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Orko Silver Corp (OK:CA)
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Web site:
http://www.orkosilver.com
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 32,400 hectares (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 (79,021metres). 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.
Since assuming operatorship of the project in April, 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.
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.
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.
OK:CA
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