 g/t silver for a silver equivalent of 267.9 g/t and drill hole BP09359, which yielded 34.77 meters grading 0.278 g/t gold and 202.4 g/t silver for a silver equivalent of 219.1 g/t. These values are comparable with earlier drilling by Orko Silver at La Preciosa.
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