Company Reports > Orko Silver Corp.

Sometimes it is hard to differentiate between an unusually high level of skill, or just plain good fortune. In Vancouver-based Orko Silver Corp's case, the fact is much more important than the source as one geologist's fortuitous decision led to the discovery of a new and important mineralized region at the company's primary focus, the "La Preciosa" project in Durango State, Mexico.

Orko actually is a participant in three silver projects in Durango State, including the 100% owned La Preciosa, the Santa Monica project currently joint-ventured with Goldcorp, and the San Juan Project under an option agreement with Silver Standard.

La Preciosa is clearly the focal point of company activities and has been since Orko acquired the project in late 2003. Mining in the region of La Preciosa actually began several centuries ago when the Conquistadores first entered the region in search of metals. Serious work began in the period of Porfirio Diaz when mining operations were conducted from 1876-1911, a period of thirty five years.

After seventy years of relative inactivity, Mexican mining giant Luismin used underground drifts from the production era to conduct underground exploration to go along with their surface sampling. As a result of their activities, a preliminary estimate (not compliant with current NI 43-101 requirements) of 320,000 tonnes of ore grading at eight ounces of silver per tonne (opt) was developed at the Abundancia and La Gloria veins. Luismin then abandoned the project due to low silver prices.

When Orko Silver (then known as Orko Gold) took over the project, they continued to focus their exploration work at those two veins - which is when the incident noted above took place. In examining the company's early drilling results - results which had enabled Orko to publish a NI 43-101 compliant resource estimate in March 2007 showing 5.72 million tonnes of ore grading at 213.6 equivalent grams/tonne silver totaling 39.3 million equivalent ounces from Abundancia and La Gloria - Senior Geologist Alejo Monsivais H. believed that another extensive ore zone could be found below the Abundancia and La Gloria zones.

Accordingly, he authorized Hole 75 be extended down to well below 400 meters and it was that hole that discovered what now has been named the "Martha Zone." Between 351.22 meters depth and 393.42 meters - a drilling width of 42.20 meters and a true width of 39.66 meters, Monsivais encountered mineralization grading 235.2 g/t Ag and, when other metals values were included, 257.5 g/t Ag equivalents.

The company plans to release a newly calculated resource in November 2008 which will be based on total assay returns from approximately 250 dill holes, and, as noted above, the total of new holes, including those for which assay results have yet to be received, now totals far beyond that number.

The project itself is located 47 kilometers NE of the city of Durango (Ciudad Durango) in Durango State and consists of a block of mineral exploitation concessions covering 1,134 hectares. Neighboring towns including Francisco Javier Mina, Francisco I. Madero and Ricardo Flores Magon are able  to  provide  basic  supplies  including sufficient manpower and expertise for present exploration and discovery work. Other mining support, including laboratories, is to be found in Ciudad Durango itself.

Infrastructure in the area includes first paved and graded roads into the project area and Orko self-produces its electricity through diesel-powered generation. Water is trucked in from nearby reservoirs which become virtually full during the rainy season (May-October) and are more than adequate year-round. Because of the rainy season conditions, Orko concentrates its drilling during those months to relatively flat areas, leaving drilling on steeper slopes for the dry season.  

Geologically, the La Preciosa Property area covers Tertiary aged gold and silver bearing epithermal quartz veins with barite and lesser quantities of base metals, primarily zinc and lead. There are three major vein and vein-breccia systems exposed on a series of hills and ridges separated by flat-floored valleys roughly 800 meters wide.

The company is headed by President, CEO and Director Gary Cope; Mike Devji, Executive VP and Director; George Cavey, P. Geo, VP Exploration and Director; Ben Whiting, M. Sc., P. Geo, Chief Geologist; and Art Freeze, P. Geo, Consulting Geologist and Advisory Board Member.