| ||September 07, 2006|
Orko Silver Announces 30% Increase in Resource Estimate and Discovery of New Vein on La Preciosa Project in Durango, Mexico
| ||VANCOUVER, British Columbia - Orko Silver Corp. -- (TSX.V - OK) is pleased to announce an update to the silver-gold Resource Estimate originally announced on January 19th, 2006 and the discovery of a new vein on La Preciosa Project in Durango, Mexico.|
La Preciosa deposit now has an outlined Inferred Resource of 3.42 million tonnes grading 235.0 silver grams per tonne (g/t) and 0.435 gold g/t, for a silver-equivalent grade of 261.1 g/t. This represents a significant increase of 30% in the contained silver-equivalent metal content to 892 million grams (28.7 million ounces) as described below.
In addition, the ("Nancy Vein"), located to the southwest of the major veins on La Preciosa, represents a new prospecting discovery and will be added to the multiple targets list for Orko's exploration program. It is a strong vein structure outcropping, with banded chalcedonic and grey quartz, leached vugs, iron and manganese oxides, and appears similar to the surface samples of La Gloria Vein.
Gary Cope, President of Orko, adds: "We are pleased with the 30% increase in the inferred resource at La Preciosa. We decided not to adjust the cut off grade lower at this time but may adjust it in our next estimate. This would increase our total ounces with a only a slight decrease to the overall grade. The discovery of what appears to be a major new vein, the Nancy Vein, is a very positive development and we are moving to start assessing its potential. Overall the progression at La Preciosa is going very well and according to plan. Our initial thinking is being confirmed in that we are uncovering a major system of parallel and intersecting veins. I am confident that current and future work will continue to add to our resource."
Inferred Resource Estimate -- II
These are the results of Inferred Resource Estimate -- II, dated 5 September 2006. On 19 January 2006, Orko released information on the first independently verified Inferred Resource Estimate, compliant with the requirements of NI 43-101, for La Preciosa Deposit. It was based on the first 24 holes drilled by Orko in 2005 and 7 historical holes from 1981-82. Using the identical methodology and adding the results of 14 more holes, this "Inferred Resource Estimate -- II" has the following increases:
| || Sep 2006 || Jan 2006 || Change || % Change|
|Tonnes (millions) || 3.42 || 2.72 || +700,000 tonnes || +26.0 %|
|Ag (g/t) || 235.00 ||227.20 || +7.8 g/t || + 3.4 %|
|Au (g/t) || 0.435 || 0.462 || -0.027 g/t || - 5.8 %|
|Ag-Eq (g/t) || 261.1 ||255.0 || +6.1 g/t || + 2.4 %|
|Pb ( % ) || 0.28 || 0.24 ||+0.04 % || +16.7 %|
|Zn ( % ) || 0.33 || 0.36 ||-0.03 % || - 8.3 %|
Total Contained Metal:
| || Sep 2006 || Jan 2006 ||Change || % Change|
|Silver (million grams) || 803 || 618 || +185 || +29.9 %|
|Silver (million ounces) || 25.8 || 19.9 || +5.9 |
|Gold (million grams) || 1.49 || 1.26 || +0.23 || +19.3 %|
|Gold (ounces) || 47,800 || 40,400 || +7,400 || |
|Silver-Eq (million grams) || 892 || 694 || +198 || +28.5 %|
|Silver-Eq (million ounces)|| 28.7 || 22.3 || +6.4 || |
|Lead (tonnes) || 9,500 || 6,600 || +2,900 || +43.9 %|
|Lead (million lbs.) || 21.0 || 14.6 || +6.4 |
|Zinc (tonnes) || 11,300 || 9,700 || +1,600 || +16.5 %|
|Zinc (million lbs.) || 24.9 || 21.4 || +3.5 || |
Contained metal in the Inferred Resource equals 803 million grams silver (25.8 million ounces) and 1.49 million grams of gold (47,800 ounces gold) for a silver-equivalent of 892 million grams (28.7 million ounces silver-equivalent). Lead and zinc contents are also reported and may be recovered in future operations, but are not used in the estimation of silver-equivalent for the purposes of this study. Silver-equivalent is calculated as silver plus 60 times gold, with no provisions made for relative recovery rates.
