Oroco Blog Update – November 25, 2024
2024 Project Site Update
Oroco followers have been kept abreast of PEA-level developments via News Release through announcement and filing in August. In this BLOG we hope to update some of the site team activities since the May 24th Update BLOG post.
Santo Tomas on-site work update:
Projects at site include:
- Field reconnaissance around the known prospects and artisanal mines to assess potential for additional mineralization
- A review of major ground-water conductive features proximal to pit development (based on drilling shift reports and water usage) is underway. The data will be modeled in combination with the geotechnical record and Fidel’s updated structural 3D major structure model (based on drill logs and surface mapping with particular attention paid to the possible intersection of the features with the north pit wall)
- This work will aid in future hydrogeological well placement for pit inflow studies
- Modelling of sulfide speciation (Cpy vs Py) versus downhole IP chargeability and resistivity: an initial assessment has been completed, and will be extended to the 3D DCIP model to improve predictive utility and targeting tools
- Further data compilation and retrieval of historical government rainfall and river water volumes continues with a view to building a comprehensive water sourcing and utilization model to support water permitting
- A weather station and PM10/2.5 sampler is being scoped for installation
- Additional mapping in the Braziles area has located gold anomalous hematite bearing skarns to the NW of the drilling completed there: integration into the geology model and constraints for future drilling (not presently planned by Oroco) are being compiled
- A geotechnical evaluation using RQD information versus point load data is being modeled to explore the distribution of rock qualities, particularly in the South Zone: the opportunity to demonstrate lower power consumption in future detailed crushing and grinding circuit design and scheduling looks promising
- Community Relations efforts are ongoing, with our focus on school improvements.
Efforts to ensure that Oroco remains a significant and positive contributor to the Choix region continue. Though we have been less active with drilling in 2024, we maintain our community activities with undiminished effort.
Stream sediments sampling campaign:
In late May through July 1st the project field team interrupted their ongoing mapping and structural data collection to implement a stream sediments sampling campaign that extended across the greater Red 1 property area.
Samples were collected on tributaries and creeks connected to the main drainages feeding into the Rio Fuerte: these included the Boca de Arroyo creek (westward of the Santo Tomas porphyry), Lo De Castro creek (between Santo Tomas porphyry and Santa Anita mine), and La Culebra creek (eastward of the idled Santa Anita mine site).
Figures 1 & 2: early morning dry river-bed traverse to locate feeder streams and sample sites / gravel clearing at sample site.
The principle aim of this sampling campaign was to obtain geochemistry data related to possible occurrence of mineralization for samples distributed into the claims held by the company, especially for the claim Amp. Sto. Tomas Reducción 1 (“Red 1), which covers a large area to the east and south of the Santo Tomás Porphyry deposit.
Figures 3 & 4: sampling later in the day….
The sampling was undertaken with reference to the distribution of watersheds, the locations mineralization showings archived by the Mexican Geological Survey and indications of surface potential alteration anomalism indicated by hyperspectral analysis by the Company resulting from WorldView3 satellite hyperspectral data acquired on behalf of Oroco/Xochipala. The areas suggested by hyperspectral imaging were prioritized, and visited early in the campaign.
Figure 5: interesting outcrop was noted and mapped
A total of 70 samples were collected and have been dispatched for analysis.
Figure 6: sample preparation / samples ready to ship
A total seventy samples were collected and submitted for analysis. Results have been returned and include some anomalous returns that justify field follow-up. Follow field up work of anomalies re-commenced in October. Geochemical anomalies with associated Satellite hyperspectral alteration in the drainages visited first.
