MONTREAL, QUEBEC, CANADA, Jan. 27, 2010 (Marketwire) -- OREX EXPLORATION INC. (TSX VENTURE:OX)(FRANKFURT:O5D) is pleased to announce the start of the 2010 exploration campaign at the Company's wholly-owned Goldboro Gold Property, where Osisko Mining Corporation has begun the winter 2010 diamond drilling program.
Osisko has advised Orex of the start of the 2010 drilling with the first of a three-part campaign. The 6,375 m / 25 holes Phase 2F drilling began last week with two drills, and this campaign is set to replace incomplete and/or non-compliant historic drill results with compliant data primarily in the Ramp Area and extending westward towards West Goldbrook. The historic drill results include drill holes that were not sampled in their entirety and others sampled on long intervals. While assay results are accurate for the sampling of longer intervals, the sampling may not have been representative.
Two other campaigns are planned to follow totalling 8,750 m in 49 holes. The Phase 2D and 2E drilling will continue westward along the remaining 1.7 km segment of the Boston Richardson Deformation Zone from the Ramp through West Goldbrook to Dolliver Mountain. Osisko is budgeting $2.8 million for the Phases 2D, 2E and 2F drilling and a regional compilation and Goldboro reconnaissance program.
Mark Billings, President and CEO of Orex, commented, "I am pleased that Osisko has begun the final stages of our Phase 2 drilling campaign. Once all Phases are completed, we will have 43-101-compliant data for the entire 2.5 km strike length of our Goldboro Property. The Phase 2F results will provide useful validation data and an enhanced interpretation of the gold mineralization at Goldboro. We at Orex look forward to working with our partner Osisko in advancing the development of this Property."
The Goldboro Gold Property
The current Mineral Resource Estimates ("MRE") for Goldboro at a cut-off gold grade of 1.5 g/t are 2.711 million tonnes grading 4.56 g/t gold, totalling 397,200 gold ounces in the Measured+Indicated Resources categories, with an additional 3.438 million tonnes grading 3.67 g/t gold totalling 405,926 gold ounces in the Inferred Resource category. Assuming a lower 0.5 g/t cut-off, the Measured+Indicated Resources are 7.933 million tonnes grading 2.13 g/t gold totalling 542,000 gold ounces, with additional Inferred Resources of 10.389 million tonnes grading 1.78 g/t gold totalling 594,121 gold ounces (refer to Orex's news release dated August 4, 2009, and the NI 43-101 Technical Report posted on SEDAR at www.sedar.com).
The MRE were modeled by extending the interpreted gold zones 825m along strike to the east and 500m to the west from the Company's 2006 NI 43-101 mineral resources calculated to a -520m vertical depth from surface over the same 1.5km strike length of the Boston-Richardson Deformation Zone. It was estimated that 97% of the MRE are located within the upper 350m from surface. The MRE are significantly higher and of better quality in terms of grade over the 2006 estimates and the same 0.5 g/t gold cut-off grade and 1.5km distance. At a 0.5 g/t gold cut-off, the total Measured and Indicated resources grade 2.13 g/t gold, an 88% increase from 2006 grade estimates, with an additional Inferred resource grading 1.78 g/t gold, a 182% increase from 2006 grade estimates.
Option on Goldboro Gold Property Granted to Osisko Mining Corporation
In order to acquire a 50% undivided interest in the Goldboro Gold Property on or before September 29, 2013 (the Initial Option), Osisko shall incur exploration and development expenditures:
- In the amount of at least $1,500,000 on or before September 29, 2010;
- In the aggregate amount of at least $3,500,000 on or before September 29, 2011; and
- In the aggregate amount of at least $8,000,000 over the following two years, that is, on or before September 29, 2013.
- Osisko may, at its sole discretion, accelerate and apply exploration and development expenditures to future years' expenditures and, accordingly, the Initial Option may be exercised sooner.
Osisko shall solely fund a prefeasibility study to earn an aggregate 60% interest (that is, an additional 10% interest) in the Property on or before September 29, 2015 (the Additional Option).
About Orex Exploration Inc.
Orex Exploration Inc. is a Canadian-based junior resource and exploration company trading under the symbol OX on the TSX Venture Exchange and O5D on the Frankfurt Stock Exchange. The Company holds a 100% interest in the Goldboro Gold Project in Nova Scotia. You are invited to browse the Company website at www.orexexploration.ca.
The technical information contained in this news release has been prepared by Mr. Alex Horvath, B.A.Sc., P. Eng., of A. S. Horvath Engineering Inc. (Ottawa, Ontario), Technical Advisor to Orex and Qualified Person under National Instrument 43-101 regulations.
Neither the 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.