Santa Cruz Returns to Production, Exploration Continues in Santa Cruz Mining Camp, Durango, Mexico

8/14/2019 Santa Cruz Returns to Production, Exploration Continues in Santa Cruz Mining Camp, Durango, Mexico

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Santa Cruz Returns to Production:Exploration Continues in the Santa CruzMining Camp, Durango, Mexico

Ben Whiting, Douglas Cavey and Jesus Betancourt

1er CongresoTendencias de la Actividad Minera en Mexico4 6 Septiembre 2008


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Forward Looking Statements

Canadian listed companies are required to make an announcement:

This presentation may contain forward-looking statements includingbut not limited to comments regarding the timing and content ofupcoming work programs, geological interpretations, receipt ofproperty titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and

therefore involve inherent risks and uncertainties. Actual results maydiffer materially from those currently anticipated in such statements.Orex relies upon litigation protection for forward-looking statements.


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Content of Presentation

The Joint Venture - People

Santa Cruz Project - Introduction

Setting Objectives and Targets

History

Geology and Exploration

Production

Summary


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Introduction

Santa Cruz Au-Ag-Cu Project

A joint venture between

Silverex, S.A. de C.V.Durango, Mexico

and

Orex Minerals Inc.Vancouver, Canada


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People

A strong technical and management team:

C.P. Victor Salas Gamero President, Silverex

Ing. Victor Salas Martos VP Operations, Silverex

Mr. Gary Cope President, Orex

Ing. Ben Whiting Chief Geologist, Orex

Ing. Art Freeze Director, Orex

Ing. George Cavey Director, Orex

Ing. Miguel Davila Technical Advisor

Project Leaders Douglas Cavey and Jesus Betancourt


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Introduction

Orex Minerals Inc.Orex Minerals Inc.(TSX VentureExchange: REXREX) ispleased to have as jointventure partners

Silverex SA de CVSilverex SA de CV ofDurango, Mexico

We are focusing on theexploration and

development of Silverand Gold in Mexico,starting with the SantaCruz Project


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Regional Map Durango, Mexico


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Objectives and Targets

Main Objectives Explore a highly prospective and very

under-tested epithermal Au-Ag mining

camp in the heart of theSilver Lake Trend

Sierra Madre Occidental

How large, but still realistic,

can our targets be?


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Potential target types:San Dimas (Tayoltita) - Goldcorp

La Cienega - Peoles


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2. Return to Production

Initially this is at a small scale with the current

Santa Cruz Mill at 50 tonnes/day, increasing to 90tonnes/day --- Depending on exploration success,how large an operation might be possible?

Potential target scales:

San Dimas Goldcorp 2,300 tonnes/day

La Cienega Peoles 3,000 tonnes/day


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History

Santa CruzSanta Cruz, like many Mexican mining camps, has a

long history of exploration and production at a small scale

1780s Earliest phases of small scale mining.

1908 Santa Cruz Mining Company (SCMC) created.

1910-1917 Mexican Revolution.

1918-1934 Intermittent production by SCMC.

1967-1983 Private Dougherty Family

1985-present Private Salas Family

2005 Short exploration program by Minco

2007 Orex Minerals joins with Silverex

2008 Exploration and Production Resume


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Current Status

Where do we stand today?Santa CruzSanta Cruzis a large contiguous land package of 16,502hectares (~ 42,200 acres) mining camp

Historic producing mining operations on the property

A permitted flotation mill and support infrastructure,reactivated in 2008.

33 linear kms of Au and Ag bearing veins, with effectivelyno historic drilling.

A renewed exploration effort at a time of strong worldwidemetal demand.


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Geology

Geological Setting is of intermediate epithermalgold-silver and base metals veins hosted in Tertiaryvolcanics of the Sierra Madre Occidental.

The high plateaus are capped by rhyolites and dacite tuffsof the Upper Volcanic Series

Main host for the veins is andesite tuffs and andesiticagglomerate of the Lower Volcanic Series resting on a

basement of Cretaceous metasedimentary rocks. Multiple mineralized structures, with extensive alteration,over 33 linear kms of Au and Ag bearing veins.

Bonanza high-grade mineralization targets are present.


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The Santa Cruz Camp

The Santa Cruz camp is divided into three structural districts Eastern, Central and Western as follows;


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Santa Cruz Project Map


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Eastern District

Multiple northeast and east striking veins, exceeding 8 kms, includeLa Fragua, Orozco, Las Trojas, San Luis, San Jose, San Pedro, SanJuan (east) and San Benedicto.

