VANCOUVER, April 10 /CNW/ – Oroco Resource Corp. (TSX-V: OCO) is pleased to announce that it has completed the acquisition of the San Francisco and San Felix concessions, containing the past producing Cerro Prieto Mine, located in the state of Sonora, Mexico. Using funds from the company’s CAN $4.4 million initial public offering Oroco has made the final payment of US $1.5 million to the Cerro Prieto property vendors, bringing the total price paid for the San Felix and San Francisco concessions to US $2.5 million. Minas de Oroco Resources S.A. de C.V., a wholly owned subsidiary of Oroco, now holds a 100% ownership interest in the San Felix and San Francisco mining concessions, subject to a 2% NSR payable to the property vendors. These concessions, together with Oroco’s 100% owned Cerro Prieto North concession collectively comprise the 2,723 hectare Cerro Prieto Project. The project is focused on the historic Cerro Prieto Mine and the contained 6.5 km strike length of the geological structure that hosts the mine.
THE CERRO PRIETO PROJECT
The Cerro Prieto Project is located in the Cucurpe Mining District, northern Sonora, Mexico. Access from the regional centre of Magdalena de Kino (population 40,000) is by 40 kilometres of paved road and 12 kilometres of well maintained dirt road. Major lectricity transmission lines are less than five kilometres from the project and water is available on site. The Cerro Prieto Mine operated from 1906 with production reportedly between 500 and 720 tpd of gold and silver ore grading three to 15 g/ton Au and 50 to 60 g/ton Ag.
\ Mining operations ceased in 1912 at the time of the Mexican Revolution and were never resumed. In 1998, Morgain Minerals Inc. conducted a reverse circulation drill program of 23 holes collared from surface and contained within the area of historical working over approximately 800 metres of strike length of the mineralized shear zone and to a depth of no greater than 335 metres. Mineralization (Pb-Zn-Au-Ag-Mo) at the Cerro Prieto Mine is contained in veins within an approximately 25 metre thick major shear zone which cuts all units from Jurassic to Lower Tertiary. Within this shear zone are contained hanging wall and footwall veins, both of which are one to three metres thick and dip steeply, as well as a series of secondary veins, stringer zones and silicification, ranging up to 40 centimetres thick, which together with the major veins produce a continuous mineralized zone from six metres to in excess of 30 metres thick. The principal structure is a regional structure that can be traced for approximately 10 kilometres north and south of the mine with approximately 6.5 kilometres of strike length contained on Oroco’s concessions. At the mine site the structure strikes 350 degrees and dips vertical to 80 degrees. Known mineralization extends from surface to below the lowest level of the historic workings approximately 335 metres below, and is open at depth, to the north and to the south.
Exploration to date by Oroco has confirmed mineralization consistent with that reported by previous exploration programs. The average assays of the samples taken by Oroco across the vein on the 800 level haulage drift of the Cerro Prieto Mine are 3.45 g/T Au, 6.22 g/T Ag, 0.54% Pb, and 1.27% Zn over a sampled strike length of 408 metres. The highest assay values reported within the historic workings on all levels sampled in Oroco’s exploration to date are 43.00 g/T Au, 1,050.0 g/T Ag, (greater than) 30% Pb, 11.30 % Zn, and 0.605% Mo. Oroco’s 2008 Phase I exploration program will include a 6,000 metre diamond drilling program in the area of the past producing Cerro Prieto Mine to confirm historic results and test below the historic workings. The program will also include surface mapping, sampling within the historic Cerro Prieto Mine workings and surrounding property, trenching across the vein systems at 200 metre intervals, ground geophysical surveys, and initial small scale (bench) metallurgical testing. A contingent Phase II program will include an additional 20,000 metres diamond drilling including detailed infill, extension surface drilling and underground drilling, and will also include rehabilitation and mapping of underground workings.
Oroco is a Canadian mineral exploration company which holds a 100% interest in six mineral concessions in Mexico. The company’s primary focus is the Cerro Prieto Mine, a historic polymetallic deposit in Sonora, Mexico and the nearby 2,508 hectare Cerro Prieto North concession. In addition Oroco holds three mining concessions in Guerrero, Mexico totaling 293 hectares. Director, Ken Thorsen, BSc Geological Engineering, P Eng, is the company’s Qualified Person for the Cerro Prieto Project. Mr. Thorsen is responsible for the current exploration and development program and has reviewed the content of this release.
Forward Looking Statements: This news release contains certain forward looking information concerning the business of the Company. These forward looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward looking statements. These risks are further described in the Company’s prospectus dated February 12, 2008, which is available at www.sedar.com. The Company is under no obligation to update forward looking statements if circumstances or management’s opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
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