The mineral resource estimate is based upon assay results from 40 of 45 diamond drill holes, totaling 17,653 metres of core. The remaining 5 diamond drill holes are located outside of the current study area. The initial program drilled in 1981-82, consisting of 7 drill holes for 1,319 metres, was performed by Luismin S.A. de C.V., and the 2005-06 drill programs of 38 drill holes totaling 16,334 metres was drilled by Major Drilling International, under the direction of Orko. Average drill hole spacing is approximately 100 metres. For the 1981-82 program, analytical testing was performed by the Luismin Labs, Durango, Mexico. Samples from the 2005-06 programs are sent to SGS Mineral Services prep lab in Durango, with the pulps then sent to SGS Mineral Services accredited laboratory in Toronto, Canada. All samples have been analyzed by 40 element Inductively-Coupled Plasma (ICP) analyses, with gold determined by Fire Assay (FA) and silver determined by Atomic Absorption Spectrometry (AAS). Coarse sample rejects are then collected from SGS in Durango and returned to the project site to be available for future testing. A detailed QA/QC program has been implemented since the beginning of the 2005-06 drilling, with control standards and blanks being inserted every 10th sample submitted, as well as duplicate analyses every 12th sample.
La Preciosa is an epithermal vein hosted silver-gold deposit located at 2,100 metres elevation on the eastern side of the Sierra Madre Occidental Mountains of north-central Mexico. The resource estimate is for the Abundancia and La Gloria Veins each over a strike length of 1.2 kilometres in the "Mina La Preciosa Sector" and for the Abundancia Vein for a further 850 metres in the "Zona Sur Sector". The Abundancia and La Gloria Veins coalesce at depth, the merged vein is known as the Abundancia Vein. More strike length potential and down dip projections, as well as additional veins are currently being tested. Ore shoots have been projected a maximum 25 meters vertically below drill intercepts. Samples assaying above 5 g/t gold or 1,000 g/t silver have been top truncated to these levels respectively as a conservative measure.
Resource estimates were prepared on vertical longitudinal sections for each vein, with changes in dip of veins taken from 100 metre cross sections for volumetric adjustments. On the longitudinal sections, multiple ore-shoot locations were interpreted, defined by structure and underground sampling utilizing a minimum 150 g/t Ag-Eq over true vein widths greater than 1.5 metres, to constrain contiguous mineralized zones. Specific gravity data is available for every sample submitted during the 2005-06 programs and was used for volume to tonnage determination. Grades were then estimated by weighted average (weighted by true thickness) of all drill intercepts within each ore shoot.
The bulk of the drilling (93%) is from the 2005-06 programs. All holes were started in HQ-size core, with reduction to NQ-size core at approximately 260 metre down hole depth. Samples were marked by geologists to conform to lithological/alteration changes, with individual samples taken over lengths less than or equal to two metres. The core was cut in half with a diamond saw. One-half of the core is stored in the original core boxes in a core storage building on site. The other half of the cut core samples were placed in sample bags and transported by Orko personnel to the SGS Mineral Services lab in Durango, Mexico.
The 1981-82 drilling amounts to 7% of the drill core for this study. The core was either BQ-size or AX-size and split by a chisel core-splitter. Half of the samples were submitted to the Luismin Labs in Durango for testing. The remaining half core is stored in the original core boxes in a core storage building on site and is accessible. Results from the 1981-82 drilling are in good agreement with the results from the 2005-06 drilling. Additional historical data of over 1300 channel samples from approximately 2.4 kilometers from drifting were not used in this study, as they have not yet been verified, however, the underground samples also correlate well with the drilling results and were used to delineate ore shoot boundaries.
Independent mining engineer David Gunning, P.Eng., and Company geologist Ben Whiting, P.Geo., Qualified Persons as defined by National Instrument (NI) 43-101, were responsible for the 19 January 2006 mineral resource estimate. Mr. Whiting has prepared this 05 September 2006 mineral resource estimate to the identical standards. The resource estimate is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. Mineral resources, which are not mineral reserves, have not demonstrated economic viability. Orko is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues, which may materially affect its estimate of mineral resources.
Ben Whiting, P.Geo., serving as the Qualified Person for this project, has read and approved the contents of this News Release.
A full table of significant drill results from Orko's 2005-06 38-hole drill programs is available at:
About Orko Silver
Orko Silver Corp. is an aggressive exploration company with an increasing silver resource. Orko Silver's principal project, La Preciosa, located near the city of Durango, Mexico, is an advanced silver and gold project. The Company is currently drilling at La Preciosa using 2 rigs working 24 hours a day, 7 days a week. The deposit remains open in all directions and to depth.
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, contact Orko Silver Corp. at (604) 684-4691 or
via email at [email protected] or visit our website on line at www.orkosilver.com
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.
*Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. Mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "measured", "indicated", and "inferred" resources, which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-51923, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml .
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