Orko Silver Corp. - Home Page

May 02, 2012
Orko Silver Releases the Results of a New Engineering Study

May 11, 2012
Preliminary Mineability Assessment

Apr 11, 2012
Read the call transcript here.

Oct 16, 2009
La Preciosa - The Movie
wmv - 15 mb

Dec 1, 2010
Deutsche Anleger

May 11, 2012

Orko Silver Corp. (TSX Venture Exchange: OK.V) is developing one of the world's largest primary silver deposits, La Preciosa, located near the city of Durango, in Durango State, Mexico. The La Preciosa silver project and adjacent mineral concessions cover 32,400 hectares (80,000 acres) of contiguous mining claims.

Durango Map

On August 11, 2011, the Company released the results of a positive Preliminary Economic Assessment for La Preciosa Project, and the Company has now published the Preliminary Economic Assessment on SEDAR. The updated fully diluted resource estimate, effective June 30, 2011, is shown in this table:

La Preciosa Mineral Resource Estimate -- effective June 2011⁽¹⁾
Mining Method	Classification	Cut-off grade Silver (gpt)⁽²⁾	Tonnes (millions)	Silver (gpt)	Silver (million ounces)	Gold (gpt)	Gold (000's ounces)	Silver equivalent⁽³⁾	Silver equivalent (million ounces)
Open pit	Indicated	35	10.9	129	45	0.19	66	139	49
Open Pit	Inferred	35	7.6	74	18	0.13	31	81	20
Underground	Indicated	85	13.9	152	68	0.35	156	170	76
Underground	Inferred	85	7.6	117	28	0.21	52	128	31
Total	Indicated		24.8	142	113	0.28	222	156	124
Total	Inferred		15.2	96	46	0.17	83	105	51

^{(1)Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. No Mineral Reserves have been estimated. Mineral Resources have accounted for minimum mining width and planned mining dilution.

(2)Cut-off grades are based on operating cost estimate and metal prices of $25/oz silver and $1250/oz gold. Metal prices are based on a weighted average of historical three year average daily silver prices and a two year future price forecast.

(3)Silver equivalent grade values assume a gold to silver ratio of 50 to 1 based on the assumed metal prices. The metallurgical recoveries and refining charges are assumed to be the same for silver and gold for the purposes of the equivalence calculation only.}

The resource estimate is based on 667 drill holes completed as of November, 2010, by Orko Silver and Pan American, working with Major Drilling International. Pan American drilling, combined with Orko's 2005-2008 drilling, surpasses the 242,000 metre mark. There remains significant potential for defining a larger resource.

On April 5th, Pan American Silver Corp. provided notice to Orko that it has decided not to deliver a feasibility study before April 13, 2012 for the La Preciosa project as required under the terms of the joint venture agreement. As a result, Pan American is relinquishing its right to earn a 55% interest in the La Preciosa project and Orko will retain 100% of the project.

Orko has already engaged AMEC Americas Limited ("AMEC") to complete an updated preliminary economic assessment on the project, which is expected late July. Management believes the potential exists for improvement in the economics of the project relative to the preliminary economic assessment released in August 2011 (the "2011 PEA").

Pan American's drilling had been quite successful in delineating significant mineral resources on the property to support the 2011 PEA, but in Orko's opinion the drilling had been terminated prematurely for the feasibility study. Additional drilling is still required to allow a feasibility study to be completed that will have a more meaningful result. The mineral resource in the 2011 PEA included approximately 30% Inferred Resources and because Pan American did no further drilling of those resources since the 2011 PEA, these Inferred Resources would have had to be treated as waste in the Feasibility Study. In addition, many of the vein structures were still not drilled out such that the veins are open ended and further drilling would likely result in additional resources that would significantly change the mine design.

To date, Pan American had been advancing the property towards the completion of a feasibility study. A number of engineering studies are done or are close to being completed including metallurgical studies, environmental impact assessments and geotechnical testwork. However, more work will be required before a feasibility study can be completed. The current data will be returned to Orko and incorporated into the AMEC preliminary economic assessment and will also form the basis for preparing a pre-feasibility and/or feasibility study that will be completed by Orko.