Oroco Resource Corp. (
TSX-V: OCO, OTC:
ORRCF) (“
Oroco” or “
the
Company”) is pleased to announce the receipt of the assay
results from its initial drilling campaign at its Santo Tomas
property (the “
Property”) in northwestern
Mexico. Eight drill holes have been completed to date, all in
the North Zone (see
Figure 1, attached). An
additional two drill holes in the North Zone are completed, pending
surveying. A further two drill holes are in progress in the
North Zone, and another in the Brasiles Zone. Assays reported
herein are for the first three holes (N001 to N003) comprising
2,350m of HQ3 and NQ3 diameter diamond drilling which produced
1,492 assay samples.
The Company is very pleased that the initial drilling results
confirms the following:
- Copper grades in holes N001 to N003 are comparable to the
historical drilling reported on each of the cross-sections drilled
to date.
- Drilling results in N001 to N003 conform closely to, and
confirm the geological conclusions and the 2009 Gradeshell model of
Cu > 0.3% (the “2009 Gradeshell Model”)
contained in the current Technical Report (‘the “Technical
Report”) (Bridge, 2019: See SEDAR, or the Company’s
website www.orocoresourcecorp.com/projects/technical-reports/).
(see Figures 2, 3 and 4, attached).
- Geological logging indicates copper is present as chalcopyrite
and bornite dissemination and vein fillings. Pyrite is relatively
sparse in the main drill intersections.
- Molybdenum, gold and silver are elevated across the width of
the North Zone and provide about a 15 to 20% contribution to the
copper equivalent grade, without factoring for metallurgical
recoveries.
- Fracturing, Laramide intrusive dikes, mylonite zones, veining
and sulphide mineralization are controlled by faulting co-eval with
the formation of the North Zone deposit. The deposit is confirmed
in drilling with a strike of N20°E and a dip of 50-55°W, as
reported in the Technical Report.
- Sulphide mineralization in the main intersections on the North
Zone are hosted in strongly potassic-altered volcanic and intrusive
rocks with an overprint of phyllic alteration.
- The footwall of the North Zone is propylitic-altered andesite
volcanic rock with disseminated and vein filling pyrite, explaining
the extreme Chargeability High response in the 3D IP survey.
The Santo Tomas Cu-Mo-Au porphyry deposit is an example of the
geologic style of Laramide-age porphyry copper deposits in the
southwestern United States and northwestern Mexico. Historical
Pre-Feasibility Studies, recent 3D modelling of historical
drilling, and several new programs of geophysical surveying have
defined drill targets, both for confirmation of historical mineral
resource estimates and for exploration for additional
resources.
The 2021 drill program commenced on the central North Zone
mineral deposit to confirm historical drill results and the
Company’s geological modelling, and has now spanned 500 m of strike
length on the North Zone. Historical drilling spanning 1968
to 1994 was primarily vertical and unsuited to defining the full
width and depth of the North Zone. The 2021 program is based
on angled drill holes oriented perpendicular to the re-modelled
strike and dip of the deposit and is the first program that
features drill holes that pass from the hanging wall of the North
Zone deposit into the footwall and which also features a full suite
of assay information that includes copper, molybdenum, gold and
silver.
Table 1 contains the most significant intervals in drill holes
N001 to N003. Core intervals in this disclosure are within
10% of the estimated true thickness. The Copper Equivalent
(%) grade is presented for geological comparisons only within this
program and was calculated based on the three-year average of
commodity prices with no factoring for metallurgical recoveries,
which are not yet known. Silver is noted in Table 1 but not
included in the copper equivalent grade calculation. The
attached cross-sections depict all core intervals in N001 to N003
exceeding 10m core length of Cu > 0.10%.
Table 1: Significant Assay Intervals in the Santo Tomas
2021 Program, DDH N001 to N003.
Drill Hole No. |
From (m) |
To (m) |
Length (m) |
Cu
% |
Mo
% |
Au
g/t |
Ag
g/t |
CuEq % |
N001 |
310.0 |
565.0 |
255.0 |
0.39 |
0.010 |
0.045 |
2.20 |
0.46 |
“ |
571.0 |
620.0 |
49.0 |
0.17 |
0.003 |
0.007 |
1.31 |
0.18 |
N002 |
349.9 |
630.0 |
280.1 |
0.38 |
0.012 |
0.025 |
2.85 |
0.44 |
N003 |
295.0 |
306.8 |
11.8 |
0.31 |
0.009 |
0.014 |
2.85 |
0.36 |
|
315.3 |
333.0 |
17.7 |
0.33 |
0.008 |
0.017 |
1.49 |
0.37 |
“ |
339.0 |
364.5 |
25.5 |
0.29 |
0.015 |
0.020 |
2.81 |
0.36 |
“ |
370.0 |
384.3 |
14.3 |
0.50 |
0.008 |
0.026 |
3.33 |
0.56 |
“ |
390.0 |
597.7 |
207.7 |
0.39 |
0.014 |
0.019 |
2.81 |
0.45 |
“ |
601.8 |
678.0 |
76.2 |
0.18 |
0.002 |
0.007 |
2.53 |
0.20 |
Cu Equivalent (CuEq) % = Cu % + (Mo
%*3.75) + (Au ppm*0.752) The commodity prices (3-year Average) used
are in $US: Cu $3.20 /lb, Mo $12.00 /lb, and Au $1, 650.00 /troy
oz. Ag was not used.
