Vancouver – Oremex Resources’ (ORM-V) has delivered an anxiously awaited resource calculation for its 1,700-hectare Tejamen Silver project in central Durango state, Mexico.
The report reviews the Cerro Prieto and Los Mantos (previously El Manto) zones and shows an indicated resource of 10.2 million tonnes grading 118.8 grams silver per tonne and 0.07 grams gold per tonne. Calculated contained metals work out to 38.9 million oz. silver and 24,000 oz. gold, or 40.3 million oz. silver-equivalent.
The NI43-101-compliant report, conducted by engineering group N. Tribe and Associates, uses a cut-off grade of US$6.00 per tonne combined silver and gold values, and a US$6.80 per oz. silver and US$425 per oz. gold price. The study is based on the 26,500-metre, 166-hole reverse circulation (RC) drill program conducted in 2004.
Much of the mineralization at Tejamen appears associated with a series of flat-lying faults, parallel to bedding. Major feeder structures evident at both Cerro Prieto and Los Mantos form the plumbing for a hydrothermal system that mineralized the fault zone as well as pooled, or spread laterally along the Lower Volcanic group andesites and inter-layered pyroclastics. A disseminated halo of lower grade silver mineralization surrounds the high-grade veins.
Mineralization primarily consists of galena, sphalerite and pyrite, with minor chalcopyrite, tetrahedrite and argentite. Some native silver and free gold occurs in strongly oxidized zones.
Tejamen, situated in the Sierra Madre Occidental Belt, has seen exploration since the late-1800s with small scale mining up until the commencement of the Mexican Revolution in 1910. More recently, small-scale underground silver mining was conducted on the Cerro Prieto zone. Five levels were exploited from an 80-metre shaft, with a mining rate of about 27 tonnes-per-day.
Follow-up RC drilling will explore the potential between the two zones, as well as to depth and along strike in both directions.
Oremex saw investors drive its market value up about 10% on the news, to the $1.00 per share level. With 25.6-million shares outstanding, the issue has a $25-million market capitalization.
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