Summary 09 and Outlook 2010What a great looking outlook for 2010 and a speeding up PAAS.
Orko Silver Provides an Update of Activities for 2010 and a 2009 Year End Summary
VANCOUVER, BRITISH COLUMBIA, Jan 13, 2010 (MARKETWIRE via COMTEX News Network) --
Orko Silver Corp. (TSX VENTURE: OK) - The Company is pleased to providean update of activities planned for 2010 and a year-end summary on ourLa Preciosa silver deposit located in Durango Mexico currently in ajoint venture with Pan American Silver Corp.
In 2010, Pan American plans a continued aggressive exploration program.Work will include approximately
51,000m of diamond drilling, with themajority of the drilling slated for further resource definition;
100kmof magnetometer surveys; more
detailed metallurgical testing;additional engineering studies, a
preliminary economic assessment andcontinued community relations.
Drill testing of two additionalexploration targets and the completion of a
preliminary environmentalimpact study (EIS) are also integral parts of this year's plannedprogram.
Integral to the planned exploration and perhaps the most importantinvestigation ongoing by Pan American will be determining the optimalmining method should all the results of the accelerated work programremain positive. Currently, Pan American is investigating thepossibilities of mining the deposit by underground methods or by alarge open pit or possibly a combination of the two methods. PanAmerican will need the results from the 2010 work program to determinethe best approach to mining at La Preciosa.
Pan American has
budgeted $10 million for the planned 2010 explorationand development and is working towards completing a full feasibilitystudy towards the end of the year; more than a year ahead of the timingcontemplated in the April 2009 joint venture agreement.
Gary Cope, president of Orko Silver Corp. stated: "Orko is very pleasedwith the progress of the exploration to date and the
acceleration ofthe work towards the completion of the full feasibility study towardsthe end of 2010."
Calendar Year 2009 represented a significant and positive change forthe Company and our La Preciosa silver deposit located in Durango,Mexico.
-- On Feb 18, 2009, the Company released the sixth and latest resource
estimate. The La Preciosa deposit now comprises 47% Indicated Resources
and 53% Inferred Resources. Current Indicated Resources are 10.64
million tonnes grading 0.27 g/t Au and 185 g/t Ag for a silver-
equivalent grade of 201 g/t at a cut off grade of 100 g/t. The
contained metal equals 63.2 million ounces of silver and 94,000 ounces
of
gold for a silver equivalent of 68.9 million ounces. Current Inferred
Resources are 12.0 million tonnes grading 0.25 g/t Au and 185 g/t Ag for
a silver-equivalent grade of 200 g/t at a cut off grade of 100 g/t. The
contained metal equals 71.8 million ounces of silver and 97,000 ounces
of gold for a silver equivalent of 77.6 million ounces.(i)
(i) Estimated at a 60 to 1 Silver/Gold ratio with metallurgical
recoveries and net smelter returns assumed to be 100%.
-- On March 31, 2009 the Company announced that it had signed an agreement
with Silver Standard Resources Inc. to acquire a 100% interest in the
San Juan Property located immediately west of the Company's La Preciosa.
Orko had previously concluded a similar agreement with Goldcorp on the
Santa Monica property (Oct 27, 2008). The Company now has a 100%
interest in the large 32,400 hectares (approx. 80,000 acres) project.
-- On April 14, 2009 the Company and Pan American Silver Corp. announced
that they had agreed to form a joint venture to develop the La Preciosa
project. Pan American contributes its demonstrated mine development
expertise, as well as 100% of the funds necessary to develop and
construct an operating mine, in consideration for a 55% interest in the
joint venture. Orko Silver retains a 45% interest fully carried to
production. Orko Silver's shareholders will benefit from the financial
contribution and extensive mine development expertise that Pan American
brings to the joint venture as well as retain the upside potential for
the discovery of additional resources on the project.
-- From September to November, the joint venture partners began releasing
results from the 2009 exploration program which included trenching,
detailed metallurgical tests as well as more than 27,000m of diamond
drilling both in the known deposit and also in the exploration targets
previously identified by Orko Silver. The values are comparable with
earlier drilling by Orko Silver at La Preciosa. A full QC/QA program
continues under the direction of Pan American. A complete table of 2005-
2009 drill results and drill hole location maps are available on our
website.
-- June-December, 2009 to present, Pan American has drilled 91 holes,
including 23 holes on exploration targets for a total of 27,097m.
Delineation drilling is in the Central Area of the La Preciosa Resource
and consists of 66 holes (21,734m). Exploration drilling around the
periphery of the Resource includes 15 holes (5,363m) from the South Area
on the Martha Vein. The results of the
exploration drilling to date from
Baritina and El Vaquero, which are targets outside of the Martha vein
resource, have been inconclusive. Further drilling has been done in both
areas;
results of which are pending.
-- Pan American has completed a first phase detailed metallurgical testing
program on representative samples of the different veins at La Preciosa
and these have yielded excellent results. Work included: work index
tests, abrasion tests, mineralogical studies, gravity tests, flotation
tests and cyanide leach tests.
Simple cyanide leaching yielded average
silver
recoveries of 91%, although the use of selective oxidants
could
further enhance these results.-- In addition to continuing delineation and exploration drilling, as well
as commencing additional metallurgical testing, the project is being
actively advanced on a number of other critical path items.
Hydrogeological services have been contracted to begin determining
appropriate water sources and
Pan American has been in active dialogue
with the local communities and land owners in the project's immediate
vicinity who would be affected by La Preciosa's development.
A printer friendly PDF format of this news release is available at the link below:
https://www.orkosilver.com/i/pdf/orkonews01132010.pdfGeorge Cavey, P.Geo. is the Qualified Person and takes responsibility for the technical disclosure in this news release.
About Orko Silver Corp.
Orko Silver Corp. is developing one of the world's largest primarysilver deposits, La Preciosa, located near the city of Durango, in theState of Durango, Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS
George Cavey, Vice-President Exploration
This News Release may contain forward-looking statements including butnot limited to comments regarding the timing and content of upcomingwork programs, geological interpretations, receipt of property titles,potential mineral recovery processes, etc. Forward-looking statementsaddress
futureevents and conditions and therefore involve inherent risks anduncertainties. Actual results may differ materially from thosecurrently anticipated in such statements. Orko relies upon litigationprotection for forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for this News Release.
Contacts: Orko Silver Corp. (604) 687-6310 (604) 687-6365 (FAX) info@orkosilver.com
www.orkosilver.comSOURCE: Orko Silver Corp.
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