VANCOUVER, British Columbia – (October 6, 2009) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) is pleased to provide an update on its Cerro Prieto Project in Sonora State, Mexico.
Following results received from the 2008 drill program and the continuing positive results being received in the current drill program, Oroco has begun its preliminary mine planning and a second phase of metallurgical testing, and will shortly begin an environmental base line study.
Initial metallurgical studies conducted concurrent with the 2008 Phase One exploration program yielded 85% to 92% recovery of gold from bottle roll tests. The Company has retained Kappes, Cassidy & Associates of Reno, Nevada, to conduct advanced testing in the next phase of metallurgical studies. In the past week the Company has collected two 250 kilogram metallurgical samples from the Cerro Prieto oxide zone from holes drilled in 2008. These are the first of six test samples to be collected along the two kilometre strike length of the mineralized zone outlined to date through trenching and drilling.
The first two samples collected are from holes drilled in 2008 between Sections 150N and 650N. One sample encompasses the zone between the surface and a depth of 150 meters which, in general, contains higher gold content, and the second from a depth of 150 meters to near the bottom of the oxide zone at approximately 300 meters depth from surface. The remaining four samples will be collected upon the completion of the current drill program. Two samples will be collected from similar depths between Sections 750N and 1350N and another two samples between Section 1350N and the northern end of the mineralized zone.
The first two samples have been sent to Kappes, Cassidy for a series of tests to establish the leaching qualities of the material. Each sample will be subjected to a coarse crush bottle roll leach test and two 120 day column leach tests at crushed sizes of minus 25 millimeters and minus 12.5 millimeters. Agglomeration tests will be conducted on the samples as required. Following preliminary agglomeration tests, compacted permeability tests will be performed on loads equivalent to heap heights of 40 and 60 meters.
Testing of all samples will be completed approximately four months after the final samples have been submitted. As drilling to the northern end of the mineralized zone is anticipated to be completed in November or December, it is expected that final results of the testing will be received in the first or second quarter of 2010.
The Company has also initiated metallurgical testing to assess the amenability of the ore to the leaching of zinc, silver and lead using AmmLeach technology. AmmLeach is a proprietary ammonia-based process developed by MetalLeach of Western Australia. AmmLeach first sent a sub-sample of the ore sample for head assay and mineralogical identification. It then leached ground samples (75 microns) using AmmLeach solutions and measured the rate and extent of extraction. Preliminary results are expected shortly and will determine whether more extensive testing is warranted.
Moose Mountain Technical Services, which has been contracted by the Company to provide engineering services, conducted a site visit to the Cerro Prieto Project last week to review the setting and gain information necessary to developing a preliminary mining assessment. A preliminary report based on Phase One exploration program data and their recent site visit is expected from Moose Mountain in the next few weeks. An updated final report will be received once all assays from Phase Two exploration have been received.
The Company is also reviewing proposals with respect to completing environmental baseline studies. The Company anticipates that a contract will be let this month.
Craig Dalziel, President of Oroco, commented on the Company’s progress: “Oroco’s Cerro Prieto project appears to offer no significant impediment to a positive production decision. The preliminary mine assessment, second phase metallurgical testing, and the environmental baseline studies are all designed to advance the project toward that determination and we are becoming increasingly confident as to Oroco’s ability to achieve that outcome.”
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, a polymetallic (Au-Ag-Pb-Zn) project in Sonora State, Mexico.
The Cerro Prieto Project consists of the 100% owned, 2,723 ha, San Felix, San Francisco and Cerro Prieto concessions and 4,120 ha of the connecting Argonauta 5 Fraccion 1 concession to which the Company holds an option to purchase (see May 14, 2009 news release). During the first field season in 2008, the Company drilled 5,975 meters of core and tabled a NI 43-101 compliant resource estimate together with the results of a preliminary metallurgical study (See May 11, 2009 news release). The Phase Two exploration program, which includes a planned 8,000 meters of diamond drilling, started in July of this year.
Kenneth R. Thorsen, B.Sc., P. Geo., is a director of the company and is a ‘qualified person’ for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has supervised the preparation of the technical information contained in this news release.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
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