Oremex Resources Inc.

Oremex Resources Inc.

June 21, 2010 10:34 ET

Oremex Advances Gold Discovery Zone at San Lucas

TORONTO, ONTARIO--(Marketwire - June 21, 2010) - Oremex Resources Inc. (TSX VENTURE:ORM) is pleased to announce that the Company continues to advance its wholly-owned San Lucas property in Durango State, Mexico. San Lucas is a gold-silver-lead-zinc property located 7km south-southwest of Silver Standard's 2.65 million ounce San Agustin gold project. To date, Oremex has completed in excess of 10,000 meters of drilling (67 holes) on the property, defining a 3km long mineralized zone.

A comprehensive surface sampling and mapping program is underway at Oremex's San Lucas property to refine new drill targets. Results from the current surface sampling program are expected shortly. The company is planning to carry out a 2000m RC (reverse circulation) drilling program during 2010 on San Lucas.

Previous Results from San Lucas

In 2007 the Company completed a 47 hole, 7,000m drill program at the San Lucas property that yielded significant results that are summarized below in Table 1. The program was designed to test extensions of mineralization both down dip and along strike to silver-gold-lead-zinc mineralization defined in a 2005 drill program. Highlights from the main mineralized zone include: SL-34: 12m @ 71g/t Ag, SL-35: 12m @145g/t Ag, SL-46: 14m @ 158g/t Ag, and 8m @ 290g/t Ag including 2m @1857g/t Ag, and SL-49: 16m @81.7g/t Ag including 2m @ 615.6 g/t Ag.

Drill Hole Interval
per ton)
Zn (%) Pb (%)
SL-34 12 90-102 71 2.3 0.2 0.1
  4 126-130 35 1.1 - -
SL-35 4 60-64 116 3.7 0.6 0.6
  12 130-142 145 4.7 0.4 0.4
SL-44 8 68-76 36 1.2 0.1 0.1
SL-46 14 92-106 158 5.1 0.7 0.4
Incl. 4 96-100 456 14.6 0.9 0.8
  8 154-162 290 9.3 0.4 0.3
Incl. 2 154-156 1857 59.6 >1.0 >1.0
SL-48 4 84-88 110 3.5 0.1 0.1
SL-20 14 30-44 26.1 0.8 0.4 0.3
  16 64-80 45.7 1.3 >1.0 0.5
Incl. 6 64-70 60.9 1.8 >0.7 0.8
SL-49 16 92-108 81.7 2.4 0.3 0.1
Incl. 2 94-96 615.6 18 0.3 0.1
SL-50 4 14-18 43.3 1.3 <0.1 0.2
  4 30-34 168.6 4.9 0.2 0.4
  2 50-52 96 2.8 0.4 0.1
SL-51 4 98-102 37.9 1.1 0.1 0.2

This information was originally press released on July 5, 2007 and October 16, 2007; please refer to the original press releases for additional technical information.

The company completed a reconnaissance surface sampling program in December, 2009 which identified gold mineralization along a silicified rhyolite dike that had previously not been recognized for its gold potential. The average grade of the 10 samples taken at San Lucas at a 0.20 g/tonne cutoff is 0.44 g/tonne Au.

Current Work Program at San Lucas

Follow up surface mapping shows substantially more mineralized thickness adjacent to the 1500+ meter long silicified dike than previously recognized. An 800m long section along a portion of the dyke has returned an average grade (23 channel samples representing portions of the true width) of 0.60 g/tonne gold (more sampling assay results are pending from other segments of the dike). Additional areas of gold mineralization have been identified in parallel mineralized zones. The gold mineralized dyke implies a significant mineralized system, with substantial potential in the dike and adjacent volcanic rocks. Additionally the potential for substantial mineralization at depth in potentially more receptive stratigraphic positions is also good.

"We continue to be impressed by the preliminary results at our wholly owned San Lucas property in Durango, Mexico" stated Mike Smith President and CEO. "The widespread gold and silver mineralization at the property and its geological similarities to other significant recent ore deposit discoveries in the area, give us reason to believe we may have a significant discovery".

Silver Standard's San Agustin project, with 2.65 million ounces in gold resources, is approximately seven km to the north-northeast on strike of the dike. The style of mineralization at San Lucas bears similarities to that of San Agustin and is in a well known area of significant recent ore deposit discoveries. The Oremex mining concessions at San Lucas total approximately 1,290 hectares and substantially cover the known area of gold mineralization.

The results completed in 2009 reported herein were carried out by SGS Labs in Durango City, Durango, Mexico an internationally-recognized analytical service provider. The work reported was completed under the supervision of Michael R. Smith, President, CEO and Director of Oremex Resources Inc., a Registered Geologist and a Qualified Person as defined in National Instrument 43-101.

About Oremex:

Oremex is a Canadian-based exploration company with a focus on the acquisition and development of mineral properties in Mexico. The Company's Tejamen project 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 completed a Preliminary Assessment Study (NI 43-101 compliant October 2006) demonstrating that the project can support a 10,000 tonne per day open pit, heap leach mining operation.

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.

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.

Contact Information

  • Oremex Resources Inc.
    John Carlesso
    Executive Chairman