VANCOUVER, Feb. 4 /CNW/ – On Feb. 4th Oroco Resource Corp. (the “Company” or “Oroco”) filed an amended technical report entitled “Report on Phase 1 Exploration, Cerro Prieto PB-Zn-Au-Ag-Mo Project, Magdelena de Kino Area, Sonora State, Mexico” dated December 14, 2007 (the “Amended Report”) on SEDAR regarding its Cerro Prieto property (the “Property”).
The Amended Report, which has been prepared pursuant to National Instrument 43-101, contains material amendments to the technical report filed by the Company in connection with its preliminary prospectus on October 26, 2007. The Amended Report discloses historical preliminary estimates for the Property which were reported by Morgain Minerals Inc. (“Morgain”), a TSX Venture Exchange listed company, in its 1998 Annual Report which was filed on SEDAR on May 19, 1999. These historical estimates of 6.1 million tons with an average gold equivalent grade (as calculated at that time) of 4.85 g/t or 7.0 million tons with an average gold equivalent of 4.4 g/t were reported to have been based upon assay results of a 23 hole reverse circulation drill program conducted by Morgain and samples taken from underground crosscuts on the Property. Oroco cautions that the Company does not have a technical report available to it which includes these historical estimates. Consequently, the location of the drill collars or intercepts, the methodology used in the calculations of the average individual grades for each block and the methodology and assumptions and parameters used in the preparation of the historical estimates are not known. It is presumed that the historical estimates were calculated using only geometrical parameters and assays taken at widely spaced intervals. It does not appear that geostatistical information or economic factors were used to back up the valuations.
However, it is the opinion of the author of the Report (the “Author”) that the exploration results available to Morgain would have provided sufficient information to calculate the reported preliminary estimates and that, subject to categorization of the reserve or resource, based upon the historical information available and the Author’s own sampling results, these historical estimates are reasonable. Confirmation drilling proposed by Oroco will test their reliability.
Oroco further advises that Morgain’s historical estimates, which were reported as “preliminary reserve estimates”, were prepared prior to the implementation of the Standards of National Instrument 43-101 and that under current definitions of “mineral resources” and “mineral reserves” as stated in sections 1.2 and 1.3 of National Instrument 43-101 or in the CIM Standards on mineral resources and reserves, there is no category of “preliminary reserve estimate”. However, the Author is of the opinion that under current definitions of “mineral resources” and “mineral reserves” under National Instrument 43-101 and the CIM Standards, the Morgain estimates would correlate to the Inferred Resource category.
There is no more recent estimate or more recent data available, that the Company is aware of, other than sampling data obtained by the Author. A qualified person has not done sufficient work to classify the historical estimates as a current mineral resource. Oroco is not treating the historical estimates as current estimates and the historical estimates should not be relied upon as current estimates.
Duncan Bain P.Geo. is the qualified person responsible for the disclosure about the technical information reported in this news release. Mr. Bain has reviewed and approved the technical disclosure in this news release. Further information on the Company is available at www.sedar.com
On behalf of the board of directors,
“J. Casey Forward”
Director Oroco Resource Corp. – Tel: 604-688-6200
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 preliminary prospectus dated October 26, 2007, 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 this news release.
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