Oremex Resources Inc.

Oremex Resources Inc.

March 06, 2009 16:13 ET

Oremex Provides Operations Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2009) - Following completion of the previously announced private placement financing for gross proceeds of $660,000.00, Oremex Resources Inc. ("Oremex" or the "Company") (TSX VENTURE:ORM) has outlined its action plan for the upcoming quarters.

Oremex Executive Chairman John Carlesso stated: "With the closing of the private placement Oremex is now able to provide stability to its operations in Mexico and get on with the business of advancing the development of the Company's key asset, the Tejamen silver project (the "Tejamen Project"). First and foremost the most critical immediate objective is to repair the Company's relationship with the community of Tejamen. This process has been initiated and for the first time in nearly two years the Company has held informal discussions with the people of Tejamen. As a new administration representing change, we are optimistic that an environment which fosters open dialogue can re-establish trust with the community by focusing on solutions that address their needs. The people of Tejamen have impressed us as being honest and hard-working, and we have communicated our objective of demonstrating through our actions our ability to be a good neighbour and partner."

Mexican Operations

In order to emphasize the concept of change and eliminate any association the community of Tejamen has with the previous operational practices of its Mexican operating subsidiary Minera Montana, Oremex is restructuring the subsidiary. The subsidiary will now operate locally as "Minera Nuevo Ideal", reflecting the local Municipality in which it operates as well as the "new ideals" that Oremex is striving to achieve.

A review of all technical information relating to the Tejamen Project is commencing. This is designed to plan for the updating and continued advancement of economic assessment information including capital cost and operating cost assumptions, pit modeling and metallurgical test work.

The Company is also reviewing its entire Mexican project portfolio with the objective of determining which projects will remain part of the Company's core focus.

Canadian Head Office and Executive Positions

In an effort to consolidate its overhead, the Oremex head office will be relocated to Toronto for its closer proximity to the Board of Directors. The Company is in the process of actively seeking a seasoned mining executive with significant mine-building and operational experience to assume the role of Chief Executive Officer. The Company expects to be in a position to make an announcement on this appointment shortly.

The Company has appointed Mr. Paul Haber to the position of Chief Financial Officer. Mr. Haber has been involved in corporate finance and capital markets for over 12 years and has significant public markets experience. He started his career with Coopers & Lybrand (now PricewaterhouseCoopers LLP) and is both a Chartered Accountant and a Certified Public Accountant. He has a Bachelors of Arts (Honours) degree in Management from the University of Toronto. Mr. Haber will replace the current Chief Financial Officer, Chuck Jenkins, in the coming weeks following the completion of the 2008 year-end audit and the filing of year-end financial statements. Oremex wishes to thank Mr. Jenkins for his dedication and commitment to the Company, particularly during the past six months.

The Board of Directors has accepted the resignation of Mr. Craig Thomas. Mr. Thomas served as the Company's Chairman and contributed a tremendous effort toward the successful transition and financing process that has now been completed. The Board sincerely thanks Mr. Thomas for his guidance and contribution to the Company.

Following this transition and financing process Oremex has no outstanding legal or creditor issues.

The Company has granted options to purchase 3,800,000 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 $0.10 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 principal properties are the Tejamen and San Lucas properties located in the State of Durango and the Cuyoaco Property in the State of Puebla. 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.

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. The Company undertakes no obligation to update forward-looking statements should conditions or opinions change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Oremex Resources
    John Carlesso
    Executive Chairman
    (416) 309-4320