Oremex Update
Vancouver, Canada (ots/PRNewswire)
Oremex Resources Inc. (TSX-V:
ORM) (the "Company") today provided an update on plans for
completion of a feasibility study in 2008 for the Tejamen Silver
Property ("Tejamen"), State of Durango, Mexico.Discussions with representatives of the Ejido (local village and surrounding lands) continue to progress well, although more slowly than anticipated. Oremex has generated significant support for development of Tejamen from State, regional and local officials as well as the commercial, health, educational and regional sectors, the priest of the Catholic Church in the village and the general populace of Tejamen.
Tejamen has an inferred mineral resource of 50.8 million ounces of
silver in a total of 22.6 million tonnes grading a silver-equivalent
of 69.8 grams per tonne (Wardrop Engineering Report NI 43-101
compliant April 2006). Snowden Mining Industry Consultants
("Snowden") completed a Preliminary Assessment Study (NI 43-101
Technical Report, October 3, 2006) for Tejamen demonstrating that
the project could support a 10,000 tonne per day open pit, heap
leach mining operation.Management has completed a revised internal analysis to refine the scoping study by Snowden which contemplated open pit mining from two mineralized zones, the Cerro Prieto and Los Mantos. The revised analysis, based on cost estimates from Snowden and operating costs of comparable Mexican mines, supports initial production solely from the Los Mantos Zone which contains 70% of the silver defined to date. Under this plan of operations, disturbance to the village would be minimal and it will not be necessary to move the village as contemplated by Snowden. Production could proceed for four to five years while exploration is conducted to expand near surface resources.
There is also good potential to explore, develop and ultimately exploit by underground mining the higher grade feeder veins, intercepted by previously drilled diamond drill holes, under both the Los Mantos and Cerro Prieto zones.
An aggressive development program to take Tejamen through to a feasibility study is planned for 2008. Infill and condemnation drilling will include over 8,500 metres of diamond drilling and 32,700 metres of reverse circulation drilling. The program will also include revised reserve calculations; rock mechanics to maximize the slope angle of the pit, optimize pit design and define the possibility of breaking the rock with a ripper instead of explosives; blast vibration analysis for blast design that would minimize any vibration impacts on the village; hydrological studies to design a dewatering system for the pit; as well as metallurgical test work to optimize the recovery process and plant design. In addition, the Company will secure the required legal permits.
The Company intends to retain an external engineering firm to review the work while an internal feasibility study is being produced and, subject to completion of the necessary work, prepare an independent NI 43-101 Technical Report: Feasibility Study for the Tejamen Silver Property.
In other news, the Company has received conditional approval from the TSX Venture Exchange for acquisition of the Cuyoaco Property in the State of Puebla, Mexico. The property has the potential to host both a high grade gold system and a large copper-gold porphyry deposit. Located in an old mining camp, sedimentary rocks are intruded by a diorite stock and numerous related dykes. An exploration program of geochemical sampling and drilling has been approved for 2008 and will begin in February.
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.
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/
(ORM.)