VANCOUVER, British Columbia – (Sept. 15, 2010) Oroco Resource Corp. (TSX-V:OCO) (“Oroco”) or “the Company”) is pleased to announce that, through its wholly owned Mexican subsidiary, Minas de Oroco Resources, S.A. de C.V. (“MOR”), it has exercised its option and completed its acquisition of a 100% interest in the 41.2 square kilometre Argonauta 6 mineral concession (the “Argonauta 6 Concession”) from Minera Meridian Minerales S. de R.L. de C.V. (“Minera Meridian”), a subsidiary of Yamana Gold Inc. (“Yamana”), subject to a 2% net smelter return royalty. The Argonauta 6 Concession surrounds the Company’s 100% owned Cerro Prieto Project (“Cerro Prieto”), located approximately 135 kilometers north of Hermosillo, the state capital of Sonora, Mexico.
The Argonauta 6 Concession covers projected extensions to the north and south of the mineralized shear zone on Cerro Prieto, which hosts the Measured and Indicated gold and silver resource previously detailed in a Company news release dated April 29, 2010. These projected extensions of the shear zone total 9.2 kilometres in length and include 1.7 kilometres of projected strike length between Cerro Prieto and the Company’s 100% owned Cerro Prieto North concession (the “CPN Concession”) and 7.5 kilometres of projected strike length to the south of Cerro Prieto.
Oroco tested a portion of the Argonauta 6 Concession with both a surface sampling program and a drill program prior to determining that it would complete the acquisition. Surface sampling conducted on the Argonauta 6 Concession in 2009 over 900 meters of outcropping veins, contiguous to the north with the structure hosting Cerro Prieto’s gold and silver resource, returned high grade or anomalous gold values along the entire strike length tested (see the Company’s news release of August 11, 2009). Four widely spaced drill holes completed by Oroco over this same strike length also returned anomalous gold and silver values associated with the mineralized structure present at Cerro Prieto.
To the south of Cerro Prieto, the Argonauta 6 Concession covers a unexplored potential 7.5 kilometre extension of the mineralized shear zone. In total, Cerro Prieto, the Argonauta 6 Concession and the CPN Concession cover a total potential strike length of the mineralized shear zone of 17.5 kilometres.
For Maps detailing Cerro Prieto, the Argonauta 6 Concession and the CPN Concession, please visit our web site at: https://orocoresourcecorp.com/projects-Cerro-Prieto-Project-Maps-and-Sections.html
MOR entered into an option agreement with Minera Meridian and acquired the option to the Argonauta 6 Concession pursuant to the terms of a letter agreement between the Company and Yamana dated effective May 5, 2009 (the “Letter Agreement”). Pursuant to the terms of the Letter Agreement (see the Company’s news release of May 14, 2009), the Company issued and delivered an initial payment of 500,000 common shares to Yamana upon signing the letter agreement and an additional payment of 500,000 common shares upon MOR exercising the option to acquire the Argonauta 6 Concession. The Company also completed a required minimum of 1,500 meters of drilling on the Argonauta 6 Concession.
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 contiguous Argonauta 5 Fraccion 1 concession which now constitutes the Argonauta 6 Concession.
For further information, please contact:
Mr. Craig Dalziel, 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.