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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.
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Once the potential of the new
discovery became apparent, Orko turned their attentions squarely
to work at Martha. Four drilling rigs are now operating on a
continuous basis and the company is presently working on drill
holes 331-334. The holes are being drilled at 100 meter
step-outs and the results of work at Martha have proven to be
most encouraging. As assay returns from Martha began to be
documented, Orko was able to publish a second NI43-101 compliant
estimate in September 2007 which increased the previous
estimates to 10.36 million tonnes grading an average Ag
equivalents of 219.0 g/t for total silver equivalents of 73.1
million ounces. By March 2008, Orko issued another NI 43-101
compliant estimate, this one based on results from a total of
149 drill holes. That revised estimate showed 15.35 million
tonnes grading 209.2 g/t silver equivalents and 103.2 million
ounces of silver 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.
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In fact, drill core has mounted
steadily to the point where the company now has its fifth drill
core shack under construction and is also working on a new core
processing shed. We were able to personally inspect the four
existing core shacks and they are large - up to 40 meters in
length - well ventilated, and very well organized. Through
excellent computerized location data programs, company
geologists are able to quickly locate and examine core from
every hole drilled by Orko at La Preciosa.
The
project itself is located 47 kilometers NE of the city
of Durango |
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(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.
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As we stood at the company's
office and core shack complex, the Abundancia and La Gloria
veins were located to our left and the Martha Vein extended
below and to the right along the valley floor, with some low
basaltic hills just beyond the valley. It is on one of these
low hills that the only outcropping of ore from the Martha Vein
can be found.
The growing importance of the
Martha Vein to Orko's strategy at La Preciosa is apparent when
it is noted that in the March 2007 NI 43-101 resource
calculation, the entire resource came from the upper veins,
Abundancia and La Gloria. By October 2007, the new calculation
showed a contribution of the upper veins of 45.6 million ounces
Ag Eq, with the Martha Vein adding 27.5 million ounces. By
March 2008, the contribution from the upper veins remained the
same while Martha contributed a far greater amount at 57.6
million ounces. And, as noted, that calculation was based on
far fewer drill holes than have now been accomplished.
Drilling activities to date have
encountered mineralization at Martha along a 2.5 km length and
it remains open along strike with additional drilling planned
along a further 2.7 km. |
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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.
For further information, please
refer to the company website at
www.orkosilver.com or
contact the company by e-mail at
info@orkosilver.com
Leonard Melman
Oct 1, 2008
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