61 Meters Grading 359 g/t Silver From Surface At The Sandra Escobar Project

 

VANCOUVER, BC - Orex Minerals Inc. reported that assay results for the first hole of the 2015-2016 diamond drilling program on the Sandra Escobar Project have been received. The Sandra Escobar Project is being advanced by Orex under an option agreement with Canasil Resources Inc.

Hole SA-15-001 has yielded a 61 meters core length (43.1 meters true thickness) intercept grading 359 g/t silver, starting from surface. Within this is a sub-interval of 18 meters (12.7 meters true thickness) grading 748 g/t silver.

Orex's President, Gary Cope says, "This excellent high-grade and thick drilling result is the first hole in the southeastern region of the Sandra Escobar Project. Silver mineralization starts from surface in this hole. While it is still early in the program, silver has been detected in outcrops over a strike length of 700 meters."

Silver mineralization is hosted on the north side of a rhyolite volcanic dome. An altered and highly permeable volcaniclastic unit contains disseminations of silver bearing minerals and broadly spaced stockwork veinlets. The current working model has a porphyritic rhyolite unit as an impermeable cap, which may have focused mineralizing fluids into the host permeable volcaniclastic unit.

Orex maintains a QA/QC sampling protocol for the diamond drilling program, including the insertion of commercial analytical standards and blank samples. Of the 61 samples included in the above intercept, 60 of the samples exceeded 100-g/t silver, thus demonstrating a strong continuity of mineralization. The detailed table of assays is included on page 3. As part of an early stage exploration program, the above results do not contain any top end truncation (capping). The diamond drilling was contracted by Kluane Drilling Ltd. and analytical testing was performed by SGS Mineral Services. Silver values were determined by fire assay with an atomic absorption finish. Multi-element analyses were also determined using a 4-acid digestion and ICP-MS (Inductively Coupled Plasma Mass Spectrometry).

Sandra Escobar is situated north of the town of Tepehuanes, Durango, in the heart of the "Mexican Silver Trend", midway between the mining districts of Tovar and Guanacevi and is 75 km west of Silver Standard's La Pitarrilla. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.

The project consists of 6,976 hectares of mineral concessions and covers multiple mineralized epithermal quartz veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast. Intense alteration zones and fluid flooding in permeable formations may also indicate the presence of bulk tonnage targets. Excellent infrastructure exists in the Sandra Escobar area, including paved road access, electrical power, water and manpower from nearby communities.