Orex Exploration receives Goldboro composite results
2006-01-06 08:57 ET - News Release
Mr. Jacques Levesque reports
OREX RECEIVES METALLURGICAL TEST RESULTS CONFIRMING HIGHER GRADES OF LARGER GOLD ZONES AT GOLDBORO
Orex Exploration Inc. has received results from 32 of 36 composite samples processed by total extraction metallurgical testing at the SGS-Lakefield laboratory facilities in Lakefield, Ont. Results from the remaining four samples will be available later in the first quarter of 2006. The following summary table outlines metallurgical results received to date:
No. of Sample
comp- weight
osite of Volu-
samples/ compo- metric
No. site weight-
Minera- of indi- samples ing
lized vidual (kilo- (cubic
zone samples gram) metre)
Boston-
Richar-
dson 2/26 140.6 N/A*
South
Limb complete
NB1-2-3 13/240
South
Limb complete 1,207.6 161,00
Hinge
NB1-2-3 3 of 4/ 188.1 20,000
South
Limb 37 of 45 (46.2 kg
exten- pending)
sion
NB4 4/57 289.2 N/A
South
limb complete
NB5-6 7 of 8/ 462.2 N/A
South
limb 83 of 91 (46.2 kg
pending)
NB7-8 2 of 4/ 155.7 N/A
South
limb complete
NB9-10 1/9 56.0 N/A
South
limb complete
32/36 2,501.0 N/A
compo- kg/
sites/ 203 kg
478 of pending
518
samples
Sample
weighted
No. of Sample fire
comp- weight assay
osite of grade/
samples/ compo- volu-
No. site metric
Minera- of indi- samples weighted
lized vidual (kilo- grade
zone samples gram) (g/t Au)
Boston-
Richar-
dson 2/26 140.6 2.63/NA
South
Limb complete
NB1-2-3 13/240
South
Limb complete 1,207.6 4.23/
Hinge 5.77
NB1-2-3 3 of 4/ 188.1 1.08/
South
Limb 37 of 45 (46.2 kg 1.03
exten- pending)
sion
NB4 4/57 289.2 0.82/NA
South
limb complete
NB5-6 7 of 8/ 462.2 1.39/NA
South
limb 83 of 91 (46.2 kg
pending)
NB7-8 2 of 4/ 155.7 19.13/NA
South
limb complete
NB9-10 1/9 56.0 0.93/NA
South
limb complete
32/36 2,501.0 3.82**
compo- kg/ g/t Au
sites/ 203 kg
478 of pending
518
samples
Sample
weighted
fire
assay
No. of Sample grade/
comp- weight volu-
osite of metric
samples/ compo- weighted
No. site grade
Minera- of indi- samples (cut
lized vidual (kilo- at 30
zone samples gram) g/t Au)
Boston-
Richar-
dson 2/26 140.6 2.63/NA
South
Limb complete
NB1-2-3 13/240
South
Limb complete 1,207.6 1.62/
Hinge 1.78
NB1-2-3 3 of 4/ 188.1 1.08/
South
Limb 37 of 45 (46.2 kg 1.03
exten- pending)
sion
NB4 4/57 289.2 0.82/NA
South
limb complete
NB5-6 7 of 8/ 462.2 1.39/NA
South
limb 83 of 91 (46.2 kg
pending)
NB7-8 2 of 4/ 155.7 2.35/NA
South
limb complete
NB9-10 1/9 56.0 0.93/NA
South
limb complete
32/36 2,501.0 1.53***
compo- kg/ g/t Au
sites/ 203 kg
478 of pending
518
samples
Sample
weighted
metal-
No. of Sample lurgical
comp- weight grade/
osite of volu-
samples/ compo- metric
No. site metal-
Minera- of indi- samples lurgical
lized vidual (kilo- grade
zone samples gram) (g/t Au)
Boston-
Richar-
dson 2/26 140.6 2.18/NA
South
Limb complete
NB1-2-3 13/240
South
Limb complete 1,207.6 2.93/
Hinge 3.74
NB1-2-3 3 of 4/ 188.1 0.84/
South
Limb 37 of 45 (46.2 kg 0.83
exten- pending)
sion
NB4 4/57 289.2 0.97/NA
South
limb complete
NB5-6 7 of 8/ 462.2 1.24/NA
South
limb 83 of 91 (46.2 kg
pending)
NB7-8 2 of 4/ 155.7 4.54/NA
South
limb complete
NB9-10 1/9 56.0 1.36/NA
South
limb complete
32/36 2,501.0 2.26****
compo- kg/ g/t Au
sites/ 203 kg
478 of pending
518
samples
* N/A -- not applicable
** average assay grade based on sample weighted fire assay grade only
*** average assay grade based on sample weighted fire assay grade only, cut at 30 grams per tonne (g/t) Au
**** average assay grade based on sample weighted metallurgical grade only
The most significant metallurgical test done at Goldboro consisted of 16 individual composites from the NB1-2-3 South Limb Hinge and Extension zones, representing a total weight of approximately 1.4 tonnes of composites from 2.5 tonnes of total composites processed at SGS-Lakefield. The volumetrics weighted average grade for the high-grade Hinge portion is 3.74 g/t Au and 0.83 g/t Au for the low-grade Extension portion, which gives a potential mill head average grade of 3.42 g/t Au for the modelled bulk mineralization proposed at Goldboro. It is important to note that this mill head average grade is consistent with two underground bulk samples extracted in April, 1990, from the NB1-2-3 sector tested in this phase 1 campaign. These bulk samples were previously reported by Martin Bourgoin, PGeol, in a National Instrument 43-101 technical report titled "Technical Report, Goldboro Property," dated Aug. 31, 2004.
