MONTREAL, QUEBEC, Dec. 23, 2009 (Marketwire) -- OREX EXPLORATION INC.(TSX VENTURE:OX)( FRANKFURT:O5D) is pleased to provide shareholders and stakeholders with the following update on the drill program at the Company's wholly-owned Goldboro Gold Property. Osisko Mining Corporation will initiate a diamond drill program in January as per the Option and Joint Venture Agreement signed between the parties in November of this year.
Goldboro Work Program - Osisko Mining Corporation
Osisko Mining Corporation has advised Orex that it is finalizing plans for the Phases 2D, 2E and 2F drill campaigns. Contractors and consultants have been hired, and the drill sites will be prepared for a January start-up. Osisko will complete the 8,750 m / 35 holes in the Phases 2D and 2E drilling along the remaining 1.7 km segment of the Boston Richardson Deformation Zone from West Goldbrook to Dolliver Mountain. In addition, Osisko will complete a 3,500 m in-fill drilling program (Phase 2F) to confirm gold grades in areas where incomplete sampling of 97 historic drill holes currently produces 0 g/t gold grades in the 2009 Mineral Resources Estimates.
Osisko is budgeting $2.8 million for this drilling campaign (Phases 2D to 2F); this budget also includes funds for a regional and Goldboro compilation, as well as a Goldboro reconnaissance program slated for the summer of 2010. This surpasses the minimum threshold of development and exploration expenditures of $1.5 million to be incurred by Osisko before September 29, 2010, as per the Option Agreement.
Orex has also staked 6,005 claims surrounding the Property, totalling 96,080 hectares, or 960.8 km2. The staking covers prospective ground of the gold-bearing Meguma Group along the Property trend and adjacent sub-parallel trends. A major compilation-synthesis is underway on the new claims covering the historical data from the region to uncover additional gold belts.
Mark Billings, President and CEO of Orex, commented, "Over the past several weeks, the Orex and Osisko teams have been diligently preparing for the start-up of this drilling campaign. The Orex team is excited about the commitment of Osisko to complete the Phase 2D and 2E drilling, which will put the entire 2.5 km strike-length of the Goldboro Property into a 43-101 context. If successful, the Phase 2F in-fill drilling will help validate our theory that Goldboro hosts larger structural domains of gold mineralization. We at Orex are also eager to analyze in more detail the area surrounding Goldboro, with the aim of identifying targets that merit further exploration."
The Goldboro Gold Property
The current Mineral Resource Estimates ("MRE") for Goldboro at a cut-off gold grade of 1.5 g/t are 2.711 million tonnes grading 4.56 g/t gold, totalling 397,200 gold ounces in the Measured+Indicated Resources categories, with an additional 3.438 million tonnes grading 3.67 g/t gold totalling 405,926 gold ounces in the Inferred Resource category. Assuming a lower 0.5 g/t cut-off, the Measured+Indicated Resources are 7.933 million tonnes grading 2.13 g/t gold totalling 542,000 gold ounces, with additional Inferred Resources of 10.389 million tonnes grading 1.78 g/t gold totalling 594,121 gold ounces (refer to Orex's news release dated August 4, 2009, and the NI 43-101 Technical Report posted on SEDAR at www.sedar.com).
The MRE were modeled by extending the interpreted gold zones 825m along strike to the east and 500m to the west from the Company's 2006 NI 43-101 mineral resources calculated to a -520m vertical depth from surface over the same 1.5km strike length of the Boston-Richardson Deformation Zone. It was estimated that 97% of the MRE are located within the upper 350m from surface. The MRE are significantly higher and of better quality in terms of grade over the 2006 estimates and the same 0.5 g/t gold cut-off grade and 1.5km distance. At a 0.5 g/t gold cut-off, the total Measured and Indicated resources grade 2.13 g/t gold, an 88% increase from 2006 grade estimates, with an additional Inferred resource grading 1.78 g/t gold, a 182% increase from 2006 grade estimates.
Orex Exploration is pleased to announce that it has retained Frontline Communications as a consultant to provide strategic marketing, corporate communications and investor relations activities. Frontline will assist Orex in opening productive and continuing dialogues with private investors, analysts, brokers, money managers and other financial professionals and will generate awareness in the investment community as exploration work advances at Goldboro.
Under the terms of the agreement, Orex will pay Frontline $4,000 per month for a 12-month term and grant 300,000 options to Frontline. Each option enables its holder to acquire one common share of Orex at a price of $0.15. As per the rules of the TSX Venture Exchange, these options vest over the course of the year, with 25% becoming exercisable in 3, 6, 9 and 12 months from the date of grant.
About Orex Exploration Inc.
Orex Exploration Inc. is a Canadian-based junior resource and exploration company trading under the symbol OX on the TSX Venture Exchange and O5D on the Frankfurt Stock Exchange. The Company holds a 100% interest in the Goldboro Gold Project in Nova Scotia. You are invited to browse the Company website at www.orexexploration.ca.
The technical information contained in this news release has been prepared by Mr. Alex Horvath, B.A.Sc., P. Eng., of A. S. Horvath Engineering Inc. (Ottawa, Ontario), Technical Advisor to Orex and Qualified Person under National Instrument 43-101 regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.