Orko Silver Corp.
TSX VENTURE : OK

Orko Silver Corp.

October 18, 2010 09:15 ET

Orko Silver Corp.-Engineering Studies Advance on La Preciosa Silver Project: Additional High-Grade Intercepts Include 3.59 Metres Grading 1,040 g/t Silver-Equivalent

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - Orko Silver Corp. (TSX VENTURE:OK) is pleased to announce that excellent progress is being made in the technical studies to advance the "La Preciosa" Project in Durango, Mexico. The project also continues to yield favourable results from the ongoing diamond drilling program being completed by our joint venture partner, Pan American Silver Corp. (TSX - PAA).

Pan American Silver is examining various scenarios for the economic evaluation of La Preciosa, including coordinating the work of external engineering studies. These studies have been completed, or are soon to be completed, and are being incorporated into the overall project review:

  • Golder Associates Ltd. (Canada) has been contracted to conduct geotechnical engineering for both underground and open pit mine design;
  • M-3 Engineering (USA) has been contracted for plant and tailings design, as well as infrastructure costing;
  • Quantitative Group Pty. Ltd. (Australia) has been contracted to conduct geostatistical evaluation and resource modeling;
  • SGS Mineral Services (Mexico) has been contracted to conduct additional metallurgical studies; and
  • Clifton Associates Ltd. (Canada) has been contracted for environmental studies.

Gary Cope, President of Orko, states; "The additional excellent drilling results and engineering studies will lead to a Preliminary Economic Assessment (PEA), to be released by Pan American Silver, which is expected to be ready for the end of the year, or early first quarter 2011. The project is on schedule."

In the Resource area, more high-grade values have been intercepted, such as hole BP10-539, which yielded a true thickness of 7.71 metres in the Gloria vein grading Au 0.646 g/t and Ag 648.0 g/t for a silver-equivalent of 686.8 g/t. This included 3.59 metres grading Au 0.894 g/t and Ag 986.7 g/t for a silver-equivalent of 1,040.3 g/t.

Highlights of Recent Resource Diamond Drilling on La Preciosa

Hole/Vein   From   To   Core Length   True Width   Au (g/t)   Ag (g/t)   Ag-Eq (g/t)
BP10-539                            
Abundancia   268.55   271.10   2.55   2.51   0.327   166.6   186.2
  Includes   269.70   270.20   0.50   0.49   0.529   288.0   319.7
BP10-546                            
Abundancia   150.50   160.35   9.85   9.70   0.184   173.9   184.9
  Includes   151.60   157.75   6.15   6.06   0.235   232.4   246.5
  Includes   157.35   157.75   0.40   0.39   0.477   1,041.0   1,069.6
BP10-551                            
Abundancia   130.65   136.50   5.85   5.49   0.094   294.1   299.8
  Includes   130.65   131.50   0.85   0.80   0.146   906.0   914.8
BP10-539                            
Gloria   177.75   186.65   8.90   7.71   0.646   648.0   686.8
  Includes   179.95   184.10   4.15   3.59   0.894   986.7   1,040.3
  Includes   181.95   182.70   0.75   0.65   1.086   1,345.0   1,410.2
BP10-546                            
Martha   308.90   316.05   7.15   7.12   0.584   101.8   136.8
  Includes   309.75   313.10   3.35   3.34   0.769   141.8   188.0
  Includes   312.20   313.10   0.90   0.90   0.992   320.0   375.3
BP10-551                            
Martha   316.65   325.65   9.00   8.97   0.198   159.7   171.6
  Includes   319.40   325.65   6.25   6.23   0.263   200.1   215.9
  Includes   323.25   324.65   1.40   1.39   0.479   374.0   402.7
BP10-566                            
Unnamed   236.65   239.70   3.05   2.87   0.321   191.0   210.3
Martha   276.50   285.95   9.45   8.88   0.493   393.7   423.3
  Includes   277.10   283.35   6.25   5.87   0.632   562.8   600.7
  Includes   278.10   279.25   1.15   1.08   1.270   1,714.0   1,790.2
BP10-577                            
Martha   270.70   275.30   4.60   4.53   2.183   315.4   446.4
  Includes   271.85   273.45   1.60   1.58   5.656   683.1   1,022.4
  Includes   272.90   273.45   0.55   0.54   10.760   1,340.0   1,985.6
BP10-578                            
Martha   107.00   110.30   3.30   3.29   0.163   660.0   669.8
  Includes   107.00   108.95   1.95   1.94   0.248   1,061.2   1,076.1
  Includes   108.40   108.95   0.55   0.55   0.292   3,201.0   3,218.5
BP10-605                            
Martha   296.45   303.00   6.55   6.45   0.708   217.4   259.9
  Includes   297.10   300.00   2.90   2.86   0.925   390.1   445.6
  Includes   297.10   298.00   0.90   0.90   1.151   633.0   702.1
BP10-596                            
Transversal   205.70   208.40   2.70   2.66   0.196   232.7   244.5
  Includes   206.60   208.40   1.80   1.77   0.219   319.4   332.5
  Includes   207.15   207.80   0.65   0.64   0.485   564.0   593.1
BP10-600                            
Transversal   138.75   145.00   6.25   6.04   0.208   125.5   138.0
  Includes   141.60   145.00   3.40   3.28   0.225   166.6   181.9
  Includes   144.55   145.00   0.45   0.43   0.075   348.0   352.5

In exploration diamond drilling beyond the main resource area, 11 drill holes have been completed in the El Orito Norte sector and 12 holes have been completed in the Nancy sector. Current exploration drilling is being conducted along a trend 8 km northwest of the resource area.

