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Orex Minerals shows strength in numbers

A great way for any junior explorer to feature on the investment map is to work with other established names. That’s a strategy that continues to serve gold and silver explorer Orex Minerals well
Orex Minerals shows strength in numbers
Orex has pinpointed success in Durango

A great way for any junior explorer to feature on the investment map is to work with other established names.

That’s a strategy that continues to serve gold and silver explorer Orex Minerals (CVE:REX) well. Orex has three very distinctive precious metals plays in its Americas portfolio: Jumping Josephine in Canada, as well as Sandra Escobar and Coneto Silver-Gold Project in Durango, Mexico.

Such diversification is part of its strength and it has chosen whom it works with carefully.

As highlighted in a previous Big Picture commentary Orex has been working with one of the global mining titans down in Durango. London-listed Fresnillo (LON:FRES) is a FTSE 100 blue-chip player, and was also one of the top gainers in the index on Monday.

As reported in November, project partner Fresnillo PLC (LON:FRES) has commenced a phase V diamond drilling program of approximately 5,000 metres in 11 holes on the Coneto gold-silver project in Durango. That feat alone helped push Orex’s share price up 5% on the day of the announcement.

Read: Orex partner Fresnillo begins drilling at Coneto

In December, the company landed a major headline when it reaped the good news that preliminary metallurgical test results for samples yielded up to 93% silver from the main zone of the Boleras silver deposit at the Sandra Escobar project in Durango, Mexico.

That’s a project Orex is fulfilling under an option agreement with Canasil Resources Inc. (CVE:CLZ).

Read: Orex Minerals, Canasil recover up to 93% silver at Boleras

Just a week ago, Orex’s shares jumped by 10% intraday after the company advised partner Canasil that Orex exercised the first option for earn in of 55% interest in Canasil's Sandra Escobar project in Durango, Mexico.

As a result, the project will proceed as a 55/45 Orex-Canasil joint venture.

Read: Orex Minerals earns 55% interest in Canasil's Sandra, sets JV terms

But Orex isn’t just cherry picking good sites and partners. It is also investing heavily in those sitrs and partners. As reported last month, Orex invested nearly 400% more in exploration in the second quarter last year ended October 31, than a year before.

Read: Orex Minerals reveals 400% boost to exploration investments in Q2

The company has been listed for less than 18 months. Its shares enjoyed a spike last September but already the share price is gaining again. With the new Trump administration yet to proclaim infrastructure projects in the United States, there is a lot of reason to celebrate the share price fortunes ahead for companies like Orex. Whether Orex is a direct beneficiary of any contracts or not, it will benefit from the jump to commodity prices that is expected to result.

On Monday, shares were up nearly 4% at C$0.27.

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Orex Minerals Timeline

December 06 2016

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