Company Reports > Orko Silver Corp.

 
 

Report Date :  

 Oct 1, 2008

Contact :  

 

Symbol :  

 OK, Toronto Venture

Telephone :  

 604 684 4691

URL :  

 www.orkosilver.com

eMail :  

info@orkosilver.com
 

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.

 

 

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.

 

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 (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.

 

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.

 

 

 

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.

 

 
Orko Silver Corp.

Suite 2610 - 1066 West Hastings Street
Vancouver, BC  V6E 3X2 Canada

Telephone :

  604 684 4691

Facsimile :

  604 684 4601
 
 

The Melman Report

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