Oroco Secures Surface Rights for Cerro Prieto Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/18/11 -- Oroco Resource Corp. (TSX VENTURE: OCO) ('Oroco' or 'the Company') is pleased to announce that it has entered into an interim agreement with regard to the lease of the surface rights in relation to its Cerro Prieto Oxide Gold Project in Sonora State, Mexico. This agreement, between Minas de Oroco Resources, S.A. de C.V. ('MOR'), the Company's wholly-owned subsidiary, and the owner of the surface rights, provides for the lease of 1,000 hectares for an initial term of seven years, with MOR having a right of renewal for two consecutive five year terms. The Cerro Prieto Project is situated within a privately owned ranch, approximately 28 km southeast of the town of Magdalena de Kino, Sonora State, Mexico.
The Company is also pleased to announce the appointment of Roger Scammell, BSc (Geology) and PGeo (Ontario), as a Vice-President of the Company and President of MOR. Mr. Scammell's primary responsibility will be to oversee the construction of the Cerro Prieto mine and the related processing facilities.
Mr. Scammell has 40 years experience in the mining and exploration industry in North America, most recently (2004 to 2010) with Scorpio Mining Corporation, first as Vice-President and then President, where he was responsible for overseeing the exploration and development of, and initial production from, the 1,400 tonne per day Nuestra Senora polymetallic silver mine in Sonora, Mexico. Mr. Scammell has extensive experience in Mexico, first as the Country Manager (Mexico) for Teck Corporation and its Mexican subsidiary, Minera Teck S.A. de C.V. from 1992 to 2002, and then with Scorpio.
Craig J. Dalziel, President, stated; 'We are extremely pleased to have completed these critical steps in realizing near term gold production at Cerro Prieto. Reaching agreement on a lease of the surface rights and retaining someone of Mr. Scammell's ability and experience to oversee the development of the project bring Oroco that much closer to fulfilling its production expectations for the Cerro Prieto Project. A Preliminary Economic Assessment filed by the Company on January 29, 2011 cited an IRR of over 90% at $1,000 per ounce gold, and subsequent pre-construction activities undertaken by Sonoran Resources, LLC, our project management group, continue to support those PEA numbers.'
About Oroco
Oroco is a Canadian-based mineral exploration company with its primary focus on the accelerated development of the gold-bearing oxide zones of its Cerro Prieto Project in northern Sonora State, Mexico. In late 2010, Oroco received a positive Preliminary Economic Assessment for the Cerro Prieto project. The Cerro Prieto Project consists of the San Felix, San Francisco, Elba and Cerro Prieto concessions, totaling 2,729 ha, and the contiguous 4,224 ha Argonauta 6 concession.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.
Contacts:
Oroco Resource Corp.
Mr. Craig Dalziel
President and CEO
604-688-6200
www.orocoresourcecorp.com