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Orex Minerals JV to drill 5,000 m at Coneto in Q3

Last updated: 05:55 21 Jun 2016 AEST, First published: 00:55 21 Jun 2016 AEST

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Phase V diamond drilling program in Mexico

Orex Minerals Inc.'s (CVE:REX) project partner, Fresnillo PLC, will be conducting a phase V diamond drilling program of approximately 5,000 metres in 11 holes on the Coneto gold-silver project in Durango, Mexico.

The Coneto project is a joint venture, with ownership of 55:45 between Fresnillo and Orex. The mineral concessions of both parties in the Coneto mining district have recently been combined (subject to final registration before the public registry of Mexico, which is expected to be obtained in the next few weeks) into a company named Exploraciones y Desarrollos Mineros Coneto SAPI in order to advance the project. A technical committee, with membership from both companies, guides the exploration programs.

The main objective of the new program will be to extend the diamond drilling coverage adjacent to gold-silver intercepts in the Zona Norte (La Bufa and Santo Nino veins), Zona Oeste (Loma Verde vein), Zona Centro (Descubridora vein) and Zona Sur (Durazno, Impulsora and Promontorio veins).

For the Loma Verde vein, the furthest north previous hole was BCO-66, which yielded 4.85 metres (true thickness 3.45 metres) grading 3.22 grams per tonne gold and 238 grams per tonne silver for a silver equivalent grade of 432 grams per tonne (see Orex news release dated Aug. 10, 2015). New drilling in this zone will be located in step-outs farther to the north and at depth from hole BCO-66.

Orex's president, Gary Cope, says: "We anticipate the new diamond drilling phase will commence in the third quarter 2016. Congratulations to both teams on the successful combination of our portions of the Coneto mining district. We look forward to continued excellent teamwork on the exploration program."

Coneto mining district -- Durango, Mexico

The historic Coneto mining district is situated in the heart of the Mexican silver trend on the Mesa Central, stretching from Guanajuato in the southeast, through to the states of Zacatecas and Durango. This prolific trend hosts some of the world's largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.

The silver and gold mineralization at Coneto is of intermediate sulphidation-style epithermal veins hosted in tertiary andesites and rhyolites.

Orex and Fresnillo hold, through Exploraciones y Desarrollos Mineros Coneto SAPI, an extensive contiguous land package of mineral concessions in the Coneto mining district, which collectively totals approximately 17,600 hectares and covers multiple mineralized epithermal quartz veins. In the first four phases, Orex and Fresnillo drilled 93 holes totalling 33,400 metres.

Orex shares were 2.7% higher at C$0.76.

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