In El Orito Norte, a mineralized dyke was intercepted in hole BP10-598, which yielded a true thickness of 2.49 metres grading Au 0.209 g/t and Ag 396.3 g/t for a silver-equivalent of 408.9 g/t. On the north margin of the Nancy drilling, hole BP10-595 yielded a true thickness of 2.41 metres grading Au 1.123 g/t and Ag 157.1 g/t for a silver-equivalent of 224.5 g/t. More exploration testing is planned.

Highlights of Recent Exploration Diamond Drilling on La Preciosa – El Orito and Nancy

Hole/Vein   From   To   Core Length   True Width   Au (g/t)   Ag (g/t)   Ag-Eq (g/t)
BP10-576                            
El Orito   359.60   361.90   2.30   2.30   0.023   141.5   142.9
  Includes   360.70   361.90   1.20   1.20   0.040   204.1   206.5
  Includes   360.70   361.45   0.75   0.75   0.044   221.0   223.6
BP10-584                            
El Orito (Sup)   321.10   327.05   5.95   5.93   0.009   90.0   90.6
  Includes   322.65   324.65   2.00   1.99   0.011   141.3   141.9
  Includes   323.40   324.65   1.25   1.25   0.014   167.0   167.8
El Orito (Inf)   331.00   334.75   3.75   3.74   0.035   87.5   89.5
  Includes   331.00   332.50   1.50   1.49   0.054   140.4   143.7
  Includes   331.50   332.50   1.00   1.00   0.073   164.0   168.4
BP10-598                            
El Orito   327.45   329.95   2.50   2.49   0.209   396.3   408.9
  Includes   328.65   329.95   1.30   1.30   0.265   591.5   607.4
  Includes   328.65   329.15   0.50   0.50   0.534   906.0   938.0
BP10-603                            
El Orito   245.70   246.20   0.50   0.50   0.136   291.0   299.2
BP10-607                            
El Orito   133.60   134.10   0.50   0.50   0.589   91.2   126.5
BP10-592                            
Nancy   64.55   67.50   2.95   2.91   0.160   132.0   141.6
  Includes   64.55   66.90   2.35   2.31   0.134   142.4   150.4
  Includes   66.55   66.90   0.35   0.34   0.339   319.0   339.3
BP10-595                            
Nancy   89.00   91.50   2.50   2.41   1.123   157.1   224.5
  Includes   90.50   91.50   1.00   0.97   2.387   250.0   393.2
BP10-601                            
Nancy   104.00   106.05   2.05   2.04   0.634   48.7   86.7
  Includes   104.00   104.80   0.80   0.80   1.460   104.0   191.6

As of the end of August, Pan American has completed over 76,000 metres of diamond drilling on La Preciosa in 2009-2010. Combined with Orko's 2005-2008 drilling of 154,000 metres, the project has now passed the 230,000 metre mark.

Results from Pan American's Phase-I, Phase-II and part of Phase-III were reported in news releases dated September 08 and October 21, 2009, plus April 29 and July 7, 2010. The information here is in addition to these earlier news releases. It covers 17,142 metres of diamond drilling in 71 holes (BP10-538 to BP10-608), the data for which has been received from Pan American Silver. Exploration holes represent 23 of the 71 holes. Diamond drilling is still underway.

The delineation drilling results from the new holes are mainly located in the known Martha vein structure and were drilled at approximately 18 metre and 50 metre spacing in an area previously drilled by Orko at 100 metre spacing. This data again confirms Orko's previously reported results, and forms the basis of a geostatistical study, toward ultimate reserve definition.

A complete table of drill results is available on our website at the link below:

http://www.orkosilver.com/i/pdf/geol-postred_DDH_Orko_PAS_210410.pdf

A detailed drill plan map is available on our website at the link below:

http://www.orkosilver.com/i/pdf/drillplanmap.pdf

A printer friendly PDF format of this news release is available at the link below:

http://www.orkosilver.com/i/pdf/OrkoPR2010-04-28.pdf

Ben Whiting, P.Geo., is the Qualified Person for Orko Silver Corp. and takes responsibility for the technical disclosure in this news release.

Silver-equivalent for the purposes of this drilling program is defined as silver grade plus 60 times gold grade. This 60:1 ratio was determined from the ten-year averages of gold and silver prices from the London Metal Exchange. Metallurgical recoveries and net smelter returns are assumed to be 100% for the silver-equivalent value. Base metal values are not included in the silver-equivalent.

About Orko Silver Corp.

Orko Silver Corp. is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in the State of Durango, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS

Gary Cope, President

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.

*Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.

The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release.

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