Initial drilling results confirm the 3D IP modelling of the deep
penetrating Dias Geophysical Induced Polarization Survey completed
in early 2021. A broad Chargeability High (> 15.8 mV/V)
anomaly coincides with the North Zone mineral deposit and its
flanks. Drilling of holes N001 to N003 confirms that the dip
of the 2009 Gradeshell Model and the edge of the Chargeability High
in the 3D IP are closely co-incident and reliable guides for the
drilling program. The anomaly passes the 600m depth limit of
the 3D IP survey, indicating a broad zone of drilling targets at
depth below the limit of the Gradeshell Model.
Additionally, drilling confirms that the North Zone is comprised
of intensely fractured, potassic- and phyllic-altered andesite
volcanics and Laramide-age porphyritic intrusive dikes.
Elevated Mo, Au and Ag accompany copper assays along the central
axis of the North Zone. Pyrite is relatively low in the core of the
North Zone, explaining the IP response that is in the mid-range of
the Chargeability High responses on the Property. In
contrast, drilling into the footwall of the North Zone in N001 to
N003 consistently intersected propylitic-altered andesite.
The footwall contains abundantly disseminated and vein
pyrite, explaining the pronounced Chargeability High and a
corresponding Resistivity Low in the 3D IP modelling.
Minor footwall copper intersections in historical and recent
drill holes are documented. Diamond drill hole N003
intersected the best footwall grades to date and indicates that the
footwall propylitic zone is prospective for widening the North Zone
at depth and northward along strike towards the Brasiles
Zone.
TECHNICAL INFORMATION AND QUALITY CONTROL & QUALITY
ASSURANCE
The historical drilling data employed in this current
exploration program was the subject of Data Verification procedures
cited in the current Technical Report. Additional drill collar
verifications were performed in the current program and collar
locations fit closely to the 2021 survey control. Appropriate QA/QC
protocols governed geological logging, core sampling, sample
preparation, analyses, and security during the current program,
including quality controls with duplicates, standards, and blanks.
Samples were submitted to the Mexican division of ALS Limited in
Hermosillo, Mexico, for sample preparation to pulps. Sample pulps
are sent to ALS Canada Ltd. in Vancouver, Canada, for analysis.
Total copper and molybdenum contents are determined by four-acid
digestion with AAS finish. Gold was determined by fire assay of a
50-gram charge, or alternately, for a 30-gram charge (1 Assay
ton).
QUALIFIED PERSON
Mr. Paul McGuigan, P. Geo., of Cambria Geosciences Inc., a
“Qualified Person” (as defined in NI 43-101 -Standards for
Disclosure for Mineral Projects) and a senior consulting
geoscientist to the Company, has reviewed and approved the
technical disclosures in this news release.
ABOUT OROCO:
The Company holds a net 73.2% interest in the collective 1,172.9
ha Core Concessions of the Santo Tomas Project in NW Mexico.
The Company also holds a 77.5% interest in 7,807.9 ha of mineral
concessions surrounding and adjacent to the Core Concessions (for a
total project area of 22,192 acres). The Project is situated
within the Santo Tomas District, which extends from Santo Tomas up
to the Jinchuan Group’s Bahuerachi project, approximately 14 km to
the north-east. Santo Tomas hosts a significant copper
porphyry deposit defined by prior exploration spanning the period
from 1968 to 1994. During that time, the property was tested by
over 100 diamond and reverse circulation drill holes, totaling
approximately 30,000 meters. Based on data generated by these drill
programs, a historical Prefeasibility Study was completed by
Bateman Engineering Inc. in 1994.
The Santo Tomas Project is located within 160km of the Pacific
deep-water port at Topolobampo and is serviced via highway and
proximal rail (and parallel corridors of trunk grid power lines and
natural gas) through the city of Los Mochis to the northern city of
Choix. The property is reached by a 32 km access road originally
built to service Goldcorp’s El Sauzal Mine in Chihuahua State.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Cautionary Note
Regarding Forward Looking Information
This news release includes certain “forward-looking
information” and “forward-looking statements” (collectively
“forward-looking statements”) within the meaning of applicable
Canadian securities legislation. All statements, other than
statements of historical fact included herein, including without
limitation, statements relating to future events or achievements of
the Company, are forward-looking statements. There can be no
assurance that such forward-looking statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated or implied in such statements.
Many factors, both known and unknown, could cause actual
results, performance or achievements to be materially different
from the results, performance or achievements that are or may be
expressed or implied by such forward-looking statements.
Readers should not place undue reliance on the
forward-looking statements and information contained in this news
release concerning these matters. Oroco does not assume any
obligation to update the forward-looking statements should they
change, except as required by law.
Craig Dalziel
Oroco Resource Corp.
(604) 688-6200
info@orocoresourcecorp.com
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