Orko Silver Corp. - Engineering Studies Advance on La Preciosa Silver Project: Additional High-Grade Intercepts Include 3.59 Metres Grading 1,040 g/t Silver-Equivalent
18.10.2010 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Oct. 18, 2010) - Orko Silver Corp. (TSX VENTURE: OK) is pleased to announce that excellent progress is being made in the technical studies to advance the "La Preciosa" Project in Durango, Mexico. The project also continues to yield favourable results from the ongoing diamond drilling program being completed by our joint venture partner, Pan American Silver Corp. (TSX - PAA).Pan American Silver is examining various scenarios for the economic evaluation of La Preciosa, including coordinating the work of external engineering studies. These studies have been completed, or are soon to be completed, and are being incorporated into the overall project review:
- Golder Associates Ltd. (Canada) has been contracted to conduct geotechnical engineering for both underground and open pit mine design;
- M-3 Engineering (USA) has been contracted for plant and tailings design, as well as infrastructure costing;
- Quantitative Group Pty. Ltd. (Australia) has been contracted to conduct geostatistical evaluation and resource modeling;
- SGS Mineral Services (Mexico) has been contracted to conduct additional metallurgical studies; and
- Clifton Associates Ltd. (Canada) has been contracted for environmental studies.
Gary Cope, President of Orko, states; "The additional excellent drilling results and engineering studies will lead to a Preliminary Economic Assessment (PEA), to be released by Pan American Silver, which is expected to be ready for the end of the year, or early first quarter 2011. The project is on schedule."
In the Resource area, more high-grade values have been intercepted, such as hole BP10-539, which yielded a true thickness of 7.71 metres in the Gloria vein grading Au 0.646 g/t and Ag 648.0 g/t for a silver-equivalent of 686.8 g/t. This included 3.59 metres grading Au 0.894 g/t and Ag 986.7 g/t for a silver-equivalent of 1,040.3 g/t.
Highlights of Recent Resource Diamond Drilling on La Preciosa
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Au Ag Ag-Eq
Hole/Vein From To Core Length True Width (g/t) (g/t) (g/t)
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BP10-539
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Abundancia 268.55 271.10 2.55 2.51 0.327 166.6 186.2
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Includes 269.70 270.20 0.50 0.49 0.529 288.0 319.7
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BP10-546
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Abundancia 150.50 160.35 9.85 9.70 0.184 173.9 184.9
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Includes 151.60 157.75 6.15 6.06 0.235 232.4 246.5
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Includes 157.35 157.75 0.40 0.39 0.477 1,041.0 1,069.6
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BP10-551
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Abundancia 130.65 136.50 5.85 5.49 0.094 294.1 299.8
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Includes 130.65 131.50 0.85 0.80 0.146 906.0 914.8
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BP10-539
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Gloria 177.75 186.65 8.90 7.71 0.646 648.0 686.8
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Includes 179.95 184.10 4.15 3.59 0.894 986.7 1,040.3
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Includes 181.95 182.70 0.75 0.65 1.086 1,345.0 1,410.2
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BP10-546
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Martha 308.90 316.05 7.15 7.12 0.584 101.8 136.8
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Includes 309.75 313.10 3.35 3.34 0.769 141.8 188.0
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Includes 312.20 313.10 0.90 0.90 0.992 320.0 375.3
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BP10-551
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Martha 316.65 325.65 9.00 8.97 0.198 159.7 171.6
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Includes 319.40 325.65 6.25 6.23 0.263 200.1 215.9
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Includes 323.25 324.65 1.40 1.39 0.479 374.0 402.7
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BP10-566
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Unnamed 236.65 239.70 3.05 2.87 0.321 191.0 210.3
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Martha 276.50 285.95 9.45 8.88 0.493 393.7 423.3
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Includes 277.10 283.35 6.25 5.87 0.632 562.8 600.7
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Includes 278.10 279.25 1.15 1.08 1.270 1,714.0 1,790.2
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BP10-577
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Martha 270.70 275.30 4.60 4.53 2.183 315.4 446.4
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Includes 271.85 273.45 1.60 1.58 5.656 683.1 1,022.4
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Includes 272.90 273.45 0.55 0.54 10.760 1,340.0 1,985.6
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BP10-578
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Martha 107.00 110.30 3.30 3.29 0.163 660.0 669.8
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Includes 107.00 108.95 1.95 1.94 0.248 1,061.2 1,076.1
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Includes 108.40 108.95 0.55 0.55 0.292 3,201.0 3,218.5
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BP10-605
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Martha 296.45 303.00 6.55 6.45 0.708 217.4 259.9
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Includes 297.10 300.00 2.90 2.86 0.925 390.1 445.6
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Includes 297.10 298.00 0.90 0.90 1.151 633.0 702.1
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BP10-596
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Transversal 205.70 208.40 2.70 2.66 0.196 232.7 244.5
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Includes 206.60 208.40 1.80 1.77 0.219 319.4 332.5
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Includes 207.15 207.80 0.65 0.64 0.485 564.0 593.1
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BP10-600
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Transversal 138.75 145.00 6.25 6.04 0.208 125.5 138.0
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Includes 141.60 145.00 3.40 3.28 0.225 166.6 181.9
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Includes 144.55 145.00 0.45 0.43 0.075 348.0 352.5
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In exploration diamond drilling beyond the main resource area, 11 drill holes have been completed in the El Orito Norte sector and 12 holes have been completed in the Nancy sector. Current exploration drilling is being conducted along a trend 8 km northwest of the resource area.
