|January 19, 2006
Orko Completes 22 Million Ounce Silver Resource Estimate
|VANCOUVER, British Columbia - Orko Gold Corporation ("Orko" or the "Company") is pleased to report that an independently verified mineral resource estimate has been completed on La Preciosa Project in Durango, Mexico. The study concludes that work to date on the property has outlined an Inferred Resource of 2.72 million tonnes grading 0.462 gold grams per tonne (g/t) and 227.2 silver g/t for a silver-equivalent grade of 255.0 g/t.
Contained metal in the Inferred Resource equals 618 million grams silver (19.9 million ounces silver) and 1.26 million grams gold (40,400 ounces gold) for a silver-equivalent of 694 million grams (22.3 million ounces silver-equivalent). Silver-equivalent is calculated as silver plus 60 times gold, with no provisions made for relative anticipated recovery rates.
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Gary Cope, President of Orko, added, "We are extremely excited to be releasing the Initial National Instrument 43-101 Inferred Resource Estimate on La Preciosa project in Durango, Mexico. We very strongly feel that our Phase 3 drilling program, which began in October 2005, will further add to our resources when all assay results become available. Of note is that to date, less than 20% of the initial target has been drilled along strike length and only to a true depth of 300 meters. The deposit remains open to the North and South and to depth. Our work has encouraged us to keep two drill rigs mobilized on the property. The Company will release assay results from the Phase 3 program as they become available."
The mineral resource estimate is based upon assay results from 26 of 31 diamond drill holes totaling 11,579 metres of core and represents the first time a resource has been estimated for the La Preciosa property. The remaining five diamond drill holes are located outside of the current study area. An initial program drilled in 1981-82, consisted of 7 drill holes for 1,319 metres, was performed by Luismin S.A. de C.V. and the 2005 drill program of 24 holes totaling 10,259.63 metres was drilled by Major Drilling International, under the direction of Orko Gold Corporation. Average drill hole spacing is approximately 100 metres. For the 1981-82 program, analytical testing was performed in the Luismin Labs, Durango, Mexico. Samples from the 2005 program were sent to SGS Mineral Services prep lab in Durango, with the pulps then sent to SGS Mineral Services, an 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 were 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 drilling, with control standards and blanks being inserted every 10th sample submitted, as well as duplicate analyses.
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. 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 program 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 (89%) is from the 2005 program. 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 11% 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 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 mineral resource estimate. Mr. Gunning and Mr. Whiting have read and approved the contents of this News Release. The resource estimate is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. This estimate will be filed in a technical report, compliant with NI 43-101 on SEDAR within 45 days. 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.
A full table of significant drill results from Orko's 2005 24-hole drill program is available at:
Orko is an exploratory resource company focused on silver and gold properties in Mexico. La Preciosa, the Company's principal project, located near the city of Durango, is an advanced silver and gold project under option from Luismin S.A. de C.V., a subsidiary of Goldcorp Inc.
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, please contact Orko Gold Corp. at (604) 684-4691 or
Via email at [email protected] or visit our website on line at www.orkogold.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.
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