Orex Exploration Inc.
TSX VENTURE : OX

Orex Exploration Inc.

October 13, 2005 08:00 ET

Orex Updates Company Activities at Goldboro

ROUYN-NORANDA, QUEBEC--(CCNMatthews - Oct. 13, 2005) - OREX EXPLORATION INC. (TSX VENTURE:OX) (" Orex ") wishes to update the Company's activities in light of the previously announced financing, while reviewing the current Phase 1 program and the impact of results to date, as well as outlining future exploration and development work at its 100% owned Goldboro Property in northeastern Nova Scotia.

On September 8, 2005, the Company announced that two private investors had agreed to invest $US 26,944,066 in consideration of 67,360,165 common shares of the Company at a price of $US 0.40 per share. The financing is subject to a 60 day due diligence period. The private placement is conditional on obtaining all regulatory approvals. The proceeds will be used by the Company for exploration leading to, and eventually including, a feasibility study on the Goldboro Property in Nova Scotia, as well as working capital. Furthermore, the private investors have agreed to take the necessary steps to finance any future mining development on the Goldboro Property.

The Company is now in the last stage of the Phase 1 program at Goldboro, awaiting the final fire-assays results, as well as results from the metallurgical test samples. The Company is confident that the metallurgical results will determine that the Goldboro mineralization has grades to warrant additional resource definition work to be completed in 2006, as the property eventually progresses towards feasibility. The objective of the Phase 1 drilling program was to determine a more realistic gold grade of the Goldboro mineralization, primarily focused on re-drilling several of the near-surface new "gold belts" within a 250 meter long, 150 meter wide and 150 meter deep corridor immediately below, and west of, the historically mined Boston-Richardson Belt (historical production of 377,000 tonnes at 6.8 g/t Au).

Initial fire-assay results have been received for 18 of the 23 drill holes from 6 sections spaced at 25 meter intervals (8625E, 8650E, 8675E, 8700E, 8725E and 87505E) covering a strike length of 150 meters. Fire-assay results show extreme grade variability even in the presence of visible gold, and even with larger core samples, as was previously observed at Goldboro, due to the gold nugget effect. The westerly extension of the south limb of the historically mined Boston-Richardson ("BR") belt has also been identified. The south limb of the BR belt has averaged 2.32 g/t Au over an average width of 4.2 meters for a 150 meter strike length from the six sections with assays available. Visible gold was identified in three of the seven drill holes intersecting the zone. Wider mineralized and continuous mineralized intervals that combine several of the gold belts are also being identified below the BR belt. Gold belts 1, 2, 3 (and in places belt 4) form a single mineralized zone, located approximately 50 metres beneath the BR belt. Within the hinge and along the south limb of the BR Anticline, the 1-2-3 belts averaged 4.15 g/t over an average width of 15.2 metres from 16 of the 18 drill holes to date intersecting the zone over a 150 metre strike length. There is also evidence confirming additional wider mineral zones beneath belts 1-2-3 comprising belts 5-6 and 7-8, respectively. The zones appear continuous over the 250 metre length of the structure drilled in the 2005 program from the 2.5 kilometre full length of the Anticline.

The Company is expected to release the last batch of fire-assay results from the Phase 1 program shortly; whereas results from the first metallurgical samples are expected later in the month.

The Company plans a three-phase exploration program to bring the Goldboro Property to feasibility. The program will include outlining, via drilling, the high grade gold potential of the central segment of the Boston-Richardson Anticline (refer to Figures 1 and 2), over a 1 kilometre strike length (Phase 2); delineation drilling of additional high grade lenses along the entire length of the BR Anticline from Dolliver Mountain to East Goldbrook corridor, a distance of 2.5 kilometre (Phase 3); and delineation and definition drilling along the Dolliver Mountain - East Goldbrook corridor to define sufficient gold resources to sustain a viable open pit and/or underground mine operation leading to an eventual feasibility study from the defined gold resources (Phase 4).

Mr. Jacques Levesque, Orex's President also adds "Orex shareholders will be rewarded for their patience with this major financing to develop the Goldboro Property, a task the Company had initially set out to do in the early 1990's. Once the financing in place, the Company will aggressively undertake the necessary work to outline a high quality gold resource along the full 2.5 kilometre mineralized Boston-Richardson Anticline, leading towards feasibility in 2007."

The technical information in this press release has been prepared by Mr. Jean Lafleur, Geo. (OGQ), the Company's independent mineral exploration consultant and Qualified Person under the NI 43-101 guidelines.

Figures are available on CCNMatthews' website at the following address:

http://www.ccnmatthews.com/docs/orea1013.pdf

The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this press release.

Contact Information

  • OREX EXPLORATION INC.
    Jacques Levesque
    President
    (819) 797-4354
    (819)797-2454 (FAX)
    or
    OREX EXPLORATION INC.
    David Hatchette
    Director
    (902) 469-1936
    www.orexexploration.ca