Oremex Negotiates Long-Term Lease for Surface use at San Lucas Property
Vancouver, Canada (ots/PRNewswire)
Oremex Resources Inc. (TSX-V:
ORM) (the "Company") announced that it has negotiated a long-term
lease for use of surface rights at its San Lucas Property ("San
Lucas") with the Ejido (governing authority for the village and
surrounding lands). The lease provides surface rights to 50 hectares
of Ejido land for the purposes of exploration, development and
mining for a 30 -year term. The terms of the lease provide for annual
payments of approximately US$2,000 (MP$20,000) and other community
improvements."We are pleased to have negotiated this working arrangement for access to surface rights with the Ejido of San Lucas," said Linda Thorstad, CEO of the Company. "Our agreement provides significant long-term benefits for both the Company and the Ejido."
The Company is currently conducting a 5,000-metre drill program at San Lucas, testing extensions down dip and along trend of mineralisation. A 3,000-metre drill program completed in 2005 outlined gold-silver-lead-zinc mineralisation over a strike length of 2 kilometres with widths up to 70 metres in a trend mapped for over 4 kilometres.
The Company is also continuing discussions with the local Ejido at
the Tejamen Silver Property ("Tejamen") while pursuing access to
surface rights through applicable federal laws. Tejamen, an
open-pit, heap-leach project, has an estimated net present value of
US$97.4 million at US$12 per ounce silver and US$155 million at
US$15 per ounce silver (at a 7% discount) according to an
independent Preliminary Assessment Study prepared by Snowden Mining
Industry Consultants (NI 43-101 compliant, as reported in the
October 3, 2006 news release). Projected production is approximately
4. 5 million ounces of silver per annum with direct cash operating
costs of US$4.50 per ounce of silver from a current resource of 50.8
million ounces.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 categorised as mineral reserves, and there is no certainty that the preliminary assessment will be realised.
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