Oremex Update
Vancouver (ots/PRNewswire)
Oremex Resources Inc. (TSX-V: ORM) (the Company) today provided a progress update for the Tejamen Silver Property (Tejamen).
The Company has generated significant support for development of Tejamen from State, regional and local officials as well as the commercial, health, educational and regional sectors and the general populace of Tejamen and Nuevo Ideal. In addition, the Federal Minister of Mines has dedicated staff to assist with finalization of an agreement.
Discussions with representatives of the Ejido (local village and surrounding lands) continue to progress, although more slowly than anticipated. The Company has submitted a conciliatory letter requesting formal authorization for a new relationship and atoning for the mistakes of the past administration of the Company in Mexico. During the year the Company has taken a number of remediation measures in the village. The law firm of Pizarro-Suarez & Vazquez has been retained to assist with surface access rights to enable project development and subsequent production.
To advance the project technically and provide for future permit requirements the Company has assembled a project team which has continued to work on Tejamen. A new topographical survey of the drill holes been completed and plotted and drill holes in the Los Mantos zone have been re-logged and re-plotted for consistency.
Management have completed a revised internal analysis to refine the scoping study prepared by Snowden Mining Industry Consultants (Snowden) in October 2006 which contemplated open pit mining from two mineralized zones, the Cerro Prieto and Los Mantos. The revised analysis, based on cost estimates from Snowden, operating costs of comparable Mexican mines and an internal cost sensitive analysis, supports initial production solely from the Los Mantos Zone which contains 70% of the silver defined to date. Under this plan of operations and revised pit outline, disturbance to the village would be minimal and it will not be necessary to move the village as contemplated by Snowden. Production could proceed in the Los Mantos Zone for four to five years while exploration is conducted to expand near surface resources surrounding that zone.
Management have also reviewed previous work and through reinterpretation believe 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. Additional drill holes required to upgrade mineral resources as well as drill holes to complete condemnation drilling have been mapped out.
A development program to take Tejamen through to a feasibility study has been planned. 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 updated resource 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 in the first benches near the surface; 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.
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.
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.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.
Linda Thorstad, M.Sc., P.Geo.
Chief Executive Officer
604-683-5651
linda.thorstad(at)oremex.comContact:
Linda Thorstad, M.Sc., P.Geo., Chief Executive Officer,
+1-604-683-5651, linda.thorstad(at)oremex.com