Oremex Announces Purchase of Drill Rig
Vancouver, Canada (ots/PRNewswire)
Oremex Resources Inc. (TSX-V:
ORM) (the "Company") is pleased to announce that it has committed to
purchase a track-mounted reverse circulation drill rig for its key
projects in Mexico. The Company has also entered into a drilling
service agreement with Tiger Drilling USA ("Tiger") to operate and
maintain the drill rig. Tiger has successfully completed over 36,000
metres of drilling in previous programs on the Tejamen Silver
Property. Drilling is expected to resume in January, 2007."With drill rigs and capable operators in short supply, this is a positive step for the Company," said Linda Thorstad, Chief Executive Officer of the Company. "There are significant opportunities to substantially expand resources at the Tejamen Silver Property and to develop resources at the San Lucas Property."
An independent resource study prepared by Wardrop Engineering Inc. (NI 43-101 compliant, as reported in an April 11, 2006 news release) concluded at that time that the Tejamen Silver Property contained a silver resource of 50.8 million ounces in a total of 22.6 million tonnes, grading a silver- equivalent of 69.8 grams per tonne (2.04 ounces per ton).
An independent preliminary assessment study prepared by Snowden Mining Industry Consultants Inc. (NI 43-101 compliant, as reported in an October 3 , 2006 news release) concluded that a 10,000 tonne-per-day open pit mining and heap leach operation at the Tejamen Silver Property could generate a pre-tax net present value (utilizing a 7% discount rate) of US$97 million at a silver price of US$12 per ounce.
At the San Lucas Property, where a 19-hole drill program over a strike length of almost two kilometres outlined a silver-gold mineralized system with lead and zinc in volcanic rocks, preliminary surface mapping and sampling have traced the zone for an additional two kilometres along strike from the original drilling. Drilling in 2007 will test for extensions of the mineralization along strike and to depth.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
National Instrument 43-101 requires the following statement: that the preliminary assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.
As disclosed in previous financial statements, Tiger Drilling USA is controlled by one director of the Company. Services will be charged at market rates and contract terms were approved by the independent directors of the Board.
Forward-Looking Statements: The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward- looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
Contact:
For further information: Linda Thorstad, M.Sc., P.Geo., Chief
Executive Officer, T: +1-(604)-683-5651, E: linda.thorstad@oremex.com