Orko Silver Corp.
TSX VENTURE: OK
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 13, 2010) – Orko Silver Corp. (TSX VENTURE:OK) – The Company is pleased to provide an update of activities planned for 2010 and a year-end summary on our La Preciosa silver deposit located in Durango Mexico currently in a joint venture with Pan American Silver Corp.
In 2010, Pan American plans a continued aggressive exploration program. Work will include approximately 51,000m of diamond drilling, with the majority of the drilling slated for further resource definition; 100km of magnetometer surveys; more detailed metallurgical testing; additional engineering studies, a preliminary economic assessment and continued community relations. Drill testing of two additional exploration targets and the completion of a preliminary environmental impact study (EIS) are also integral parts of this year’s planned program.
Integral to the planned exploration and perhaps the most important investigation ongoing by Pan American will be determining the optimal mining method should all the results of the accelerated work program remain positive. Currently, Pan American is investigating the possibilities of mining the deposit by underground methods or by a large open pit or possibly a combination of the two methods. Pan American will need the results from the 2010 work program to determine the best approach to mining at La Preciosa.
Pan American has budgeted $10 million for the planned 2010 exploration and development and is working towards completing a full feasibility study towards the end of the year; more than a year ahead of the timing contemplated in the April 2009 joint venture agreement.
Gary Cope, president of Orko Silver Corp. stated:
Orko is very pleased with the progress of the exploration to date and the acceleration of the work towards the completion of the full feasibility study towards the end of 2010.
Calendar Year 2009 represented a significant and positive change for the Company and our La Preciosa silver deposit located in Durango, Mexico.
- On Feb 18, 2009, the Company released the sixth and latest 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%.
- On March 31, 2009 the Company announced that it had signed an agreement with Silver Standard Resources Inc. to acquire a 100% interest in the San Juan Property located immediately west of the Company’s La Preciosa. Orko had previously concluded a similar agreement with Goldcorp on the Santa Monica property (Oct 27, 2008). The Company now has a 100% interest in the large 32,400 hectares (~ 80,000 acres) project.
- On April 14, 2009 the Company and Pan American Silver Corp. announced that they had agreed to form a joint venture to develop the La Preciosa project. Pan American contributes 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. Orko Silver’s shareholders will benefit from the financial contribution 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 on the project.
- From September to November, the joint venture partners began releasing results from the 2009 exploration program which included trenching, detailed metallurgical tests as well as more than 27,000m of diamond drilling both in the known deposit and also in the exploration targets previously identified by Orko Silver. The values are comparable with earlier drilling by Orko Silver at La Preciosa. A full QC/QA program continues under the direction of Pan American. A complete table of 2005-2009 drill results and drill hole location maps are available on our website.
- June-December, 2009 to present, Pan American has drilled 91 holes, including 23 holes on exploration targets for a total of 27,097m. Delineation drilling is in the Central Area of the La Preciosa Resource and consists of 66 holes (21,734m). Exploration drilling around the periphery of the Resource includes 15 holes (5,363m) from the South Area on the Martha Vein. The results of the exploration drilling to date from Baritina and El Vaquero, which are targets outside of the Martha vein resource, have been inconclusive. Further drilling has been done in both areas; results of which are pending.
- Pan American has completed a first phase detailed metallurgical testing program on representative samples of the different veins at La Preciosa and these have yielded excellent results. Work included: work index tests, abrasion tests, mineralogical studies, gravity tests, flotation tests and cyanide leach tests. Simple cyanide leaching yielded average silver recoveries of 91%, although the use of selective oxidants could further enhance these results.
- In addition to continuing delineation and exploration drilling, as well as commencing additional metallurgical testing, the project is being actively advanced on a number of other critical path items. Hydrogeological services have been contracted to begin determining appropriate water sources and Pan American has been in active dialogue with the local communities and land owners in the project’s immediate vicinity who would be affected by La Preciosa’s development.
A printer friendly PDF format of this news release is available at the link below:
George Cavey, P.Geo. is the Qualified Person and takes responsibility for the technical disclosure in this news release.
About Orko Silver Corp.
Orko Silver Corp. is developing one of the world’s largest primary silver deposits, La Preciosa, located near the city of Durango, in the State of Durango, Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release.
YeOldGoldNugget’s links of interest
- New Video: As the Dow Goes, So Goes the Country
- New Video: Has the dollar bottomed out?
- New Video: Crude Oil: Lower Levels Ahead?
- New Video: It’s Official Silly Season for Gold
- What do supertraders have in common
- Two Major Forces Collide in the Index Markets
- What’s Gold’s Next Stop?
- Introducing the Perfect Portfolio
- Free Email Trading Course Copy