QUOTE AND NEWS
 

Developing One of the Worlds Largest Silver Deposits

Orko Silver Corp. (TSX Venture Exchange: OK.V) is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in Durango State, Mexico. The La Preciosa silver project and adjacent mineral concessions cover 80,000 acres of contiguous mining claims.


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La Preciosa

La Preciosa property covers Tertiary aged gold and silver bearing epithermal quartz veins, with barite and lesser quantities of base metals, primarily zinc and lead. There are three major vein and vein-breccia systems exposed on a series of hills and ridges, separated by flat floored valleys roughly 800 m wide. The main vein system consists of northward striking and westward dipping veins, plus east striking south dipping cross-cutting veins. The eastern vein-breccia system (Zona Oriente) strikes northwest. Two systems may intersect to the north beneath younger basalt. To the west of these is a third sub-parallel vein system, with north and northwest trending veins, dipping to the west.

La Preciosa veins are composed of poly-phase veins of quartz, often banded, smoky, chalcedonic and amathystine, with a substantial amount of barite laths. Sulphide mineralization is scarce on surface and in the shallow underground workings. Drill core contains disseminated sphalerite, galena, pyrite and acanthite, plus iron and manganese oxides. Wall rocks adjacent to the veins are silicified, particularly between the prominent veins La Gloria and Abundancia. Kaolinite and hematite alteration is common, as well as more distal propylitic chlorite, epidote and pyrite.

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On April 14th, 2009 they released a news release with following highlights about the Joint Venture :

The Joint Venture Agreement

Pan American Silver and Orko have agreed to form a joint venture to develop the La Preciosa project. Pan American will contribute its demonstrated mine development expertise, as well as 100% of the funds necessary to develop and construct an operating mine, in consideration for a 55% interest in the joint venture, while Orko will contribute its exploration expertise and the La Preciosa project and related concessions to retain a 45% interest. Over the next 36 months, Pan American has agreed to spend an estimated US$16 million at La Preciosa to conduct resource definition drilling, acquire necessary surface rights, obtain permits, and ultimately prepare and deliver a feasibility study to maintain its interest in the Joint Venture. Furthermore, Pan American has agreed to spend a minimum of US$5.0 million in the first 12 months of the development program to maintain its interest in the Joint Venture, of which a minimum of US$2.5 million will be spent to continue to explore the highly prospective land package that Orko is contributing to the Joint Venture.

Key terms of the joint venture and the development strategy for La Preciosa include:

  1. Pan American will be the operator for the joint venture and has agreed to share with Orko all technical information relating to the development of La Preciosa,
  2. A joint venture Management Committee will be formed, with representation from both Orko and Pan American, which will be responsible for monitoring the project's development,
  3. Any mine construction decision and subsequent operating budgets will require the unanimous approval of the Management Committee,
  4. Pan American has agreed to a "standstill" with Orko for as long as the joint venture is in operation.

Orko Silver continues to receive encouraging drilling results. On November the 12th they came out with the following news relase.

Gary Cope, President of Orko Silver, states; "We are extremely pleased to see that Pan American's delineation drilling results confirm those initially reported by Orko Silver. The presence of wide high grade intervals is also very encouraging for the project.

To find out more about Pan American, take a look at Pan American's fact sheet

Resource Timeline

  1. January 2006 - Completed 1st NI 43-101 Inferred Resource Estimate of 2.72 million tonnes grading 0.462 g/t Au and 227.2 g/t Ag at a cut-off grade of 150 g/t for a Silver-Equivalent grade of 255.0 g/t
  2. 22.3 Million Silver Equivalent Ounces
  3. September 2006 - Completed 2nd NI 43-101 Inferred Resource Estimate 3.42 million tonnes grading 0.435 g/t Au and 235.0 g/t Ag at a cut-off grade of 150 g/t for a Silver-Equivalent grade of 261.1 g/t
  4. 28.7 Million Silver Equivalent Ounces (29%Increase)
  5. March 2007 - Completed 3rd NI 43-101 Inferred Resource Estimate 5.72 million tonnes grading 0.345 g/t Au and 192.9 g/t Ag at a cut-off grade of 100 g/t for a Silver-Equivalent grade of 213.6 g/t
  6. 39.3 Million Silver Equivalent Ounces (37% Increase)
  7. October 2007 - Completed 4th NI 43-101 Inferred Resource Estimate 10.36 million tonnes grading 0.328 g/t Au and 200.0 g/t Ag at a cut-off grade of 100 g/t for a Silver-Equivalent grade of 219.0 g/t
  8. 73.17 Million Silver Equivalent Ounces (86% Increase)
  9. March 2008 - Completed 5th NI 43-101 Inferred Resource Estimate 15.35 million tonnes grading 0.321 g/t Au and 190.0 g/t Ag at a cut-off grade of 100 g/t for a Silver-Equivalent grade of 209.0 g/t
  10. 103.2 Million Silver Equivalent Ounces (42 %Increase)
  11. February 2009 - Completed 6th NI 43-101 Resource Estimate-Indicated Resources are 10.64 million tonnes grading 0.27 g/t Au and 185 g/t Ag for a Silver-Equivalent grade of 201 g/t. at a cut off grade of 100 g/t. Inferred Resources are 12.0 million tonnes grading 0.25 g/t Au and 185 g/t Ag for a Silver-Equivalent grade of 200 g/t. at a cut off grade of 100 g/t.
  12. 68.9 Million Silver Equivalent Ounces - Indicated Resources (47%)
  13. 77.6 Million Silver Equivalent Ounces - Inferred Resources (53%)

La Preciosa Project – Resource Timeline Estimated at a 60 to 1 Silver/Gold ratio with metallurgical recoveries and net smelter returns assumed to be 100%

Why Orko Silver

  • La Preciosa is one of the world’s largest undeveloped primary silvers deposits
  • La Preciosa’s superb location offers an infrastructure advantages
  • JV with Pan American will fast track La Preciosa to production
  • La Preciosa’s potential production of silver annually could be one of Mexico’s larger silver mines
  • Excellent potential to significantly expand the silver resources
  • Orko has a fully carried interest into production
  • The JV represents an independent endorsement of the project
  • Better leverage in Orko shares than Pan American shares
  • Orko has discovered 1.33 oz Ag/share share, value of US$21/share
  • Orko’s current share price represents an excellent upside potential


Image:One of the largest Silver deposits.jpg

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References

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