Discoveries Conference 2024, Mazatlán:
The 11th Edition of the annual Discoveries Conference was held from April 8-10, 2025 in Mazatlán, SIN, MX. We attended with a social and core shack presence, and four of our technical team made technical presentations to the conference attendees:
Mexico Mining Developments: The 2024 national presidential election ran since our last blog post and saw the election of Claudia Sheinbaum Pardo, who was inaugurated as president on October 1. Early cabinet post selections by Sheinbaum reflect significant continuity from the prior administration: however, senior appointments at economy and environment are signaling openness to foreign investment, and senior administrative appointees in these ministries who attended Canada Day celebrations at the Canadian embassy in Mexico City addressed those assembled with expressions of support for ongoing Canadian investment in the Mexican mining resource sector.
PEA-2: Based upon the strong positive feasibility indicated by the PEA we news released and SEDAR filed in Q4 of last year, the Company embarked upon a PEA update process that was intended to revolve around a an improved project mining plan. Co-ordinated by AUSENCO (Tucson), SRK completed a revised mine plan in Q2 and that was followed by integration of the metallurgy, geotechnical, mining and engineering work into a detailed project plan resulting in an updated Preliminary Economic Estimate mining and processing schedule for Santo Tomas. The updated PEA has been news released and filed on SEDAR, and is summarized at https://www.orocoresourcecorp.com/projects/santo-tomas/
Notably, the new work data is also displayed in the Company’s Santo Tomas VRIFY model, which is available in a step through presentation format or at VRIFY where greater user control of the 3D model is available.
Shareholders can also make presentation meeting bookings via the VRIFY website with Adam Smith, VP Corporate Development and other members of Oroco’s management team.
Phase 2 site work planning – toward a PFS
Planning is underway for the Phase 2 technical program at Santo Tomas: this program has as its principal guiding requirement the completion of work that would enable a Pre-Feasibility Study (PFS) to be undertaken. A significant part of the program will focus on infill drilling to bring inferred resources up to measured and indicated per NI 43-101 / CIM guidelines for use in the PFS.
The South Zone will be the main focus drilling. The untested south-west quadrant of the South Pit holds promise for higher grades as highlighted in drill hole S018 completed in 2023. Drill holes will double as geotechnical holes to satisfy pit slope modeling requirements. Drilling will also test the pillar between the north and south pits. Additional resources, if located here, would add tonnage and enhance mining productivity by reducing a significant uphill haul out of the South Pit to the coarse crusher.
Short holes on the edges of the North Zone pit will be drilled as required to upgrade the some of the presently inferred-category resource surrounding the current indicated resource.
An exploration hole to be drilled approximately eastwards from the southeast edge of the proposed south pit will test the large 3D-DCIP geophysical anomaly in that direction. The hole will also serve as a condemnation hole for the tailings storage facility presently located in the valley to the east.
A small number of hydrogeological wells are planned for the northern edge of the proposed North Pit.
It is anticipated that the program could be completed with less than 20,000 m of drilling as the majority of mineralization has been defined in previous programs and resource modeling programs.
News Releases since the New Year BLOG
x.com/OrocoCorp
Soaring demand for copper will require $250 billion of investment over the next decade, helping to drive further mergers in the industry, BHP Group Ltd. Chief Executive Officer Mike Henry said."
ANZ Research - Commodity Call, 7 Nov 2024: "Spending on grid infrastructure is expected to accelerate as the electrification of the global economy shows no signs of slowing. This is likely to see further support for copper."
Morgan Stanley, Latin American Metals and Mining Research on Constitutional Reform in Mexico: - "contracts, concessions, permits..." already granted "will be respected."
All systems go in commodities complex as the Fed begins easing its cycle
Rio Tinto chairman warns mining deals won’t solve supply crisis
BHP, the world's largest mining company by market capitalisation, expects global copper demand will rise by 52.5mn tonnes a year by 2050 up by 30.4mn tonnes in 2021-- a 72 per cent increase
FT - "China’s electricity grid is set for an unparalleled investment of more than $800bn in the next six years to overcome strains on the energy system as the country makes a rapid shift from coal power to renewable sources."
@HoldcoMarkets - latest #uranium, #copper valuation comp table
