OROCO ADVANCES CERRO PRIETO GOLD PROJECT TO PRODUCTION DECISION
VANCOUVER, British Columbia – (June 1, 2010) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) is pleased to provide an update on the work being conducted in support of a near-term production decision on its 100% owned Cerro Prieto oxide gold project in Sonora, Mexico.
In just over two years since its IPO in March of 2008, Oroco has advanced the Cerro Prieto project through two phases of drilling resulting in a 98% Measured and Indicated gold and silver resource with excellent potential for future production. Phase One metallurgical testing was completed in May of 2009, demonstrating high gold recoveries. Phase Two metallurgical testing, designed to optimize metallurgical recoveries for production planning purposes, has been ongoing since September of 2009 and the primary data collection from this phase of testing is expected to be completed by June 1, 2010. Mine planning and a Preliminary Economic Assessment (Scoping Study) have been underway since September of 2009 and the Company anticipates completion of the Assessment before the end of June, 2010. In addition, Oroco has also completed a dry season baseline environmental study which concluded there are no environmental impediments to obtaining government approval for production.
2009-2010 Cerro Prieto highlights:
- Completed 8,576 metres of drilling in 42 holes in Phase Two drilling;
- Increased Cerro Prieto's gold resource by 30% (to 389,000 ounces) and silver by 100% (to 6,193,000 ounces) over the 2008 resource calculations;
- Elevated the great majority of the resource to a higher level of certainty, with 98% now classified as Measured and Indicated;
- Expanded its land holdings to incorporate 17.5 km of strike length potential with the option to acquire 4,120 ha of the adjacent Argonauta 5 Fraccion 1 concession;
- Completed dry season environmental baseline studies concluding no impediments to mining;
- Engaged an independent mining engineering consultant to prepare a Preliminary Economic Assessment (Scoping Study) on the viability of mine development, with a projected completion during June, 2010;
- Engaged a mining engineer to oversea all aspects of preparation for mine development.
Speaking on the progress to date at Cerro Prieto, Company President Craig Dalziel stated:
“During 2009 and early 2010, Oroco significantly advanced Cerro Prieto with a second successful drill program, the commencement of detailed metallurgical and engineering studies, and the completion of an initial environmental study. Oroco has been able to justify its decision to prioritize production over further exploration through the validation of the considered advantages of the Cerro Prieto project, including the presence of nearby infrastructure, favourable geology in the form of a near-surface resource, and a topographical setting conducive to the rapid development of a producing gold mine.
Our mission for 2010 is to demonstrate that the Cerro Prieto project is capable of becoming a stand-alone gold producer with near-term production certainty. We expect Oroco’s shareholders to be the beneficiaries of a resulting increase in the project valuation as the market better recognizes the significance of our progress at Cerro Prieto and the additional exploration potential that this property continues to hold.”
Oroco is a Canadian-based mineral exploration company with its primary focus on the accelerated development of the gold-bearing oxide zones of its Cerro Prieto project in northern Sonora State, Mexico. The Cerro Prieto Project consists of the 100% owned San Felix, San Francisco and Cerro Prieto concessions, totalling 2,723 ha, and 4,120 ha of the connecting Argonauta 5 Fraccion 1 concession to which the Company holds an option to purchase a 100% interest.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
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