| ||March 03, 2006|
Orko Acquires 100% of La Preciosa; Goldcorp Becomes a Significant Shareholder of Orko
| ||VANCOUVER, British Columbia - Orko Gold Corporation ("Orko" or the "Company") is pleased to announce that it has reached an agreement with Goldcorp Inc. to acquire 100% ownership of its La Preciosa Project located in Durango, Mexico.|
Under the terms of its original project agreement, Orko had acquired a 75% working interest in La Preciosa Project by expending US $1.5 Million on exploration. Pursuant to this agreement, Orko will acquire the remaining 25% interest in La Preciosa Project from Goldcorp for consideration of US $1 Million to be satisfied by issuing to Luismin S.A. de C.V. (a subsidiary of Goldcorp) common shares of Orko at a deemed price of CDN $0.48 per share and based on the closing US/Canadian exchange rate on February 27, 2006. The issued shares will be subject to a 4 month plus one day resale restriction under applicable securities laws in Canada and any other resale restrictions that may be imposed by the TSX Venture Exchange or under the laws of jurisdiction in which Luismin is domiciled.
Luismin also agrees to give Orko a 7 day Right of First Refusal to purchase or place the issued shares should Luismin decide to dispose of all or any of the shares.
Additionally, Orko will grant Goldcorp a 30 day Right of First Offer should Orko decide to dispose of all or any part of its interest in La Preciosa Project.
Goldcorp retains the Joint Venture status with Orko on its adjacent Santa Monica Project where exploratory work will begin in the near future.
Gary Cope, President of Orko, states that "This is an excellent arrangement for both parties. Goldcorp, in keeping with their corporate philosophy of limiting exploration expenditures, retain their interest in La Preciosa through a significant shareholding in Orko and the right to match any offers to purchase the project, while Orko is able to continue to develop and provide results and corresponding value calculations to the marketplace with 100% ownership of the asset while retaining Goldcorp as a significant shareholder and strategic partner."
Art Freeze, Senior Consulting Geologist for Goldcorp, adds "We are very happy to have become a significant shareholder of Orko. We will continue to closely monitor the progress on La Preciosa and Santa Monica projects."
ABOUT LA PRECIOSA
La Preciosa is an epithermal vein hosted silver-gold deposit located on the eastern side of the Sierra Madre Occidental Mountains of north-central Mexico. An independently verified initial mineral resource estimate (released January 19, 2006) concluded, based on work completed to date, that the property contains an Inferred Resource of 2.72 million tones grading 0.463 grams of gold per tonne (g/t) and 227.2 grams of silver per tonne (g/t) for a silver-equivalent grade of 255.0 g/t. Contained metal in the Inferred Resource equals 19.9 million ounces of silver and 40,400 ounces of gold for a silver-equivalent of 22.3 million ounces of silver using a 60 to 1 silver/gold ratio with no provisions for relative anticipated recovery rates.
Less than 20% of the initial target has been drilled along strike and only to a depth of 300 metres. The deposit remains open to the North and South and to depth. Orko is currently conducting a Phase 3 10,000 metre diamond drill program using 2 rigs and will be releasing assay results as they become available.
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. Orko maintains a detailed QA/QC program under the supervision of Ben Whiting, P.Geo. Samples are sent to SGS Mineral Services prep lab in Durango, with the pulps then sent to SGS Mineral Services, an accredited laboratory in Toronto, Canada for analysis.
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.
You can view the Next News Releases item: Tue Mar 21, 2006, Orko Drills Best Hole To Date at La Preciosa
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