Orex Signs a Non-Binding Letter of Intent to Acquire 100% of the Valenciana Gold-Silver Project in Zacatecas State, Mexico
Orex Signs a Non-Binding Letter of Intent to Acquire 100% of the Valenciana
Gold-Silver Project in Zacatecas State, Mexico
VANCOUVER, BC
,
Oct. 3, 2023
/CNW/ -
Orex Minerals Inc.
(TSXV: REX) (OTCQB: ORMNF)
("Orex"
or the
"Company")
is pleased to announce the signing
of a non-binding Letter of Intent (the "
LOI
") with Exploraciones El Cairo S.R.L. de C.V. ("
EEC
"), a Mexican registered private company, to acquire 100% of the
Valenciana Gold-Silver Project in Zacatecas State,
Mexico
(the "
Valenciana Property
").
The Valenciana Property hosts high-grade epithermal gold and silver veins, with base metals of lead and zinc, in Cretaceous sedimentary units and Tertiary
rhyolitic and monzonitic intrusive rocks. It is located on the Mesa Central within the prolific "Silver Trend" of
Mexico
.
Orex's President & CEO,
Ben Whiting
, P.Geo., said;
"The discovery potential of the Valenciana District was recognized by geologists
Perry Durning
and
Bud
Hillemeyer
back in 1996. Drilling later that year yielded excellent results, however, a worldwide exploration slowdown took place in 1997 and the main vein
intercepts did not receive further work. This is an excellent opportunity to restart exploration at Valenciana."
VALENCIANA GOLD-SILVER PROJECT,
ZACATECAS, MEXICO
Located north of the village of Valenciana in northern Zacatecas State, approximately 30 kilometres north of the Nieves Mining District and 33 kilometres
southeast of the town of
Juan Aldama
, the Valenciana Property consists of 277.18 hectares of mineral concessions. The central target area covers about 2.7
kilometres of the main east-southeast Valenciana vein system. There are signs of early production, with old mine shafts and adits, but no historic production
documentation is available.
Hydrothermal alteration is extensive in the district due to the emplacement of the low to intermediate sulphidation vein systems, hosted mainly in the Cretaceous
sedimentary units. Tertiary intrusive rocks of rhyolite and monzonite composition have been mapped on the western extent of the Valenciana Property.
The 1996 exploration program, conducted by Pan American Silver Corp. and La Cuesta International Inc., included 10 diamond drill holes on the Valenciana
Property. Multiple base and precious metal mineralized intercepts were encountered. Examples include hole V002 which yielded
2.19 m
grading Au 2.50 g/t, Ag
1,115 g/t, Pb 0.5% and Zn 1.4%. Hole V003 yielded
1.87 m
grading Au 1.05 g/t, Ag 739 g/t, Pb 1.10% and Zn 2.71%. A broader zone was encountered in hole
V012 which yielded
22.25 m
grading Au 0.94 g/t, Ag 99 g/t, Pb 0.93% and Zn 0.94%. While these drill holes pre-date the introduction of National Instrument 43-
101 -
Standards for Disclosure for Mineral Projects
("
NI 43-101
") standards, they still serve as a good guide for potential future exploration programs.
In 2003, Silver Standard Resources Inc. drilled a series of 9 shallow reverse-circulation holes. Surface lithogeochemical sample data, airborne magnetic and
radiometric geophysical survey data and limited ground Induced-Polarization data are also available.
While the LOI is non-binding, negotiation of a definitive agreement is underway at this time, and such definitive agreement is expected to include a four-month due
diligence period, scaled option payments, an area of influence and a 2% production royalty ("
NSR
") on the original concessions, plus a 0.5% NSR on adjacent
properties obtained from third party concession holders within the area of influence.
Ben Whiting
, P.Geo., is the Qualified Person as defined in NI 43-101 and takes responsibility for the technical disclosure contained in this news release. Mr.
Whiting is not considered independent of the Company under NI 43-101 as he is the President, CEO and a director of the Company.
ABOUT OREX MINERALS INC.
Orex Minerals Inc. is a mineral exploration company focused on precious and base metals exploration in
Mexico
and
Canada
. Orex has several current projects:
Two projects are located in Durango State,
Mexico
, the Sandra Silver-Gold Project with Pan American Silver Corp. and the Coneto Gold-Silver Project with
Fresnillo PLC. The third project is the Jumping Josephine Gold Project in
British Columbia, Canada
. Orex is managed by the experienced Belcarra Group
Management Ltd., comprised of highly qualified mining professionals.
ON BEHALF OF THE BOARD OF DIRECTORS
Ben Whiting
. P.Geo.
President and CEO
FORWARD LOOKING STATEMENTS
This News Release may contain forward-looking statements including, but not limited to, statements with respect to the LOI, the execution of and terms of a
definitive agreement to acquire 100% of the Valenciana Property and future exploration of the Valenciana Property. Forward-looking statements address future
events and conditions and therefore involve inherent risks and uncertainties including, among others: the success of evaluation plans; the success of exploration
activities; mine development prospects; potential for future metals production; changes in economic parameters and assumptions; timing of receipt of exploration
results; the interpretation and actual results of future exploration activities and mineralization; the results of regulatory and permitting processes; future metals
price; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining
industry; the results of economic and technical studies; delays in obtaining governmental and local approvals or financing or in the completion of exploration; timing
of assay results. Actual results may differ materially from those currently anticipated in such statements and Orex undertakes no obligation to update such
statements, except as required by law.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the
forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements.
For additional information on risks and uncertainties, see the Company's most recently filed annual management discussion and analysis ("
MD&A
"), which is
available on SEDAR+ at
www.sedarplus.com
and on the Company's website at
www.orexminerals.com
. The risk factors identified in the MD&A are not intended
to represent a complete list of factors that could affect the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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SOURCE
Orex Minerals Inc.
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For further information:
Orex Minerals Inc. at 604-687-8566, email [email protected] or [email protected] or visit our website
www.orexminerals.com.
CO: Orex Minerals Inc.
CNW 08:00e 03-OCT-23