Oremex Resources Inc.

Oremex Resources Inc.

January 18, 2010 08:30 ET

Oremex Makes New Gold Discovery at San Lucas Project, Confirms Gold Mineralization at Santa Catarina

Sampling Returns up to .77 g/t Gold at San Lucas and up to 12.7 g/t Gold at Santa Catarina

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2010) - Oremex Resources Inc. (TSX VENTURE:ORM) has received assay results from detailed outcrop sampling programs that demonstrate the San Lucas and Santa Catarina Projects, located in the Mexican States of Durango and Sinaloa, respectively, host significant gold mineralization. Previous drilling in 2007 at San Lucas was focused on silver/base metal veins to the west of the recently sampled and untested area. The Santa Catarina project has not yet been drill-tested.

The San Lucas project is located 7 km south-southwest of Silver Standard's 2.65 million ounce San Agustin gold deposit and hosts a similar style of rhyolite-hosted mineralization. At San Lucas, a previously un-sampled silicified rhyolite dike was sampled in the recent program. The vertical dike boldly outcrops over a strike length of over 1.5 km, forming a prominent continuous ridge to the east of the pueblo of San Lucas. A two lane paved road roughly bisects the dike, providing excellent access.

A total of 24 chip samples were collected along the main dike with assays ranging from 0.005 to 0.770 g/tonne (g/t) gold and averaging 0.22 g/t gold; the average of 10 samples above 0.20 g/t was 0.44 g/t gold. The reported samples were collected across portions of the rhyolite dike with sample widths ranging from 4 to 16 meters and averaging 8 meters. The true width of the mineralized dike is open. Follow-up sampling and mapping is planned to assist in laying out a drilling program to sample the full thickness of the dike and adjacent mineralization, as well as to test for mineralization at depth.

At Santa Catarina a recent 15 sample chip/channel sampling program indicates approximately 20 meters (true thickness) of massive sulfide mineralization (carbonate replacement), adjacent to an altered quartz diorite intrusion. The average grade across the outcrop is 3.2 g/t gold and 0.19% copper, with gold values up to 12.7 g/t. The massive sulfide outcrop area measures about 20 by 35 meters on surface and potential exists to expand the apparent volume of mineralization by drilling along strike and at depth. Gold mineralization is well established in the immediate area and the existing concessions will be further evaluated.

These assay results are from a program the Company initiated in 2009 to re-evaluate existing properties in its portfolio. While those evaluations are still in progress, some preliminary conclusions have been reached:

The El Sol Project warrants drilling with the objective of a quick determination of potential for silver-rich base metal skarns and replacement deposits, similar to those that exist at Silver Dragon's adjacent Cerro Las Minitas Project (resource of 763,830 tonnes averaging 211 g/t silver, 5.2 % lead, 7.1 % zinc and 0.5 % copper).

Maco and Chalchihuites, are under review by other companies with existing assets in Mexico and are perceived to have significant exploration potential for porphyry copper and silver/base metal deposits, respectively.

The Navidad project is still being assessed.

The Cuyoaco project has been dropped.

All analyses 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, P.Geo, 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 most advanced project 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 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. The Company continues with discussions with various federal, state and municipal government officials as well as local community groups for surface access rights at the Tejamen Project.

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