Oremex finances drilling at Tejamen

Vancouver — Oremex Resources (ORM-V) plans to raise $5.5 million for more drilling on its Tejamen silver property in the Mexican state of Durango.

The brokered private placement comprises up to 5 million units priced at $1.10 per unit for a total of $5.5 million. A unit consists of one share and half a warrant, which can be used to buy a share at $1.25 within one year.

Oremex has been drilling on the 16.7-sq.-km Tejamen property since December 2003. The ongoing work is verifying previous results and determining the extent of mineralization, mainly at the Cerro Prieto and El Manto zones.

Drilling in the Cerro Prieto zone intersected better-than-expected grades of silver. One hole intersected 5.8 and 8.14 oz. silver per tonne; another, 17.9 oz. silver, from 50 metres to the north. Further assay results are pending.

The Cerro Prieto shear zone is 500 metres long by 150 metres wide and is open along strike and at depth. Drilling has hit disseminated stockwork mineralization and high-grade silver veins related to fractures in various volcanic rock types. Thirty six holes are testing the zone at 30-to-50-metre spacing.

At El Manto, disseminated mineralization, as well as bonanza grades higher than 5,000 grams silver, have been intersected. This larger, flat-lying zone will be tested by 81 drill holes.