Current tennantite-tetrahedrite (commenced late April 2008)production is from the La Fragua MineLa Fragua Mine.. This is on east to northeaststriking structures, with narrow, but high-grade veins.

Small-scale mine extracting tennantite-tetrahedrite (Cu, Ag, Au)direct-shipping ore being sent to China.

Additional material from La Fragua not meeting the direct shippingclassification is being processed in the Santa Cruz Mill, which restartedin mid-June 2008.

Two phases of drilling are planned for La Fragua and Orozco.


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La Fragua Quartz-Tennantite-Tetrahedrite Mineralization


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Central District

Multiple north, northeast and east striking veins exceeding 17 kms,include Santa Cruz, Guadalupana, Marte, Buena Suerte, Chino,

Grande, San Juan and Guadalupe. Only the Chino and Grande veinshave had a minor amount of historic drilling.

Santa Cruz MineSanta Cruz Mine, a past producer with 17 levels of undergrounddevelopment to a depth of 240 metres.

Drilling planned for the Santa Cruz vein to identify additional clavos(mineralized shoots) along strike adjacent to the mine workings.

Historic references of face sampling values over 0.25 to 1.00 mwidths show grade ranges 2.0 to 11.5 grams Au/tonne and 1,990 to

30,776 grams Ag/tonne.


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Santa Cruz Facilities Mill, Dormitory, Office, Cookhouse


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Western District

Multiple northwest striking veins over 6 kms include Jesus Maria,Christian, Zambranea, La Perla, Carmen, Creston and Cordon.Intense alteration zones envelop the veins.

Old mine workings at Zambranea and La Perla will be re-opened forexamination and additional mapping.

Historic references of face sampling values over 0.50 to 3.00 m widthshow grade ranges 1.0 to 26.0 grams Au/tonne and 900 to 3,500 gramsAg/tonne.

Highest grab sample recorded Au 5,500 g/t and Ag 110,000 g/t.

Road extension of the Zambranea Road (upper road) and JesusMaria (lower road) has been conducted in 2008 to provide improvedaccess. The Western District has never been drilled. Two phases ofdrilling are planned for 2008.


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Jesus Maria Location


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Sampling on Lower El Carmen Showing


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Highlights of 2007 Sampling

Sample Target Type(true width)

Au

(g/t)

Ag

(g/t)

Ag *

Equivalent

Cu

(ppm)

Pb

(ppm)

Zn

(ppm)

100003 Carmen Chip -1.50m 0.370 197.0 219.2 24 918 1546

100004 Carmen Chip - 2.50m 1.002 284.0 344.1 38 108 199

100006 Zambranea Rock grab 1.233 433.7 507.7 29 52 99

100009 Jesus Maria Chip - 1.00m 10.060 817.0 1420.6 112 470 647

100011 Jesus Maria Chip - 1.10m 1.444 663.6 750.2 114 826 1630

100013 Christian Chip - 1.50m 13.150 929.9 1718.9 134 187 382

100014 Christian Chip - 1.50m 7.780 348.7 815.5 65 85 215

100015 Santa Cruz Rock grab 6.500 882.1 1272.1 102000 95 2208

*Silver-equivalent is defined as silver grade plus 60 times gold grade. Metallurgical recoveries and net smelter

returns are assumed to be 100% for this purpose. Base metal values are not included in the silver-equivalent value.


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La Christian Showing


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Exploration - Current Activities

Current activities on site consist of road and bridgerepairs, as well as new road construction, to gain betteraccess to Orozco in the east and Zambranea and JesusMaria in the west. The rainy season has made roadconditions a priority.

Ortho-photography has been flown and surveying controlstations have been prepared for topographic control.

Reconnaissance sampling and geological mapping in the

Western and Eastern Districts has also commenced, as wellas the identification of drill targets.

A drilling program is planned for the dry season.


