Fresnillo Proceeding to Second Option Stage on Coneto Project with Orex
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 21, 2014) - Orex Minerals Inc. (TSX VENTURE:REX) ("Orex"), is pleased to announce that project partner Fresnillo PLC (LSE:FRES) ("Fresnillo"), has confirmed that they have met the exploration expenditures of the First Investment Option stage and are proceeding directly to the Second Investment Option stage on the Coneto Gold-Silver Project in Durango, Mexico.
Orex's President, Gary Cope says, "Coneto is a highly prospective, mining district scale project and Fresnillo's decision to continue is a positive sign."
The terms of the Association Agreement (news release dated 2nd February 2012) called for a Fresnillo initial work commitment of US$2 million, followed by a First Investment Option stage work commitment of US$2 million, both of which have been completed. To date, exploration expenditures have passed the US$4 million mark.
The Second Investment Option stage work commitment of a further US$2 million is now underway. Three diamond drill rigs are in operation at Coneto as part of a 10,800 metre 2014 drill program. A joint technical committee, with both Orex and Fresnillo representation, is managing the Coneto exploration program.
Upon Fresnillo spending an aggregate of US$6 million on exploration activities and if Fresnillo exercises its right to continue, Orex and Fresnillo will each contribute their respective mining concessions to a new company ("NewCo") that initially would be owned 55% by Fresnillo and 45% by Orex.
Fresnillo will have the right to increase its ownership of NewCo to 70% by advancing the Coneto Project to the pre-feasibility stage, or alternatively, spending an additional US$21 million on exploration. If Fresnillo chooses to not exercise the right to increase its ownership of NewCo to 70%, the costs incurred to complete a prefeasibility study will be shared by Fresnillo and Orex in proportion to their ownership of NewCo. Any additional funding required by NewCo will be provided by Orex and Fresnillo in proportion to their respective ownership interests in NewCo at that time. Fresnillo will have a right of first refusal to acquire Orex's shares in NewCo if Orex receives a third party offer for Orex's interest in NewCo that Orex proposes to accept.
Coneto Mining District - Durango, Mexico
The historic Coneto Mining District is situated in the heart of the "Mexican Silver Trend", on the Mesa Central, stretching from Guanajuato in the southeast, through to the states of Zacatecas and Durango. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles, and Zacatecas.
Orex and Fresnillo hold extensive contiguous mineral concessions in the Coneto Mining District, which collectively total approx. 17,600 hectares and cover multiple mineralized epithermal quartz veins. In the first two phases, Orex and Fresnillo drilled 51 holes totaling 17,000 metres.
Ben Whiting, P.Geo., is a Qualified Person as defined in NI 43-101 and takes responsibility for the technical disclosure contained within this news release.
ABOUT OREX MINERALS INC.
Orex Minerals Inc. (TSX VENTURE:REX) is a Canadian-based junior exploration company comprised of highly qualified mining professionals. The Company has several current projects: the Barsele Gold Project in Sweden, the Los Crestones Gold-Silver-Copper Project in Sinaloa, Mexico, the Jumping Josephine Gold-Silver Project in British Columbia, and the Coneto Gold-Silver Project in Durango, Mexico, which is currently under option to Fresnillo Plc
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope, President
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 and Orex undertakes no obligation to update such statements, except as required by law.
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.