Up to a total of $3.5-million will be allocated for due diligence expenses,administration expenses ($10,000 per month) and exploration expenditures, all
within three years of approval.
June 1, 2010
Dorex Minerals Inc., further to the company news release of May 16, 2011, has executed
a letter of intent with Cia Minera De Oro Tres Hermanos, SA, a private Mexican
company that holds the Tres Hermanos property. It has also made the $75,000 nonrefundable
payment.
The Tres Hermanos property is located in the southwestern portion of the state of
Chihuahua, Mexico, within the Batopilas mineral district and centered in the Sierra
Madre occidental's famous Mexican precious-metal belt. This belt is famous worldwide
for producing large amounts of silver, gold and copper, including Goldcorp's El Sauzal
gold mine just 20 kilometres away, which produced over 200,000 ounces of gold in 2009
at a total cash cost of $201 (U.S.) per ounce. In addition, historical reports indicate that
200 million ounces of silver were produced between 1632 and 1912 from this region.
The Tres Hermanos property consists of 328 hectares and includes the historic Tres
Hermanos mine located approximately 10 kilometres from the town of Batopilas. The
mine is situated along a large structure containing several mineralized veins that have
been traced on surface through the property for more than 3,500 metres in length. A
sample collected on surface approximately 900 metres north of the Mine reportedly
assayed 3.3 grams per tonne gold and 0.3 per cent copper over four metres.
The Tres Hermanos mine is reported to have been developed along strike for 140 metres
and to depths of 220 metres with average widths of veins reportedly up to 12 metres, with
the two major veins averaging four to six metres and two to four metres respectively. A
recent sample from the vein at surface was reportedly assayed 28 g/t Au and 10.5 per cent
Cu over a 4.5-metre width. The mine was first discovered in 1903, and was successfully
mined until 1936. It has reportedly produced over 104,000 ounces of gold, using a
primitive mill and a poor recovery process, as evidenced by recent assays of the tailings
which returned values of up to 4.83 g/t gold and 1.97 per cent copper. The mine is
currently flooded, and as part of the due diligence Dorex will determine the measures
required to drain the existing mine.
The company has hired Laurence Sookochoff, PEng, to carry out due diligence and
provide an NI 43-101 report on the property.