| ||October 05, 2004|
Update on Exploration Program
| ||Orko Gold Corp. has released an update on the current exploration program taking place at the La Preciosa project near Durango, Mexico.|
Orko retained Ben Whiting, PGeo, in June to conduct an initial mapping and sampling program. This has been completed and surface sample results are pending. Mr. Whiting has outlined eight separate targets on the property which he recommends warrant further work.
Three of the eight targets will be focused on initially. Target No. 1 is the Mina La Preciosa. It is the site of the old mine which contains 25 kilometres of drifts and crosscuts. Seven drill holes were drilled in the early 1980s and more drilling was planned. However, low metal prices at the time led to the cancellation of the program. Previously, no drifting below the 2,065-metre level had taken place, but Orko will commence drilling below this level to try to intersect the merging of the known veins. The first phase of drilling will be approximately 5,000 metres, budgeted at approximately $600,000 (U.S.).
Target No. 2 is known as the La Preciosa Norte. There is previous evidence that the known veins converge on this area of the property. There is a volcanic layer on the surface which prohibited the locals from testing this theory. Orko will be starting an induced polarization survey to track the system under the volcanic cap, and then if successful, start a drilling program immediately thereafter. The company is excited about testing La Preciosa Norte, because surface mapping has confirmed the strong possibility of the veins converging under the cap.
Target No. 3 is called Zona Sur and is deemed to be an excellent target area for new exploration. Orko will be starting a trenching program, which will provide valuable information on near surface veins and hopefully lead to a drill program in the next phase.
The La Preciosa project is a joint venture with Wheaton River Minerals, where Orko can earn up to 75 per cent by spending $1.5-million (U.S.) over the next four years. Wheaton can then purchase back 35 per cent by repaying Orko's costs of $1.5-million (U.S.). The project would continue with Wheaton having 60 per cent and Orko having 40 per cent.
Stock option grant
Orko has granted 350,000 options to certain consultants at an exercise price of eight cents for a period of two years. The options have been granted under the company's existing stock option plan. The optionees provide consulting services to the company.
ON BEHALF OF THE BOARD
ORKO GOLD CORP.
For more information on Orko Gold Corp., call us at (604) 684-4691 or email to [email protected]
The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.
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