Oremex Resources Agrees to Acquire Cuyoaco Property
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VANCOUVER, Nov. 20 -- Oremex Resources Inc. (TSX-V: ORM) (the "Company") announces that it has executed an agreement to acquire the Cuyoaco Gold and Base Metal Property in the State of Puebla, Mexico. The property has the potential to host both a high grade gold system and a large copper-gold porphyry deposit.
The agreement provides the Company, through its wholly owned subsidiary Oremexico S.A. de C.V., with the exclusive option to purchase a 100 percent interest in the property over a four year period. The total purchase price of US$3 million may be made by a combination of cash and shares of the Company scheduled over the four years. The Company will make an initial payment of US$150,000 and issue 100,000 shares. On December 31 of each subsequent year, the Company will, at its option, make cash payments and share issuances as follows: 2008 - US$100,000 and 200,000 shares; 2009 - US$150,000 and 200,000 shares; 2010 - US$250,000 and 200,000 shares and 2011 - US$1.5 million and 1 million shares. The Company has also agreed to complete the necessary work and make the obligatory tax payments to ensure that the claims are in good standing. The mineral concession owner is Francisco Crespo Hernandez, a Director of the Company. The transaction is subject to the acceptance of TSX Venture Exchange.
The Cuyoaco Property is located in an old mining camp, formerly known as the Talpizaco-Tateno Mining District. On the property, sedimentary rocks (with limestone predominating) are intruded by a diorite stock and numerous related dykes. Two claims, covering 643 hectares, encompass the former Santa Elena, Santo Nino, Magistral and California-Durazno Mines. At the Santa Elena and Santo Nino zones, coarse metallic gold and electrum in calcite stringers is associated with narrow diorite dikes and adjacent skarns. Gold values from underground workings range up to 3 grams per tonne. At the Magistral and California-Durazno workings, copper-gold-lead-zinc anomalies suggest the presence of a large porphyry copper-gold system.
An independent NI 43-101 Technical Report, prepared by independent consultant Norm Tribe, P. Eng., recommends acquisition of the project and a program of trenching and 5,500 metres of diamond drilling as an initial phase of work to assess the project.
CONTACT:
Linda Thorstad, M.Sc.
P.Geo. Chief Executive Officer
T: (604) 683-5651
E: linda.thorstad@oremex.com
Source: Oremex Resources Inc.
