Investment Advisory - Orex Exploration High-Grade Deposit to Grow Substantially with Validation of New Model Which Includes Large Structural Domains of Gold

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Orex Exploration Inc.'s (TSX-V: OX) high-grade 800,000oz gold deposit at their 100% owned Goldboro Property in Nova Scotia, Canada is expected to substantially increase upon validation of their new resource model which include large structural domains of gold. The risk-reward characteristics are highly advantageous for investors establishing a long position in OX.V as a much higher revised resource estimate is expected. Considering the impressive nature of its Goldboro project OX.V appears undervalued with only ~120M shares outstanding and trading under CDN$0.15, an estimated ~150M shares should be outstanding upon completion of financing necessary for the Orex to complete all necessary work up to and including a final resource estimate (215M shares fully diluted). Orex is already at a NI 43-101 compliant ~800,000 oz gold resource now and has the infrastructure in place to take material away to be processed at nearby mills which they are actively in discussion with.

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 the current ~800,000oz gold resource is set to take a large increase in size upon validation of new resource model. The current 2009 resource estimate (now at 397,200 gold ounces measured & indicated, 405,926 gold ounces inferred) at Goldboro is based on developing a highly economical deposit and uses a high-grade cut-off. Orex's management believed data that will follow upcoming drilling and bulk sampling should allow this improved model to define a very large high-grade deposit. Goldboro is a significant past producer, having produced between 4.6 - 6.6g/t, which is also the same grade (4.56g/t) Orex proved in recent 2009 resource estimate while in transition to a new model. The new model moves focus to more economic parts of the property and has higher grade cut-off, employing structural domains of gold that quantify gold in zones around and between slates and incorporates the nugget effect native to Goldboro. The last resource estimate had to attribute 0 values for these high-grade zones under 43-101 regulations until assay data confirms what geologists have identified and understand to be there. New drilling, infill drilling, and bulk sampling aims to validate the new model and provide a large increase in gold resource estimate.

The full review and valuation commentary may be found at:

Excerpts: Orex's new geological model is a refinement of 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. The Bendigo / Ballarat systems also employ models that capture domains of gold such as new model that Orex believes it has finally got a handle on for Goldboro.

This August Orex released a 43-101 resource report at the 60% mark of their planned drilling (Orex has completed 12,000m out of an original 20,000m planned). The report was originally commissioned and designed to be stepping stone, providing a snapshot in order to determine how to best proceed. In the process of analyzing the data Orex decided to take a different tact, one they believe will be more beneficial for the company down the road. It was recommended and agreed that Orex changed focus from a high tonnage resource model to a new model that focuses on more economic parts of property with a higher grade cut-off and a new model that employs structural high-grade domains of gold that quantifies gold in zones around and between slates.

Looking Forward - There are two things Orex will be doing in the next coming months:

1) Drill to put the entire property in a 43-101 context
The numbers from the last report are for a 1.5km strike primarily on the eastern part of the property and that includes the ramp eastward to East Goldbrook. Orex will now drill out on the western part of the property on what's called Doliver Mountain and West Goldbrook. Orex knows there are four high-grade zones there that replicate some of the zones they've intercepted on the eastern part of the property and it is Orex's intention to drill that as well as some other areas and to put all that into a 43-101 context. Right now Orex has a portion of the property in 43-101 context, with the next report out they'll have the entire property in a 43-101 context and Orex expects to have a significant amount of ounces added based on additional drilling.

2) Validate their model that captures domains of gold
When Orex looked at modelling the deposit they looked at the traditional slate belt modeling which looks at various zones; they are thin zones of high-grade gold and then you've got grey-wacky or sandstone, you might get a little bit of gold in that and then another belt of high-grade gold and so on. Orex looked at what the Australians do and they have in the Bendigo-Ballarat systems, in the state of Victoria, very similar deposits to this and they have models that capture domains of gold. So instead of just looking at individual slate belts (Orex has ~20 slate belts in 43-101 context right now), what Orex realizes now is that they have 'zones of gold' at Goldboro. If you add up four or five belts, even in between the belts you have gold mineralization, in many cases there could be something like 1g/t which is significant when you should expect nothing. So Orex did a different model of the deposit looking at these 'domains like' instead of just 'individual slate belts with nothing in between them'. In looking at various domains Orex picked out four domains adding slate belts across the property, with validation these domains of gold will dramatically increase the amount of gold Orex can quantify. Orex requires better sampling from these zones to produce a compliant report as there are certain zones that historically were not sampled, because back in the 80s and 90s they didn't know that these various zones existed so they sampled different parts of the core and didn't sample the parts that Orex needs today to put that domain model into proper context. So unfortunately for many parts of these domains Orex was forced to give areas where they believe quite strongly that there is gold mineralization a 0 g/t value (because the independent firm signing off on it is required to assume it is 0). The geologists understand there is gold there, they just don't know how much. From what is now understood from analyzing the last round of data is that the geologists agree with the new model, but are required to validate that model in all areas. Orex has to do some more drilling in those areas to establish 'proof positive' of gold -- the significance of this validation can not be understated, we asked people at Market Equities Research Group whom are familiar with the Bendigo-Ballarat systems in Australia what 'validation' means for Orex "when it comes to unleashing the potential of the model that quantifies these domains of gold 'validation' changes the picture quite dramatically from a numbers perspective and from looking at the deposit from not just as a series of little belts but as big areas of mineralized gold deposits -- that's what Orex is going to try to prove in this current (new) part of the drilling campaign -- they are going to do two things; they're going to do an additional kilometer to the west and they are going to do some of this infill drilling to prove out their new model and when they come back to the market with another final 43-101 it will not have just the entire strength length but it will have all of that within the context of this large structural domain model."...

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.


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James O'Rourke
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