New York, NY (PRWEB) April 20, 2009
Mining MarketWatch Journal has published a review on Orex Exploration Inc. (TSX VENTURE: OX) (Frankfurt: O5D). The review offers insight and opportunity afforded investors as Orex is on the verge of completing a new NI 43-101 resource estimate report on their 100% owned Goldboro Property in Nova Scotia, Canada. "From our research, we are confident the report will reveal a sizeable increase in the resource estimate, exceeding 2M ounces of gold. It appears OX.V is highly undervalued relative to the inherit nature of the Goldboro property and its potential. It appears OX.V is highly undervalued relative to the inherit nature of the Goldboro property and its potential."
The full review and valuation commentary may be found at: http://miningmarketwatch.net/ox.htm online.
"...The mining journal thru its research projects a resource estimate well in excess of 2M ounces. Management of Orex contacted by the mining journal were able to confirm we were not out of line in our expectations based on the fact the previous resource estimate Orex is building on, was over a 225m strike length and now the strike length is up to 1km. Additionally, Orex will have a much better definition of the grade, employing not only fire assays but also protocols and metallic screen assays which incorporate the nugget effect native to Goldboro. The NI 43-101 report is being produced at the 60% mark of their drilling campaign (12,000m have been done out of 20,000m planned) and interpreted data of the belt systems will dramatically add to the 3D model developed in 2006 that this campaign is built upon. The Goldboro project also possess blue-sky potential as the gold belt systems are wide open at depth and in breadth. The geological model is based on the Australian Goldfields Model for New Bendigo / Ballarat deposits which have production, reserves and resources of 30,000,000 oz and possess similar characteristics to Goldboro - the model takes into account gold mineralization factors of extreme gold nugget effect, irregular gold distribution and the others issues unique to Goldboro."
"Orex Exploration Inc. is a Canadian-based gold mining exploration and development company listed on the TSX Venture Exchange (ticker symbol OX) (Frankfurt: O5D). The Company has come to our attention due, in part, to the fact Orex is on the verge of completing a new NI 43-101 resource estimate report on their 100% owned Goldboro Property in Nova Scotia, Canada and the resulting extraordinary opportunity afforded to prospective investors. We researched the confidence behind our belief the report will reveal a sizeable increase in the resource estimate well in excess of 2M ounces of gold. It appears OX.V is highly undervalued relative to the inherit nature of the Goldboro property and its potential. Equally as important, Orex has a highly experienced and talented management team dedicated to maximizing shareholder value."
"Orex's Goldboro project, located in Guysbourough county Nova Scotia (on the N.E. tip of the mainland, approximately 185 kilometres northeast of Halifax), consists of 37 contiguous claims (600 hectares), in which Orex holds a 100% interest. The property is accessible by a 2.5 kilometre gravel road from the paved, all-weather Highway 316 which links the village of Goldboro to the town of Antigonish. It is believed that Goldboro has a sizeable gold deposit and right now Orex is conducting a drilling campaign in which they are about 60% done (Orex has completed 12,000m out of 20,000m planned). The current estimated resources are ~484Koz gold measured & indicated and ~316K inferred, however this is expected to be dramatically revised upwards with the release of a new mineral resource estimate expected to be completed some time in May 2009. This new 43-101 report being done now will update the mineral resources estimate at just over the halfway point through the drill campaign, providing shareholders a snap-shot of matters and allow for strategic planning going forward."
"The updated drilling campaign will provide a better definition of the mineral resources on the property and the grade. One of the unique features of the Goldboro property, which has been problematic in past attempts at defining the resource, is that Goldboro has a 'nugget effect' - the gold isn't uniformly distributed in the slate belts and there is an inordinate amounts of visible gold, chunks of gold, on the property. Using traditional methods of fire assays, if the assay doesn't include gold nugget you get a misrepresent sample, either way you get a misrepresentation; you could either get 1000g/t if you hit the nugget or you get 1 or 2g/t if you don't. The current campaign will allow Orex to get a better handle on the nugget effect as they have different assay protocols to address that and on the back of that information have a new mineral resources estimate that incorporates that kind of information."
"The current drilling campaign is chopped up into five separate phases; A, B, C, D, & E - Orex has done A, B, & C and are awaiting the latest results on the C campaign. When those are published and incorporated into 'the model' Orex will be issuing a new mineral resources estimate that will logically be a significant amount higher than what Orex has historically. The now completed AB&C drilling programs were on the eastern part of the property where the historical ramp is located, that's where most of the drilling has occurred to date and east of that ramp area. The D&E programs are planned to look more on the western part of the property where a lot of historical drilling hasn't been done. Where Orex goes from here will be determined after a 'snap shot' from the new 43-101. Does Orex continue with the more exploratory work on the D&E phases which is on the more virgin territory areas on the property or do they want to do more infill drilling or concentrate on certain parts they have drilled already to get a higher measured or indicated number? To date, after completing AB&C, Orex has drilled across ~1km strike length. The original plan was to drill all across the entire 2.5km strike length of the property, this would be accomplished via D&E, however the results of the upcoming report may well fuel the need to amend plans going forward as it is believed the resource calculation will be dramatically larger."
Mining MarketWatch approached Mark Billings, President & CEO of Orex, with their expectation of the new mineral resource exceeding over 2M ounces of gold and he offered the following comments on their expectation: "That's not out of line. I don't want to talk about specific numbers - we've more than doubled the strike length - let's put it that way, we've had a better definition of the grade of the gold, what we've also discovered is the main Boston-Richardson belt slopes eastward on a 10 to 15 degree angle and there are these belt systems below that, up to 11 or 12 belt systems. We didn't know what was above it and when we started drilling east of the historical ramp and where that Boston-Richardson structure reaches surface we discovered belts on top of that. So we did a lot more drilling. The strike length is now up to a Km where most of the previous resources numbers indicated were mainly over a 225m strike length. We are going to have a better definition of the grade given we are doing not only fire assays but what are called metallic screen assays which incorporate the nugget effect to a large extent. On the bases of that, we should have a much greater resource estimate than what we have and I don't think those kinds of estimates are out of line if you include all three categories - measured, indicated and inferred."
Orex's President also indicated he was heading down to the property the following week (Mid April) with his geological team and the geological engineers that are doing the 43-101 report, InnovExplo, for a site visit, and as part of the routine to see some of the core and so forth. He indicated that everything he knows about the drilling campaign has gone very well and that based on the kind of information they have already, his team is confident they can reach a much higher estimate with this go around than the 2 million ounces Mining MarketWatch initially inquired about.