Rain again placed the drill crews in the situation of enacting temporary stoppages to drilling as we had a few very energetic storms effecting the project area.
Despite the challenges we managed to drill approximately 1,120m during the week, completing holes N029 and N31. Holes N030, N033, and N035 were advanced, while N032 has remained uncollared owing to drill repairs. S002 continued drilling and S003 has now collared and is advancing.
The expansion in the number of drills has necessitated the deployment of more water storage containers at the ‘siphon’ location (above left), from where we gravity feed water to the main water distribution stations above South Zone (below) and North Zone’ to maintain drilling. Expansion of the drill fleet mentioned in last week’s blog has in part proceeded because we now have abundant water in the principal water sources (for example the La Pareida reservoir, pictured above right).
Approximately 503 samples (including duplicates and standards) were shipped from Ranchito to the assay lab during the week: these samples included material from holes N029, N031 and S001.
The pace of core logging and preparation for sampling has been increased substantially since the core review and relogging exercise completed, and the team has defined the features and units that will be captured to the database.
The program is also benefiting from expedited downhole surveying for hole orientation (‘REFLEX™ tool, photo below) and selected other data upon the completion of each hole.
September 24, 2022
Oroco Commences PEA And Mobilizes More Drills
VANCOUVER, British Columbia – (Sept. 20, 2022) Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) (“Oroco” or “the Company) is pleased to announce the commencement of a Preliminary Economic Assessment (a “PEA” or the “Study”) for the North and South Zones of the Santo Tomas Project located in NE Sinaloa, Mexico (“Santo Tomas”, or the “Project”).
The Company has appointed Ausenco Engineering USA South Inc. (“Ausenco”) to lead the Study, with SRK Consulting (Canada) Inc. (“SRK”) to complete an updated Mineral Resource Estimate (“MRE”) and Mining Plus Canada Consulting Ltd. (“MP”) to complete an open pit mine design. ALS Metallurgy has been selected to undertake metallurgical testing. The PEA is expected to be completed by the beginning of Q2 2023.
Ausenco, as our Study lead, brings a wealth of recent experience from projects and studies in Mexico, such as the SilverCrest Las Chispas EPC (Engineering, Procurement & Construction), Tarachi Gold’s Magistral EPCM (Engineering, Procurement & Construction Management), and Discovery Silver’s Cordero PEA projects, as well as a number of South American projects.
Richard Lock, CEO, commented: “The PEA and updated MRE will represent an important foundation for the intended future sale of the Project. Assets of the quality and favourable location of the Project are increasingly rare and we believe that the MRE and PEA will be a significant step in creating shareholder value as we continue to advance the Project.”
Preliminary Economic Assessment
The scope of work to be undertaken by Ausenco, together with SRK and others, comprises two Phases:
- Phase 1: Mine to Mill Optimization, incorporating project engineering and including geotechnical assessment, metallurgical test work, off-site infrastructure, mine scheduling, and process plant engineering. The objectives of this Phase are to optimize mining and processing parameters by evaluating various business cases for the Project before proceeding to the PEA.
- Phase 2: Preliminary Economic Assessment, incorporating cost estimation (capital and operating) and financial analysis, which will cover all aspects of such studies, including mining and recovery methods, project infrastructure, capital and operating costs and financial analysis.
The results of the Study will be compiled into an NI 43-101 Technical Report.
MOBILIZATION OF ADDITIONAL DRILL RIGS
In support of the MRE and the PEA, the Company has engaged Major Drilling de Mexico, SA. de C.V. to mobilize two additional drill rigs to the Project, bringing to six the total number of drills conducting infill and step-out drilling in the North Zone and South Zone.
The Company holds a net 73.2% interest in the collective 1,172.9 ha Core Concessions of the Santo Tomas Project in NW Mexico and may increase that majority interest up to an 85.5% interest with a project investment of up to CAD$30 million. The Company also holds a 77.5% interest in 8,154.3 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total project area of 23,048 acres). The Project is situated within the Santo Tomas District, which extends from Santo Tomas up to the Jinchuan Group’s Bahuerachi project, approximately 14 km to the northeast. Santo Tomas hosts a significant copper porphyry deposit defined by prior exploration spanning the period from 1968 to 1994. During that time, the property was tested by over 100 diamond and reverse circulation drill holes, totalling approximately 30,000 meters. Based on data generated by these drill programs, a historical Prefeasibility Study was completed by Bateman Engineering Inc. in 1994.
The Santo Tomas Project is located within 160km of the Pacific deep-water port at Topolobampo and is serviced via highway and proximal rail (and parallel corridors of trunk grid power lines and natural gas) through the city of Los Mochis to the northern city of Choix. The property is reached by a 32 km access road originally built to service Goldcorp’s El Sauzal Mine in Chihuahua State.
For further information, please contact:
Richard Lock, 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.
Cautionary Note Regarding Forward Looking Information
This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact included herein, including without limitation, statements relating to future events or achievements of the Company, are forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated or implied in such statements. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these matters. Oroco does not assume any obligation to update the forward-looking statements should they change, except as required by law.