OROCO SIGNS OPTION TO PURCHASE AGREEMENT AND EXPANDS CERRO PRIETO LAND HOLDINGS
VANCOUVER, British Columbia – (May 14, 2009) Oroco Resource Corp. (TSX-V:OCO) (“Oroco” or “the Company”) is pleased to announce that it has entered into a binding agreement with Yamana Gold Inc. (“Yamana”) with respect to an option (the “Option”) to acquire from Yamana a 4,200 hectare land position (the “Optioned Property”) bordering the Company’s 100% owned Cerro Prieto Project claims (“Cerro Prieto”) on the north, south and west. The Cerro Prieto Project is located approximately 135 kilometers north of Hermosillo, the state capital of Sonora, Mexico.
The Optioned Property covers projected extensions to the north and south of the mineralized shear zone on Cerro Prieto which host the recently announced estimated resource (See the Company’s May 11, 2009). The extensions total 9.2 kilometres and include 1.7 kilometres of projected strike length between Cerro Prieto and the Company’s 100% owned Cerro Prieto North claim (“CPN Claim”) and 7.5 kilometres to the south of Cerro Prieto.
To the north of the estimated resource, the Company has established the continuation of the Cerro Prieto mineralized zone to its northern boundary with the Optioned Property. In addition, the Company established what it believes to be the continuation of the mineralized zone on the CPN Claim with highly anomalous assays from samples taken over a series of outcrops of the mineralized zone along 400 metres of strike length (see the Company’s April 30, 2008 news release). Furthermore, Mexican government geologic maps identify the historical gold and silver La Tinaja mine on the projected mineralized zone on the Optioned Property approximately 450 metres north of CP023, the Company’s northernmost drill hole on Cerro Prieto. Consequently, the Company is of the opinion that the mineralized zone continues to the north on to the Optioned Property and possibly strikes to and through the CPN Claim.
To the south of Cerro Prieto, the Optioned Property covers a previously unexplored potential 7.5 kilometre extension of the mineralized shear zone. In total, Cerro Prieto, the CPN Claim and the Optioned Property cover a total potential strike length of the mineralized shear zone of 17.5 kilometres.
For Maps detailing Cerro Prieto, the CPN Claim and the Optioned Property please visit our web site at: http://www.orocoresourcecorp.com/projects-Cerro-Prieto-Project-Maps-and-Sections.html
The Company has agreed to issue 500,000 common shares to Yamana upon signing of a formal option agreement amongst the Company, Yamana and their respective Mexican subsidiaries. To maintain the Option in good standing, the Company must drill at least 1,500 meters on the Optioned Property before January 1, 2011, of which 750 metres must be drilled before December 31, 2009. After completion of the drilling, the Company may exercise the Option and acquire a 100% interest in the Optioned Property, subject to a 2% net smelter return royalty payable to Yamana, by issuing an additional 500,000 common shares to Yamana on or before January 1, 2011.
Oroco is pleased to acquire this Optioned Property because it holds the potential for the Company to significantly increase the size of the resource at Cerro Prieto and it also may host as yet undiscovered mineral deposits along the projections of the mineralized shear zone.
For further information, please contact:
Mr. Ken Thorsen, President and CEO
Oroco Resource Corp.
Neither 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.