Oremex Resources Inc.
TSX VENTURE : ORM

Oremex Resources Inc.

December 21, 2009 08:30 ET

Oremex Provides Progress Update at Tejamen

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Oremex Resources Inc. (TSX VENTURE:ORM), is pleased to provide an update on the progress of its Community Infrastructure Program (CIP) as it nears renewing development activities at the Tejamen silver project in Durango, Mexico.

Infrastructure Program

Oremex continues to provide funding to the Municipality of Tejamen for local infrastructure repair and other projects that benefit the community. Employment in the program continues to increase as the CIP is broadly appreciated by the community and recognized as materially enhancing the quality of life in an area of Mexico that has been particularly hard hit economically over the past year.

Land Title at Tejamen

Oremex maintains 100% ownership of the mineral rights at the Tejamen project. Until recently it had been generally accepted that the surface rights for 900 hectares of land, upon which a significant portion of the Tejamen silver project sits, were owned by the local Ejido. However, according to information that Oremex has been able to obtain from the Reforma Agraria, the Mexican Federal agency responsible for establishing land title, the surface rights have in fact remained untitled. Further, according to a 1921 Presidential Decree the land was awarded to the Community of Tejamen. Following that grant to the community, surrounding and adjacent lands were subsequently granted and titled to the Ejido and private parties.

In accordance with the process required by Mexican agrarian law, the Reforma Agraria made the land available for title application. The Tejamen Legal Association (TLA) was formed specifically to apply for title and to the best of knowledge of Oremex, is the only group that has submitted an application for the 900 hectare land package as per the process. The TLA has elected leadership that represents the community around Tejamen, is supported by local Municipality Presidents and has the authority to negotiate agreements. As evidenced by the success of the CIP, Oremex has established very positive relationships with the community in general, the TLA, and the Municipality Presidents. Many members of the TLA have received employment through the CIP and are active supporters of Oremex within the community.

It is the company's understanding that at the completion of a thirty day window for public comment no legal objection to the process has been filed. There exists no legal precedent where a single applicant in this process has not been awarded title. The final remaining task in the process prior to the awarding of title is for Reforma Agraria to complete a legal survey to establish the precise boundary locations of the title block. According to the process, following completion of the survey the Reforma Agraria will be in a position to award title.

Oremex has commenced discussions with the TLA regarding the framework for continuing and extending community benefits within the context of expanded mining development activity in Tejamen toward the completion of a Feasibility Study on the Tejamen silver project.

The Company has granted options to purchase 1,300,000 common shares of the company to directors, officers, and consultants of the Company, subject to regulatory approval. The stock options were granted pursuant to the Company's stock option plan and are exercisable at a price of $0.15 per share.

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
    416-309-4320