Gary Cope, President & CEO of Orex Minerals (REX:TSX.V), describes this high-grade gold company’s new deal with Canasil and the future for their project.
Orex is a mineral exploration company primarily operating in Mexico, right now we have two main projects, one is a joint venture with Fresnillo, the Coneto project and they will be starting their next phase of drilling here shortly. Looking forward to those results but the big news is our joint venture with Canasil where we are the operator.
It’s a silver project and the first hole has a huge intersection of which true thicknesses is over 40 meters. It’s not only a big intersection but it’s a very rich intersection.
This indicates a potential for a bulk tonnage at surface deposit. It’s not a deposit yet because we’re still early in the program but it has the potential to be a game changer for our company.
The deal with Canasil is we are earning our interest and by doing that we have to spend 2 million US over the next three years and we’ve given them $500,000 cash and that will earn us 55% and then we have the option to do the same thing again, over an additional three years which would get us to 65%.
The focus at Sandra Escobar is to expand the drilling and see how big this thing as you can see from the results we’ve put out, spectacular first hole, it’s got us and a lot of the industry excited.