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Road Repairs Jesus Maria Road


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Proposed Budget 2008-09

Phase I Eastern Central Western Totals

Diamond Drilling No. of Holes 10 6 15

Metres 3000 2000 5000

@ $150/m $450,000 $300,000 $750,000 $1,500,000

Analytical No. of Samples 2000 2000 4000

@ $25/sample $50,000 $50,000 $100,000 $200,000

Geol/Tech (Re: Drilling)

@ $10/metre $30,000 $20,000 $50,000 $100,000

Geological Mapping $10,000 $10,000 $10,000 $30,000

Licensed Surveying $5,000 $5,000 $5,000 $15,000

Support Services $6,000 $4,000 $10,000 $20,000

Report Preparation /Management $10,000 $10,000 $20,000 $40,000

Contingencies @ 10% $56,100 $39,900 $94,500 $190,500

TotalsTotals $617,100$617,100 $438,900$438,900 $1,039,500$1,039,500 $2,095,000$2,095,000


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Proposed Budget 2008-09

Phase II Eastern Central Western Totals

Diamond Drilling No. of Holes 10 6 15

Metres 3000 2000 5000

@ $150/m $450,000 $300,000 $750,000 $1,500,000

Analytical No. of Samples 2000 2000 4000

@ $25/sample $50,000 $50,000 $100,000 $200,000Geol/Tech (Re: Drilling)

@ $10/metre $30,000 $20,000 $50,000 $100,000

MetallurgicalTesting

$10,000 $10,000 $10,000 $30,000

Licensed Surveying $5,000 $5,000 $5,000 $15,000

Support Services $6,000 $4,000 $10,000 $20,000Report Preparation /Management $10,000 $10,000 $20,000 $40,000

Contingencies @ 10% $56,100 $39,900 $94,500 $190,500

TotalsTotals $617,100$617,100 $438,900$438,900 $1,039,500$1,039,500 $2,095,000$2,095,000


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Production - Current Activities

Small-scale mining operation has resumed on theEastern Districts La Fragua Mine. This is for production ofdirect-shipping high-grade tennantite-tetrahedrite ore andfor mill feed.

The Santa Cruz Mine existing buildings, used to house

approximately 20 workers, are now refurbished and arebeing utilized.

Milling engineering consultants have examined the

Santa Cruz Mill and tailings. The Santa Cruz mill was overhauled and commencedoperation in mid-June 2008 at an initial 50 tdp. Initialproduction results to be announced soon.


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La Fragua High-Grade and Stockpile Mineralization


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South Ball Mill

Mill Renovations


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Flotation Cells

Mill Renovations


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Froth Flotation Santa Cruz Mill


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Fire Assay Santa Cruz Lab


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Summary

A two phase exploration geological mapping, sampling and diamond

drilling exploration program, consisting of 20,000 metres, has beenproposed for the 2008-09 season.

25 kilometres ofroad repairs have been completed to improve accessin the Central and Eastern Districts.

New road construction to improve access to the Western District isunderway to complete an upper road to the Zambranea and a lower

road to the Jesus Maria areas.

Resurfacing the Mesa de la Tortuga airstrip -1.6 Kilometres long, thelongest airstrip in the region.

Small-scale mining operation resumes on the Eastern Districts LaFragua.

The Santa Cruz millcommenced operation in mid-June 2008 at aninitial 50 tdp, with expansion planned to 90 tdp.


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Airstrip Santa Cruz


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Capital Structure

Listing: TSX Venture ExchangeTrading Symbol: REXREX

Share StructureIssued: 47,391,470

Warrants: 4,048,750Options: 4,082,000Fully diluted: 55,522,220

Working CapitalWorking Capital $300,000

Fully Diluted Working CapitalFully Diluted Working Capital $2,500,000

52 Week Low/High52 Week Low/High CDN $0.15 to $0.51


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Warrants Outstanding

Warrants Outstanding

Each warrant is exercisable into one common share

Warrants Exercise Price Proceeds Expiry Date

4,048,750 $0.20 809,750 June 2009

Options OutstandingEach option is exercisable into one common share

Options Exercise Price * Proceeds Expiry Year

684,000 $0.39 266,600 2009203,000 $0.28 56,300 2010

1,430,000 $0.43 615,150 2011

1,565,000 $0.27 424,550 2012

3,882,000 1,362,600$

* Exercise price presented is a weighted average of all options that expire in the year.


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Contact Information


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Contact Information

Orex Minerals Inc.

2610-1066 West Hastings Street

Vancouver, B.C. Canada V6E 3X2

Phone: +1.604.684.4691

Fax: +1.604.684.4601

Email: [email protected]@orexminerals.com

Web: www.orexminerals.comwww.orexminerals.com

Santa Cruz Returns to Production, Exploration Continues in Santa Cruz Mining Camp, Durango, Mexico

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