In El Orito Norte, a mineralized dyke was intercepted in hole BP10-598, which yielded a true thickness of 2.49 metres grading Au 0.209 g/t and Ag 396.3 g/t for a silver-equivalent of 408.9 g/t. On the north margin of the Nancy drilling, hole BP10-595 yielded a true thickness of 2.41 metres grading Au 1.123 g/t and Ag 157.1 g/t for a silver-equivalent of 224.5 g/t. More exploration testing is planned.
Highlights of Recent Exploration Diamond Drilling on La Preciosa - El Orito and Nancy
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Au Ag Ag-Eq
Hole/Vein From To Core Length True Width (g/t) (g/t) (g/t)
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BP10-576
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El Orito 359.60 361.90 2.30 2.30 0.023 141.5 142.9
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Includes 360.70 361.90 1.20 1.20 0.040 204.1 206.5
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Includes 360.70 361.45 0.75 0.75 0.044 221.0 223.6
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BP10-584
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El Orito (Sup) 321.10 327.05 5.95 5.93 0.009 90.0 90.6
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Includes 322.65 324.65 2.00 1.99 0.011 141.3 141.9
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Includes 323.40 324.65 1.25 1.25 0.014 167.0 167.8
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El Orito (Inf) 331.00 334.75 3.75 3.74 0.035 87.5 89.5
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Includes 331.00 332.50 1.50 1.49 0.054 140.4 143.7
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Includes 331.50 332.50 1.00 1.00 0.073 164.0 168.4
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BP10-598
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El Orito 327.45 329.95 2.50 2.49 0.209 396.3 408.9
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Includes 328.65 329.95 1.30 1.30 0.265 591.5 607.4
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Includes 328.65 329.15 0.50 0.50 0.534 906.0 938.0
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BP10-603
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El Orito 245.70 246.20 0.50 0.50 0.136 291.0 299.2
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BP10-607
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El Orito 133.60 134.10 0.50 0.50 0.589 91.2 126.5
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BP10-592
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Nancy 64.55 67.50 2.95 2.91 0.160 132.0 141.6
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Includes 64.55 66.90 2.35 2.31 0.134 142.4 150.4
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Includes 66.55 66.90 0.35 0.34 0.339 319.0 339.3
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BP10-595
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Nancy 89.00 91.50 2.50 2.41 1.123 157.1 224.5
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Includes 90.50 91.50 1.00 0.97 2.387 250.0 393.2
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BP10-601
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Nancy 104.00 106.05 2.05 2.04 0.634 48.7 86.7
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Includes 104.00 104.80 0.80 0.80 1.460 104.0 191.6
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As of the end of August, Pan American has completed over 76,000 metres of diamond drilling on La Preciosa in 2009-2010. Combined with Orko's 2005-2008 drilling of 154,000 metres, the project has now passed the 230,000 metre mark.
Results from Pan American's Phase-I, Phase-II and part of Phase-III were reported in news releases dated September 08 and October 21, 2009, plus April 29 and July 7, 2010. The information here is in addition to these earlier news releases. It covers 17,142 metres of diamond drilling in 71 holes (BP10-538 to BP10-608), the data for which has been received from Pan American Silver. Exploration holes represent 23 of the 71 holes. Diamond drilling is still underway.
The delineation drilling results from the new holes are mainly located in the known Martha vein structure and were drilled at approximately 18 metre and 50 metre spacing in an area previously drilled by Orko at 100 metre spacing. This data again confirms Orko's previously reported results, and forms the basis of a geostatistical study, toward ultimate reserve definition.
A complete table of drill results is available on our website at the link below:
http://www.orkosilver.com/i/pdf/geol-postred_DDH_Orko_PAS_210410.pdf
A detailed drill plan map is available on our website at the link below:
http://www.orkosilver.com/i/pdf/drillplanmap.pdf
A printer friendly PDF format of this news release is available at the link below:
http://www.orkosilver.com/i/pdf/OrkoPR2010-04-28.pdf
Ben Whiting, P.Geo., is the Qualified Person for Orko Silver Corp. and takes responsibility for the technical disclosure in this news release.
Silver-equivalent for the purposes of this drilling program is defined as silver grade plus 60 times gold grade. This 60:1 ratio was determined from the ten-year averages of gold and silver prices from the London Metal Exchange. Metallurgical recoveries and net smelter returns are assumed to be 100% for the silver-equivalent value. Base metal values are not included in the silver-equivalent.
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
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. Orko relies upon litigation protection for forward-looking statements.
*Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release.
Contact Information
Orko Silver Corp.
(604) 687-6310
(604) 687-6365 (FAX)
info@orkosilver.com
www.orkosilver.com