Oroco Updates Cerro Prieto Progress
November 10, 2009
VANCOUVER, British Columbia – (November 10, 2009) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or “the Company”) is pleased to provide the following updates on its 2009 drill program, and its preliminary studies and determinations with respect to engineering and project financing for its Cerro Prieto Project in Sonora State, Mexico.
Preliminary work on pit modeling has indicated a low strip ratio in the initial stages of a potential open pit mining operation. In order to provide a higher degree of certainty in the resource estimates for potential financing partners, the Company has determined that tighter drill spacing will be required in the area of its existing resource from which the first stages of production are anticipated. To achieve this, Oroco has initiated a limited infill drilling program consisting of 1500 meters in approximately 20 holes planned to reduce the spacing between previous intersections from 100 meters down to 50 meters.
To date in its 2009 program, the Company has drilled a total of 6300 meters in 24 holes. Seven of the holes have been drilled on the Argonauta claim, which is optioned from Yamana Gold Inc., and the remaining 17 holes have been drilled on the San Felix and San Francisco claims held 100% by Oroco. Assay results have been received for all seven holes drilled on the Argonauta claim and for eight of the seventeen holes drilled on the Oroco claims. Results from two of the holes on the Argonauta claim and from five of the holes drilled on the Oroco claims were previously reported in press releases dated September 17, 2009 and September 30, 2009.
On the Argonauta claim, holes CP032, CP034, CP035 and CP037 tested the mineralized structure at 200 meter-wide intervals starting approximately 600 meters north of hole CP023, the most northerly hole drilled on Oroco’s claims prior to the commencement of the 2009 program. CP039 was drilled under the La Tinaja showing where surface results from Oroco’s 2009 surface sampling program were as high as 21.9 g/t Au over 0.8 meters. Assays for the five most recent holes on the Argonauta claim are shown in the following Table 1. For locations of all holes drilled to date, please refer to the longitudinal section on Oroco’s website at www.orocoresourcecorp.com.
Table 1. Drill Results from Argonauta Claim
|Apparent Thickness (m)
Results from recent drilling on the Argonauta claim indicate that the mineralized system continues for the one kilometer strike length tested and will require more exploration to better define the mineralized structure.
On the San Felix and San Francisco claims, assays have been received for holes CP033, CP036, CP038 and the top part of CP040 drilled on the northern extension of the mineralized oxide zone defined in Oroco’s 2008 drill program, from which results the Cerro Prieto indicated and inferred resources were calculated. CP033 and CP036 were drilled 100 meters and 200 meters, respectively, directly under CP027 at section 850N and intersected very weak mineralization compared to holes drilled on either side and above. CP038 intersected the mineralized zone at section 950N, 100 meters north of CP033 and CP036, and identified a significant thickness of mineralization. CP040 was drilled 100 meters below CP038 and intersected 50 meters of mineralized zone of which assays have been received for only the first 28 meters. Assays for these four holes are presented in the following Table 2.
Table 2. Drill Results from Oroco Claims.
|Apparent Thickness (m)
* NSA – no significant assays
** CP040 – assays only received for first 28 meters of mineralized zone.
At the conclusion of Oroco’s 2009 drill program, the deposit will only have been tested in detail over a relatively-limited 1.1 kilometer section of a potential total strike length of 17 kilometers. Despite the complexities of the mineralized structure on the Argonauta claim, the Company remains confident that its overall development plan with respect to the Cerro Prieto Project continues to substantiate the existence of a viable gold resource in oxidized upper portions of the deposit with significant additional potential for base and precious metal mineralization in the deeper unoxidized zones.
Oroco is a Canadian-based mineral exploration company with its primary focus on the accelerated development of the gold bearing oxide zones of its Cerro Prieto project, a polymetallic (Au-Ag-Pb-Zn) project in Sonora State, Mexico.
The Cerro Prieto project consists of the 100% owned, 2,723 ha, San Felix, San Francisco and Cerro Prieto concessions and the 4,120 ha of the connecting Argonauta 5 Fraccion 1 concession to which the Company holds an option to purchase (see May 14, 2009 news release). During the first field season in 2008, the Company drilled 5,975 meters of core and tabled a NI 43-101 compliant resource estimate together with the results of a preliminary metallurgical study (See May 11, 2009 news release). The Company is moving the Cerro Prieto project forward with the rapid development of mineral resources, further metallurgy studies and the development of a preliminary assessment by an independent mining engineering firm.
Kenneth R. Thorsen, B.Sc., P. Geo., is a director of the company and is a ‘qualified person’ for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information contained in this news release.
Quality Assurance & Control
The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. Split core is transported to the ALS Chemex laboratory in Hermosillo where it is crushed and pulverized, with pulps sent to the ALS Chemex laboratory in Vancouver, B.C. for assaying. The other half of the core is retained for future assay verification. The QA/QC policy includes the chain of custody monitoring, insertion of blanks, standards and duplicates in the initial samples submitted. The laboratory provides an additional internal control program.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.