| ||October 20, 2005|
Orko Gold Corp. earns 51% at La Preciosa
| ||Vancouver, B.C., October 20, 2005. Orko Gold Corp., ("Orko"), (OK :TSX-V), is pleased to announce that it has received confirmation from Goldcorp Inc. and Luismin that the initial earn-in requirement for a 51% interest in the La Preciosa property in Durango, Mexico has been achieved. This first requirement under the option agreement specified that Orko Gold Corp. would spend US$1,000,000 in exploration expenditures on the property to earn the 51% interest.Orko Gold Corp. has also given Goldcorp Inc. Luismin written notice that it is proceeding with the second option which gives Orko the right to earn an additional 24% by spending a further US$500,000 on exploration. Orko anticipates satisfying this expenditure requirement in the next 14 days and providing Goldcorp Inc. Luismin with the necessary documentation to confirm this expenditure level has also been attained. Upon acceptance Goldcorp Inc. Luismin have a 90 day back-in clause which permits Goldcorp Inc. Luismin to buy back a 35% interest on payment to Orko Gold the sum of US$1,500,000. In this event, the project would then proceed as a joint venture where Goldcorp Inc. Luismin would have 60% and Orko Gold Corp. 40%.|
Gary Cope, President of Orko Gold, says: "We are very pleased with our progress at La Preciosa. We plan to accelerate the work program on multiple fronts starting in early November including initial work on the Santa Monica property. We also anticipate releasing an initial Inferred Resource when all the results from Phase 2 drilling have been completed and analyzed."
The Company will be reporting results for holes 14-18 as soon as recheck assays are received. These assays have been considerably delayed due to a lab backlog.
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]
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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