Vancouver, Canada (ots/PRNewswire) - Oremex Resources Inc. (TSX-V:
ORM) (the "Company") is pleased to announce positive results from an
independent Preliminary Assessment Study conducted by Snowden Mining
Industry Consultants Inc. ("Snowden") on the Company's Tejamen
silver property in Mexico. Snowden is an internationally recognised
independent consulting company that has completed a large number of
assessments for the mining industry.
In order to complete the Preliminary Assessment on Tejamen,
Snowden utilised the results of an independent resource study by
Wardrop Engineering (NI 43-101 compliant as reported in April 11,
2006 news release). That study concluded that the Tejamen property
contains a silver-equivalent Inferred resource of 50.8 million ounces
(69.8 grams per tonne of silver equivalent in 22.6 million tonnes).
The base case mining scenario developed by Snowden utilises an
optimised pit shell containing 21.7 million tonnes grading 51.9 grams
per tonne silver and 0.023 grams per tonne gold.
The following table illustrates the impact of the silver price on
the estimated Net Present Value (NPV) of the project, before taxes. A
7% discount rate has been applied.
NPV Sensitivity to Metal Value
Ag Value NPV
Based on the cost and productivity assumptions provided in the
Preliminary Assessment Study, Snowden concludes that a 10,000 tonne
per day (3.65 million tonnes per year) surface mining project and
heap leach processing system can generate a profitable operation when
silver prices average US$8 per ounce (approximately US$0.26 per gram)
and process recoveries for silver average 65 percent or greater over
the life of mine. Preliminary metallurgical testwork to date has
indicated recoveries of 70 percent for silver.
At a silver price of US$10 per ounce, silver recovery of 70
percent, initial capital investment of US$45.2 million, sustaining
capital of $8.6 million (including a contingency of 15%), and
life-of-mine average cash operating costs of US$5.72 per tonne
(including a contingency of 20%) the Net Present Value is estimated
to be US$58.6 million (before taxes). The foregoing is based on a
mine life of approximately seven years, one year of pre-stripping and
heap construction, and an average stripping ratio of approximately
2:1. At a silver price of US$12 the project has a Net Present Value
of US$97.4 million. The Snowden technical report will be filed on
"This is very good news for Oremex shareholders and enhances
shareholder value," said Linda Thorstad, CEO. "The preliminary
assessment study demonstrates that the Tejamen silver project may be
economically viable at silver prices as low as US$8 per ounce with
recoveries that are consistent with those of preliminary
metallurgical test work. The study also provides recommendations for
future development of the project."
It should be emphasised that the Preliminary Assessment is based
on information generated prior to the recent diamond drilling
program, and does not consider the exploration potential of the
Tejamen property, which is open in several directions and at depth. A
12,500-metre reverse circulation program is planned to test the
lateral and vertical limits of mineralisation and to provide in-fill
data to transfer the resources to a higher category. The in-house
qualified person responsible for the projects is Linda Thorstad,
P.Geo., Chief Executive Officer.
In addition to its Tejamen silver property, the Company holds the
San Lucas Property, where a 19-hole (3,042 metre) drill program
outlined a silver-gold mineralised system with lead and zinc in
volcanic rocks. Highlights include 9.26 grams per tonne gold and 233
grams per tonne silver over 4 metres in Hole No.3 and 6 metres of 203
grams per tonne silver in Hole No.4. Surface mapping and sampling
have traced the zone for a two kilometre strike length. The Company
also holds four other properties in Mexico.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
National Instrument 43-101 requires the following statement: that
the preliminary assessment is preliminary in nature, that it includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorised as mineral reserves, and
there is no certainty that the preliminary assessment will be
Forward Looking Statements: The above contains forward looking
statements that are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those anticipated in our forward looking
statements. Factors that could cause such differences include:
changes in world commodity markets, equity markets, costs and supply
of materials relevant to the mining industry, change in government
and changes to regulations affecting the mining industry.
Forward-looking statements in this release include statements
regarding future exploration programs, operation plans, geological
interpretations, mineral tenure issues and mineral recovery
processes. Although we believe the expectations reflected in our
forward looking statements are reasonable, results may vary, and we
cannot guarantee future results, levels of activity, performance or
ots Originaltext: Oremex Resources Inc.
Im Internet recherchierbar: http://www.presseportal.ch
For further information: Linda Thorstad, M.Sc., P.Geo., Chief
Executive Officer, T: +1-604-683-5651, E: email@example.com