Results from the metallurgical testing and refinement of the geological model demonstrate that any resource estimate for the Goldboro property will contain significantly higher gold grades than the historic estimate resource average grade of 0.7 g/t Au, as previously reported in Bourgoin's 43-101 technical report.
Other highlights from the metallurgical testwork results demonstrate that:
individual composites of lower grade generally contain less coarse gold in the metallurgical test gravity concentrates, and composite grades approximate well the individual sample conventional fire assay grades;
for the most significant test of the NB1-2-3 South Limb a total of 16 of 17 composites to date demonstrate a grade zoning from higher grades near the hinge of the folded mineralization and lower grades farther down-dip on the limbs; and
when the individual composite weights are used to generate a weighted average grade for the NB1-2-3 South Limb, the grade is 2.93 g/t Au in the higher grade hinge area. When the weighted average grade is based on volumetrics or sectional volumes represented by each composite, then the weighted average grade of the high-grade hinge is 3.74 g/t Au, which is likely to be the approach taken in estimating resource grades of the Goldboro mineralization.
The composite or "mini-bulk" samples were created from the compositing of drill core rejects of the phase 1 -- 2005 drill program covering a 250-metre strike length of known mineralization at the company's 100-per-cent-owned Goldboro property, in northeastern Nova Scotia. The composites were assembled from the complete mineralized intervals in individual drill holes and from combined drill holes in the same section, and across two or more sections. The two- to 6.5-kilogram individual coarse-crushed rejects (from each of the initial drill core samples) were assembled into these larger composites weighing up to 100 kilograms. The objective of the metallurgical testing is to provide a more precise determination of a mill recoverable gold grade at Goldboro.
The company has now instructed Gene Puritch, PEng, of P&E Mining Consultants Inc. from Brampton, Ont., to proceed with an NI 43-101 resource estimate for the 250-metre-long corridor covering the phase 1 -- 2005 drill program sector. This estimate will help guide Orex in the planned phase 2 and 3 exploration programs at Goldboro in 2006.
Corporate update
At its annual and special meeting held on Dec. 30, 2005, the company received approval from its shareholders to proceed with the company's $26.9-million (U.S.) financing and loan for the development of the Goldboro property. On Sept. 8, 2005, the company had announced that two private investors agreed to invest $26,944,066 (U.S.) in consideration of 67,360,165 common shares of the company at a price of 40 U.S. cents per share and to seek for an important loan for the future development of the Goldboro property. These transactions are conditional on obtaining approval of the TSX Venture Exchange and to all conditions it may require. The company expects receiving the financial terms of the loan in the forthcoming weeks with the objective of finalizing the private placement and loan to the satisfaction of the company's shareholders and regulatory authorities. Proceeds from the private placement will be used by the company for exploration leading to, and eventually including, a feasibility study on its 100-per-cent-owned Goldboro property in Nova Scotia, as well as working capital.
The press release has been prepared and revised under the supervision of Jean Lafleur, PGeol (OGQ), the company's principal consultant, and Alex Horvath, PEng, the company's quality assurance/quality control consultant. Both individuals are qualified persons under the National Instrument 43-101 standards.
